PJC Business 2024

T EXAS P ATTERN J URY C HARGES

Business • Consumer • Insurance • Employment

TEXAS PATTERN JURY CHARGES

Business • Consumer Insurance • Employment

Prepared by the COMMITTEE on PATTERN JURY CHARGES of the STATE BAR OF TEXAS

Austin 2024

The State Bar of Texas, through its Texas Bar Books Department, publishes practice books pre pared and edited by knowledgeable authors to give practicing lawyers as much assistance as possible. The competence of the authors ensures outstanding professional products, but, of course, neither the State Bar of Texas, the editors, nor the authors make either express or implied warranties in regard to their use. Each lawyer must depend on his or her own knowl edge of the law and expertise in the use or modification of these materials. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that (1) this written material was not intended or written by the author(s) to be used for the purpose of avoiding federal penalties that may be imposed on a taxpayer; (2) this written material cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer; (3) this written material cannot be used in promoting, marketing, or recommending to another party any tax-related transaction or matter; and (4) a taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. The use of the masculine gender throughout this publication is purely for literary convenience and should, of course, be understood to include the feminine gender as well. ISBN (print): 978-1-956363-60-9 ISBN (digital download): 978-1-956363-61-6 ISBN (book set): 978-1-956363-59-3 © 1990, 1992, 1993, 1997, 1998, 2000, 2002, 2004–2006, 2008, 2010, 2012, 2014, 2016, 2018, 2020, 2022, 2024 State Bar of Texas Austin, Texas 78711 All rights reserved. Permission is hereby granted for the copying of pages or portions of pages of this publication by a photocopy or other similar process or by manual transcription, by or under the direction of licensed attorneys for use in the practice of law. No other use is permitted that will infringe the copyright without the express written consent of the State Bar of Texas. Printed in the United States of America

Texas Pattern Jury Charges—Business, Consumer, Insurance & Employment was formerly titled Texas Pattern Jury Charges, Volume 4 .

COMMITTEE ON PATTERN JURY CHARGES Business • Consumer • Insurance • Employment 2024–2025 H ON . G INA B ENAVIDES , Chair J OHN G RIFFIN , Vice-Chair

A LEXIER B ARBOUR K IWI C AMARA J ENNIFER C. C HIANG

M ICHAEL W. M ASSIATTE R ACHEL M C K ENNA R OBERT M C K NIGHT

H ON . T RACY C HRISTOPHER C HRISTOPHER D OVE

S TEPHEN P ATE

W ILLIAM R OBERT P ETERSON R ANDALL A. P ULMAN M ARCY L YNN R OTHMAN H ON . M ARIA S ALAS M ENDOZA A DAM T ROY S CHRAMEK

H ON . D AVID G UNN

S TEVE H AYES

J OHN V. J ANSONIUS D AVID E. K ELTNER B RIAN P. L AUTEN

M ARY L. S COTT J ASON C. N. S MITH C ARLOS R. S OLTERO J. J OSEPH V ALE

S COTT E DWARD L INDSEY J EREMY C HARLES M ARTIN H ON . R EBECA C. M ARTINEZ

D WAINE M ASSEY

T. M AXINE W OODS -M C M ILLAN

COMMITTEE ON PATTERN JURY CHARGES—OVERSIGHT 2024–2025 H ON . D ANIEL E. H INDE , Chair H ON . R OBERT S CHAFFER , Vice-Chair H ON . J OHN P. D EVINE , Supreme Court Liaison

B ROCK C. A KERS

H ON . D ENNISE G ARCIA

M ALERIE T. A NDERSON S COTT A RMSTRONG H ON . S COTT B RISTER K IRSTEN M. C ASTAÑEDA H ON . M URRY B. C OHEN J. C HRISTOPHER D EAN

T RACI A. G IBSON

H ON . M ELISSA G OODWIN M ARY T AYLOR H ENDERSON

J AY J ACKSON D AVID C. K ENT

J EFFREY S. L EVINGER L A D AWN H. N ANDRASY K AREN S. P RECELLA M ICHAEL L. S LACK H ON . B ONNIE S UDDERTH H ON . T IMOTHY S ULAK

M ICHAEL E ADY

H ON . A NA E. E STEVEZ

M ARCUS E STHER

A PRIL F ARRIS

T ITIANA D. F RAUSTO S TEWART G AGNON

J IMMY V AUGHT

H ON . A NDREW A. W RIGHT

STATE BAR OF TEXAS 2024–2025 S TEVE B ENESH , President P AUL K. S TAFFORD , Chair of the Board

A ARON Z. T OBIN , Chair, Board Professional Development Subcommittee S ARAH C LOWER K EATHLEY , Chair, Committee on Continuing Legal Education T REY A PFFEL , Executive Director

S HARON S ANDLE , Director E LMA E. G ARCIA , Assistant Director and Project Publications Attorney

R OBERT C. C ABLE , Publications Attorney E LIZABETH F LOREANI , Publications Attorney N ICHOLAS B. G ODDARD , Publications Attorney D EREK S MITH , Publications Attorney

R OGER S IEBERT , Senior Editor C OURTNEY C AVALIERE , Editor L EXI C LIDIENST , Editor C ASEY E LLIS , Editor J ILL H OEFLING , Business Manager

E DWARD M ORGAN , Operations Manager T RAVIS R IDDLE , Production Supervisor J ENNIFER T OWNSEND , Production and Editorial Assistant

H OLLY R EDDEHASE , Meeting Coordinator L ARA T ALKINGTON , Marketing Coordinator K EVIN H ENDERSON II, Website Manager J ENNIFER K ARLSSON , Web Content Specialist J ENNIFER P EREZ , Web Content Specialist O TTO N ICLI , Web Content Strategist L ENILA C ARRENO , Accounting Specialist

COMMITTEE ON PATTERN JURY CHARGES Business • Consumer • Insurance • Employment 1989–2024 Chairs M IKE M. T ABOR , 1989–1993

