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Keywords

contractdamagesappealtrialverdictgood faith

contracttrialverdictgood faith

Related Cases

Mueller v. McGill, 870 S.W.2d 673

Facts

In December 1985, Rick Mueller negotiated a contract to purchase a 1985 Porsche 911 Targa from McGill, Inc. After signing the contract, he was informed that there was another contract on the car, but was assured that it would be available for pickup the next day. When he called the dealership the following morning, he learned that the car had been sold to another customer. McGill, Inc. promised to find a replacement vehicle, but later reneged on the agreed trade-in allowance and did not provide a suitable replacement. Mueller eventually purchased a 1986 Porsche from a competitor at a higher price.

In December 1985, Rick Mueller decided to buy his dream car, a black 1985 Porsche 911 Targa. He located such an automobile at McGill, Inc., and negotiated the terms of a sale for several hours with a salesman, Steve Richter. Richter and Mueller finally agreed upon a sales price and a trade-in allowance for Mueller's Mazda RX–7, and signed a written contract memorializing the agreement.

Issue

Whether the trial court erred in directing a verdict for McGill, Inc. without allowing the jury to determine if Mueller's attempt to cover was reasonable.

The issue this Court must decide is whether there were any questions of fact relating to the issue of proper “cover” that should have been presented to a jury.

Rule

A buyer may 'cover' by making a reasonable purchase of goods in substitution of those due from the seller, and the issue of good faith in effecting 'cover' is a question of fact for the jury.

A buyer may properly “cover” by “making in good faith and without unreasonable delay any reasonable purchase of or contract to purchase goods in substitution of those due from the seller.”

Analysis

The court found that the trial judge improperly concluded that Mueller had failed to prove damages because he did not provide evidence of the market price of the automobile. The court emphasized that under Texas law, if a buyer properly 'covers,' they do not need to show the market price at the time of breach. The evidence presented raised questions about the reasonableness of Mueller's actions in attempting to cover, which should have been decided by a jury.

Because the evidence presented by Mueller at trial was sufficient to raise fact questions regarding good faith and the reasonableness of his attempt to “cover,” we hold that the trial court erred by granting a directed verdict in favor of McGill, Inc.

Conclusion

The Court of Appeals reversed the trial court's directed verdict and remanded the case for further proceedings, allowing the jury to determine the reasonableness of Mueller's attempt to cover.

Accordingly, we reverse the judgment and remand the cause for further proceedings.

Who won?

Rick Mueller prevailed in the appeal because the court found that the trial court erred in directing a verdict without allowing the jury to consider the reasonableness of his actions.

The appellate court determines de novo whether there is any evidence of probative force to raise fact issues on the material questions presented.

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