Understanding Compensation in Wrongful Death Cases

May 3, 2025 | By Ted R. Lorenz
Understanding Compensation in Wrongful Death Cases

Losing a loved one because of another person’s negligence or misconduct is a deeply traumatic event. Medical bills, funeral costs, and the sudden loss of financial and emotional support can compound the grief that follows. 

In Texas, families have the legal right to pursue compensation through a wrongful death claim when someone's actions cause a preventable death. The legal system cannot undo the loss, but it does provide a path to financial recovery and accountability.

Lorenz & Lorenz, PLLC created this guide to understanding compensation in wrongful death cases. It explains who is eligible to file a claim, what damages may be available, how compensation is calculated, and what timelines are applicable under Texas law. If you are seeking to understand your options following a family member’s wrongful death, this article provides practical guidance.

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Who Can File a Wrongful Death Claim in Texas?

A grieving family consults a lawyer about a wrongful death claim, showing a photo of the deceased, with legal documents on the table.

Not every family member is permitted to bring a wrongful death claim. Texas law limits the right to sue to specific individuals.

Under the Texas Civil Practice and Remedies Code § 71.004, a wrongful death claim may be filed by:

  • The deceased person’s surviving spouse
  • The deceased person’s children (including adult children)
  • The deceased person’s parents

These individuals may file a claim individually or together. Suppose they choose not to file a claim within three months of the death. In that case, the executor or administrator of the estate may do so unless a qualifying family member requests explicitly otherwise.

Siblings, grandparents, fiancés, and other extended family members do not have legal standing to file a wrongful death claim in Texas, even if they were financially or emotionally close to the deceased.

This legal restriction can be confusing, especially when the deceased was unmarried or had a nontraditional family structure. Eligible family members must take timely action so that their claim is not delayed or barred by others.

What Types of Compensation Are Available in a Wrongful Death Case?

Wrongful death claims in Texas allow eligible family members to seek compensation for both economic and non-economic losses caused by the death.

Economic Damages

Also called actual damages, they refer to tangible, measurable losses, including:

  • Loss of financial support the deceased would have provided
  • Loss of household services, such as child care or maintenance
  • Funeral and burial expenses
  • Medical bills related to the decedent’s final injury or illness (when included in the wrongful death claim rather than a separate survival action)

Economic damages are usually supported by documentation such as pay stubs, tax returns, employment history, and invoices.

Non-Economic Damages

These include less quantifiable losses, such as:

  • Loss of companionship, society, and affection
  • Mental anguish experienced by surviving family members
  • Loss of parental guidance or spousal support

Non-economic damages are more difficult to calculate but are no less real. Testimony from family members, mental health professionals, and others may be used to help establish their extent.

Compensation is awarded individually. That means each eligible family member may recover a separate amount based on the nature of their relationship with the deceased and the harm they experienced.

Can Punitive Damages Be Awarded in a Texas Wrongful Death Case?

Punitive damages, also known as exemplary damages, may be available in a wrongful death claim if the conduct that caused the death involved gross negligence, fraud, or malice.

Texas law permits these damages not to compensate survivors but to penalize the wrongdoer and discourage similar conduct by others. Drunk driving, reckless conduct by an employer, or repeated safety violations may support a claim for punitive damages.

Punitive damages are only awarded when clear and convincing evidence of aggravated conduct exists. They are in addition to economic and non-economic damages. Texas places statutory limits on the amount that can be awarded. These limits vary based on the value of economic damages in the case and whether the conduct involved specific intent to cause harm.

When the person or business responsible for the death acted with conscious indifference to the safety of others, a court may consider punitive damages appropriate. A prior history of similar violations, criminal convictions, or evidence of misconduct after the incident may also influence whether these damages are awarded.

How Is Wrongful Death Compensation Calculated?

There is no fixed amount of compensation in a wrongful death case. Each claim is evaluated on its own facts. Several factors influence how damages are calculated:

The Deceased Person’s Income and Earning Capacity

One of the most significant factors in a wrongful death claim is the financial support the deceased would have provided if they had lived. This includes current wages and projected future earnings. Courts may also consider benefits such as employer-provided health insurance or retirement contributions.

The Age and Life Expectancy of the Deceased

A younger person with a long expected work life may justify higher financial compensation than someone near retirement. Life expectancy tables and actuarial data are often used to support these calculations.

The Relationship Between the Claimant and the Deceased

The emotional and financial loss experienced by a surviving spouse is not the same as that experienced by an adult child. Texas law recognizes these distinctions. Damages are awarded based on the specific nature of each relationship.

The Non-Economic Impact on Survivors

Mental anguish, loss of companionship, and changes in family dynamics all contribute to non-economic damages. The more severe the emotional impact, the higher the potential recovery may be.

The Strength of the Evidence

Claims supported by clear documentation, credible testimony, and professional evaluations—including medical records, psychological assessments, and financial projections—are more likely to result in substantial compensation.

Although no amount of money can replace a loved one, compensation helps families recover financial stability, offset lost income, and account for the emotional and personal losses that follow a preventable death.

What Is the Statute of Limitations for a Wrongful Death Claim in Texas?

In Texas, the statute of limitations for a wrongful death claim is two years from the date of the deceased person’s death. This deadline applies regardless of when the injury occurred or the claimant discovered the cause of death, with very few exceptions.

Failing to file a claim within this two-year period usually results in the case being dismissed by the court, even if the underlying claim would have succeeded.

