Martha Jean Phillips, Petitioner v. Harry S. Phillips, Respondents

Summary

The Texas Supreme Court affirmed the Court of Appeals' judgment, holding that the ten‑times multiplier provision in the partnership agreement is an unenforceable penalty and that the failure to plead penalty as an affirmative defense did not constitute a waiver because the issue was apparent on the face of the pleadings. A dissent argued that the penalty defense should be waived and that the provision should be enforced.