Opinion ID: 65359
Heading Depth: 2
Heading Rank: 1

Heading: Lost-Profit Damages

Text: McBeth and Reynolds challenge the district court's denial of their motion to enter judgment for lost-profit damages in accordance with the jury verdict. They argue that the profits ultimately made on the land transaction would have been theirs if Carpenter had performed his fiduciary duties as promised. These assertions are unavailing. In Texas, lost profit damages must be established with reasonable certainty. Blase Indus. Corp. v. Anorad Corp., 442 F.3d 235, 238 (5th Cir.2006) (quotation omitted). Lost profit damages may not be based on evidence that is speculative, uncertain, contingent, or hypothetical. Id. While some uncertainty as to the amount of damages is permissible, uncertainty as to the fact of damages will defeat recovery. Id. Plaintiffs failed to show lost-profit damages with reasonable certainty. As the district court pointed out, the later transaction which proved profitable was markedly different from that entered into by McBeth and Reynolds. This second contract was based on different terms, included more acreage, more capital infusion, and less leverage than the original sales provisions. The jury heard no evidence that the StoneLake partnership would have returned a profit to its limited partners, McBeth and Reynolds, or that the profit would total the awarded amount. We therefore affirm the district court's judgment.