Phyllis Locke (plaintiff) entered into a contract with Mistletoe Express Service (Mistletoe) (defendant) whereby she would provide pickup and delivery service. Locke expended money in order to perform under the contract, including purchasing two vehicles, building a ramp, dirt work, and other startup expenses. She took out a loan to cover some of these expenses. During the contract, Locke never made a profit, though she lost less each month. Thereafter, Mistletoe canceled the contract. Locke closed the business and sold the vehicles at a loss. She testified at trial that she could get some money for the ramp, but she considered the dirt work a total loss. She still owed on the loan and had paid some interest. The jury awarded Locke $19,400 in damages and judgment was entered in that amount, plus pre-judgment interest and $2,000 in attorney’s fees. Mistletoe appealed to the Court of Appeals of Texas.