P HILIP K ENT M AXWELL , 1993–1997 S HARON E. C ALLAWAY , 1997–2004 T IMOTHY G. C HOVANEC , 2004–2006 K AREN S. P RECELLA , 2006–2009 M ARK L. K INCAID , 2009–2011 H ON . J. B RETT B USBY , 2011–2015 L A D AWN H. N ANDRASY , 2015–2018

W ILLIAM J. C HRISS , 2018–2022 C ARLOS R. S OLTERO , 2022–2024 Vice-Chairs P HILIP K ENT M AXWELL , 1991–1993 G EORGE W ALTER B RAMBLETT , J R ., 1993–1995 K AREN S. P RECELLA , 2003–2006 M ARK L. K INCAID , 2007–2008 D ANIEL L. R ENTFRO , J R ., 2009–2012 H ON . B RIAN P ATRICK Q UINN , 2012–2014 L A D AWN H. N ANDRASY , 2014–2015 S HARON E. C ALLAWAY , 1995–1997 T IMOTHY G. C HOVANEC , 1997–2004

W ILLIAM J. C HRISS , 2015–2018 C ARLOS R. S OLTERO , 2018–2022 H ON . G INA B ENAVIDES , 2022–2024 Members

H ON . M ARILYN A BOUSSIE

K ATHERINE B UTLER B REM A RTHUR J. B RENDER , J R .

B EN L. A DERHOLT C. M ARK B AKER D AVID B ATSON A SIM B HANSALI

K AMELA B RIDGES H ON . S COTT B RISTER Q UENTIN B ROGDON

M ICHAEL A LLEN B IRRER

R OBERT L. R USSELL B USH

T HOMAS B LACK H ON . J ANE B LAND

K IWI C AMARA

L UIS M. C ARDENAS S AMUEL L. B OYD

R YAN B ORELO

Members

S TEPHEN A SHON C HAN

T ERESA R HONDA J ONES

D AVID S. C OALE

J EFFREY R. J URY D AVID E. K ELTNER A NDREW L. K ERR

H ON . A NN T. C OCHRAN S TUART L EE C OCHRAN D OUGLAS G. C ORNWELL P ETER M. C URRY , J R .

J EROME M. K OLANDER , J R . H ON . D OUGLAS S. L ANG T HOMAS S. L EATHERBURY

T ERI L. D ANISH

H ON . M ARK D. D AVIDSON

J OHN G. L EWIS P ETER L INZER J ACK W. L ONDON D AVID T. L OPEZ M ARK E. L OWES C. R OBERT M ACE

D ON C. D ENNIS

H ARISH C. D HINGRA M ARTIN D IES , J R .

D AVID H. D ONALDSON , J R . H ON . G RANT D ORFMAN C HRISTOPHER D OVE D YLAN O. D RUMMOND S ARAH A NN D UCKERS H ON . J ENNIFER W ALKER E LROD H ON . D AVID L. E VANS E DWIN R. F LEURIET S AMANTHA E. F RAZIER M ARILYN D. G ARNER B ERNARDO S. G ARZA D IANA M. G EIS V ALORIE G LASS J OHN G RIFFIN , J R . L. B RADLEY H ANCOCK W ILLIAM T. H ANKINSON D AVID E. H ARRELL , J R . M ARGARET A. H ARRIS M ARY T AYLOR H ENDERSON H ON . H ENRY R OBERT F ROST

M ARGARET M. M AISEL

M ICHAEL W AYNE M ASSIATTE

M ARK M C Q UALITY

A ARON B. M ICHELSOHN

S TERLING M INOR

F RANK W. M ITCHELL

H ON . K ENNETH H. M OLBERG H ON . F RANK M ONTALVO R ICHARD G. M UNZINGER

S ARA M URRAY

K EITH B. O’C ONNELL K EMNAGUM K EN O KORIE

D UDLEY O LDHAM C ARRIN F. P ATMAN

K ATRINA S HANA P ATRICK T IMOTHY P ATTON T ERRI C URRY P EACE C HARLES H. P ECKHAM B ARBARA R ADNOFSKY

C HARLIE H ENKE

J AMES A. H ERRMANN P AMELA A. H OPPER M ARK F. H OWELL C HARLES W. H URD

H ON . J ORGE C ANTU R ANGEL H ON . R OSE G UERRA R EYNA S USAN R AFFERTY R ICHARDSON C RISTINA E SPINOSA R ODRIGUEZ

S TEVEN C. J AMES

E DUARDO R OMERO

Members

G REGG M. R OSENBERG

D ONEAN S URRATT C LIFTON A. V AUGHN G ABE T HOMAS V ICK , III R OBERT B LAKE W ALLIS W ILLIAM E. W ALTON T HOMAS H. W ATKINS C HARLES R. W ATSON , J R .

Y ONA R OZEN

A NTHONY J. S ADBERRY H ON . R EBECCA S IMMONS

G REG A. S IVINSKI J EFFREY D. S MALL D. T ODD S MITH

J ASON S MITH

T IMOTHY W EBB T ERRY W ELDON

L AWRENCE D AVID S MITH

C RAIG S MYSER

H ON . W. D AVID W EST

R OSEMARY T. S NIDER H ON . J AMES M. S TANTON A MY E LIZABETH S TEWART

H ON . M ARK L. W HITTINGTON

H OLLY B. W ILLIAMS

D ANIEL K. W ORTHINGTON

S COTT P. S TOLLEY J EREMY R. S TONE

T. J. W RAY

J AMES L. “L ARRY ” W RIGHT

J ACQUELINE M. S TROH

H ON . R ENÉE Y ANTA E RIC L YF Y OLLICK

M ARC A. S TROOPE

H ON . B ONNIE S UDDERTH

R ICK Z UNIGA

COMMITTEE ON PATTERN JURY CHARGES Civil

1990–1991

J. H ADLEY E DGAR , Chair H ON . W ILLIAM L. H UGHES , J R ., Vice-Chair

B LAKE B AILEY R. D OAK B ISHOP

D OUGLASS D. H EARNE K AREN M. K ACIR S TEPHEN R. L EWIS W AYNE H. P RESCOTT T HOMAS T. R OGERS

G EORGE E. C HANDLER S TEPHEN C. D ILLARD R OBERT L. G IBBINS , J R .

