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Glossary · Compensation

Punitive Damages

Punitive — in Texas, “exemplary” — damages punish and deter rather than compensate, available on clear and convincing proof of fraud, malice, or gross negligence.

Compensation

What “Punitive Damages” Means

Punitive — in Texas, “exemplary” — damages punish and deter rather than compensate, available on clear and convincing proof of fraud, malice, or gross negligence. Texas caps them: generally the greater of $200,000, or two times economic damages plus non-economic damages up to $750,000 (caps lift for certain felonious conduct, including intoxication-related deaths).

Why It Matters in Your Texas Case

Exemplary claims change cases: they authorize discovery into the defendant’s wealth and conduct patterns, they signal juries that this defendant chose the risk, and they reprice settlement. McKay Law pleads them where earned — drunk drivers and the bars that overserved them, carriers running fatigued drivers, properties that ignored documented dangers — because some conduct deserves a verdict that says “never again,” and Texas law provides the vocabulary.

Related Terms

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