Why does Texas have such a messed up Civil system?

I hear ya. I was hit and permanently injured. Got jack for it. In pain everyday.

 

Nope, the defendant was a city. The federal government does not get insurance to cover tort claims as it doesn't need it. It pays the judgements against it from the Treasury. Moreover, claims against the federal government for personal injury are covered by the federal Tort Claims Act, for which very specific rules apply. Cities, however, don't have the kind of funds in their coffers to pay up claims like this, hence they need insurance.

 

Federal district court as there were federal civil rights violations also asserted in the claim. But state law still governs the personal injury claims made in the case.

 

On the state law claims, the federal court would not be able to exceed the cap any more than a Colorado district court (which would be the proper state court here) since the federal court must apply state law when deciding state law claims. Indeed, there is a process for a federal court to seek the answer to important state law issues that have not yet been addressed in that state's appellate court from state supreme courts to aid the federal court in making its decisions on those state law matters.

On the other hand, the state cap does not in any way limit the damages on the federal claims in the case. Federal law determines that.