Texas Civil Practice & Remedies Code § 41.001 – Definitions for Exemplary Damages
Table of Contents
Statutory Text:
§ 41.001 defines the following terms related to exemplary damages in Texas law:
“Exemplary damages”: Damages awarded as a penalty or by way of punishment but not for compensatory purposes. Includes punitive damages.
“Fraud”: Fraudulent inducement or misrepresentation intended to cause harm.
“Malice”: A specific intent by the defendant to cause substantial injury or harm.
“Gross negligence”: An act or omission involving extreme risk, where the actor is aware of the risk and proceeds with conscious indifference to the rights and safety of others.
“Clear and convincing evidence”: A heightened standard of proof required for awarding exemplary damages.
What Are Exemplary Damages in Texas?
Exemplary damages, also known as punitive damages, are not meant to compensate the injured party. Instead, they are awarded to punish the defendant for egregious, malicious, or grossly negligent behavior.
Texas Civil Practice & Remedies Code § 41.001 sets the definitional foundation for when and how these damages may be considered.
Key Legal Terms in § 41.001
🔹 Exemplary Damages
A form of non-compensatory damages awarded to penalize a defendant for outrageous conduct.
🔹 Malice
Defined as a specific intent to cause substantial harm, not just recklessness or carelessness.
🔹 Gross Negligence
A serious departure from ordinary care where the defendant knows the risk but proceeds anyway.
🔹 Fraud
Intentional deception used to gain unfair advantage or cause harm.
🔹 Clear and Convincing Evidence
A higher legal standard than a “preponderance of the evidence,” but lower than “beyond a reasonable doubt.”
Example Scenario
A trucking company ignores multiple safety warnings and continues operating defective vehicles. After an accident causes serious injury, the jury finds gross negligence and awards exemplary damages under Chapter 41.
The definitions in § 41.001 help the court determine whether the conduct justifies punitive penalties.
How This Statute Applies in Texas Courts
These definitions are used during jury instructions in trials seeking punitive damages
Required to support awards under § 41.003 (Standards) and § 41.008 (Caps)
Helps separate ordinary negligence from conduct that justifies additional punishment
Related Statutes
§ 41.003 – Standards for Awarding Exemplary Damages
§ 41.008 – Caps on Exemplary Damages
§ 33.001 – Comparative Responsibility (affects recovery)
Texas Case Law Referencing § 41.001
Texas Supreme Court interpreted “gross negligence” as requiring both an objective risk and subjective awareness by the defendant.
Clarified that “clear and convincing evidence” must support each element of liability for exemplary damages.
Frequently Asked Questions About § 41.001
Houston Personal Injury Lawyer - Joel A. Gordon
Exemplary damages (also called punitive damages) are awarded to punish a defendant, not to compensate a plaintiff.
It means acting with extreme disregard for others’ safety, even when the defendant knows their behavior is dangerous.
They use the definitions in § 41.001 and apply clear and convincing evidence standards at trial.
No. Malice involves intent to harm, while negligence can involve carelessness without intent.