What happens when something you trusted turns out to be dangerously defective? The shock and pain of an injury caused by a faulty product quickly become questions about accountability and compensation. How much is a fair settlement? How do you hold those at fault responsible?
In this article, our product liability lawyers explore the average settlement amounts for product liability cases in Texas, the factors that influence those figures, and how you can take the next step toward justice after being harmed by a product that never should have failed.
How Much Is a Product Liability Settlement Worth in Texas?
Product liability lawsuit settlements vary widely, ranging from thousands to millions of dollars. While some reports suggest the average settlement falls between $30,000 and $100,000, this range can be misleading without context.
The reality is that no "average" settlement accurately represents what your specific case might be worth. Each product liability case presents unique circumstances that affect the final settlement amount:
- A defective medical device might result in a higher settlement due to ongoing medical expenses and potential lifelong complications.
- A faulty consumer product causing moderate injuries might settle for a lower amount.
- A dangerous automobile component leading to catastrophic injury or wrongful death could command substantial compensation.
Texas courts consider numerous factors when determining compensation, including the nature of the defect, the manufacturer's knowledge of potential dangers, and the extent of the victim's suffering.
Key Factors That Influence Your Product Liability Settlement
Several critical elements influence the potential settlement value of your product liability claim in Texas:
- Severity and permanence of injuries: More serious or permanent injuries (including wrongful death) typically lead to higher settlements.
- Clear evidence of defect: Strong documentation that shows the product was defectively designed, manufactured, or labeled is essential.
- Texas product liability laws: Governed by the Texas Civil Practice and Remedies Code, these laws include comparative fault and strict filing deadlines that may affect your claim.
- Degree of negligence: If the manufacturer acted with gross negligence or knowingly ignored risks, you may be entitled to additional compensation.
- Lost income: Current and projected lost wages are considered, especially critical for younger victims with long-term income loss.
- Available insurance coverage: Insurance policy limits can act as practical caps on the final settlement.
- Quality of legal representation: Working with our experienced Texas product liability lawyer can make a significant difference in outcome and settlement size.
In Texas specifically, the state's modified comparative fault rule means your settlement could be reduced if you're found partially responsible for your injuries. Understanding these factors helps set realistic expectations about potential compensation.
How to Assess the Value of a Product Liability Lawsuit
Determining the value of a product liability case requires careful analysis of all losses you've suffered, both financial and emotional. In Texas, compensation typically falls into three categories: economic damages, non-economic damages, and punitive damages.
Economic Damages
Economic damages represent the tangible financial losses resulting from a defective product injury. These damages are typically the most straightforward to calculate and generally include:
Medical Expenses
All costs related to treating injuries caused by the defective product, including:
- Emergency room visits
- Hospitalization
- Surgeries
- Medication
- Physical therapy
- Medical equipment
- Future medical care
Lost Wages and Earning Capacity
Compensation for income lost while recovering from injuries, including:
- Missed workdays
- Reduced hours
- Lost bonuses or commissions
- Diminished future earning potential (especially in cases of permanent disability)
Property Damage
Property damage refers to any physical harm to your personal belongings or real property directly caused by the defective product. Compensation may include:
- Repair or replacement costs for items damaged in the incident (e.g., electronics, vehicles, appliances, furniture)
- Structural damage to your home or business, such as fires caused by faulty wiring or explosions from defective equipment
- Loss of use, if the damaged property was essential to your daily life or business operations (e.g., a damaged vehicle used for work)
Additional Expenses
Other financial burdens resulting from the injury, such as:
- Home modifications for accessibility
- Transportation to medical appointments
- In-home care services
Texas law allows for full recovery of properly documented economic damages without statutory caps, making thorough documentation essential to maximizing this portion of your settlement.
Non-Economic Damages
Non-economic damages address the intangible impacts of a product-related injury that significantly affect quality of life but don't have direct financial costs. These damages compensate for:
- Pain and suffering: Physical discomfort and pain resulting from injuries, both immediate and ongoing.
- Emotional distress: Psychological impact of the injury, including anxiety, depression, fear, and trauma.
- Loss of enjoyment of life: Diminished ability to participate in hobbies, activities, and experiences previously enjoyed.
- Disfigurement: Compensation for permanent scarring or visible alterations to appearance.
- Loss of consortium: Impact on relationships with your spouse.
While Texas doesn't cap non-economic damages in most product liability cases, it's important to note that medical malpractice cases and some government liability claims do have statutory limits.
Punitive Damages
Punitive damages are not tied to your actual losses — they exist to punish the manufacturer or seller for reckless or intentional misconduct and deter future harm.
You may be eligible for punitive damages in Texas if:
- A company knowingly sold a dangerous product
- It concealed known defects or safety risks
- It intentionally disregarded consumer safety
Texas law sets specific standards for punitive damages under the Texas Civil Practice and Remedies Code §41.003, requiring clear and convincing evidence that harm resulted from fraud, malice, or gross negligence.
Texas also imposes caps on punitive damages, limiting them to the greater of:
- $200,000, or
- Two times the economic damages plus an amount equal to non-economic damages (capped at $750,000)
Our Texas product liability attorneys at Omar Ochoa Law Firm have successfully helped clients obtain punitive damages in high-stakes cases, and we’re here to help you understand and calculate the full value of your claim.
Omar Ochoa Law Firm: Decades of Experience in Product Liability Cases
Product liability cases involve holding manufacturers accountable for injuries caused by their defective products. At Omar Ochoa Law Firm, we’re not just familiar with Texas product liability law — we’ve built a strong reputation on holding negligent manufacturers accountable and fighting for the maximum compensation our clients deserve.
Don’t wait — your recovery starts with the right legal team. Contact us today for a free, confidential consultation and let us win you maximum compensation for your injuries.
Omar Ochoa has been nationally recognized as one of the best young trial lawyers in the country. He's represented clients in federal and state courts and arbitrations throughout the United States and internationally. He is highly experienced in a wide range of complex litigation and has handled a variety of cases. He has recovered hundreds of millions of dollars for clients of all types — from individuals to mid-sized business owners to multi-national companies.
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