September 8, 2000 - Legal Reform Will Not Hurt Firestone Consumers
Firestone and Ford owe a duty of care to millions of Ford Explorer drivers since a number of injuries and deaths were reported when Firestone tires on Explorers failed.
Because Texas Legislature has enacted a reasonable limitation on punitive damages but not on compensatory damages, a plaintiff only has to establish defendant's culpability. Thus, if such sufficient culpability on the part of a defendant is established, then a plaintiff can get punitive damages equal to two times economic damages, plus one times non-economic damages that don't exceed $750,000.
For example, if a Texas jury awards a plaintiff damages of $500,000 for medical care, $500,000 for loss of earning capacity, $500,000 for physical pain and $250,000 for mental anguish, then the jury can also impose punitive damages of $2.75 million over and above the $1.75 million of compensatory damages for a total award of $4.5 million.
Thus, Texas' punitive damages limitation reasonably balances society's interests in having fairness and predictability in the law on one hand and imposing a higher level of damages on the most egregious wrongdoers on the other.
Today Texas law is consistent with federal law, U.S. Supreme Court rulings and the laws of most other states, placing the state is in a mainstream of American class action law.
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