How Texas groups damages

Texas law separates economic damages, which compensate for actual money losses, from non-economic damages, which cover harms like pain, mental anguish, physical impairment and disfigurement. Exemplary (punitive) damages are separate again. They are only available in limited cases, such as gross negligence, and are capped (CPRC Chapter 41).

Medical bills: "paid or incurred"

Under CPRC ยง41.0105, recovery of medical expenses is limited to the amount actually paid or incurred by or for the injured person. That is often less than the billed amount after insurance adjustments. Keep both figures if you have them.

Liens and reimbursement

Hospitals, health insurers, Medicare, Medicaid and doctors treating "on lien" may be entitled to be repaid from a settlement. Read medical liens and subrogation in Texas.

Records to keep for each line

  • Itemised bills and explanation-of-benefits statements
  • Pay stubs, tax returns or an employer letter for lost time
  • Repair estimates, total-loss valuation and rental receipts
  • A simple daily journal of pain, sleep, missed activities and help needed at home