Texas Legal Glossary · Personal Injury

Exemplary Damages (Punitive Damages)

Written and reviewed by Shane M. Boasberg, founder of SMB Law, PC · Licensed in Texas since 2003 · Updated October 2026

Definition: Exemplary damages, also called punitive damages, are awarded in Texas to punish a defendant for fraud, malice, or gross negligence and to deter similar conduct. CPRC § 41.003 requires clear and convincing evidence and a unanimous jury, and § 41.008 caps the award.

Also called: punitive damages, punitives

What exemplary damages mean in Texas

Exemplary damages are the Texas name for punitive damages. They do not compensate the injured person. They punish the defendant and make an example of the conduct. Under CPRC § 41.003(a), a plaintiff may recover them only on proof of fraud, malice, or gross negligence. Ordinary carelessness, however costly, is not enough.

The standard of proof is higher than the rest of the case. Section 41.003(b) requires clear and convincing evidence, and § 41.003(d) requires the jury to be unanimous both on liability for exemplary damages and on the amount. Texas also requires the jury to find at least some actual damages before exemplary damages may be awarded.

How it works in practice

Section 41.008(b) caps exemplary damages at the greater of two amounts: (a) two times the economic damages plus an equal amount of noneconomic damages up to $750,000, or (b) $200,000. For a plaintiff with $100,000 in economic damages and $300,000 in noneconomic damages, the cap is $200,000 plus $300,000, or $500,000.

The cap does not apply when the conduct was a listed felony committed knowingly or intentionally, under § 41.008(c). The list includes intoxication assault and intoxication manslaughter, which means a drunk driver who seriously injures or kills someone faces uncapped exemplary damages. On request, the trial is bifurcated under § 41.009 so the jury hears evidence of the defendant’s net worth only after finding liability.

Why it matters in your case

Pleading exemplary damages changes the economics of a case. Many liability policies exclude them, so the defendant may be personally exposed. Discovery opens up to prior incidents, internal safety records, and finances. Commercial defendants settle differently when a drunk driving or falsified logbook case carries an uncapped exemplary claim. We evaluate every serious injury case for a gross negligence theory before the first demand goes out.

Example

Wade leaves a bar on Rainey Street with a blood alcohol level twice the legal limit and strikes Maya’s car head-on, breaking both her legs. Wade pleads guilty to intoxication assault. In the civil case, Maya pleads gross negligence. Because intoxication assault is a § 41.008(c) felony, the cap does not apply, and the jury may award exemplary damages limited only by constitutional due process review.

This entry explains Texas law in general terms and is not legal advice for any specific situation. Statutes and case law change; the date above reflects the last review.