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Punitive damages, also known as exemplary damages, are a distinct category of compensation in civil law. Unlike compensatory damages, which aim to reimburse a plaintiff for actual losses, punitive damages are intended to penalize particularly harmful behavior and discourage similar conduct in the future. Punitive damages may be awarded when a defendant’s conduct goes beyond ordinary negligence and involves a heightened level of wrongdoing.

When Are Punitive Damages Awarded?

Punitive damages may be considered in cases where the defendant’s actions show a conscious disregard for the rights or safety of others. Courts may evaluate factors such as:

• The nature and severity of the misconduct

• The defendant’s intent or awareness

• The impact on the plaintiff and broader public interest

• The defendant’s financial condition

These damages are not automatically awarded and must be supported by substantial proof. In many cases, to be eligible for punitive damages, a plaintiff will likely need clear and convincing evidence that the harm resulted from one of the following:

• Fraud

• Malice

• Gross negligence

This standard of proof is typically higher than that required for compensatory damages, reflecting the serious nature of the conduct being punished.

Are Punitive Damages Capped in Texas?

Texas law imposes limits on punitive damages in most civil cases; however, the cap can still be significant. There may be exceptions to this rule, particularly in cases involving certain felony-level conduct.

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At U.S. E & O Brokers in Houston, TX, we can help you understand punitive damages and navigate potentially complicated legal processes. Contact us today to speak with one of our knowledgeable and experienced team members.