Tex. Codes » Labor Code · TITLE 5. WORKERS' COMPENSATION · SUBTITLE A. TEXAS WORKERS' COMPENSATION ACT · CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH OF DUTY
Texas Codes

Tex. Lab. Code § 416.002 (2026)

Exemplary Damages

✓ current as of May 2026
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Sec. 416.002. EXEMPLARY DAMAGES. (a) In an action against an insurance carrier for a breach of the duty of good faith and fair dealing, recovery of exemplary damages is limited to the greater of:

(1) four times the amount of actual damages; or

(2) $250,000.

(b) An action against a governmental entity or unit or an employee of a governmental entity or unit for a breach of the duty of good faith and fair dealing is governed by Chapters 101 and 104, Civil Practice and Remedies Code.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Notes of Decisions
Cited in 5 cases, 1995–2014 · leading case: Patin v. Allied Signal, Inc., 69 F.3d 1 (5th Cir. 1995).
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Patin v. Allied Signal, Inc., 69 F.3d 1 (5th Cir. 1995). · cites it 2× “1, § 1042 repealed and codified, TEX. LABOR CODE § 416.002. Because both of these sections became effective June 1, 1991, which was after Patin's original injury, I recognize they do not control the present case.”
City of Houston v. Christopher A. Rhule, 377 S.W.3d 734 (Tex. App.—Houston [1st Dist.] 2012). “” Tex. Lab. Code Ann. § 416.002 (b) (West 2006).”
England v. Liberty Mut. Ins., 831 F. Supp. 2d 1008 (S.D. Tex. 2011). “Tex. Lab.Code § 416.002(b); see Ruttiger, — S.”
Buddy Trahan v. Liberty Mut. Ins. Co., 571 F. App'x 319 (5th Cir. 2014). “See Tex. Labor Code § 416.002. Consequently, and as explained in detail by the Texas Supreme Court, claims of bad faith no longer arise outside of the workers’ compensation laws.”
Wendell H. Taylor v. Lubbock Reg'l MHMR & JI Texas Risk Mgmt. & Texas Dep't of Ins. Div. of Workers' Comp., No. 07-12-00232-CV (Tex. App.—Amarillo Jan. 8, 2013). “9 See also Tex. Lab. Code Ann. § 416.002 (b) (West 2006) (providing actions against governmental entity for breach of duty of good faith and fair dealing are governed by Chapters 101 and 104 of the Civil Practice and Remedies Code); Tex.”
Tex. Lab. Code § 416.002(b): 1 case
England v. Liberty Mut. Ins., 831 F. Supp. 2d 1008 (S.D. Tex. 2011). “Tex. Lab.Code § 416.002(b); see Ruttiger, — S.”
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