ERI Consulting Engineers, Inc. v. Swinnea

In ERI Consulting Engineers, Inc. v. Swinnea, 318 S.W.3d 867, 53 Tex. Sup. Ct. J 683, 2010 WL 1818395, at *9 (Tex. 2010), ERI brought suit against Swinnea for statutory fraud, common law fraud, breach of a non-compete agreement, and breach of fiduciary duty. Swinnea, a former partner in ERI, sold his interest to his partner and remained as an employee with a non-compete agreement. However, Swinnea's wife formed a business that competed with one of ERI's clients. Id. The client informed ERI that it would no longer do business with ERI due to Swinnea's personal involvement with one of the client's competitors. Id. After a bench trial, the trial court awarded ERI $ 300,000 in lost profits. The court of appeals reversed and rendered judgment in favor of Swinnea, finding the evidence of lost profits legally insufficient. The Texas supreme court held that the evidence was legally sufficient to support some ascertainable amount of lost profits, although the evidence did not prove the amount awarded by the trial court. ERI presented 20 months of invoices showing the average revenue per month it made from the client before Swinnea's wrongdoing. ERI also presented 33 months of invoices showing a significantly reduced monthly income from the client after Swinnea's wrongdoing. Id. Finally, ERI presented evidence of the profit margin on the revenue from that client. Id.