What Is The Goal of Compensatory Damages In Texas?

October 15, 2024 | Uncategorized

Compensatory damages are designed to do just that – provide monetary compensation to an individual harmed.

After an individual sustains an injury caused by another person, business, or entity, they are typically able to recover compensation. However, the steps involved with recovering compensation can be challenging. Often, injury claims are resolved through settlements with insurance carriers, but there are times when injury victims have to file a lawsuit and actually go to court against an at-fault party.

Regardless, the goal of an insurance claim or a personal injury lawsuit in civil court is the same, and that is to recover compensatory damages for the injury victim. Now, let’s discuss what compensatory damages actually are.

Types of Compensatory Damages

In Texas, compensatory damages are categorized into two main types: economic (special damages) and non-economic (general damages).

1. Economic Damages: These are quantifiable financial losses. Economic damages, also referred to as “special damages,” cover the specific monetary costs the victim incurs due to the injury. This includes:

• Medical expenses (past, present, and future)
• Lost wages and lost earning capacity
• Property damage
• Rehabilitation costs

These damages are straightforward to calculate based on bills, receipts, and income records.

1. Non-Economic Damages: Also known as “general damages,” non-economic damages are more subjective. These compensate for the physical and emotional suffering caused by the injury. Common examples include:

• Pain and suffering
• Mental anguish
• Loss of enjoyment of life
• Emotional distress
• Disfigurement or permanent disability

Because non-economic damages do not have a direct financial value, they are harder to calculate. Attorneys often use factors, some of which include the overall severity of the injury or injuries, how the victim’s life has been affected, and more.

Special vs. General Damages

The key difference between special (economic) and general (non-economic) damages lies in how easily they can be quantified. Special damages are objective and calculable, based on out-of-pocket costs like hospital, doctor, or chiropractic visits and lost wages. On the other hand, general damages are subjective and attempt to compensate for losses that are not tied to a specific financial figure, such as emotional pain or diminished quality of life.

Can Shared Fault Lower Your Compensation Amount?

In Texas, shared fault in a personal injury claim can reduce the compensation you receive under the state’s modified comparative negligence rule. Similar to the rule used in many other states, this statute says that if you are partially responsible for the accident, your compensation will be reduced by your percentage of fault.

For example, if you are found to be 35% at fault for an accident, any damages you recover will be reduced by 35%. However, Texas follows the 51% bar rule, meaning that if you are 51% or more responsible for the incident that caused the injury, you will be barred from recovering any compensation at all. This law encourages fair compensation based on the level of responsibility each party holds in causing the accident​

Punitive Damages – Not a Form of Compensation

While compensatory damages are meant to reimburse victims for their losses, punitive damages serve a different purpose. In Texas, punitive damages (sometimes referred to as exemplary damages) are awarded in cases where the defendant’s actions were particularly reckless, fraudulent, or malicious. These damages are intended to punish the wrongdoer and discourage similar behavior in the future. Unlike compensatory damages, punitive damages are not designed to compensate the victim but rather to penalize the defendant.

If you or a loved one has been injured due to someone else’s negligence, the Austin personal injury attorneys at the Bonilla Law Firm can help you pursue the compensation you deserve. Contact them today for a free consultation to discuss your current situation. Understanding compensatory damages can help you recover the full compensation you need to move forward.