Evadine R. Mead, Petitioner v. the Johnson Group, Inc., Respondents

Summary

The Texas Supreme Court held that actual damages for loss of credit are recoverable in a breach of contract when the loss is a natural, probable, and foreseeable consequence of the breach, and that a plaintiff need not first pay assumed debts before recovering against the breaching party. Accordingly, the court reversed the Court of Civil Appeals in part, reinstating the trial court's awards of loss‑of‑credit damages, the SBA loan balance, business debts, commissions, overrides, attorneys' fees, and the rent award to Larson.