EXEMPLARY DAMAGES

ALEXANDER B. KLEIN, III The Klein Law Firm 2000 The Lyric Centre 440 Louisiana Street Houston, Texas 77002 Telephone: (713) 650-1111 Toll Free: (800) 818-1601 Facsimile: (713) 227-1121 Email: alex@thekleinlawfirm.com

State Bar of Texas DAMAGES IN CIVIL LITIGATION February 24 - 25, 2011 Dallas CHAPTER 20

ALEXANDER B. K LEIN, III THE K LEIN L AW F IRM 2000 THE L YRIC C ENTRE 440 L OUISIANA S TREET H OUSTON, TEXAS 77002 (713) 650-1111 (800) 818-1601 F AX: (713) 227-1121 E MAIL: ALEX@ THEKLEINLAWFIRM.COM
Alexander B. Klein, III, born Houston, Texas, February 24, 1965; admitted to bar, 1991, Texas; 1997, Colorado; also admitted to practice before U.S. Court of Appeals, Fifth Circuit; U.S. District Court, Southern District of Texas. Preparatory education, Sorbonne University (Course work, 1985); University of Texas (B.A., 1988); legal education, South Texas College of Law (J.D., 1991). Board Certified, Personal Injury Trial Law, Texas Board of Legal Specialization. Texas Pattern Jury Charges Committee, Malpractice, Premises and Products, 2001-2003; 2004-Present. Course Director: Evaluating, Negotiating, Proving and Collecting Damages and Attorneys Fees, State Bar of Texas, 2009; Course Director: Advanced Personal Injury Law Course-Texas Trial Lawyers Association, 2006, Course Director: Advanced Medical Malpractice Course, State Bar of Texas, 2005; Course Director: Advanced Personal Injury Law Course-State Bar of Texas, 2003; CoChair: Continuing Legal Education Committee, Texas Trial Lawyers Association, 2004-2006; Professional Papers/Presentations: Settlement Considerations: The Advantages of Qualified Settlement Funds, 17 th Annual Advanced Medical Malpractice Course (2010); Damages (Including Mental Anguish, Future Medical, Bereavement and Loss of Consortium), Advanced Personal Injury Law Course (2009); Creative Approaches,16th Annual Advanced Medical Malpractice Course (2009); Fear of Trial, The Barnes Law Seminar (2008); Personal Injury Damages: A Review Through the Prism of Legal and Factual Sufficiency, OConnors Causes of Action, State Bar of Texas (2008); Complex Case Jury Selection, The Barnes Law Seminar (2007); The Rocket Docket Delay Tactics and How to Avoid Them (Interlocutory Appeals, Failure to Set Hearing, Etc.), 18th Annual Medical Malpractice Seminar, Texas Trial Lawyers Association (2007); Maximizing Damages Through Effective Voir Dire Questioning, 23 rd Annual Advanced Personal Injury Law Course, State Bar of Texas (2007); Maximizing Damages: Case Development Through Effective Use of Scientific Jury Selection Techniques, Advanced Civil Trial Law Seminar, Corpus Christi Bar Association (2007); Motivating Conservative Juries to Pay Big Bucks: Case Development Through Effective Use of Scientific Jury Selection Techniques, Car W recks Seminar, Texas Trial Lawyers Association (2006); The Erosion of the Discovery Moratorium: Tactical Depos and Doc Discovery During the 1 st 120 Days, 17 th Annual Medical Malpractice Conference, Texas Trial Lawyers Association (2006); Damages in Personal Injury and Wrongful Death Cases, State Bar College Summer School, State Bar of Texas (2006); Effective Use of Jury Consultants, 22 nd Annual Advanced Personal Injury Law Course, State Bar of Texas (2006); Effective Use of Jury Consultants, Soaking up Some CLE: A South Padre Island Litigation Seminar, State Bar of Texas (2006); Maximizing Damages, Advanced Civil Trial Law Seminar, Corpus Christi Bar Association (2006); Creative Approaches to Economic Damages, 13th Annual Advanced Medical Malpractice Course, State Bar of Texas (2006); Reading the Alphabet, 16 th Annual Medical Malpractice Conference, Texas Trial Lawyers Association (2005); Recovering Damages

