When someone is seriously injured in Texas, one of the first questions they may have is how much compensation they can recover. Medical bills, lost income, pain, physical limitations, and long-term care needs can place enormous pressure on an injured person and their family. In many personal injury cases, Texas law allows injured victims to pursue compensation for the full extent of their proven losses.

However, there are important exceptions. Texas does not have one universal cap that applies to every personal injury case, but state law does place limits on certain types of damages and certain categories of claims. These limits can affect the final amount an injured person may recover, even after a jury returns a larger verdict. These caps can sometimes influence whether or not to settle.

In other words, the amount a jury awards and the amount a court ultimately enters as a judgment are not always the same. Understanding Texas damage caps is important in car accident cases, premises liability claims, medical malpractice lawsuits, wrongful death cases, and claims involving government entities.

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Does Texas Cap Personal Injury Damages?

In most ordinary personal injury claims against private defendants, Texas does not place a general cap on compensatory damages. That means there is usually no statewide statutory limit on damages for medical expenses, lost wages, loss of earning capacity, pain and suffering, physical impairment, disfigurement, or other losses caused by the injury. Whatever your calculable medical bills, the other side will be required to pay that amount based on their percent of liability.

For example, injury cases are not subject to a general cap on compensatory damages. If the evidence supports the damages, a jury may award compensation based on the harm the injured person suffered.

But Texas law does limit recovery in specific situations. The most important statutory limits involve:

  • Punitive or exemplary damages;
  • Medical malpractice noneconomic damages;
  • Certain wrongful death and survival claims involving health care liability;
  • Claims against state or local government entities.

These exceptions can have a major effect on the value of a case.

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Types of Damages Available in a Texas Personal Injury Case

Texas personal injury damages generally fall into three major categories: economic damages, noneconomic damages, and exemplary (punitive) damages.

Economic Damages

Economic damages are the financial losses caused by an injury. Texas Civil Practice and Remedies Code § 41.001 defines economic damages as compensatory damages intended to compensate a claimant for actual economic or pecuniary loss. The statute excludes exemplary damages and noneconomic damages from that definition.

Noneconomic Damages

Noneconomic damages compensate for losses that are real but not easily measured with receipts or invoices. Texas Civil Practice and Remedies Code § 41.001 defines noneconomic damages to include damages for physical pain and suffering, mental or emotional pain or anguish, loss of consortium, disfigurement, physical impairment, loss of companionship and society, inconvenience, loss of enjoyment of life, injury to reputation, and other nonpecuniary losses.

In many non-medical personal injury cases, Texas does not impose a general cap on noneconomic damages. However, medical malpractice claims are treated differently, as explained below.

Exemplary or Punitive Damages

Exemplary damages, also known as punitive damages, are different from compensatory damages. They are not meant to reimburse a person for a specific loss. Texas Civil Practice and Remedies Code § 41.001 defines exemplary damages as damages awarded as a penalty or by way of punishment, and the statute states that exemplary damages include punitive damages.

These damages are only available in limited circumstances and are subject to strict Texas statutory requirements.

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Texas Punitive Damages Cap

Texas places a statutory cap on exemplary damages in most personal injury cases. Under Texas Civil Practice and Remedies Code § 41.008, exemplary damages awarded against a defendant may not exceed the greater of:

  1. Two times the amount of economic damages, plus an amount equal to the noneconomic damages found by the jury, up to $750,000; or
  2. $200,000.

This means a jury may believe a defendant deserves a larger punishment, but the court may still reduce the punitive damage award to comply with Texas law.

For example, if a defendant’s conduct was extremely reckless, a jury might award significant exemplary damages. But unless a statutory exception applies, the final punitive damages award must fit within the limits set by Texas Civil Practice and Remedies Code § 41.008.

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When Are Punitive Damages Available in Texas?

Punitive damages are not available just because someone was negligent. Texas law requires a higher level of proof.

Under Texas Civil Practice and Remedies Code § 41.003, exemplary damages may be awarded only if the claimant proves by clear and convincing evidence that the harm resulted from fraud, malice, or gross negligence. The same statute states that the burden cannot be shifted to the defendant and cannot be satisfied by evidence of ordinary negligence, bad faith, or a deceptive trade practice.

Texas law also requires jury unanimity for exemplary damages. Under § 41.003, exemplary damages may be awarded only if the jury is unanimous regarding both liability for exemplary damages and the amount of those damages.

This is important in serious injury cases involving allegations of gross negligence, such as cases involving drunk driving, dangerous company policies, unsafe trucking practices, or repeated disregard for known safety hazards.

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Exceptions to the Texas Punitive Damages Cap

The punitive damages cap does not apply in every case. Texas Civil Practice and Remedies Code § 41.008 lists certain exceptions involving specific felony conduct, mostly involving murder and sexual crimes.

