Suing for Damages for Diminution In Value Caused by Breach of Contract

In Nelson v. Data Terminal Systems, Inc., 762 S.W.2d 744, 747 (Tex.App.--San Antonio 1988), a breach of contract case, a franchisee sought to recover damages for the diminution in the value of his business caused by the franchisor's failure to renew the franchise agreement. The evidence demonstrated that the franchisee's potential customer base was eroded as a result of the non-renewal. The San Antonio Court of Appeals determined that diminution in the value of a business is not the proper measure of damages in a breach of contract case. Nelson, 762 S.W.2d at 748.