CONTENTS

P REFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

xxv

P REFACE TO THE 2024 E DITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxvii

C HANGES IN THE 2024 E DITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxix

I NTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxxi

C HAPTER 100 A DMONITORY I NSTRUCTIONS PJC 100.1

Instructions to Jury Panel before Voir Dire Examination. . . . . . 3

PJC 100.2

Instructions to Jury after Jury Selection . . . . . . . . . . . . . . . . . . . 5

PJC 100.3

Charge of the Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

PJC 100.4

Additional Instruction for Bifurcated Trial . . . . . . . . . . . . . . . . . 20

PJC 100.5

Instructions to Jury after Verdict . . . . . . . . . . . . . . . . . . . . . . . . 23

PJC 100.6

Instruction to Jury If Permitted to Separate. . . . . . . . . . . . . . . . 24

PJC 100.7

Instruction If Jury Disagrees about Testimony . . . . . . . . . . . . . 25

PJC 100.8

Circumstantial Evidence (Optional) . . . . . . . . . . . . . . . . . . . . . . 26

PJC 100.9 Instructions to Deadlocked Jury . . . . . . . . . . . . . . . . . . . . . . . . . 27 PJC 100.10 Privilege—Generally No Inference. . . . . . . . . . . . . . . . . . . . . . . 28 PJC 100.11 Fifth Amendment Privilege—Adverse Inference May Be Considered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 PJC 100.12 Parallel Theories on Damages. . . . . . . . . . . . . . . . . . . . . . . . . . . 30 PJC 100.13 Proximate Cause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 PJC 100.14 Instruction on Spoliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 PJC 100.15 Instruction for Deposition Testimony . . . . . . . . . . . . . . . . . . . . . 35 PJC 100.16 Instructions for Multilingual Jurors. . . . . . . . . . . . . . . . . . . . . . . 36

ix

C ONTENTS

C HAPTER 101 C ONTRACTS PJC 101.1

Basic Question—Existence . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43

PJC 101.2

Basic Question—Compliance . . . . . . . . . . . . . . . . . . . . . . . . . .

46

PJC 101.3

Question and Instruction on Declaration of Meaning of Ambiguous Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Questions and Instruction on Reformation as an Affirmative Cause of Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51

PJC 101.4

52

[PJC 101.5 and 101.6 are reserved for expansion.]

PJC 101.7

Defenses—Basic Question. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54

PJC 101.8

Question on Main Purpose Doctrine . . . . . . . . . . . . . . . . . . . . .

55

PJC 101.9 57 PJC 101.10 Instruction on Offer and Acceptance . . . . . . . . . . . . . . . . . . . . . 60 PJC 101.11 Instruction on Withdrawal or Revocation of Offer . . . . . . . . . . 61 PJC 101.12 Instruction on Ambiguous Provisions . . . . . . . . . . . . . . . . . . . . 62 PJC 101.13 Instruction on Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 PJC 101.14 Instruction on Time of Compliance . . . . . . . . . . . . . . . . . . . . . . 65 PJC 101.15 Instruction on Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 PJC 101.16 Instruction on Ratification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 PJC 101.17 Instruction on Materiality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 PJC 101.18 Defenses—Instruction on Plaintiff’s Material Breach When Only One Party Claims a Material Breach . . . . . . . . . . . 70 PJC 101.19 Defenses—Instruction on Anticipatory Repudiation. . . . . . . . . 72 PJC 101.20 Defenses—Instruction on Waiver . . . . . . . . . . . . . . . . . . . . . . . 73 PJC 101.21 Defenses—Instruction on Release. . . . . . . . . . . . . . . . . . . . . . . 75 PJC 101.22 Defenses—Instruction on Equitable Estoppel. . . . . . . . . . . . . . 76 Instruction on Formation of Agreement. . . . . . . . . . . . . . . . . . .

x

Contents

PJC 101.23 Defenses—Instruction on Duress . . . . . . . . . . . . . . . . . . . . . . . . 78 PJC 101.24 Defenses—Instruction on Undue Influence . . . . . . . . . . . . . . . . 80 PJC 101.25 Defenses—Instruction on Mutual Mistake of Fact. . . . . . . . . . . 81 PJC 101.26 Defenses—Instruction on Mutual Mistake— Scrivener’s Error . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 PJC 101.27 Defenses—Instruction on Novation . . . . . . . . . . . . . . . . . . . . . . 83 PJC 101.28 Defenses—Instruction on Modification . . . . . . . . . . . . . . . . . . . 84 PJC 101.29 Defenses—Instruction on Accord and Satisfaction . . . . . . . . . . 85 PJC 101.30 Defenses—Instruction on Mental Capacity . . . . . . . . . . . . . . . . 86 PJC 101.31 Defenses—Instruction on Fraudulent Inducement. . . . . . . . . . . 87 PJC 101.32 Trade Custom (Comment). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 PJC 101.33 Conditions Precedent (Comment). . . . . . . . . . . . . . . . . . . . . . . . 91 PJC 101.34 Third-Party Beneficiaries (Comment). . . . . . . . . . . . . . . . . . . . . 93 PJC 101.35 Defenses—Statute of Frauds (Comment). . . . . . . . . . . . . . . . . . 95 [PJC 101.36–101.40 are reserved for expansion.] PJC 101.41 Question on Promissory Estoppel. . . . . . . . . . . . . . . . . . . . . . . . 97 PJC 101.42 Question and Instruction on Quantum Meruit . . . . . . . . . . . . . . 99 PJC 101.43 Money Had and Received (Comment) . . . . . . . . . . . . . . . . . . . . 101 PJC 101.44 Unjust Enrichment (Comment). . . . . . . . . . . . . . . . . . . . . . . . . . 105

[PJC 101.45 is reserved for expansion.] PJC 101.46 Construction Contracts Distinguished from Ordinary

