Court Opinion

ID: 9664522
Source: CourtListenerOpinion
Date Created: 2023-08-24 00:20:33.812784+00
Date Added: 2024-06-11T18:15:06.978621
License: Public Domain

PHILLIPS, Chief Justice,
concurring.
I concur in the Court’s judgment, but I write separately to emphasize the distinction between direct and consequential damages as separate types of actual damages under the Texas Deceptive Trade Practices Act (“DTPA”), Tex.Bus. & Com.Code § 17.-41, et seq.
Under the DTPA, damages to a successful plaintiff should compensate for the actual loss sustained as a result of the defendant’s conduct. Kish v. Van Note, 692 S.W.2d 463, 466 (Tex.1985). Although we have never expressly stated the elementary rule that consequential damages are a form of actual damages under the DTPA, we have implicitly recognized this proposition by our consistent holdings that “actual damages” are those damages recoverable at common law. See, e.g., W.O. Bankston Nissan, Inc. v. Walters, 754 S.W.2d 127, 128 (Tex.1988); Farrell v. Hunt, 714 S.W.2d 298, 300 (Tex.1986); Brown v. American Transfer & Storage Co., 601 S.W.2d 931, 939 (Tex.), cert. denied, 449 U.S. 1015, 101 S.Ct. 575, 66 L.Ed.2d 474 (1980).
At common law, actual damages can be either “direct” or “consequential.” See generally, Nobility Homes of Texas, Inc. v. Shivers, 557 S.W.2d 77, 78 n. 1 (Tex.1977); Dan B. Dobbs, The Law of Remedies § 9.2 (1973). “Direct damages,” also known as “general damages,” compensate for the loss, damage or injury that is conclusively presumed to have been foreseen or contemplated by the party as a consequence of his breach of contract or wrongful act. Id. For misrepresentation, there are two recognized measures of direct damages. The “out of pocket” measure, which operates on a restitutionary theory, measures the difference between the value of that which was parted with and the value of that which was received. The “benefit of the bargain” measure, which utilizes an expectancy theory, evaluates the difference between the value as represented and the value actually received. W.O. Bankston Nissan, 754 S.W.2d at 128; Leyendecker & Assoc. v. Wechter, 683 S.W.2d 369, 373 (Tex.1984). See Dan B. Dobbs, The Law of Remedies § 9.2 (1973); J.F. Rydstrom, Annotation, “Out of Pocket” or “Benefit of Bargain" as Proper Rule of Damages for Fraudulent Representations Inducing Contract for the Transfer of Property, 13 A.L.R.3d 875 (1967). The DTPA allows the injured consumer to recover either the “out of pocket” measure or the “benefit of the bargain” measure of damages, whichever is greater. W.O. Bankston Nissan, 754 S.W.2d at 128.
On the other hand, “consequential damages,” also known as “special damages,” are those damages which result naturally, but not necessarily, from the acts complained of. Dan B. Dobbs, The Law of Remedies § 9.2 (1973). Under the common law, they are not recoverable unless the defendant had notice that the plaintiff would suffer such damages. Mead v. Johnson Group, Inc., 615 S.W.2d 685, 687 (Tex.1981) (citing Hadley v. Baxendale, 9 Exch. 341, 354 (1854)). Even though the notice or foreseeability requirement may not be necessary under the DTPA, see, e.g., Metro Ford Truck Sales, Inc. v. Davis, 709 S.W.2d 785, 793 (Tex.App.—Fort Worth 1986, writ ref’d n.r.e.); Riojas v. Lone Star Gas Co., 637 S.W.2d 956, 959 (Tex.App.—*164Fort Worth 1982, writ ref’d n.r.e.), if the damages are too remote, too uncertain, or purely conjectural and speculative, they cannot be recovered. See White v. Southwestern Bell Telephone Co., Inc., 651 S.W.2d 260 (Tex.1983). A consumer may recover consequential damages under the DTPA for a variety of injuries, including, but not limited to, lost profits, White, 651 S.W.2d 260, loss of credit, see, e.g., Roberts v. U.S. Homes Corp., 694 S.W.2d 129 (Tex.App.—San Antonio 1985, no writ), loss for improvements made, see Village Mobile Homes, Inc. v. Porter, 716 S.W.2d 543 (Tex.App.—Austin 1986, writ ref’d n.r.e.), interest on indebtedness, Kold-Serve Corp. v. Ward, 736 S.W.2d 750 (Tex.App.—Corpus Christi 1987), writ dism’d, Ward v. Kold-Serve Corp., 748 S.W.2d 227 (Tex.1980), and related and reasonably necessary expenses. Kish, 692 S.W.2d at 466. In order to be recoverable, however, consequential damages must be specifically pled. Tex.R.Civ.P. 56. See generally, Weingartens, Inc. v. Price, 461 S.W.2d 260, 263 (Tex.Civ.App.—Houston [14th Dist.] 1970, writ ref'd n.r.e.).
Bynum specifically pled for consequential damages of $60,426.00 in lost capital investment. At trial, he presented evidence that he had incurred that amount of damages. This proof is some evidence to support the judgment of the court of appeals affirming the judgment of the trial court.
I do not read the Court’s opinion today as departing from the well-settled distinction between direct and consequential damages. Because I do not read the opinion as articulating the distinction, however, I write separately.
GONZALEZ, J., joins in this concurring opinion.