What Are Punitive Damages? Texas Personal Injury Lawyers
Punitive damages, also known as exemplary damages, are additional damages awarded to a plaintiff that are meant to serve as a deterrence for bad behavior. In Texas, punitive damages are governed by the Texas Civil Practice and Remedies Code and are awarded in cases where the defendant's actions involve fraud, malice, or gross negligence. Securing a punitive damages award requires clear and convincing evidence of the degree of misconduct.
The best way to secure punitive damages is to find an attorney will a securing of securing exemplary damages for their clients. If you believe you are entitled to punitive damages in your accident claim, call (866) 434-0014 today to discuss your claim with an experienced punitive damages attorney at no charge.
We serve clients nationwide and across the State of Texas, including all areas in Houston, Dallas, Midland, Odessa, San Antonio, Fort Worth, and throughout Texas. We handle catastrophic personal injury cases, including oil accidents, trucking accidents, wrongful death cases, plant explosions, dangerous product claims, maritime and offshore accidents. and other practice areas. Let us secure the highest possible damages for you and your family.
What Is The Purpose of Punitive Damages?
The purpose of punitive damages is to discourage the defendant and any others from participating in certain unethical behaviors such as gross negligence, fraud, malice, or violence. This kind of conduct is often intentional and premeditated, which takes it a step further on the moral scale. Punitive damages punish the defendant for their immoral actions by forcing them to pay an extra penalty amount along with the compensatory damages they owe to the plaintiff. For example, suppose a defendant takes advantage of a plaintiff’s circumstances and makes earnings off of their suffering in an illegal way. In that case, punitive damages may be granted to the plaintiff on top of the other compensation they are given for their actual losses. By punishing the defendant in this way, the court highlights the magnitude of this kind of misconduct.
How Are Punitive Damages Awarded in Texas?
Punitive damages are awarded in Texas only if the plaintiff can present clear and compelling evidence that proves that the defendant’s unethical actions caused them harm. Once evidence is shown, the jury must all come to a consensus on the distribution of liability and the quantity of damages that will be awarded. According to section 41.008 of the Texas Civil Practice and Remedies Code, exemplary damages are awarded by a limited monetary amount. Several factors are considered when determining the total amount of exemplary damages such as the degree of misconduct, the impact of the defendant’s behavior on the societal standards of justice, who was involved, and the net worth of the defendant.
What Is The Cap on Punitive Damages In Texas?
Texas law punitive damages are generally capped at either $200,000 or two times the amount of non-economic damages up to $750,000. The statutory caps do not apply if the defendant’s conduct also amounts to a felony, such as in cases of intoxication manslaughter.
When Can Exemplary Damages Be Awarded in Texas?
Exemplary damages may be awarded in Texas in circumstances where the defendant committed intentional fraud, gross negligence, or malice. For example, a defendant engages in fraud if they deceive one of their paying customers about a product to get a substantially unfair amount of money. Or if a defendant drives recklessly fast down a neighborhood road fully aware that they could potentially hit someone, they commit gross negligence. An example of malice is if an employee is targeted for their personal beliefs by their employer (the defendant) and is intentionally harmed by them.
When Can’t Punitive Damages Be Awarded?
Texas law limits the circumstances in which punitive damages can be awarded to prevent claims that are not as egregious from being made. Punitive damages can not be awarded for cases that contain ordinary negligence, breaches of contract, legal immunities, or statutory exceptions.
How Are Punitive Damages Calculated in Texas?
Punitive damages are calculated based on the economic and non-economic damages that the plaintiff received. Non-economic damages are often calculated by using the multiplier method, which uses a number between 1.5 and 5 depending on the level of pain the plaintiff experienced from their injury and multiplies it by the sum of the economic (monetary) damages. These numbers are used to define the maximum limit of exemplary damages by doubling the economic damages and adding the non-economic damages to a cap of $750,000.
Examples of Punitive Damages in Personal Injury Cases
Punitive damages happen when people act maliciously and carelessly toward the welfare of those around them. Some examples of exemplary damages include:
Drunk driving: When someone purposely gets drunk without having a sober ride home and chooses to drive anyway, they risk the safety and lives of the people around them on the road. For example, a drunk man decides to drive himself home instead of calling an Uber or a sober friend and hits someone head-on while swerving in their lane causing them to obtain serious injuries. Around 32% of all car crashes in the U.S. are caused by drunk drivers, many of which result in death.
