Damage Caps in Texas Injury Cases: When They Apply

If you get seriously hurt in an accident because of someone else’s carelessness, that person will have to pay for your injuries and losses. In Texas, you have the right to hold a negligent party accountable for economic and noneconomic damages. However, there are laws in Texas that limit how much money you can recover during certain types of personal injury lawsuits. These laws are called damage caps.

What Is a Damage Cap?

A damage cap is a law that exists in some states. It places a cap, or limit, on the amount of money available to an injured party in a personal injury lawsuit. Damage caps came about as a way to reduce the number of frivolous personal injury claims being filed. With a limit on how much money a plaintiff can recover, lawmakers hoped to discourage fraudsters from filing false personal injury claims. In this way, damage caps aimed to make the justice system more efficient.

Damage caps also prevent important institutions from going bankrupt if they have to pay out large injury settlements. For this reason, damage caps often exist in cases against public entities, government agencies and health care institutions. These are institutions that the public needs; they cannot afford to go bankrupt from injury lawsuits that end in enormous settlements. Thus, many states – including Texas – passed damage cap laws to protect key institutions.

What Are the Damage Caps in Texas?

For many years, damage caps have been a point of disagreement among lawmakers. Many state lawmakers have argued that damage caps are unconstitutional for injured accident victims. This argument has led to the taking away of damage caps in many states. Texas, however, is one of a few states that still enforce damage caps. There are three scenarios in which a damage cap could limit the amount of money you receive in an injury lawsuit in Texas.

Punitive Damages in All Personal Injury Cases

Punitive damages are only available in cases where the defendant was grossly negligent, malicious or intentional in causing harm. For example, if the defendant injured the plaintiff through a crime such as assault, punitive damages may apply. Texas Civil Practice and Remedies Code Section 41.008 caps punitive damages at the greater of twice the total amount of economic damages plus an amount equal to noneconomic damages (up to $750,000), or $200,000. However, this cap will not apply if the wrongful act was a felony crime.

Noneconomic Damages in Medical Malpractice Cases

Section 74.301 of the law states that in an injury claim against a physician or health care provider for alleged medical malpractice, there is a limit on noneconomic damages of $250,000 per claimant and $500,000 per incident, for a total of $750,000 available maximum. Noneconomic damages refer to the intangible losses incurred due to malpractice, such as emotional distress, pain and suffering, and mental anguish. This cap does not change the amount available in economic damages, which pays a victim for medical bills, lost wages and other out-of-pocket costs.

All Damages in Claims Against the Government

If you need to file a claim against a government entity, such as the City of Houston, a damage cap will apply to both types of damages – economic and noneconomic. Section 101.023 of the law states that a government entity’s liability is limited to no more than $250,000 per person and $500,000 per occurrence. This limit drops to $100,000 for property-damage-only claims.

Will a Damage Cap Apply to Your Personal Injury Case?

Although Texas currently does have damage caps, they will only apply to certain types of cases and categories of damages. For the most part, a general personal injury claim for something such as a car accident or slip and fall accident will not be subject to a damage cap in Texas. The average injury claim will not involve punitive damages.

A damage cap may apply to your case, however, if you are pursuing a medical malpractice claim or claim against the government. This cap could restrict how much money is available for your injuries and losses. For more information about whether one of Texas’ damage caps will apply to your injury case, consult with an attorney.