Farnsworth v. Massey

365 S.W.2d 1 (1963)

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Farnsworth v. Massey

Texas Supreme Court
365 S.W.2d 1 (1963)

  • Written by Robert Cane, JD

Facts

Richard Farnsworth (plaintiff) was a minority shareholder in a corporation. Otis Massey (defendant) and four-fifths of the outstanding shares of the corporation, as required by statute, approved a sale of assets in order to freeze out Farnsworth and form a new company. Farnsworth was not allowed to obtain an interest in the new company. As a result, Farnsworth filed a claim for special damages based on fraud and conspiracy, but Farnsworth did not offer specificity or proof as to his claim. The jury found in favor of Farnsworth regarding special damages, but the trial court refused the jury’s finding. The appellate court reversed the trial court and entered judgment on the special damages issue in favor of Farnsworth. Massey and the corporation appealed to the Texas Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Griffin, J.)

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