After House Bill 4, Advanced Personal Injury Law Course, State Bar of Texas (2005); Recovering Damages After House Bill 4 [House Bill 4: Are There Hidden Victims?], Texas Association of Legal Professionals (2005); Damages, Causes of Action Seminar, State Bar of Texas (2005); Breaking the Code in Medical Negligence Cases, 15th Annual Medical Malpractice Conference, Texas Trial Lawyers Association (2004); Using Experts to Maximize Economic Damages, State Bar College Summer School, State Bar of Texas (2004); Maximizing Economic Damages, Advanced Personal Injury Law Course, State Bar of Texas (2004); Maximizing Damages After HB 4, Advanced Personal Injury Course, Texas Trial Lawyers Association (2004); Breaking the Code in Medical Negligence Cases, 11 th Annual Advanced Medical Malpractice Course, State Bar of Texas (2004); Using Life Care Planning Experts - Post HB 4, Real Damages After HB 4, State Bar of Texas (2004); Maximizing Damages After HB 4, The Impact of House Bill 4, State Bar of Texas, (2004); The Supremes Impact on Med Mal, 14 th Annual Medical Malpractice Conference, Texas Trial Lawyers Association (2003); For Whom the Bell Tolls: Dismissal of Medical Malpractice Cases After Palacios, Advanced Personal Injury Course, Texas Trial Lawyers Association (2002); Comes Now Defendant, Seeking to Exclude All Plaintiffs Experts, Medical Malpractice Conference, Texas Trial Lawyers Association ( 2002); Daubert-Robinson Presentation, Advanced Personal Injury Law Course, State Bar of Texas (2002); Stowers: A New Tw ist, Damages Symposium, Texas Trial Lawyers Association(1999). Member: Houston Bar Association; State Bar of Texas; College of the State Bar of Texas; Houston Trial Lawyers Association (Director); Texas Trial Lawyers Association (Fellowship Member and Director); American Association for Justice; The Maritime Law Association. Areas of Practice: Medical and Hospital Negligence, Products Liability, Complex Personal Injury Cases, Commercial Litigation, and Environmental Law. E-Mail: alex@thekleinlawfirm.com

Exemplary Damages

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TABLE OF CONTENTS

I. II.

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 CHAPTER 41 OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE . . . . . . . . . . . . . . . . . . . . . A. CPRC 41.001. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B. CPRC 41.002. Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C. CPRC 41.003. Standards for Recovery of Exemplary Damages . . . . . . . . . . . . . . . . . . . . . . . . . . D. CPRC 41.004. Factors Precluding Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E. CPRC 41.005. Harm Resulting from Criminal Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F. CPRC 41.006. Award Specific to Defendant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G. CPRC 41.007. Prejudgment Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H. CPRC 41.008. Limitation on Amount of Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I. CPRC 41.009. Bifurcated Trial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . J. CPRC 41.010. Consideration in Making Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . K. CPRC 41.0105. Evidence Relating to Amount of Economic Damages . . . . . . . . . . . . . . . . . . . . . L. CPRC 41.011. Evidence Relating to Amount of Exemplary Damages . . . . . . . . . . . . . . . . . . . . . M. CPRC 41.012. Jury Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N. CPRC 41.013. Judicial Review of Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 2 2 3 3 3 3 4 4 4 4 4

III. IV.

CHAPTER 33 OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE . . . . . . . . . . . . . . . . . . . . . 4 RECENT CASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

