Crim Truck & Tractor Co. v. Navistar International Transportation Corp.
Texas Supreme Court
823 S.W.2d 591 (1992)
- Written by Sean Carroll, JD
Facts
Crim Truck and Tractor Company (Crim) (plaintiff) was a franchisee of Navistar International Transportation Corporation (Navistar) (defendant). The franchise agreement provided that it was one “involving mutual confidence and trust” and that it was unassignable by either party. The parties had been in a cordial business relationship since 1943 but only reduced the agreement to writing in 1958. In 1983, Navistar wanted all its franchisees to sign onto a dealer-communications network. Crim declined, and Navistar terminated the franchise as a result. Crim sued Navistar for breach of its fiduciary duty, among other things. The trial court ruled in favor of Crim. The court of appeals ruled that a confidential relationship did not exist between Crim and Navistar and thus reversed on the issue of breach of fiduciary duty. Crim appealed.
Rule of Law
Issue
Holding and Reasoning (Cornyn, J.)
Dissent (Mauzy, J.)
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