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Mistletoe Express Service v. Locke

Court of Appeals of Texas, Texarkana

762 S.W.2d 637 (1988)

Relevant factsFree

Phyllis Locke (plaintiff) contracted with Mistletoe Express Service (Mistletoe) (defendant) to provide pickup and delivery services, spending money on vehicles, a ramp, dirt work, and other startup expenses (partly loan-financed); though she never turned a profit, her monthly losses shrank over time before Mistletoe canceled the contract, forcing her to close the business and sell the vehicles at a loss, while she still owed on her loan and had paid some interest. The jury awarded Locke $19,400 plus pre-judgment interest and $2,000 in attorney's fees, and Mistletoe appealed, arguing Locke could only recover unproven lost profits, not her expenditures.

IssueFree

Whether an innocent party can recover expenditures when the contract is breached.

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