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TABLE OF AUTHORITIES

CASES Bennett v. Reynolds, 315 S.W.3d 867 (Tex. 2010) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 In re Columbia Medical Center of Las Colinas d/b/a Las Colinas Medical Center v. Letourneau, 306 S.W.3d 246 (Tex. 2010) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Tony Gullo Motors, I, L.P. v. Chapa, 212 S.W.3d 299 (Tex. 2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 CODES Texas Business and Commerce Code, 15.21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Business and Commerce Code, 17.50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Civil Practice and Remedies Code, 33.013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Texas Civil Practice and Remedies Code, 41.001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Texas Civil Practice and Remedies Code, 41.002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Texas Civil Practice and Remedies Code, 41.003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Civil Practice and Remedies Code, 41.004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Civil Practice and Remedies Code, 41.005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Civil Practice and Remedies Code, 41.006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Civil Practice and Remedies Code, 41.007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Civil Practice and Remedies Code, 41.008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Civil Practice and Remedies Code, 41.009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Civil Practice and Remedies Code, 41.010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Texas Civil Practice and Remedies Code, 41.0105 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Texas Civil Practice and Remedies Code, 41.011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Texas Civil Practice and Remedies Code, 41.012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Texas Civil Practice and Remedies Code, 41.013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Texas Civil Practice and Remedies Code, Chapter 125 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Human Resources Code, Chapter 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Insurance Code, Chapter 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ii

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Texas Penal Code, 6.03(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 6.03 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, Chapter 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Texas Penal Code, 19.02 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 19.03 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 20A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 20.04 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 21.02 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 22.02 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 22.011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 22.021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 22.04 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 32.21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 32.43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 32.45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 32.46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 32.47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 49.07 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Penal Code, 49.08 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Texas Property Code, Chapter 92, Subchapter D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

RULES Rule 166 of the Texas Rules of Civil Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

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I.

INTRODUCTION

Chapters 33 and 41 of the Texas Civil Practice and Remedies Code provide a substantial framework governing the recovery of exemplary damages. This paper will address these statutes and recent case law pertaining to exemplary damages in personal injury and wrongful death cases. II. CHAPTER 41 OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE A. CPRC 41.001. Definitions. (1) Claimant means a party, including a plaintiff, counterclaimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. In a cause of action in which a party seeks recovery of damages related to injury to another person, damage to the property of another person, death of another person, or other harm to another person, claimant includes both that other person and the party seeking recovery of damages. (2) Clear and convincing means the measure or degree of proof that will produce in the mind of the trier of fact a firm belief or conviction as to the truth of the allegations sought to be established. (3) Defendant means a party, including a counterdefendant, cross-defendant, or third-party defendant, from whom a claimant seeks relief. (4) Economic damages means compensatory damages intended to compensate claimant for actual economic or pecuniary loss; the term does not include exemplary damages or noneconomic damages. (5) Exemplary damages means any damages awarded as a penalty or by way of punishment but not for compensatory purposes. Exemplary damages are neither economic nor noneconomic damages. Exemplary damages includes punitive damages. (6) Fraud means fraud other than constructive fraud. (7) Malice means a specific intent by the defendant to cause substantial injury or harm to the claimant. (8) Compensatory damages means economic and noneconomic damages. The term does not include exemplary damages.
1

(9) Future damages means damages that are incurred after the date of the judgment. Future damages do not include exemplary damages. (10) Future loss of earnings means a pecuniary loss incurred after the date of the judgment, including: (A) loss of income, wages, or earning capacity; and (B) loss of inheritance. (11) Gross negligence means an act or omission: (A) which when viewed objectively from the standpoint of the actor at the time of its occurrence involves an extreme degree of risk, considering the probability and magnitude of the potential harm to others; and (B) of which the actor has actual, subjective awareness of the risk involved, but nevertheless proceeds with conscious indifference to the rights, safety, or welfare of others. (12) Noneconomic damages means damages awarded for the purpose of compensating a claimant for physical pain and suffering, mental or emotional pain or anguish, loss of consortium, disfigurement, physical impairment, loss of companionship and society, inconvenience, loss of enjoyment of life, injury to reputation, and all other nonpecuniary losses of any kind other than exemplary damages. (13) Periodic payments means the payment of money or its equivalent to the recipient of future damages at defined intervals. B. CPRC 41.002. Applicability.

