When you sue another person or entity, like a corporation, you could be entitled to damages when you win. The term damages refers to money a court order the losing party (or, more specifically, the losing party’s insurance company) to pay you. There are two main types of damages in Texas: punitive and compensatory.
In some personal injury lawsuits, the law allows a court to order punitive damages. However, the majority of lawsuits settle out of court, which means that your personal injury attorney and the other party’s attorney reach an agreement that you agree is satisfactory. You can only get punitive damages if you go to court and a judge awards them to you – otherwise, you’ve reached a settlement.