PJC Business

PJC 115.24

D AMAGES

PJC 115.24 Sample Instructions on Direct and Incidental Damages— Breach of Employment Agreement Explanatory note: Damages instructions in a breach of an employment agreement case, like contract actions, are necessarily fact-specific and can vary with the circum stances of each case. The elements listed below are those commonly used in employ ment contract cases but do not represent an exhaustive list. These instructions are to be used in conjunction with the contract damages question, PJC 115.3. Sample A—Lost earnings “Lost earnings” equal the present cash value of the employment agreement to the employee had it not been breached, less amounts actually earned. Sample B—Lost employee benefits other than earnings “Benefits” include [ sick-leave pay, vacation pay, cost-of-living increases, profit-sharing benefits, stock options, pension fund benefits, health insurance, life insurance, housing or transportation subsidies, bonuses ]. Sample C—Loss of insurance coverage Losses incurred as a result of the loss of health, life, dental, or similar insur ance coverage. Sample D—Mitigation expenses Reasonable and necessary expenses in obtaining other employment. COMMENT When to use. See explanatory note above. Because damages instructions are nec essarily fact-specific, no true “pattern” instructions are given—only samples of gen eral damages available in employment contract actions. This list is not exhaustive. The samples are illustrative only and must be rewritten to fit the particular damages raised by the pleadings and proof and recoverable under a legally accepted theory. Measure of damages. The legal measure of damages for the breach of an employment agreement is the present cash value of the agreement to the employee had it not been breached, less any amounts the employee should in the exercise of reason able diligence be able to earn through other employment. Gulf Consolidated Interna tional, Inc. v. Murphy , 658 S.W.2d 565, 566 (Tex. 1983); see also Southwest Airlines Co. v. Jaeger , 867 S.W.2d 824, 835 (Tex. App.—El Paso 1993, writ denied) (approv ing jury question and instructions on damages for breach of employment contract),

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