Contracts (Comment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

PJC 101.47 Construction Contracts—Question and Instruction—

Misapplication of Trust Funds under the Texas Construction Trust Funds Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

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PJC 101.48 Construction Contracts—Misapplication of Trust Funds—

Affirmative Defenses—Basic Question. . . . . . . . . . . . . . . . . . . 111

PJC 101.49 Construction Contracts—Misapplication of Trust Funds—

Affirmative Defenses—Instructions . . . . . . . . . . . . . . . . . . . . . 112

PJC 101.50 Question on Prompt Payment to Contractors and Subcontractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 PJC 101.51 Question on Good-Faith Dispute. . . . . . . . . . . . . . . . . . . . . . . . 116 [PJC 101.52–101.55 are reserved for expansion.] PJC 101.56 Insurance Contracts Distinguished from Other Contracts (Comment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

PJC 101.57 Insurance Contracts—Compliance—Specific Policy

Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

PJC 101.58 Insurance Contracts—Coverage and Damages Question—

Specific Policy Language. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

PJC 101.59 Insurance Contracts—Exclusions, Limitations, Avoidance, and Other Affirmative Defenses—Specific Policy

Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

PJC 101.60 Insurance Contracts—Conditions Precedent and Prejudice

(Comment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

C HAPTER 102 T HE T EXAS D ECEPTIVE T RADE P RACTICES A CT AND C HAPTER 541 OF THE T EXAS I NSURANCE C ODE PJC 102.1 Question and Instructions on False, Misleading, or

Deceptive Act or Practice (DTPA § 17.46(b)). . . . . . . . . . . . . . 137

PJC 102.2

Description of Goods or Services or Affiliation of Persons (DTPA § 17.46(b)(5)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

PJC 102.3

Quality of Goods or Services (DTPA § 17.46(b)(7)). . . . . . . . . 141

PJC 102.4

Misrepresented and Unlawful Agreements (DTPA § 17.46(b)(12)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

PJC 102.5

Failure to Disclose Information (DTPA § 17.46(b)(24)). . . . . . 144

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PJC 102.6

Other “Laundry List” Violations (DTPA § 17.46(b)) (Comment). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Question and Instructions on Unconscionable Action or Course of Action (DTPA §§ 17.50(a)(3) and 17.45(5)) . . . . . . . 146 Question and Instructions on Warranty (DTPA § 17.50(a)(2); Tex. UCC §§ 2.313–.315) . . . . . . . . . . . . 148 Express Warranty—Goods or Services (DTPA § 17.50(a)(2); Tex. UCC § 2.313). . . . . . . . . . . . . . . . . . 150

PJC 102.7

PJC 102.8

PJC 102.9

PJC 102.10 Implied Warranty of Merchantability—Goods

(DTPA § 17.50(a)(2); Tex. UCC § 2.314(b)(3)) . . . . . . . . . . . . . 152

PJC 102.11 Implied Warranty of Fitness for Particular Purpose—

Goods (DTPA § 17.50(a)(2); Tex. UCC § 2.315) . . . . . . . . . . . . 154

PJC 102.12 Implied Warranty of Good and Workmanlike

Performance—Services (DTPA § 17.50(a)(2)). . . . . . . . . . . . . . 155 PJC 102.13 Implied Warranty of Habitability (DTPA § 17.50(a)(2)) . . . . . . 157 PJC 102.14 Question on Insurance Code Chapter 541. . . . . . . . . . . . . . . . . . 159 [PJC 102.15 is reserved for expansion.] PJC 102.16 Misrepresentations or False Advertising of Policy Contracts—Insurance (Tex. Ins. Code § 541.051(1)) . . . 161 PJC 102.17 False Information or Advertising—Insurance (Tex. Ins. Code § 541.052) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 PJC 102.18 Unfair Insurance Settlement Practices (Tex. Ins. Code § 541.060) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 PJC 102.19 Misrepresentation—Insurance (Tex. Ins. Code § 541.061) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 [PJC 102.20 is reserved for expansion.] PJC 102.21 Question and Instructions on Knowing or Intentional Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 PJC 102.22 Defenses to Deceptive Trade Practices Act and Insurance Code Chapter 541 Claims (Comment) . . . . . . . . . . . . . . . . . . . . 171

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PJC 102.23 Statute of Limitations

(DTPA § 17.565; Tex. Ins. Code § 541.162) . . . . . . . . . . . . . . . 175

PJC 102.24 Counterclaim—Bad Faith or Harassment

(DTPA § 17.50(c); Tex. Ins. Code Ch. 541, Subch. D) (Comment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

PJC 102.25 Prompt Payment of Claims Act—Violation of Insurer’s Duty to Acknowledge Notice of Claim, Commence Investigation, and Request Information after Receiving

Notice of Claim (Tex. Ins. Code § 542.055). . . . . . . . . . . . . . 178

PJC 102.26 Prompt Payment of Claims Act—Violation of Insurer’s Duty to Notify Claimant of Acceptance, Rejection, or Need for More Time after Receiving All Necessary Information Reasonably Requested from Claimant PJC 102.27 Prompt Payment of Claims Act—Violation of Insurer’s Duty to Pay after Notice to Claimant that Insurer Will Pay All or Part of Claim (Tex. Ins. Code § 542.057). . . . . . . . . . . 189 PJC 102.28 Prompt Payment of Claims Act—Violation of Insurer’s Duty to Pay Claim within Sixty Days of Receipt of All Necessary Information Reasonably Requested from Claimant (Tex. Ins. Code § 542.058) . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 (Tex. Ins. Code § 542.056) . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

C HAPTER 103 G OOD F AITH AND F AIR D EALING PJC 103.1

Common-Law Duty of Good Faith and Fair Dealing— Question and Instruction on Insurance Claim Denial or Delay in Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Duty of Good Faith under the Uniform Commercial Code (Comment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

PJC 103.2

PJC 103.3

Duty of Good Faith by Express Contract (Comment). . . . . . . . 204

C HAPTER 104 F IDUCIARY D UTY PJC 104.1

Question and Instruction—Existence of Relationship of Trust and Confidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

