Compensatory Damages in Texas Personal Injury Cases

Compensatory Damages in Texas

Balance, not revenge. This is what justice seeks.

When someone suffers an injury due to another party’s negligence, the legal system strives to restore what was taken away.

Compensatory damages, a key part of Texas personal injury law, are designed to help victims recover what they have lost. Unlike punitive damages, which are meant to punish severe wrongdoing, compensatory damages aim to restore the injured party to their previous state as much as possible.

Let’s get into the basics of understanding this form of compensation and how it applies in personal injury cases.

How Much Do Most Personal Injury Cases Settle for?

In Texas, most personal injury cases settle before reaching trial. This saves time and legal expenses and helps to avoid the unpredictability of the jury’s decision.

However, the amount you may recover depends on several factors, including the severity of your injuries, the strength of your evidence, and how effectively your attorney negotiates with the insurance company. Evidence like medical records, expert testimony, and accident reports are important in proving your case and helping you secure fair compensation, so it’s best not to overlook these things.

Factors That Can Increase Your Settlement

Severe injuries often lead to higher compensation. Some examples of serious injuries include:

  • Burns
  • Spinal damage
  • Traumatic brain injuries
  • Permanent disabilities
  • Long-term medical costs and lost earning potential are also key considerations, especially if your injuries require ongoing treatment or prevent you from working.

Be wary of insurance companies trying to minimize payouts by offering low initial settlements. Fortunately, our attorneys here at Thompson Law know how to counter these tactics, and ensure that you get the compensation that you deserve.

Average Settlement Ranges

  • Minor injuries, such as whiplash or soft tissue damage, generally result in settlements between $10,000 and $30,000
  • Moderate injuries, like fractures or concussions requiring longer recovery, often lead to settlements between $30,000 and $100,000
  • Severe injuries, including spinal damage or traumatic brain injuries, frequently result in settlements exceeding $100,000 and can reach into the millions

Our Results Speak for Themselves

We have recovered over $1.9 billion for clients, securing life-changing settlements and verdicts. Here are some of our notable results:

  • $11.991 million for a truck accident case
  • $9.187 million for an industrial burn injury
  • $3.1 million for an auto accident involving a fatality

Which Compensation Can You Get in a Personal Injury Case?

man signing damages claim form with a lawyer

When you are injured due to someone else’s negligence, you may be entitled to various types of compensation. Personal injury cases typically include:

Economic Damages

Economic damages focus on reimbursing you for financial losses related to your injury. These damages help ensure that you are not burdened with expenses caused by someone else’s negligence.

Common examples include:

  • Medical expenses such as hospital visits, surgeries, medications, and future treatments
  • Lost wages due to time away from work while recovering
  • Loss of future earning potential if your injury limits your ability to work or earn at the same level

Non-Economic Damages

Non-economic damages compensate for the emotional and psychological toll of an injury. Examples of non-economic damages include:

  • Emotional distress, which covers anxiety, depression, and trauma caused by the accident
  • Loss of companionship if your relationship with a spouse or loved ones is affected
  • Diminished quality of life if you are unable to participate in activities you previously enjoyed

Punitive Damages

Punitive damages are not meant to compensate for losses but rather to punish the at-fault party for extreme negligence or intentional harm. They are awarded in cases where the defendant’s actions were especially reckless or harmful.

Special Damages

Special damages are a subset of economic damages that cover specific costs directly related to your injury. These damages include:

  • Costs of ongoing rehabilitation or therapy needed for long-term recovery
  • Out-of-pocket expenses such as transportation to medical appointments or buying medical supplies
  • Expenses for assistive devices like wheelchairs, prosthetics, or mobility aids
  • Childcare or household help if your injury prevents you from managing daily responsibilities

What Is the Average Settlement for Pain and Suffering in Texas?

Pain and suffering damages are meant to compensate for the emotional and physical distress caused by an injury. In Texas, these damages are calculated using methods like the multiplier method, which multiplies your economic damages by a number between 1.5 and 5, or the per diem method, which assigns a daily amount to the pain you endured during recovery.