Medical malpractice: This occurs when a medical provider’s actions or lack of actions cause significant injuries to the patient they are responsible for. This could be a surgical error, misdiagnosis, medication error, or failure to order the right tests. These errors often cause permanent impairments, profound suffering, and even death for patients. For example, a doctor fails to look into their patient’s medical history before quickly diagnosing them, leading to the patient adopting a treatment that works against them instead of in their favor.
Product liability: If a manufacturer or seller profits from a product despite being aware of its dangers and the potential risks it poses to customers, they can be held liable for the damages it causes to those who use it. For example, a company sells a children’s toy and conceals the fact that there are dangerous chemicals in the product and those children contract illnesses from it.
If you or someone you know has been involved in a personal injury case that has affected your physical and mental well-being, you deserve to be rightfully compensated. At Sneed and Mitchell, our lawyers are compassionate and dedicated to each one of our clients, ensuring they receive the highest level of care while working with us. Call (866) 434-0014 to speak with an experienced lawyer today during a free consultation.
Factors Influencing Punitive Damages Awards
Factors that influence the size of an punitive damage award include the conduct of the defendant, how convincing the evidence is, the defendant’s net worth, the size of the company that committed wrongful acts, and the culpability of the defendant. For example, if the defendant is a wealthy or famous person with many financial assets to their name, the award may be set higher to effectively punish them and make a meaningful impact on their finances.
Similarly, if a company is a multibillion-dollar organization and commits an act such as fraud, the exemplary damages will be based on its worth as a company. The kinds of actions the defendant took and their level of responsibility in the accident that caused the victim’s injuries also influence the amount of exemplary damages awarded.
How Punitive Damages Deter Misconduct
Exemplary damages deter misconduct by punishing the defendant, ensuring they face consequences for their actions while also discouraging others from acting in similar behavior. The act of penalizing the defendant is known as a punitive impact. A deterrent impact is based on the message the punitive impact sends to other people, which is meant to serve as a warning. When others see the size of the loss that the defendant receives from their sentence, they are more likely to heed the warning, which prevents future negligence from occurring.
Examples of Cases Involving Significant Punitive Damage Awards
As you can imagine, when a jury determines the actions of a large corporation are worthy of monetary punishment for their egregious actions, the punitive damages award after deliberations could include a hefty award. Texas, through tort reform, installed caps to protect against excessive penalties after seeing the jurors were awarding the plaintiff sums that could cause a business to file for bankruptcy. Below are some notable cases involving significant punitive damages awards across the United States.
Philip Morris and Big Tobacco Cases
A Florida jury found evidence that several major tobacco companies were intentionally concealing the harmful effects of the tobacco they were selling. Due to the companies’ multi-billion dollar net worth, the award to the tobacco consumers was raised to an astounding $145 billion, which was the largest monetary amount of punitive damages ever granted in America at the time. The actions of RJ Reynolds, Philip Morris, and other big tobacco companies were deemed fraudulent and conspiratorial.
Johnson & Johnson Talc Case
In 2018, a Missouri jury found that Johnson & Johnson’s talcum and baby powder was contaminated with asbestos, a classified carcinogen known to cause damage to those exposed to it. The 22 women who claimed they developed ovarian cancer from using it on their genitals over the years were awarded $4.69 billion in both punitive and compensatory damages.
Exxon Valdez Oil Spill
In 1989, Exxon spilled around 11 million gallons of crude oil into the Bligh Reef in Alaska, which resulted in heavy environmental damage that destroyed wildlife communities and contaminated 1,300 miles of shoreline. Local communities that relied on the sea creatures to support their businesses were also negatively affected. The jury gained an award of $5 billion in punitive damages, which was later reduced to $507 million.
Takeda Pharmaceuticals
One of Asia’s largest pharmaceutical companies, Takeda, was punished with $9 billion in punitive damages for their failure to include cancer warnings in their Actos diabetes drug. The plaintiff Terrance Allen and his wife Susan Allen alleged that Mr. Allen’s bladder cancer was directly linked to his diabetes medication, which did not provide any information about those risks.
Limitations on Punitive Damages in Texas
Texas law caps punitive damages to the greater of $200,000 or twice the economic damages plus non-economic damages, up to $750,000. The cap may not apply if the defendant is facing felony charges at the time of the jury deliberations. In governmental or medical malpractice cases, a plaintiff can be awarded exemplary damages for each incident and individual that contributed to their injury up to a certain amount. For example, a plaintiff can receive up to $250,000 for each governmental entity that committed an egregious violation against them and up to $500,000 for each incident that occurred.
