Punitive Damages in Texas
State-specific overview · Contract Law
Texas requires clear and convincing evidence and caps punitive damages at the greater of $200,000 or four times actual damages.
How Texas treats Punitive Damages
Texas law mandates clear and convincing evidence of the defendant's conscious indifference or intentional wrongdoing before awarding punitive damages. The statutory cap is the greater of $200,000 or four times the amount of economic damages, plus up to $750,000 in non-economic damages. Punitive damages are not available in breach of contract cases unless the conduct also constitutes a tort. The plaintiff bears the burden of proving the defendant's net worth if damages exceed the cap.
The general definition of Punitive Damages
Extra money awarded to punish wrongful conduct and deter future misconduct.
Punitive damages go beyond compensating you for your actual loss; they're meant to punish the other party for especially bad behavior and discourage similar conduct in the future. These are rare in contract cases and more common in situations involving fraud, gross negligence, or intentional harm. The amount can be much larger than your actual damages because the goal is deterrence, not just making you whole.
Read the full Punitive Damages entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Texas.