(a) This chapter applies to any action in which a claimant seeks damages relating to a cause of action. (b) This chapter establishes the maximum damages that may be awarded in an action subject to this chapter, including an action for which damages are awarded under another law of the state. This chapter does not apply to the extent another law establishes a lower maximum amount of damages for a particular claim. (c) Except as provided by Subsections (b) and (d), in an action to which this chapter applies, the

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provisions of this chapter prevail over all other law to the extent of any conflict. (d) Notwithstanding any provision to the contrary, this chapter does not apply to: (1) Section 15.21, Business & Commerce Code (Texas Free Enterprise and Antitrust Act of 1983); (2) an action brought under the Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code) except as specifically provided in Section 17.50 of that Act; (3) an action brought under Chapter 36, Human Resources Code; or (4) an action brought under Chapter 21, Insurance Code. C. CPRC 41.003. Standards for Recovery of Exemplary Damages. (a) Except as provided by Subsection (c), exemplary damages may be awarded only if the claimant proves by clear and convincing evidence that the harm with respect to which the claimant seeks recovery of exemplary damages results from: (1) fraud; (2) malice; or (3) gross negligence. (b) The claimant must prove by clear and convincing evidence the elements of exemplary damages as provided by this section. This burden of proof may not be shifted to the defendant or satisfied by evidence of ordinary negligence, bad faith, or a deceptive trade practice. (c) If the claimant relies on a statute establishing a cause of action and authorizing exemplary damages in specified circumstances or in conjunction with a specified culpable mental state, exemplary damages maybe awarded only if the claimant proves by clear and convincing evidence that the damages result from the specified circumstances or culpable mental state. (d) Exemplary damages may be awarded only if the jury was unanimous in regard to finding liability for and the amount of exemplary damages. (e) In all cases where the issue of exemplary damages is submitted to the jury, the following instruction shall be included in the charge of the court:
2

You are instructed that, in order for you to find exemplary damages, your answer to the question regarding the amount of such damages must be unanimous. D. CPRC 41.004. Factors Precluding Recovery. (a) Except as provided by Subsection (b), exemplary damages may be awarded only if damages other than nominal damages are awarded. (b) Exemplary damages may not be awarded to a claimant who elects to have his recovery multiplied under another statute. E. CPRC 41.005. Harm Resulting from Criminal Act.

(a) In an action arising from harm resulting from an assault, theft, or other criminal act, a court may not award exemplary damages against a defendant because a of the criminal act of another. (b) The exemption provided by Subsection (a) does not apply if: (1) the criminal act was committed by an employee of the defendant; (2) the defendant is criminally responsible as a party to the criminal act under the provisions of Chapter 7, Penal Code; (3) the criminal act occurred at a location where, at the time of the criminal act, the defendant was maintaining a common nuisance under the provisions of Chapter 125, Civil Practice and Remedies Code, and had not made reasonable attempts to abate the nuisance; or (4) the criminal act resulted from the defendants intentional or knowing violation of a statutory duty under Subchapter D, Chapter 92, Property Code, and the criminal act occurred after the statutory deadline for compliance with that duty. (c) In an action arising out of a criminal act committed by an employee, the employer may be liable for punitive damages but only if: (1) the principal authorized the doing and the manner of the act;

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(2) the agent was unfit and the principal acted with malice in employing or retaining him; (3) the agent was employed in a managerial capacity and was acting in the scope of employment; or (4) the employer or a manager of the employer ratified or approved the act. F. CPRC 41.006. Award Specific to Defendant.

In any action in which there are two ro more defendants, an award of exemplary damages must be specific as to a defendant, and each defendant is liable only for the amount of the award made against that defendant. G. CPRC 41.007. Prejudgment Interest. Prejudgment interest may not be assessed or recovered on an award of exemplary damages. H. CPRC 41.008. Limitation on Amount of Recovery. (a) In an action in which a claimant seeks recovery of damages, the trier of fact shall determine the amount of economic damages separately from the amount of other compensatory damages. (b) Exemplary damages awarded against a defendant may not exceed an amount equal to the greater of: (1)(A) (1)(B) two times the amount of economic damages; plus an amount equal to any noneconomic damages found by the jury, not to exceed $750,000; or $200,000.

