Texas Instruments, Inc. v. Teletron Energy Mgmt., Inc

In Texas Instruments, Inc. v. Teletron Energy Mgmt., Inc., 877 S.W.2d 276, 279 (Tex. 1994), Texas Instruments ("TI") agreed to build ten working prototypes of a voice-prompted, programmable thermostat designed by Teletron within eleven weeks for $ 32,000. See id. at 277. There was no comparable device on the market, and the prototypes were to incorporate state-of-the-art microprocessors, software, and hardware. See id. After nearly two years of failed attempts, TI halted its efforts, and Teletron sued for breach of contract, breach of warranty, violations of the DTPA, negligence, breach of fiduciary duty, and fraud. See id. The jury found Teletron's damages to be $ 100,000 in expenses, $ 500,000 for past lost profits, and no damages for future lost profits. See id. The trial court rendered judgment on the verdict but refused to award Teletron lost profits. See id. The court of appeals modified the trial court judgment to include $ 500,000 for past lost profits. See id. The supreme court began its discussion of the case by reaffirming its rule for recovery of lost profits. See Teletron, 877 S.W.2d at 278-79.