Exemplary damages punish conduct the law considers especially blameworthy. Texas sets a high bar to reach them and a formula to limit them.
The clear-and-convincing standard
Under Tex. Civ. Prac. & Rem. Code Chapter 41, exemplary damages require clear and convincing evidence of fraud, malice, or gross negligence. This is a higher proof standard than the preponderance standard for ordinary damages. Routine carelessness does not qualify — the conduct must show conscious indifference or intent.
The cap, and when it lifts
Exemplary damages are capped at the greater of:
- $200,000; or
- two times economic damages, plus noneconomic damages up to $750,000.
The cap does not apply to certain felony conduct — for example murder, aggravated assault, or intoxication manslaughter — where the underlying act is criminal.
Whether a case can support a punitive-damages claim is a fact-intensive call. A Texas injury lawyer assesses whether the conduct clears the standard.