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PJC 104.2

Question and Instruction—Breach of Fiduciary Duty Defined by Common Law—Burden on Fiduciary. . . . . . . . . . . 210 Question and Instruction—Breach of Fiduciary Duty Defined by Common Law—Burden on Beneficiary . . . . . . . . . 215 Question and Instruction—Breach of Fiduciary Duty Defined by Statute or Agreement—Burden on Fiduciary . . . . . 219 Question and Instruction—Breach of Fiduciary Duty Defined by Statute or Agreement—Burden on Beneficiary. . . . 222

PJC 104.3

PJC 104.4

PJC 104.5

C HAPTER 105 F RAUD AND N EGLIGENT M ISREPRESENTATION PJC 105.1 Question on Common-Law Fraud—Intentional

Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229

PJC 105.2

Instruction on Common-Law Fraud—Intentional Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 Definitions of Misrepresentation—Intentional Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Instruction on Common-Law Fraud—Failure to Disclose When There Is Duty to Disclose . . . . . . . . . . . . . . . . . . . . . . . . . 239

PJC 105.3

PJC 105.4

PJC 105.5

Question on Statute of Limitations—Common-Law Fraud. . . . 241

[PJC 105.6 is reserved for expansion.]

PJC 105.7

Question on Statutory Fraud (Real Estate or Stock Transaction) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Instruction on Statutory Fraud—Factual Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244

PJC 105.8

PJC 105.9

Instruction on Statutory Fraud—False Promise . . . . . . . . . . . . . 245

PJC 105.10 Question and Instructions on Benefiting from Statutory

Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

PJC 105.11 Question and Instruction on Actual Awareness of Statutory

Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247

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PJC 105.12 Question and Instructions on Violation of Texas Securities

Act—Factual Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . 248

PJC 105.13 Instruction on Violation of Texas Securities Act—

Material Fact—Prediction or Statement of Belief. . . . . . . . . . . 251

PJC 105.14 Question on Defenses to Violation of Texas Securities

Act—Factual Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . 253

PJC 105.15 Question on Defenses to Violation of Texas Securities

Act—Buyer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254

PJC 105.16 Question on Violation of Texas Securities Act— Control-Person Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 PJC 105.17 Question on Defense to Control-Person Liability . . . . . . . . . . . 257 PJC 105.18 Question and Instructions on Violation of Texas Securities Act—Aiding Violation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 PJC 105.19 Question and Instruction on Negligent Misrepresentation . . . . 260 [PJC 105.20–105.24 are reserved for expansion.] PJC 105.25 Question and Instruction on Transfers Fraudulent as to Present and Future Creditors—Actual Fraud (Tex. Bus. & Com. Code § 24.005(a)(1)) . . . . . . . . . . . . . . . . 262

PJC 105.26 Question on Reasonably Equivalent Value— Constructive Fraud

(Tex. Bus. & Com. Code §§ 24.005(a)(2), 24.006(a)) . . . . . . 267

PJC 105.27 Question on Constructive Fraud

(Tex. Bus. & Com. Code §§ 24.005(a)(2), 24.006(a)) . . . . . . 269

PJC 105.28 Question on Constructive Fraud—Transfer to Insider

(Tex. Bus. & Com. Code § 24.006(b)) . . . . . . . . . . . . . . . . . . 272

PJC 105.29 Question and Instruction on Good Faith and Reasonably Equivalent Value—Affirmative Defense to Fraudulent Transfer Based on Actual Fraud

(Tex. Bus. & Com. Code § 24.009(a)) . . . . . . . . . . . . . . . . . . 276

PJC 105.30 Question on Affirmative Defense for Insider

(Tex. Bus. & Com. Code § 24.009(f)). . . . . . . . . . . . . . . . . . . 278

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PJC 105.31 Question on Extinguishment of Cause of Action

(Tex. Bus. & Com. Code § 24.010) . . . . . . . . . . . . . . . . . . . . 280

PJC 105.32 Remedies for Fraudulent Transfers

(Tex. Bus. & Com. Code § 24.008) (Comment) . . . . . . . . . . 281

C HAPTER 106 I NTERFERENCE WITH E XISTING AND P ROSPECTIVE C ONTRACT PJC 106.1 Question and Instruction—Intentional Interference with Existing Contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 PJC 106.2 Question—Defense of Legal Justification . . . . . . . . . . . . . . . . . 289 PJC 106.3 Wrongful Interference with Prospective Contractual or Business Relations (Comment). . . . . . . . . . . . . . . . . . . . . . . . . . 291 PJC 106.4 Contracts Terminable at Will or on Notice (Comment) . . . . . . . 293

C HAPTER 107 E MPLOYMENT PJC 107.1

Breach of Employment Agreement (Comment). . . . . . . . . . . . . 297

PJC 107.2

Instruction on Good Cause as Defense to Early Discharge . . . . 298

PJC 107.3

Question on Wrongful Discharge for Refusing to Perform an Illegal Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Question and Instruction on Retaliation under Texas Whistleblower Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 Question and Instruction on Retaliation for Seeking Workers’ Compensation Benefits . . . . . . . . . . . . . . . . . . . . . . . . 305 Question and Instruction on Unlawful Employment Practices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Question on After-Acquired Evidence of Employee Misconduct. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 Instruction on Damages Reduction for After-Acquired Evidence of Employee Misconduct. . . . . . . . . . . . . . . . . . . . . . . 317

PJC 107.4

PJC 107.5

PJC 107.6

PJC 107.7

PJC 107.8

PJC 107.9 Question and Instruction on Retaliation . . . . . . . . . . . . . . . . . . . 318 PJC 107.10 Instruction on Constructive Discharge . . . . . . . . . . . . . . . . . . . . 321

