Mustang Pipeline Co. v. Driver Pipeline Co.
This case concerns a breach of contract dispute between Mustang Pipeline Co. (Mustang) and Driver Pipeline Co. (Driver) regarding a pipeline construction project. Mustang sued Driver for failing to complete work timely, while Driver counterclaimed for wrongful termination. The jury initially found both parties breached, but the Supreme Court of Texas clarified that an express jury finding on materiality is not required when 'time is of the essence,' determining Driver's breach was material as a matter of law. This discharged Mustang from its obligations, invalidating the wrongful termination claim. However, Mustang failed to provide sufficient evidence that its claimed damages were reasonable and necessary. Consequently, the Supreme Court reversed the lower court's judgment for Driver, rendered judgment that Driver take nothing, and reversed the award of attorney's fees to Driver, upholding the denial of damages to Mustang.