No specific laws identified for this ruling.
The trial court found Gaylor breached the non-solicitation agreement and awarded Sutherland $97,778.12 in damages representing lost salary from Conceptual Solutions. On appeal, the court reversed the damages award, finding Sutherland lacked standing to recover and that Conceptual Solutions was the proper party to pursue the claim.
Trial court erred by limiting cross-appellant's award of damages for appellant's breach of the non-compete provision in the independent contractor agreement to the additional salary cross-appellant would have earned from his limited liability company if appellant had not beached the agreement. Because cross-appellant was the contracting party, not his company, cross-appellant was the only party with standing to prosecute a claim against appellant, and he was entitled to recover all damages flowing naturally from the breach. Accordingly, the trial court erred when it failed to award damages to cross-appellant representing the full amount of profit lost. Sufficient evidence was presented by cross-appellant to support an award of damages representing that estimated gross profit lost over the two-year duration of the non-compete provision because cross-appellant's business was well-established, the financial records presented by cross-appellant permitted a reasonably reliable estimate of lost profit, and an award equal to two-years of estimated lost profit was necessary to place cross-appellant in the same position he would have occupied had appellant not breached the agreement. Judgment reversed in part and affirmed in part.
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