The following exceptions may apply:

  • If the claimant is a minor, the two-year clock may be paused until they reach age 18.
  • If the death was caused by an individual or entity that actively concealed evidence or misrepresented facts, the deadline may be extended.
  • In certain cases involving criminal acts, the civil statute may be tolled until the outcome of the criminal proceeding is known.

Because the law does not require insurance companies to inform potential claimants of these deadlines, family members must act quickly. Evidence, including accident reports, security footage, and witness memories, can be lost or degraded over time. Early action improves the chance of building a strong case with all available documentation.

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Common Misconceptions About Wrongful Death Claims

Wrongful death claims are often misunderstood. Misconceptions may discourage families from taking action or result in preventable mistakes during the legal process. Clarifying these issues helps set accurate expectations.

Misconception: Only Immediate Family Members Can File

While Texas limits eligibility to spouses, children, and parents, it does not require all to live in the same household or be financially dependent. Adult children and estranged parents may still have legal standing. It is a legal matter of statutory qualification, not emotional closeness.

Misconception: Compensation Is Guaranteed

Liability must be proven. A wrongful death claim requires showing that the defendant’s conduct directly caused the death and that it would not have occurred otherwise. Insurance companies may dispute these facts or offer low settlements that do not reflect the value of the loss.

Misconception: All Claims Result in a Trial

Most wrongful death claims are resolved through settlement before trial. However, preparation for litigation improves negotiation outcomes. A well-documented claim supported by evidence may prompt insurers to offer more reasonable terms to avoid courtroom proceedings.

Wrongful Death Claims After Car Accidents and Drunk Driving Incidents

When someone dies due to another driver’s negligence, the cause of the accident matters. Some types of collisions result in higher compensation because of the circumstances surrounding the event.

Drunk Driving and Punitive Damages

Alcohol-related collisions often involve reckless behavior. In these cases, courts may permit punitive damages due to the intentional disregard for public safety. If the driver has prior offenses or was highly intoxicated, the likelihood of an increased award may rise.

Speeding, Aggressive Driving, or Reckless Maneuvers

Wrongful death claims may involve excessive speed, running red lights, or street racing. These actions can support a gross negligence claim, especially when other violations are present.

Employer or Third-Party Liability

If the driver responsible for the death was working at the time of the crash, the employer may share responsibility. This includes delivery drivers, rideshare operators, and contractors operating a company vehicle. Liability may also extend to businesses that served alcohol to a visibly intoxicated person, under Texas’s dram shop statute.

These additional sources of recovery can significantly affect the outcome of a claim and should be considered early in the investigation.

The legal process for a wrongful death claim involves several stages. Each contributes to building a case for compensation and ensuring the responsible party is held accountable.

  • Investigation and Case Review. Initial steps include reviewing medical records, examining accident reports, identifying witnesses, and preserving physical or digital evidence. In some cases, expert evaluations, such as accident reconstruction, may be needed to establish fault.
  • Claim Filing. Once sufficient evidence is gathered, a claim may be filed with the appropriate insurance carrier or directly with the court. The claim must identify the legal basis for damages, the connection to the death, and the amount sought.
  • Discovery and Negotiation. During this phase, each side requests information from the other, including depositions, documents, and sworn statements. Settlement discussions often occur after discovery is complete and the strength of the evidence becomes clear.
  • Trial (If Needed). If an insurance company fails to provide a fair settlement, a lawsuit can be filed, and the case will go to trial. The judge or jury establishes fault, assesses damages, and decides if further compensation should be granted.

Wrongful death claims involve emotional and financial stakes. Legal support allows families to focus on healing while ensuring the process is handled promptly.

Determining Liability

A legal team evaluates the conduct of the person directly responsible and the potential involvement of employers, property owners, or alcohol providers. Identifying every source of compensation is key to a full recovery.

Documenting Damages

Future financial losses must be accurately projected. This often requires input from medical professionals, economists, and occupational experts. Legal counsel coordinates these resources and ensures they are presented effectively.

Communication and Deadlines

Lawyers manage discussions with insurers, handle all legal filings, and monitor deadlines. This reduces the risk of procedural errors that can harm a case.

Advocacy During Negotiations and Trial

Legal representation ensures the case is prepared for trial if a claim is not resolved through negotiation. This includes assembling witnesses, preparing arguments, and presenting evidence per state law and court procedures.

Before meeting with a law firm about a wrongful death claim, it helps to gather basic documentation and prepare a clear summary of events. This can speed up the evaluation process and provide a stronger foundation for early investigation.

Recommended materials include:

  • Death certificate
  • Medical records from the final illness or injury
  • Accident or police reports
  • Any insurance correspondence received
  • Pay stubs or tax documents showing the deceased’s income
  • A timeline of events leading to and following the death

Family members should also be prepared to explain how the loss has affected their household financially and emotionally. These personal details may influence the damages available in a claim.

Wrongful death claims serve two purposes: they help families recover financial losses, and they hold responsible parties accountable for preventable harm. In Texas, compensation may include economic damages, emotional losses, and, in some cases, punitive awards. Timelines are strict, and multiple parties may be involved. Each case requires a careful review of the facts, fully accounting for damages, and timely legal action.

Contact a Wrongful Death Lawyer at Lorenz & Lorenz

If your family is coping with the loss of a loved one due to someone else’s actions, legal guidance can help you take the next step toward financial recovery. A consultation offers an opportunity to review your rights, evaluate the strength of your case, and determine what compensation may be available under Texas law.

To schedule your free case review, call Lorenz & Lorenz at (512) 477-7333 or complete the contact form on our website. A member of our team will assist you and answer your questions.

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Ted R. Lorenz

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