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Pioneer Specialties, Inc. v. Nelson

Texas Supreme Court

339 S.W.2d 199, 161 Tex. 244 (1960)

Facts

In April 1957, Ronald Nelson (defendant) was elected president of Pioneer Specialties, Incorporated (Pioneer) (plaintiff). Pioneer’s bylaws provided that the president and corporate officers were elected for one year. On August 1, 1957, Nelson was employed to be Pioneer’s president for a two-year period. Nelson's one-year term of election ended in April or May 1958, but his contract provided employment as president until July 31, 1959. On December 15, 1957, in the middle of his one-year term of election, Nelson was discharged by the board of directors. Nelson filed suit for damages for breach of contract of his two-year employment contract as Pioneer’s president.

Rule of Law

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Issue

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Holding and Reasoning (Greenhill, J.)

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Dissent (Walker, J.)

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