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What are Exemplary Damages in Texas? 

What are Exemplary Damages in Texas?

After a serious accident, securing maximum compensation isn’t just about covering your medical bills, lost wages, or other compensatory damages — it’s about holding the responsible company fully accountable for the harm they caused. That’s why you need a team that knows how to pursue every form of recovery available, including punitive (or exemplary) damages, which are meant to punish especially reckless or dangerous behavior and make sure it never happens again.

At Zehl & Associates, we’ve recovered Billions for our clients, including record-setting verdicts and settlements against the largest corporations and insurance companies in the world. In nearly every case we’ve taken to trial, our lawyers have secured punitive damages, sending a clear message to companies that put profits over safety: you will be held fully accountable.

Read on to learn why exemplary damages matter in Texas personal injury and wrongful death cases—and how our undefeated personal injury lawyers can fight to recover the full justice and compensation you deserve.

Understanding Exemplary (Punitive) Damages

Exemplary damages are not meant to compensate the victim but to punish the defendant for conduct that is particularly egregious. These damages are awarded only in rare cases—typically when the defendant’s behavior goes beyond ordinary negligence and involves fraud, malice, or gross negligence.

In other words, while compensatory damages make the victim whole, exemplary damages send a message: This kind of behavior will not be tolerated.

For example, if a drunk driver causes a serious crash after multiple prior DUI convictions, a jury may decide to award exemplary damages to punish that reckless disregard for others’ safety.

Under Texas law, exemplary damages are defined as “any damages awarded as a penalty or by way of punishment but not for compensatory purposes.” The statute makes it clear that such damages are reserved for extreme cases and are not available in every personal injury claim.

To recover exemplary damages, the plaintiff must prove the defendant acted with one of the following mental states:

  • Fraud – The defendant intentionally deceived another person, resulting in harm.
  • Malice – The defendant acted with specific intent to cause substantial injury.
  • Gross Negligence – The defendant’s actions showed such an extreme disregard for safety that harm was almost certain to occur.

This strict standard helps ensure that exemplary damages serve their intended purpose—to punish the worst offenders without unfairly burdening those guilty of mere negligence.

The Burden of Proof

Unlike compensatory damages, which are proven by a “preponderance of the evidence” (more likely than not), exemplary damages require a higher standard of proof. The plaintiff must show “clear and convincing evidence” that the defendant’s conduct meets the legal threshold.

This higher burden ensures that exemplary damages are awarded only when the evidence strongly supports that the defendant’s conduct was outrageous or intentional.

Statutory Limits on Exemplary Damages

Texas law places caps on the amount of exemplary damages that can be awarded. 

Exemplary damages may not exceed:

  • Two times the amount of economic damages, plus
  • An amount equal to non-economic damages (up to $750,000), or
  • $200,000, whichever is greater.

These limits prevent excessive awards while ensuring that punishment remains proportional to the misconduct.

When Courts Award Exemplary Damages

Courts in Texas are cautious about awarding exemplary damages. They are generally reserved for cases involving willful, reckless, or intentional misconduct. 

Common examples include:

  • Drunk driving accidents causing severe injury or death
  • Nursing home abuse or neglect resulting in serious harm
  • Product liability cases where a manufacturer knowingly ignored safety risks
  • Fraudulent business practices that intentionally deceive consumers
  • Assault or other intentional torts

Each case is fact-specific. The presence of negligence alone—no matter how severe—usually isn’t enough. The plaintiff must show that the defendant’s actions were so reckless or intentional that punishment is justified.

How Exemplary Damages Are Determined

In Texas, the jury typically decides whether exemplary damages are warranted and, if so, how much to award. 

They consider several factors, including:

  • The nature and seriousness of the wrongdoing
  • The degree of culpability or intent
  • The defendant’s financial situation
  • The extent of harm suffered by the plaintiff
  • The need to deter similar conduct in the future

The goal is not to bankrupt the defendant but to impose a meaningful penalty that discourages future misconduct.

Why Exemplary Damages Matter

Exemplary damages play an important role in Texas civil law by promoting accountability and public safety. They serve as a deterrent against reckless or intentional acts that endanger others and reinforce the principle that extreme misconduct carries serious consequences.

For victims, these damages can also provide a sense of justice and closure, knowing that the wrongdoer was held fully accountable—not just financially, but morally as well.

Contact Zehl & Associates for a Free Consultation

At Zehl & Associates, we’ve built our reputation on results. Our Undefeated trial lawyers have recovered Billions for our clients across Texas, holding corporations and negligent parties fully accountable for their actions. When you’re facing life-changing injuries or losses caused by someone else’s reckless or intentional conduct, you deserve a team that knows how to win—and won’t back down.

Contact us today for a free consultation at 1-888-603-3636 and learn why accident victims throughout Texas trust our Undefeated attorneys to protect their rights and deliver record-setting results.

For more information, please contact our Undefeated Workplace Accident attorneys at Zehl & Associates Injury & Accident Lawyers to schedule a free consultation today.

We proudly serve Harris County, Midland County, and throughout the state of Texas. We are located in Houston and Midland and throughout the state of Texas:

Zehl & Associates Injury & Accident Lawyers – Houston
2700 Post Oak Blvd #1000, Houston, TX 77056
(888) 603-3636
Open 24 hours

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Zehl & Associates Injury & Accident Lawyers – Midland
306 W Wall St Suite 701, Midland, TX 79701
(432) 220-0000
Open 24 hours

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