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PJC 107.11 Instruction on Disability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 PJC 107.12 Question and Instruction on Failure to Make Reasonable Workplace Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 PJC 107.13 Question and Instruction on Undue Hardship Defense. . . . . . . 331 PJC 107.14 Question on Good-Faith Effort to Make Reasonable Workplace Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 332 PJC 107.15 Instruction on Sex Discrimination. . . . . . . . . . . . . . . . . . . . . . . 333 PJC 107.16 Instruction on Religious Observance or Practice. . . . . . . . . . . . 334 PJC 107.17 Question and Instruction on Defense of Undue Hardship to Accommodate Religious Observances or Practices . . . . . . . 335 PJC 107.18 Question Limiting Relief in Unlawful Employment Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 PJC 107.19 Question and Instruction on Bona Fide Occupational Qualification Defense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 PJC 107.20 Question on Harassment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 PJC 107.21 Question and Instruction on Sexual Harassment. . . . . . . . . . . . 339 PJC 107.22 Instruction on Harassment by Nonsupervisory Employee (Hostile Environment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 PJC 107.23 Instruction on Harassment by Supervisory Employee Not Involving Tangible Employment Action (Hostile Environment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 PJC 107.24 Question and Instruction on Affirmative Defense to Harassment Where No Tangible Employment Action Occurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 PJC 107.25 Question Limiting Relief for Retaliation under Texas Whistleblower Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350

C HAPTER 108 P IERCING THE C ORPORATE V EIL PJC 108.1

Basic Question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353

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PJC 108.2

Disregarding the Corporate Fiction in Contract-Related Cases (Comment). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354

PJC 108.3

Instruction on Alter Ego . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357

PJC 108.4

Instruction on Sham to Perpetrate a Fraud . . . . . . . . . . . . . . . . . 359

PJC 108.5

Instruction on Evasion of Existing Legal Obligation . . . . . . . . . 361

PJC 108.6

Instruction on Circumvention of a Statute . . . . . . . . . . . . . . . . . 362

PJC 108.7

Instruction on Protection of Crime or Justification of Wrong. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363

PJC 108.8

Instruction on Monopoly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365

C HAPTER 109 C IVIL C ONSPIRACY PJC 109.1

Question and Instruction on Conspiracy. . . . . . . . . . . . . . . . . . . 369

C HAPTER 110 D EFAMATION , B USINESS D ISPARAGEMENT , AND I NVASIONOF P RIVACY PJC 110.1

Libel and Slander (Comment on Broad Form). . . . . . . . . . . . . . 375

PJC 110.2

Question and Instruction on Publication. . . . . . . . . . . . . . . . . . . 376

PJC 110.3

Question and Instructions on Defamatory Nature of the Publication. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378

PJC 110.4

Question and Instruction on Falsity. . . . . . . . . . . . . . . . . . . . . . . 384

PJC 110.5

Question and Instruction on Negligence. . . . . . . . . . . . . . . . . . . 387

PJC 110.6

Question and Instructions on Actual Malice. . . . . . . . . . . . . . . . 389

PJC 110.7

Actual Malice in Cases of Qualified Privilege (Comment) . . . . 392

PJC 110.8

Question and Instructions on Defense of Truth . . . . . . . . . . . . . 394

PJC 110.9 Judicial-Proceedings Privilege and Attorney Immunity (Comment). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396 [PJC 110.10–110.14 are reserved for expansion.] PJC 110.15 Question and Instructions on Business Disparagement . . . . . . . 397

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PJC 110.16 Question and Instruction on Intrusion . . . . . . . . . . . . . . . . . . . . 401 PJC 110.17 Question and Instruction on Publication of Private Facts. . . . . 402 PJC 110.18 Question and Instruction on Invasion of Privacy by Misappropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404 PJC 110.19 False Light Invasion of Privacy (Comment) . . . . . . . . . . . . . . . 405 PJC 110.20 Defamation Mitigation Act (Comment). . . . . . . . . . . . . . . . . . . 406

C HAPTER 111 M ISAPPROPRIATION OF T RADE S ECRETS PJC 111.1

Question and Instructions on Existence of Trade Secret. . . . . . 409

PJC 111.2

Question and Instructions on Trade-Secret Misappropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414

[Chapters 112–114 are reserved for expansion.]

C HAPTER 115 D AMAGES

PJC 115.1

Predicate—Instruction Conditioning Damages Questions on Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 Instruction on Whether Compensatory Damages Are Subject to Income Taxes (Actions Filed on or after September 1, 2003). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426

PJC 115.2

PJC 115.3

Question on Contract Damages . . . . . . . . . . . . . . . . . . . . . . . . . . 427

PJC 115.4

Sample Instructions on Direct and Incidental Damages— Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430

PJC 115.5

Instructions on Consequential Damages—Contracts . . . . . . . . . 434

PJC 115.6

Question on Promissory Estoppel—Reliance Damages. . . . . . . 436

PJC 115.7

Question on Quantum Meruit Recovery . . . . . . . . . . . . . . . . . . . 438

PJC 115.8

Defensive Instruction on Mitigation—Contract Damages . . . . . 439

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PJC 115.9

Question and Instruction on Deceptive Trade Practice Damages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441

PJC 115.10 Sample Instructions—Deceptive Trade Practice Damages . . . . . 444

PJC 115.11 Question on Additional Damages—Deceptive Trade

Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448

PJC 115.12 Contribution—Deceptive Trade Practices Act and

Insurance Code Chapter 541 (Comment) . . . . . . . . . . . . . . . . . . . 450

PJC 115.13 Question and Instruction on Actual Damages under

Insurance Code Chapter 541 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451

PJC 115.14 Question and Instruction on Actual Damages for Breach

of Duty of Good Faith and Fair Dealing. . . . . . . . . . . . . . . . . . . . 454

PJC 115.15 Remedies for Breach of Fiduciary Duty (Comment) . . . . . . . . . . 457

PJC 115.16 Question on Profit Disgorgement—Amount of Profit . . . . . . . . . 459

PJC 115.17 Question on Fee Forfeiture—Amount of Fee. . . . . . . . . . . . . . . . 460

PJC 115.18 Question on Actual Damages for Breach of Fiduciary Duty . . . . 461

PJC 115.19 Question and Instruction on Direct Damages Resulting

from Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463

PJC 115.20 Question and Instruction on Consequential Damages

Caused by Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466

PJC 115.21 Question and Instruction on Monetary Loss Caused by

Negligent Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469

PJC 115.22 Question on Damages for Intentional Interference with Existing Contract or for Wrongful Interference with

Prospective Contractual Relations . . . . . . . . . . . . . . . . . . . . . . . . 472

[PJC 115.23 is reserved for expansion.]