Steps to Pursue Punitive Damages in Your Case
First, don't accept a pennies on the dollar settlement from an insurance adjuster before having your case fully reviewed by a Punitive Damages Lawyer. Second, don't hire a run-of-the-mill accident lawyer that will try to quickly settle your case with a simply demand letter. When pursuing punitive damages for your case, it is important to gather all evidence that can be used in your favor to prove your claim at trial.. This often involves collecting medical documents, showing defective products to the jury, taking pictures of your injuries, gathering surveillance footage of the accident, and obtaining expert witness testimonies. This evidence must show that your claim is more likely than not to be true and prove that the defendant directly caused your injuries. You will also want to hire a professional legal expert such as a lawyer who can help you establish a strong case, guide you through the legal process, and defend your stance in court.
If you’re seeking a legal professional to help you pursue exemplary damages, contact Sneed and Mitchell at (866) 434-0014 or fill out our online form to receive a free consultation for your case. We will guide you through the steps you need to take. Our lawyers work on a contingency fee basis, which means you get representation without having to pay for upfront costs. You don’t pay us unless we win.
Frequently Asked Questions About Punitive Damages
This FAQ addresses common questions clients ask our attorneys here at Sneed & Mitchell LLP about exemplary damages. Whether you're a plaintiff, defendant, or simply curious about this area of law, these questions provide more insight into punitive damages and how our law firm wins this additional sum for our clients.
What is the difference between punitive and exemplary damages?
In Texas, the terms punitive and exemplary damages are used interchangeably to describe damages intended to punish the defendant instead of reward the plaintiff. The goal of these types of damages is to discourage the defendant and warn others away from participating in similarly egregious behaviors.
Are exemplary damages awarded in every personal injury case?
No, exemplary damages are reserved for cases involving reckless and intentionally harmful behavior such as gross negligence, fraud, or malicious intent. These are situations where the defendant’s actions go further than mere negligence. Exemplary damages are often awarded when the defendant is found to have premeditated their actions, aware that they would cause harm to others.
Texas provides a procedure where the trial can is slip into two separate parts. Within the firm trial the plaintiff must prove liability for their client's actual, or compensatory damages. This case must first be successful for the latter half of the trial to proceed. Within the second state plaintiff counsel will argue for punitive damages. From our experience, the defendant often want to re-store settlement talks about our trial team has proven the first stage of the case.
What evidence is required to claim exemplary damages?
Plaintiffs are required to provide "clear and convincing evidence" of the defendant’s severe wrongdoing. This type of evidence must be demonstrated in a precise way that does not warrant any confusion. All statements made must be backed up with a burden of proof that makes factual connections to the defendant’s actions.
Can I seek exemplary damages in a medical malpractice case?
Yes, you can seek exemplary damages in a medical malpractice case, but such cases are also subject to strict caps and requirements under Texas law. Medical malpractice cases are often challenging to win because they require a substantial amount of medical evidence which typically requires the testimony of a medical expert.
What role does the defendant’s financial status play in exemplary damages?
The defendant’s financial status plays a huge role in exemplary damages because the reward is based on their level of net worth. The wealthier the defendant, the higher the exemplary damages. This is to ensure that the defendant is punished in a way that leaves a significant impact on their finances.
Looking For An Attorney Experienced At Securing Punitive Damages?
Attorney Niles Sneed is an unbeaten award willing punitive damages lawyer and has secured over $50,000,000 million for clients injured by gross negligence or malicious conduct. Attorney Sneed and his team have helped hundred of Texans secure full compensation for their injuries and damages.
Sneed & Mitchell LLP has a trial team with our 50 years of combined experience and have many gross negligence and punitive damage awards in courts across Texas and even in other States.
We assist in Dallas, Houston, Austin, Fort Worth, San Antonio, El Paso, Arlington, Corpus Christi, Plano, Lubbock, and in every additional city in Texas. Attorney Sneed and our team have won some of the largest settlement and verdicts in Texas. Hire our team to ensure you have the best resources, trial strategies, case experts, and experience in your corner.
We also handle every claim on a contingency fee basis, meaning you owe us nothing until you case is successful. If you need assistance in Spanish, we also have a Spanish-fluent trial team that will help you from start to finish. Let us show you why we are the best punitive damages attorneys for your case.