Texas Supreme Court
Palestine Contractors, Inc., Petitioner v. Lois Perkins, Respondents
December 2, 1964386 S.W.2d 764
Summary
The Texas Supreme Court held that a plaintiff who gives a covenant not to sue a settling joint tortfeasor may recover only one‑half of the total damages from the non‑settling tortfeasor, adopting the rule from Gattegno v. The Parisian; the lower court's judgment was reversed and a reduced judgment of $13,250 was entered for the plaintiff. Justice Smith dissented, arguing that the covenant should not limit the plaintiff’s recovery.