For example, if your economic damages, such as medical bills and lost wages, total $50,000, and a multiplier of 3 is applied, your pain and suffering settlement could be $150,000. The severity of the injury directly impacts the settlement, with more severe or long-term injuries resulting in higher payouts.

Types of Personal Injury Cases

Many types of accidents and injuries may qualify for compensation in Texas, including:

Each of these cases can involve different legal processes, but they all have one thing in common: the right to seek compensation for your losses.

Basic Things to Consider Before Suing

Before filing a personal injury lawsuit in Texas, consider the legal factors that could affect your case first. These will help you determine if and when to file a lawsuit, who to sue, and how to prepare a strong claim.

Deadline to Sue: Statute of Limitations

Texas law typically gives you two years from the date of the injury to file a personal injury lawsuit. There are exceptions in cases involving minors or injuries caused by government entities, where special rules and deadlines may apply. Missing the deadline can result in losing the right to seek compensation, so it is important to act quickly.

Who to Sue

Identifying the responsible party is important. In personal injury cases, this may include:

  • Individuals who acted negligently (such as a reckless driver)
  • Companies (such as a business owner in a slip and fall case)
  • Government entities (in cases involving unsafe public spaces or roads)

Where to Sue

In Texas, personal injury lawsuits are generally filed in the county where the injury occurred or where the defendant resides. For cases involving multiple defendants or significant damages, higher-level courts may be appropriate.

Insurance Coverage for Injuries and Treatment

Insurance policies often play a major role in determining how much compensation you can recover. In Texas, your claim may involve the at-fault party’s insurance, your own policy (in cases of underinsured drivers), or health insurance. Coverage will then be reviewed during the claims process.

Legal Causes of Action

A personal injury case can be based on different legal claims, depending on the circumstances of the injury. Common causes of action include:

  • Negligence, which applies when someone fails to exercise reasonable care
  • Strict liability, often used in product liability cases where a defective product causes harm
  • Intentional torts, such as assault or intentional harm

To win your case, you will need evidence showing how the defendant’s actions directly caused your injuries.

Assessing Damages

Calculating damages involves considering both economic and non-economic losses. Economic damages are measurable and include medical bills, lost wages, and future expenses. Non-economic damages account for emotional distress, pain, and suffering.

Gathering Proof

Strong evidence is the foundation of a successful personal injury case. Important types of proof include:

  • Medical records that show the extent of your injuries
  • Photos or videos of the accident scene and injuries
  • Testimony from experts, such as medical or accident reconstruction specialists
  • Witness statements to support your version of events

Gathering the right evidence early in the process can make a big difference in the outcome of your case.

How to Recover Compensatory Damages

Recovering compensatory damages in Texas often involves several steps. Here is a general outline of the process:

1. Seek Medical Treatment Immediately

Your health and recovery should be the priority. Prompt medical care not only helps you heal but also creates essential documentation that will support your claim.

2. File a Claim with the Insurance Company

Once the responsible party’s insurance company is identified, you or your attorney will file a claim outlining your injuries, damages, and the compensation you seek. This step often includes submitting medical records, bills, and other evidence.

3. Negotiate with the Insurance Company

Insurance companies may offer an initial settlement, but it is often less than what you deserve. The truth can be negotiable in cases like this. But don’t worry, skilled attorney can evaluate the offer and push for a fair settlement that reflects the full extent of your losses.

4. File a Lawsuit if Necessary

If negotiations stall or the insurer refuses to offer fair compensation, filing a lawsuit may be necessary. Your attorney will handle the legal paperwork and represent you in court if the case proceeds to trial.

5. Seek a Court Judgment

If the case goes to trial, a judge or jury will evaluate the evidence and determine the amount of compensation you are entitled to receive. Many cases, however, settle before reaching this stage.

How Insurance Companies Handle Compensatory Damages

insurance claim form

Insurance companies evaluate personal injury claims by reviewing medical records, accident reports, and any other evidence you provide. They often want to minimize the payouts, so this will pose a challenge when it comes to the costs that you want to claim.