(7) Section 22.04 (injury to a child, elderly individual, or disabled individual, but not if the conduct occurred while providing health care as defined by Section 74.001); (8) Section 32.21 (forgery); (9) Section 32.43 (commercial bribery); (10) Section 32.45 (misapplication of fiduciary property or property of financial institution); (11) Section 32.46 (securing execution of document by deception); (12) Section 32.47 (fraudulent destruction, removal, or concealment of writing); (13) Section 31 (theft) the punishment level for which is a felony of the third degree or higher; (14) Section 49.07 (intoxication assault); (15) Section 49.08 (intoxication manslaughter); (16) Section 21.02 (continuous sexual abuse of young child or children); or (17) Section 20A (trafficking of persons). (d) In this section, intentionally and knowingly have the same meanings assigned those terms in Sections 6.03(a) and (b), Penal Code. (e) The provisions of this section may not be made known to a jury by any means, including voir dire, introduction into evidence, argument, or instruction. (f) This section does not apply to a cause of action for damages arising from the manufacture of methamphetamine as described by Chapter 99. I. CPRC 41.009. Bifurcated Trial.

(2)

(c) This section does not apply to a cause of action against a defendant from whom a plaintiff seeks recovery of exemplary damages based on conduct described as a felony in the following sections of the Penal Code if, except for Sections 49.07 and 49.08, the conduct was committed knowingly or intentionally: (1) (2) (3) (4) (5) (6) Section 19.02 (murder); Section 19.03 (capital murder); Section 20.04 (aggravated kidnapping); Section 22.02 (aggravated assault); Section 22.011 (sexual assault); Section 22.021 (aggravated sexual assault);
3

(a) On motion by a defendant, the court shall provide for a bifurcated trial under this section. A motion under this subsection shall be made prior to voir dire examination of the jury or at a time specified by a pre-trial court order issued under Rule 166, Texas Rules of Civil Procedure. (b) In an action with more than one defendant, the court shall provide for a bifurcated trial on motion of any defendant. (c) In the first phase of a bifurcated trial, the trier of fact shall determine: (1) liability for compensatory and exemplary damages; and

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(2) the amount of compensatory damages. (d) If liability for exemplary damages is established during the first phase of a bifurcated trial, the trier of fact shall, in the second phase of the trial, determine the amount of exemplary damages to be awarded, if any. J. CPRC 41.010. Considerations in Making Award.

N. CPRC 41.013. Judicial Review of Award. (a) Except as provided for in Subsection (b), an appellate court that reviews the evidence with respect to a finding by a trier of fact concerning liability for exemplary damages or with respect to the amount of exemplary damages awarded shall state, in a written opinion, the courts reasons for upholding or disturbing the finding or award. The written opinion shall address the evidence or lack of evidence with specificity, as it relates to the liability for or amount of exemplary damages, in light of the requirements of this chapter. (b) This section does not apply to the supreme court with respect to its consideration of an application for writ of error.

(a) Before making an award of exemplary damages, the trier of fact shall consider the definition and purposes of exemplary damages as provided by Section 41.001. (b) Subject to Section 41.008, the determination of whether to award exemplary damages and the amount of exemplary damages to be awarded is within the discretion of the trier of fact. K. CPRC 41.0105. Evidence Relating to Amount of Economic Damages. In addition to any other limitation under law, recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant. L. CPRC 41.011. Evidence Relating to Amount of Exemplary Damages.

