Texas injury law
Texas Punitive Damages Explained
Texas calls punitive damages exemplary damages. Chapter 41 imposes specific liability, proof and limitation rules, including clear-and-convincing evidence requirements for the applicable statutory grounds. Exemplary damages are not automatic and this resource does not predict whether they will be available or in what amount. For city-specific resources, see our Texas accident guides.
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Prepared by Texas Settlement Calculator Editorial Team · Published 2026-08-16 · Editorial standards
The gross negligence standard
Under Texas Civil Practice and Remedies Code § 41.003, you can recover exemplary damages only if you prove by clear and convincing evidence that the harm resulted from fraud, malice, or gross negligence. Gross negligence means an extreme degree of risk, combined with actual awareness of the risk and conscious indifference to the safety of others. Ordinary negligence — a moment of distraction, a minor error — isn't enough. The bar is high, but certain conduct routinely meets it.
Conduct that often qualifies
Drunk driving is the classic example — courts have found that driving drunk often meets the gross negligence standard. Other examples include street racing, extreme speeding (50+ mph over the limit), texting while driving in a school zone, a trucking company knowingly forcing a fatigued driver to violate hours-of-service rules, and a business knowingly concealing a dangerous defect. In each case, the defendant consciously disregarded a known, extreme risk.
The cap on exemplary damages
Texas caps exemplary damages under § 41.008. The cap is the greater of: (a) $200,000, or (b) two times the amount of economic damages plus an equal amount of non-economic damages up to $750,000. Section 41.008 contains specific statutory exceptions, including enumerated criminal conduct subject to the statute's stated conditions. Applicability of an exception is offense- and fact-specific. Awards are defendant-specific under Chapter 41.
How punitive damages affect your settlement
Texas exemplary damages require proof of the applicable statutory elements and evidentiary standard. Evidence involving intoxication, street racing or other conduct may be relevant depending on the facts, causation and legal requirements, but it does not automatically establish exemplary damages or a particular settlement value. Use the free case evaluator for a broad educational preliminary range, and see our Texas DWI accident settlement value guide for DWI-specific context.
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Related Texas guides
Frequently asked questions
What are punitive damages in Texas?
Punitive damages (called exemplary damages in Texas) are awarded on top of compensation for medical bills, lost wages, and pain and suffering, to punish gross negligence, fraud, or malice and deter similar conduct. They require clear and convincing evidence of gross negligence.
Does drunk driving qualify for punitive damages in Texas?
Often yes. Courts have found that driving drunk frequently meets the gross negligence standard required for exemplary damages. If you were hit by a drunk driver, punitive damages may apply on top of your compensation for medical bills, lost wages, and pain and suffering.
Is there a cap on punitive damages in Texas?
Yes. Under Civil Practice and Remedies Code § 41.008, exemplary damages are capped at the greater of $200,000 or two times economic damages plus an equal amount of non-economic damages up to $750,000. Section 41.008 contains specific statutory exceptions; whether one applies depends on the enumerated conduct and statutory conditions.
This tool produces a preliminary, non-binding estimate based on the information you provide and general personal-injury valuation methods. It is not legal advice, not a guarantee of any outcome, and not a substitute for review by a licensed attorney. Actual settlements and verdicts vary widely based on evidence, jurisdiction, insurance coverage, and many other factors. Texas Settlement Calculator is not a law firm and does not practice law; use of this tool does not create an attorney-client relationship.