Here are some of the most common tactics they do:

  • Offering low initial settlements in hopes you will accept without negotiating
  • Delaying the claims process to pressure you into settling quickly
  • Disputing the connection between your injuries and the accident
  • Denying claims altogether by citing policy exclusions or insufficient evidence

Do I Have to Pay Taxes on a Personal Injury Settlement in Texas?

Most of the compensation you receive in a personal injury settlement is not taxable under federal or Texas law. However, there are exceptions depending on what the settlement covers.

Non-taxable portions of a settlement include:

  • Compensation for medical expenses
  • Payments for pain and suffering or emotional distress related to the physical injury
  • Lost wages tied directly to the injury (in most cases)

Taxable portions of a settlement may include:

  • Punitive damages, which are meant to punish the wrongdoer rather than compensate for losses
  • Interest earned on the settlement amount
  • Compensation for emotional distress or mental anguish unrelated to physical injury

Factors That Influence Settlement Amounts

Like with any other case, there are several factors that will be taken into consideration when deciding on your settlement amount:

  • Severity of injuries affects how much compensation you may be entitled to. Serious injuries, like traumatic brain injuries or permanent disabilities, typically result in higher settlements compared to minor injuries.
  • Available evidence plays a significant role in determining the strength of your claim. Medical records, accident reports, witness statements, and photos of the accident scene are crucial to proving your case.
  • Degree of fault is an important consideration under Texas’s comparative fault rule. If you are partially responsible for the accident, your compensation may be reduced in proportion to your share of fault.
  • Policy limits of insurance coverage can cap the amount you receive. If the at-fault party’s insurance policy has low limits, you may need to explore other avenues for compensation, such as underinsured motorist coverage.
  • Negotiation skills of attorneys can directly impact the final settlement. Experienced attorneys know how to counter low offers, present compelling evidence, and push for maximum compensation.

What Happens if You Were Partially at Fault?

Texas follows a modified comparative negligence rule. This means you can still recover damages even if you were partially responsible for the accident, as long as your share of fault does not exceed 50 percent (this is also known as the 51% rule). However, your compensation will still be reduced based on your percentage of fault.

For example, if you were awarded $100,000 but found 20 percent responsible for the accident, you would receive $80,000 after the reduction. If you are more than 50 percent at fault, you will not be able to recover any damages. This rule makes it important to minimize your share of fault through strong evidence and legal representation.

Why You Need a Lawyer for a Personal Injury Case

A personal injury lawyer can significantly improve your chances of receiving fair compensation by handling key aspects of your case. Here is how a lawyer can help:

  • Expert evaluation of claims and damages ensures that you are seeking the right amount of compensation based on your injuries, medical expenses, and other losses.
  • Navigating complex legal procedures takes the stress off your shoulders. Filing paperwork, meeting deadlines, and building a strong legal argument require expertise.
  • Negotiating effectively with insurance companies is critical to counter low settlement offers and push for the compensation you deserve.
  • Maximizing compensation involves knowing how to present evidence that strengthens your case, even when the evidence is weak or disputed.

Curious how legal representation can make a difference? View our successful case results here.

How Thompson Law Can Help

At Thompson Law, we are committed to helping you receive the compensation you deserve. With years of experience and a proven track record, we offer the resources and dedication to handle your case from start to finish.

  • Free consultations to evaluate your claim and determine the best legal strategy
  • Proven success in securing favorable settlements and verdicts, including multi-million-dollar awards
  • Contingency fee model means you do not pay any upfront costs. We only get paid if we win your case

We have recovered over $1.9 billion for our clients, with results like $11.991 million for a truck accident case and $9.187 million for a severe burn injury. Our clients trust us to handle their cases with care and dedication.

Contact Thompson Law Today

If you have been injured due to someone else’s negligence, do not wait to seek legal advice. Acting quickly ensures that evidence is preserved, witnesses are contacted, and your case is built while the details are fresh.

Contact Thompson Law today for a free consultation. We will guide you through the legal process, fight for the compensation you deserve, and help you every step of the way. Time limits apply to personal injury claims, so do not delay—reach out to us today and take the first step toward justice.

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Contact us today for a free, no obligation consultation to discuss your accident, get answers to your questions, and understand your legal options. State law limits the time you have to file a claim after an injury accident, so call today.