PJC 115.24 Sample Instructions on Direct and Incidental Damages—

Breach of Employment Agreement. . . . . . . . . . . . . . . . . . . . . . . . 475

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PJC 115.25 Defensive Instruction on Mitigation—Breach of

Employment Agreement Damages . . . . . . . . . . . . . . . . . . . . . . . 477

PJC 115.26 Question and Instruction on Damages for Wrongful

Discharge for Refusing to Perform an Illegal Act . . . . . . . . . . . . 478

PJC 115.27 Question and Instructions on Damages for Retaliation

under Texas Whistleblower Act . . . . . . . . . . . . . . . . . . . . . . . . . . 481

PJC 115.28 Question and Instruction on Damages—Retaliation for

Seeking Workers’ Compensation Benefits. . . . . . . . . . . . . . . . . . 484

[PJC 115.29 is reserved for expansion.]

PJC 115.30 Question and Instruction on Unlawful Employment

Practices Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487

PJC 115.31 Predicate Question and Instruction on Exemplary

Damages for Unlawful Employment Practices . . . . . . . . . . . . . . 491

PJC 115.32 Question on Employer Liability for Exemplary Damages for Conduct of Supervisor . . . . . . . . . . . . . . . . . . . . . . 493 PJC 115.33 Question and Instructions—Defamation General Damages. . . . 494 PJC 115.34 Question and Instructions—Defamation Special Damages . . . . 497 PJC 115.35 Question and Instructions—Invasion of Privacy Damages. . . . . 499 PJC 115.36 Proportionate Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502 PJC 115.37 Predicate Question and Instruction on Award of Exemplary Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 507 PJC 115.38 Question and Instruction on Exemplary Damages . . . . . . . . . . . 511 PJC 115.39 Question and Instruction for Imputing Liability for Exemplary Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515 PJC 115.40 Question and Instructions—Fraudulent Securing of Document Execution as a Statutory Ground for Removing Limitation on Exemplary Damages (Tex. Civ. Prac. & Rem. Code § 41.008(c)(11)) . . . . . . . . . . . . 520

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PJC 115.41 Question and Instructions—Fraudulent Destruction, Removal, or Concealment of Writing as a Statutory Ground for Removing Limitation on Exemplary Damages

(Tex. Civ. Prac. & Rem. Code § 41.008(c)(12)). . . . . . . . . . . . . 524

PJC 115.42 Question and Instructions—Forgery as a Statutory

Ground for Removing Limitation on Exemplary Damages (Tex. Civ. Prac. & Rem. Code § 41.008(c)(8)). . . . . . . . . . . . . . . 528

PJC 115.43 Question and Instructions—Theft as a Statutory

Ground for Removing Limitation on Exemplary Damages (Tex. Civ. Prac. & Rem. Code § 41.008(c)(13)). . . . . . . . . . . . . . 532

PJC 115.44 Question and Instructions—Commercial Bribery as a Statutory Ground for Removing Limitation on Exemplary

Damages (Tex. Civ. Prac. & Rem. Code § 41.008(c)(9)). . . . . . 537

PJC 115.45 Question and Instructions—Misapplication of Fiduciary Property or Property of Financial Institution as a Statutory Ground for Removing Limitation on Exemplary Damages

(Tex. Civ. Prac. & Rem. Code § 41.008(c)(10)). . . . . . . . . . . . . . 541

PJC 115.46 Other Conduct of Defendant Authorizing Removal of

Limitation on Exemplary Damages Award (Comment) . . . . . . . . 546

[PJC 115.47 is reserved for expansion.] PJC 115.48 Question and Instruction on Damages for Misapplication of Trust Funds under the Texas Construction Trust Funds Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548 PJC 115.49 Question and Instructions on Prompt Payment to Contractors and Subcontractors Damages . . . . . . . . . . . . . . . . . . . . . . . . . . . 549 [PJC 115.50–115.53 are reserved for expansion.] PJC 115.54 Question on Trade-Secret Misappropriation Damages. . . . . . . . 551 PJC 115.55 Sample Instructions on Actual Damages—Trade-Secret Misappropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554 PJC 115.56 Predicate Findings for Equitable or Legal Relief (Comment). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 558

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PJC 115.57 Predicate Question for Award of Specific Performance . . . . . . 560 [PJC 115.58 and 115.59 are reserved for expansion.] PJC 115.60 Question on Attorney’s Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . 562

C HAPTER 116 P RESERVATION OF C HARGE E RROR PJC 116.1

Preservation of Charge Error (Comment) . . . . . . . . . . . . . . . . . 569

PJC 116.2

Broad-Form Issues and the Casteel Doctrine (Comment) . . . . 573

A PPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575

S TATUTES AND R ULES C ITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615

C ASES C ITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625

S UBJECT I NDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643

H OW TO D OWNLOAD T HIS B OOK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663

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PREFACE The Pattern Jury Charges (volume 4) Committee has worked for over five years to produce this addition to the Pattern Jury Charges series. During most of that period the Committee met once a month and spent additional time between meetings doing research and writing drafts of the various questions, instructions, and comments that make up this volume. The Committee gratefully acknowledges the instrumental role of Chief Justice Thomas R. Phillips, who chaired the Committee from 1985–87. It is also grateful for the help and support of five State Bar presidents: Charles L. Smith (1985–86), Bill Whitehu rst (1986–87), Joe H. Nagy (1987–88), James B. Sales (1988–89), and Darrell Jordan (1989–90). In every successful enterprise there can be found a few key people who make things happen. The chair is particularly grateful for the attendance, participation, and hard work of Tom Black, Ann Cochran, Don Dennis, John Lewis, Peter Linzer, Phil Maxwell, Frank Mitchell, Richard Munzinger, and Dudley Oldham. We are also indebted to numerous other lawyers and judges who read the drafts and offered ideas for improve ment—ranging from matters of substantive law to those having to do with style, format, and utility. Our project legal editor, Vickie Tatum, deserves special recognition for her work on this volume. The State Bar Books and Systems staff has provided invaluable support, and we are also grateful for the advice and counsel of J. Hadley Edgar, chairman of the State Bar standing Committee on Pattern Jury Charges.