For most of the listed felony exceptions, the statute requires that the conduct be committed knowingly or intentionally, although the statute treats intoxication assault and intoxication manslaughter differently in that clause. Texas Civil Practice and Remedies Code § 41.008 also states that the exemplary damages cap does not apply to certain claims for damages arising from the manufacture of methamphetamine as described by Chapter 99.

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The bottom line here is that exceptions to the damage caps are more or less exclusive to intentional criminal acts, making them personal civil cases. Those cases are difficult to litigate, and can be exceptionally tricky to actually receive compensation afterwords.

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Texas Medical Malpractice Damage Caps

Medical malpractice cases are one of the most important exceptions to the general rule that Texas personal injury damages are not broadly capped.

Under Texas Civil Practice and Remedies Code § 74.301, noneconomic damages in a health care liability claim are capped at $250,000 per claimant against physicians or health care providers other than health care institutions, regardless of the number of defendant physicians or providers involved.

The statute also limits noneconomic damages against a single health care institution to $250,000 per claimant. If the case involves more than one health care institution, the statute limits noneconomic damages to $250,000 per claimant for each institution, with an overall cap of $500,000 for all health care institutions combined.

These caps apply to noneconomic damages, such as pain and suffering, mental anguish, physical impairment, and loss of companionship. They do not operate as a general cap on economic damages such as medical expenses or lost income.

Texas Constitution Article III, Section 66 authorizes the Texas Legislature to limit damages other than economic damages in health care liability claims. The same constitutional section defines economic damages as compensatory damages for pecuniary loss or damage and excludes losses such as pain and suffering, mental anguish, loss of consortium, disfigurement, and physical impairment from that definition.

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Wrongful Death and Survival Claims in Texas Medical Malpractice Cases

Texas law also places limits on certain wrongful death and survival claims involving health care liability.

Under Texas Civil Practice and Remedies Code § 74.303, in a wrongful death or survival action on a health care liability claim, civil liability for all damages, including exemplary damages, is limited to $500,000 for each claimant, adjusted according to the consumer price index formula described in the statute.

However, § 74.303 states that this limit does not apply to damages awarded for the expenses of necessary medical, hospital, and custodial care received before judgment or required in the future for treatment of the injury.

This distinction is especially important in severe medical malpractice cases involving long-term care, catastrophic injury, or death.

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Damage Caps in Claims Against Government Entities

Texas also limits damages in certain injury claims against government entities. These cases are governed by the Texas Tort Claims Act.

Under Texas Civil Practice and Remedies Code § 101.023, the state government’s liability is limited to $250,000 per person and $500,000 per single occurrence for bodily injury or death, plus $100,000 per single occurrence for property damage.

For many local government units, liability is limited to $100,000 per person and $300,000 per single occurrence for bodily injury or death, plus $100,000 per single occurrence for property damage.

Municipalities have a different limit. Under § 101.023, a municipality’s liability is limited to $250,000 per person and $500,000 per single occurrence for bodily injury or death, plus $100,000 per single occurrence for property damage.

Texas law also bars exemplary damages under the Texas Tort Claims Act. Texas Civil Practice and Remedies Code § 101.024 states that Chapter 101 does not authorize exemplary damages. This means that Houston and other cities cannot be sued for punitive damages.

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Can a Texas Jury Be Told About Damage Caps?

In many cases, juries are not told about statutory damage caps. For exemplary damages, Texas Civil Practice and Remedies Code § 41.008 states that the provisions of the punitive damages cap may not be made known to the jury through voir dire, evidence, argument, or instruction.

In health care liability wrongful death and survival cases, Texas Civil Practice and Remedies Code § 74.303 requires jury instructions telling jurors not to consider, discuss, or speculate whether liability is subject to any limit under applicable law.

This means the jury may decide damages based on the evidence presented at trial, while the judge later applies any statutory limits required by Texas law.

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Contact a Texas Personal Injury Attorney

If you were injured in Texas, it is important to understand whether any statutory damage caps may apply to your claim. Texas does not limit every personal injury verdict, but certain cases are subject to strict limits that can affect the final amount recovered. Knowing how your case may be limited by the state lets you refocus on getting the best possible compensation.

Hilda Sibrian has represented injury victims in negligence claims across Texas for over 22 years. If you have been seriously injured or someone you love was killed due to someone else’s negligence, you need to call an experienced Houston attorney as soon as possible. The Law Offices of Hilda Sibrian serve all of Houston and Texas, including Sugar Land, Missouri City, La Porte, Beaumont, Pasadena, The Woodlands, The Heights, Bellaire, Kingwood, Baytown and of course Houston proper.

Call the Law Offices of Hilda Sibrian today for a free consultation, or fill out our online contact form