Pura-Flo Corporation v. Donald Clanton

Summary

The Supreme Court of Texas held that the evidence did not support a $50,000 award for future damages arising from breach of an indefinite, terminable-at-will rental-income agreement. Because neither the fact nor amount of future damages was established with reasonable certainty, the court reversed that portion of the court of appeals’ judgment and rendered judgment that the respondent take nothing on his future-damages claim, while leaving the past-damages award intact.

Holdings

1. The evidence did not establish with reasonable certainty that the contract would continue to produce income for Clanton after trial, because Pura-Flo had repeatedly and unequivocally attempted to terminate the relationship and no countervailing evidence showed that the contract would endure.
2. The $50,000 future-damages award lacked a reasonable evidentiary basis because no evidence indicated that the contract would continue for any period after trial, much less the approximately five years represented by the award.
3. The court did not decide whether a terminable-at-will contract may support a future-damages award in some circumstances because, on this record, both the fact and amount of future damages lacked reasonable certainty.

Questions Presented

1. Whether legally sufficient evidence supported the fact of future damages under a terminable-at-will contract of indefinite duration.
2. Whether legally sufficient evidence supported the amount of the $50,000 future-damages award with reasonable certainty.
3. Whether a contract of indefinite duration may support a future-damages award in some circumstances.

Disposition

reversed