III. CHAPTER 33.013 OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE (a) Except as provided in Subsection (b), a liable defendant is liable to a claimant only for the percentage of the damages found by the trier of fact equal to that defendants percentage of responsibility with respect to the personal injury, property damage, death, or other harm for which the damages are allowed. (b) Notwithstanding Subsection (a), each liable defendant is, in addition to his liability under Subsection (a), jointly and severally liable for the damages recoverable by the claimant under Section 33.012 with respect to a cause of action if: (1) the percentage of responsibility attributed to the defendant with respect to a cause of action is greater than 50 percent; or (2) the defendant, with the specific intent to do harm to others, acted in concert wit another person to engage in the conduct described in the following provisions of the Penal Code and in so doing proximately caused the damages legally recoverable by the claimant: (A) Section 19.02 (murder); (B) Section 19.03 (capital murder); (C) Section 20.04 (aggravated kidnapping); (D) Section 22.02 (aggravated assault); (E) Section 22.011 (sexual assault); (F) Section 22.021 (aggravated sexual assault);

(a) In determining the amount of exemplary damages, the trier of fact shall consider evidence, of any, relating to: (1) the nature of the wrong; (2) the character of the conduct involved; (3) the degree of culpability of the wrongdoer; (4) the situation and sensibilities of the parties concerned; (5) the extent to which such conduct offends a public sense of justice and propriety; and (6) the net worth of the defendant. (b) Evidence that is relevant only to the amount of exemplary damages that may be awarded is not admissible during the first phase of a bifurcated trial. M. CPRC 41.012. Jury Instructions. In a trial to a jury, the court shall instruction the jury with regard to Sections 41.001, 41.003, 41.010, and 41.011.
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(G) Section 22.04 (injury to a child, elderly individual, or disabled individual); (H) Section 32.21 (forgery); (I) Section 32.43 (commercial bribery); (J) Section 32.45 (misapplication of fiduciary property or property of financial institution); (K) Section 32.46 (securing execution of document by deception); (L) Section 32.47 (fraudulent destruction, removal, or concealment of writing); (M) conduct described in Chapter 31 the punishment level for which is a felony of the third degree or higher; or (N) Section 21.02 (continuous sexual abuse of young child or children).

(5) Was the conduct deceitful rather than accidental. Like the Gullo Motors case, the Supreme Court found that only the fifth factor was present and found that the exemplary damages ratios (47:1 as to the individual and 188:1 as to the corporation) were excessive. B. In re Columbia Medical Center of Las Colinas d/b/a Las Colinas Medical Center , 306 S.W.3d 246 (Tex. 2010).

In this mandamus case, the Supreme Court considered whether a trial court abused its discretion by refusing to reduce a punitive damage award where such damages were statutorily capped as measured against an economic damages award. In a previous appeal of this same underlying case, the Texas Supreme Court vacated a portion of the economic damages award for loss of inheritance finding the evidence was legally insufficient. Although the Supreme Court did not expressly address the amount of punitive damages, the statute capping punitive damages as measured against economic damages requires a reduction in punitive damages as a matter of law. Id. at 248. Consequently, on mandamus, the Supreme Court directed the trial court to vacate its earlier order and enter a final judgment making an appropriate reduction of the punitive damages award.

IV. RECENT TEXAS CASES A. Bennett v. Reynolds, 315 S.W.3d 867 (Tex. 2010). In Bennett, the Texas Supreme Court examined the exemplary-to-compensatory ratios in a case where the facts left little doubt that the litigants resided in Texas. The case arose along the Colorado River in San Saba County between neighbors that nursed a long time feud. The jury found (1) that one neighbor converted the other neighbors cattle, (2) that they did so with malice, and (3) they committed felony theft. The jury assessed $5,327.11 in compensatory damages (imposed jointly and severally by the trial-court judgment) plus exemplary damages of $250,000 against the neighbor individually and $1,000,000 against a corporate entity that held the ranch. The Court of Appeals affirmed. The Texas Supreme Court remanded the case to the Court of Appeals holding that the exemplary damages were unconstitutionally excessive. In so holding, the Court looked to its opinion in Tony Gullo Motors, I, L.P. v. Chapa, 212 S.W.3d 299 (Tex. 2006). In Gullo Motors, the Court examined a ratio of 4:33 to 1 in terms of five reprehensibility factors favoring exemplary damages. The five factors were: (1) Did the conduct cause physical harm; (2) Did the conduct endanger the health and safety of others; (3) Did the conduct involve repeated actions; (4) Did the conduct threaten financial ruin; and