What Is the Texas Cap on Punitive Damages?

Some accidents go beyond simple mistakes. When conduct becomes reckless or intentional, the law can hold the wrongdoer accountable.

Founded in 2024 by attorney Sabrina Galvan, Galvan Law Group helps injured Texans pursue accountability. Sabrina worked for insurance defense firms and now uses that knowledge to protect clients from insurer tactics.

This article explains punitive damages in Texas, the statutory limits, and what must be proven in court.

It also covers situations where the cap does not apply and other damage limits that may affect a case, so you understand what the law allows and where it draws the line.

Compensatory vs. Exemplary Damages in Texas Law

Texas law separates compensation for your losses from damages meant to punish the at-fault party. Understanding the difference helps you set realistic expectations from the start.

Economic and Non-Economic Losses

Economic damages cover money you paid or will pay, including medical bills, rehab, prescriptions, future treatment, and lost wages or earning capacity. These numbers come from bills, records, pay stubs, and medical opinions.

Non-economic damages compensate for human losses that do not show up on a receipt. That includes physical pain, mental anguish, permanent impairment, disfigurement, and loss of companionship.

Both categories aim to make you whole. They are not meant to punish the other side, even when conduct was outrageous.

The Purpose of Punitive Damages

Punitive damages, called exemplary damages in Texas, serve a different goal. They punish and deter severe misconduct that goes beyond ordinary negligence.

Courts award exemplary damages in only a small number of civil cases, and only when the evidence demonstrates extreme behavior. They are awarded in addition to compensatory damages, but strict rules limit when and how much can be awarded.

The Exact Limits: Texas Civil Practice and Remedies Code Section 41.008

Texas caps exemplary damages by statute. The rule comes from Texas Civil Practice and Remedies Code Section 41.008.

The cap uses a formula set by the Legislature. Punitive damages are limited to the greater of two amounts: 200,000 dollars, or two times the amount of economic damages, plus an amount equal to any non-economic damages found by the jury, not to exceed 750,000 dollars.

Here is a quick example. If the jury awards 300,000 dollars in economic damages and 400,000 dollars in non-economic damages, the cap equals two times 300,000, which is 600,000, plus up to 400,000 in non-economic damages.

But that part cannot exceed 750,000 dollars. The total cap in that scenario would be 1,000,000 dollars.

Item	Rule or Number	Notes
Statute	CPRC § 41.008	Governs exemplary damage limits
Minimum Cap	$200,000	Applies if formula yields less
Formula Cap	2 × economic + non-economic	Non-economic portion capped at $750,000
Example Inputs	$300,000 economic, $400,000 non-economic	Numbers from jury award
Example Cap Result	$1,000,000	2 × 300,000 = 600,000, plus 400,000

Jurors do not get told about this cap during trial. They decide on an amount, and the court applies the cap later if needed.

Exemptions Where the Punitive Damage Cap Does Not Apply

Texas lifts the cap for certain criminal acts that lead to a civil personal injury or wrongful death case. The law identifies a list of serious offenses in the Penal Code.

Common cap exceptions include the following crimes:

• Murder and capital murder.
• Aggravated assault.
• Sexual assault and aggravated sexual assault.
• Human trafficking offenses.
• Injury to a child, elderly individual, or disabled person.
• Intoxication assault and intoxication manslaughter.

Drunk driving crashes that cause severe injury or loss of life often fall in this category. If the evidence supports one of these listed offenses, the statutory limit on exemplary damages does not apply.

The High Burden of Proof for Punitive Damages

Punitive damages require more than proof of careless conduct. Texas sets a high bar to make sure punishment is reserved for the worst behavior.

Proving Fraud, Malice, or Gross Negligence

To recover exemplary damages, you must show fraud, malice, or gross negligence by the defendant. This is separate from proving ordinary negligence that supports compensatory damages.

Gross negligence means conduct that involves an extreme degree of risk and a person proceeding with conscious indifference to the safety of others. In simple terms, the defendant knew the danger and went ahead anyway.

Evidence that can support a gross negligence finding often includes:

• Company policies that ignored known safety hazards.
• Prior similar incidents that were brushed aside.
• Clear violations of law or industry standards.
• Internal emails or texts admitting the risk.
• Post-incident cover-ups or destruction of records.

Every case turns on its facts, and strong documentation goes a long way.

The Standard of Clear and Convincing Evidence

Texas requires clear and convincing evidence for exemplary damages. This burden is higher than the preponderance of the evidence standard used for ordinary compensation.

Think of it as needing proof that leaves a firm belief in the truth of the allegations. The jury must feel more than a slight tilt in your favor.

The Requirement for a Unanimous Jury Verdict

Under reforms passed in 2003, any award of exemplary damages in Texas needs a unanimous jury verdict. That unanimity covers both liability for punitive damages and the exact amount.

This rule applies even when the jury split on other issues. No unanimous agreement, no exemplary damages.

Bifurcated Trials and Evidentiary Rules

Courts often try punitive issues in two phases. The first decides liability and compensatory damages, and the second addresses whether to award exemplary damages and how much.

1. Phase one: the jury decides fault and the amount of economic and non-economic losses.
2. Phase two: the jury hears limited evidence on punishment and sets a number, subject to legal limits.

Recent Texas Supreme Court rulings, including Gregory v. Chohan, stress that requested numbers must tie to evidence. The Court rejected empty anchoring tactics and asked for reasoned explanations grounded in the record.

Other Notable Damage Limitations in Texas

Punitive caps are not the only limits that matter. Two other sets of rules frequently affect personal injury recoveries.

Medical Malpractice Liability Limits

Texas caps non-economic damages in medical malpractice cases at 250,000 dollars per healthcare provider. There is also a 500,000-dollar total limit against all healthcare institutions combined in the same case.

These caps apply to non-economic losses only, not to medical bills or lost earnings. Claims involving multiple defendants can get tricky fast, so accurate party identification matters.

Lawsuits Against Government Entities

For claims against state government entities, the Texas Tort Claims Act limits bodily injury damages to 250,000 dollars per person and 500,000 dollars per occurrence. Local governments can have different limits set by statute.

Exemplary damages cannot be awarded against a government entity in Texas. Plaintiffs can still seek compensatory damages within the statutory caps.

Contact Galvan Law Group for Your Texas Personal Injury Case

If you were seriously hurt by severe negligence or worse, we can step in and press for the maximum recovery the law allows.

Sabrina Galvan, a Texas Super Lawyers Rising Star from 2021 through 2026, pairs her prior insurance defense background with a relentless focus on injured clients.

Feel free to call 214-556-6957 or reach us through our contact page. We welcome your questions and can walk you through, step by step, what punitive damages might look like in your case.