11-12 Exemplary Damages
Exemplary damages in Texas are governed by Chapter 41 of the Texas Civil Practice and Remedies Code. To obtain exemplary damages, a plaintiff must plead and prove by clear and convincing evidence that the harm forming the basis for the award of exemplary damages resulted from fraud, malice, or gross negligence.263 Evidence of ordinary negligence, bad faith, or a deceptive trade practice will not suffice.264
Exemplary damages may not be awarded to a claimant who elects to have his recovery multiplied under another statute.265
Under specified circumstances, exemplary damages may be assessed against an employer for the criminal conduct of an employee.266
Subject to specified exceptions, exemplary damages against a defendant may not exceed an amount equal to the greater of:
• two times the amount of economic damages; plus
• an amount equal to any noneconomic damages found by the jury, not to exceed $750,000; or $200,000.267
This cap on exemplary damages does not apply to specified forms of felony conduct, including (among other felony conduct) forgery, commercial bribery, misapplication of fiduciary property or property of a financial institution, securing execution of a document by deception, fraudulent destruction or removal or concealment of a writing, and theft.268 Exemplary damage awards excepted from...