—Mike Tabor, Chair

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PREFACE TO THE 2024 EDITION As both a lawyer and justice, I have served on numerous and diverse boards, com mittees, and sections. In all that service, I have always been astounded by the commit ment of the lawyers of the state of Texas. Working on the Pattern Jury Charge Committee has been no different, and, in some aspect, has proven even more astound ing, as we tackle the ever changing and challenging area of jury charges. The commitment of our members is like no other and shows in the workmanship of the newest edition of this volume. As always, the soul of the work is to provide practi tioners with the tools necessary in their cases. Among the new additions are the admonitory instructions on depositions and multi lingual jurors. The damages section has a new comment on predicate findings and a new question on specific performance. In the contracts section, the trade custom com ment has been reworked with a revised suggested instruction. And with issuing of Horton v. Kansas City Southern Railway , the volume includes a caveat, which may be worth noting. The Committee will continue to wait for case law to address updates to the broad-form discussion under Horton . And of course, we continue to make revi sions and updates throughout the book. Sometimes our knowledge is limited, so we have to reach out to lawyers with the necessary expertise. We would like to acknowledge the work of Cara Kennemer, Rick Reed, and John Roper, who provided invaluable assistance on the construction con tracts, which the Committee will continue to use as we update this section. Finally, the work of this Committee was made possible by the tremendous staff at the State Bar, many of whom contributed to this publication, but no one more than Elma Garcia, whose tireless work on and contribution to these publications cannot be overstated.

—Hon. Gina M. Benavides, Chair

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CHANGES IN THE 2024 EDITION The 2024 edition of Texas Pattern Jury Charges—Business, Consumer, Insurance & Employment includes the following changes from the 2022 edition: 1. Admonitory Instructions— a. Added instruction on deposition testimony (100.15) b. Added instruction on multilingual jurors (100.16) 2. Contracts— a. Deleted Committee Note and Disposition Tables b. Updated Comment on trade custom to include revised instruction and to clarify discussion (101.32) 3. Fiduciary Duty—Updated commentary to include In re Estate of Poe , 648 S.W.3d 277 (Tex. 2022), and discussion of the duty owed to the corporation by the director of a closely held company (104.1, 104.2) 4. Fraud— a. Added commentary noting that aiding and abetting fraud is not a recog nized cause of action (105.2) b. Deleted discussion on damages for negligent misrepsentation, now in chapter 115 (105.19) 5. Interference with Existing and Prospective Contract— a. Deleted discussion on defenses, discussed in 106.3 (106.2) b. Revised Comment on wrongful interference with prospective contrac tual business relations to clarify discussion (106.3) 6. Employment—Added pretext instruction and commentary (107.5) 7. Piercing the Corporate Veil— a. Updated discussion on limitation of liabilities to reflect current case law (108.2) b. Updated discussion on preemption of individual liability to reflect cur rent case law (108.2) 8. Defamation and Business Disparagement— a. Added commentary on identifying allegedly defamatory matter (110.2)

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C HANGES IN THE 2024 E DITION

b. Expanded discussion on opinions; satire and parody (110.3) 9. Misappropriation of Trade Secrets—Expanded discussion on commercial use to include post-Act cases and revised instruction (111.2) 10. Damages— a. Revised discussion on benefit of the bargain and remedial damages to reflect updated case law (115.4) b. Added discussion on economic damages previously included under lia bility instruction (115.21) c. Added discussion on defense of failure to mitigate (115.30) d. Added Comment on predicate findings for equitable or legal relief (115.56) e. Added Comment on predicate question for award of specific perfor mance (115.57) 11. Preservation of Charge Error—Added Caveat noting that the current discus sion does not reflect Horton v. Kansas City Southern Railway Co ., 692 S.W.3d 112 (Tex. 2024) (116.2)

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INTRODUCTION 1. P URPOSE OF P UBLICATION

The purpose of this volume, like those of the others in this series, is to assist the bench and bar in preparing the court’s charge in jury cases. It provides definitions, instructions, and questions needed to submit jury charges in the following cases: • contract cases, both common-law and UCC sale of goods, and including construc tion contracts and insurance contracts; • actions under the Texas Deceptive Trade Practices–Consumer Protection Act (DTPA) and the Texas Insurance Code; • actions against insurers for violation of the duty of good faith and fair dealing; • breach of fiduciary duty; • fraud, both common-law and statutory (Tex. Bus. & Com. Code § 27.01), negligent misrepresentation, and actions under the Uniform Fraudulent Transfer Act; • tortious interference with existing contracts and prospective contractual relations; • employment actions; • actions to hold shareholders personally liable for the liabilities of a corporation (“piercing the corporate veil”); • civil conspiracy; • defamation, business disparagement, and invasion of privacy; and • misappropriation of trade secrets. It also contains questions and comments pertaining to defenses to the above actions and sections on damages and preservation of charge error. The pattern charges are suggestions and guides to be used by a trial court if they are applicable and proper in a specific case. The Committee hopes that this volume will prove as worthy as have the earlier Texas Pattern Jury Charges volumes. 2. S COPE OF P ATTERN C HARGES The infinite combinations of possible facts in contract, consumer, employment, and other business cases make it impracticable for the Committee to offer questions suitable for every occasion. The Committee has tried to prepare charges to serve as guides for the usual litigation encountered in these types of cases. However, a charge should conform to the pleadings and evidence of a case, and occasions will arise for the use of questions and instructions not specifically addressed here. 3. U SE OF A CCEPTED P RECEDENTS Like its predecessors, this Committee has avoided recommending changes in the law and has based this material on what it perceives the present law to be. It has attempted to

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