HB 4806: The End of Nuclear Verdicts in Texas?
- Zeke Moya
- Mar 14
- 3 min read
Texas may be on the brink of a significant shift in civil litigation. House Bill 4806 (HB 4806), currently under review by the Judiciary & Civil Jurisprudence Committee as of March 6, 2025, is set to curb runaway jury awards, limit inflated medical damages, and create greater fairness in personal injury and wrongful death lawsuits. If passed, this bill will protect insurance carriers, business owners, and defendants from excessive claims while ensuring fair compensation for injured plaintiffs.
Why HB 4806 Matters
Over the past decade, Texas has seen an alarming rise in nuclear verdicts—jury awards that far exceed reasonable compensation and are often driven by emotional appeals and inflated damages calculations. HB 4806 seeks to address these issues by limiting noneconomic damages, reforming medical expense recovery, and restricting punitive damages.
Key Provisions of HB 4806
1.Limits on Noneconomic Damages (Pain & Suffering, Mental Anguish)
Under HB 4806, juries must unanimously agree on the amount awarded for pain and suffering, and mental anguish, which will now be capped as follows:
$1 million cap for mental anguish in wrongful death cases.
Pain & suffering in personal injury cases: Capped at the lesser of:
3x the total of past and future medical expenses, OR
$100,000 per year of life expectancy.
$1 million cap for mental anguish in cases arising from emotional injury.
$250,000 cap for mental anguish in cases where the plaintiff suffered physical injury.
These provisions will prevent excessive damage awards, ensuring compensation aligns with actual injuries rather than speculative claims.
2. Stricter Rules on Medical Expense Recovery
Past and future medical damages will be limited to:
The amount actually paid by insurance or the injured party.
If no payment was made, 150% of the median market rate based on the Texas All Payor Claims Database.
Eliminates the use of inflated medical bills, particularly those supported by letters of protection (LOPs), which often distort actual costs to increase settlements and jury awards.
Medical providers who do not intend to testify at trial cannot have their charges controverted, provided they meet the 150% threshold of market rates.
This will prevent the use of artificially inflated medical charges that are not reflective of real-world pricing.
3. Limits on Punitive Damages
Plaintiffs must prove by clear and convincing evidence that the defendant acted with fraud, malice, or gross negligence.
A unanimous jury decision is required for punitive damages.
Employers cannot be held liable for punitive damages unless they authorized, ratified, or knowingly retained an unfit employee.
This ensures punitive damages are reserved for truly egregious conduct, rather than being used as a tool for excessive verdicts.
4. Stronger Discovery Rights for Defendants
Plaintiffs must disclose letters of protection, medical provider relationships, and referral arrangements.
Defense attorneys can request anonymized lists of other patients referred by the plaintiff’s lawyer to the same medical provider over the past two years.
Courts must limit arbitrary formulas used to calculate damages (e.g., “$X per day for pain and suffering” arguments).
This increases transparency, preventing collusion between attorneys and medical providers that artificially inflates damages.
The Potential Impact of HB 4806
✅ Reduces settlement pressure caused by inflated damages claims.
✅ Prevents excessive verdicts that inflate insurance premiums and business costs.
✅ Ensures fair compensation without excessive windfalls.
✅ Increases predictability in litigation, benefiting insurance carriers and business owners.
What’s Next?
HB 4806 is currently under committee review. If it advances, it could become law as early as September 1, 2025, fundamentally altering the litigation landscape in Texas.
Final Thoughts
This bill represents a significant step toward fairness in the courtroom for insurance carriers, business owners, and defense attorneys. While plaintiffs will still be able to recover reasonable compensation, HB 4806 ensures damages reflect actual harm rather than exaggerated claims.
We will continue to monitor HB 4806’s progress and provide updates on how it may affect litigation strategy and claims handling in Texas.
🔹 What are your thoughts? Is this the right move for tort reform in Texas, or do you foresee challenges ahead? Let’s discuss in the comments.