Case No. 23-0868
In 2015 White Knight Development, LLC contracted to buy land in a Bryan subdivision from Dick and Julie Simmons for $400,000; because subdivision restrictions could interfere with its plans, the parties added a "buy-back" provision letting White Knight require the Simmonses to repurchase the property at the same price if the restrictions were reinstated before January 1, 2018. The sale closed in May 2016, residents voted to extend the restrictions in October 2016, White Knight invoked the buy-back, and the Simmonses did not repurchase within forty-five days.1
White Knight sued for breach of contract and fraudulent inducement, seeking specific performance and delay-related damages; it testified it defaulted on its lender loan, paid forbearance fees, and took on other loans. After a bench trial the trial court ordered the Simmonses to repurchase the property for $400,000 and awarded $308,136.14 in "[a]dditional actual damages/consequential damages," itemized as property-related expenses, taxes and penalties, and operating-loan and credit-card interest. The Tenth Court of Appeals (Waco) deleted the monetary award, holding no statement showed it was equitable (703 S.W.3d 136). The Court heard argument March 18, 2025.1
Petition for review from the Tenth Court of Appeals after a bench trial; argued March 18, 2025.2
Whether the trial court could award both specific performance and a monetary award for delay-related expenses.1
Whether a monetary award may accompany specific performance is a legal question reviewed de novo, while the contours of an equitable award are within the trial court's discretion.1
White Knight (Petitioner): the monetary award compensates for costs caused by the Simmonses' delay in performing and is permissible alongside specific performance.
Simmonses (Respondents): specific performance and damages are alternatives, and the award was legal damages the trial court could not award in addition.1
Not applicable to the Court's decision; the opinion does not recite the petition's cert-worthiness arguments.
None noted
An equitable monetary award is permissible alongside specific performance within narrow limits, and the court of appeals erred by reversing the whole award without separating recoverable from unrecoverable expenses.1
Texas courts of appeals have consistently permitted, in narrow circumstances, payment of expenses incurred because performance was late, which "equalizes any losses occasioned by the delay," and the Court joined other states and the Restatement and Corbin in endorsing that remedy. The award is not breach damages and does not violate the one-satisfaction rule. Expenses must be directly traceable to the breach, excluding any expense White Knight would have incurred if performance had been timely, foreseeable at contracting as a category, and commercially reasonable, borrowing from the UCC's incidental-damages concept, and for a seller in possession must relate to the care and custody of the disputed property. Property taxes and interest on the Simmons property after the deadline may qualify, but business-operating interest and taxes on other properties are too attenuated.2 The Simmonses' argument that they were not estopped from asserting the restrictions had expired was not before the Court because they filed no petition.3
Court of appeals' judgment reversed in part and case remanded to that court to review the monetary award under the announced principles.4
Opinion of the Court by Justice Huddle.5
The following is current as of October 9, 2026.
| Date | Event |
|---|---|
| 06/21/2024 | Brief on the Merits Ordered |
| 03/18/2025 | Oral argument Argued on behalf of Petitioner by Chad Flores; Argued on behalf of Respondents by George M. Bishop III |
| 06/13/2025 | Opinion issued The Court reverses the court of appeals' judgment in part and remands the case to that court. Justice Huddle delivered the opinion of the Court. |
| 09/05/2025 | Motion for Rehearing - Disposed |
| 09/05/2025 | Mandate issued |
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