§ 100B.003.Damages
Title 4. Liability in Tort · Chapter 100B. Liability for Fraudulent Crowdfunding · Last amended 2025 · Last verified August 29, 2026
Note. The code carries two provisions numbered § 100B.003. They were enacted by separate bills and were never harmonised. View the other version.
Full Text of § 100B.003
Plain-English Summary
A mandatory multiplied award, and the multiplier is unusually modest.
A court shall award a prevailing donee or donee's estate: 125 percent of the amount of donations the defendant collected through the fraudulent crowdfunding; and reasonable and necessary attorney's fees.
"Shall award" makes both mandatory. There is no discretion in either the multiplier or the fees.
125 percent is a restitution-plus measure rather than a punitive one. The donee receives everything the defendant collected and a quarter again — enough to remove the gain and add a margin, but not a treble-damages penalty.
Compare the malicious solicitation chapter enacted in the same session, which awards 300 percent. The difference presumably reflects that malicious solicitation exploits a declared disaster.
The measure is what the defendant collected, not what the donee lost — the same restitutionary logic as the sign trespass chapter, and for the same reason: a donee who never had the money has no conventional loss.
The mandatory fee award is what makes the claim viable. A campaign raising a few thousand dollars produces a small award, and without guaranteed fees the case would cost more than it recovers.
Subsection (b) preserves exemplary damages under the damages chapter, so a claimant may pursue them on top subject to that chapter's standards, unanimity requirement, and cap.
Frequently Asked Questions
What can a donee recover for fraudulent crowdfunding?
125 percent of the donations the defendant collected, plus reasonable and necessary attorney's fees. Both are mandatory.
Are exemplary damages available?
Yes. Nothing in the section prevents pursuing a claim for exemplary damages under Chapter 41.
Why 125 percent rather than treble?
It is a restitution-plus measure — removing the gain with a margin. The malicious solicitation chapter, which involves a declared disaster, awards 300 percent.
Amendment History
- Added by Acts 2025, 89th Leg., R.S., Ch. 654 (H.B. 4281), Sec. 1, eff. September 1, 2025. Chapter 100B, consisting of Secs. 100B.001 to 100B.004, was added by
- Acts 2025, 89th Leg., R.S., Ch. 1154 (S.B. 2373), Sec. 1. For another Chapter 100B, consisting of Secs. 100B.001 to 100B.003, added by Acts 2025, 89th Leg., R.S., Ch. 654 (H.B. 4281), Sec. 1, see Sec. 100B.001 et seq., post.