What are Punitive Damages?
In Texas, those injured in personal injury cases may be able to pursue both compensatory and punitive damages.
The purpose of compensatory damages is to place the plaintiff in the situation they would have been in had the accident never occurred. Such compensatory damages include both economic and non-economic damages, including medical bills, lost wages, pain and suffering, and more. [1]
In addition to compensatory damages, there are punitive damages. The term “punitive” is often used interchangeably with “exemplary.” Punitive damages are nonremunerative and only available under specific circumstance, and can be common in cases surrounding negligent behavior, like drunk or distracted driving.[2]
Purpose of Punitive Damages
Courts will often award punitive damages due to their influence on public policy in punishing defendants and to serve as a deterrent to others who may commit similar acts in the future. Punitive damages are found to be in the best interest of society and public benefit. A recent example of the significance of punitive damages, currently making national headway, is the Sandy Hook case against Alex Jones and Free Speech Systems, which is a parent company to Jones’s Infowars, a misinformation-peddling media outlet. Jones was found liable for spreading conspiracy theories alleging that the Sandy Hook tragedy was a government plot to confiscate American firearms and that the victims’ families aided in the scheme. In court, the parents of one of the victims were able to address the impact that his actions had on their lives and throughout the world. The jury ultimately ordered Jones to pay $45.2 million in punitive damages after the family’s representation stated that the jury had “the ability to send a message for everyone . . . to hear,” and to “[s]top the monetization of misinformation and lies.”[3]
The purpose of punitive damages is also embraced in the Restatement (Second) of Torts, stating punitive damages “. . . are to punish the person doing the wrongful act and to discourage such person from similar conduct in the future.” Additional factors the trier of fact may properly consider are “. . . the character of the defendant’s act, the nature and extent of the harm to the plaintiff which the defendant caused or intended to cause, and the wealth of the defendant.”[4]
Punitive damages have been unfavored in the law, for they are in the nature of a civil penalty without any of the safeguards that are afforded to criminal penalties. In other words, punitive damages can penalize wrongdoers without any of the constitutional protections that would be granted to a similar, criminal act. This has caused courts to be cautious with their granting and led them to take the position that these awards should be imposed with great caution and that the amount granted should be confined within its narrowest limits. [5]
Because of this, the plaintiff does not have an automatic right to punitive damages. Punitive damages are within the discretion of the jury or the judge as the trier of fact and are more likely to be enforced when a message to the public must be sent.[6] Granting such damages can be denied and cannot be reversed on appeal unless there was a clear abuse of discretion. Whether the facts of the case are sufficient to allow the jury to consider a punitive damages award is a question of law for the judge to decide. Once the issue of punitive damages is submitted to a jury, it has the discretion to decide if such damages are recoverable.
When are Punitive Damages Awarded?
The Texas Civil Practice and Remedies Code Section 41.003 explains when punitive damages can be awarded. [7]
In Texas, punitive damages may be awarded only if the claimant proves by clear and convincing evidence that the harm with respect to which the claimant seeks recovery of exemplary damages results from:
- Fraud (A knowing misrepresentation or knowing concealment of material fact made to induce another to act to his or her detriment).[8]
- Malice (The intent, without justification or excuse, to commit a wrongful act, or the reckless disregard of the law or of a person’s legal rights).[9]
- Gross negligence (A conscious, voluntary act or omission in reckless disregard of a legal duty and of the consequences to another party).[10]
Under these circumstances, the claimant must prove by clear and convincing evidence the elements of punitive damages as provided. The burden is not to be shifted to the defendant or to be satisfied by evidence of ordinary negligence, bad faith, or deceptive trade practice. Additionally, punitive damages may be awarded only if the jury is unanimous regarding the finding of liability for the amount of punitive damages.[11]
While the burden of proof for punitive damages is higher than that of compensatory damages, it is important to remain considerate of the role that they play in our legal system.[12] Sending a message that will punish the tortfeasor and deter future wrongful conduct may be incredibly useful under the proper circumstances while contributing to the greater good.
Written by:
Kayla Sultemeier
Law Clerk
GUERRA LLP
875 East Ashby Place, Suite 1200
San Antonio, Texas 78212
Phone: (210) 447-0500
Frank Guerra
Board Certified – Personal Injury Law
Texas Board of Legal Specialization
GUERRA LLP
875 East Ashby Place, Suite 1200
San Antonio, Texas 78212
Phone: (210) 447-0500
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