TX STATETexas Court of Appeals, 3rd District (Austin)
1998

Lafarge Corp. v. Wolff, Inc.

977 S.W.2d 181Texas Court of Appeals, 3rd District (Austin) • Decided 1998Remanded

HOLDING

Wolff, a clay mining subcontractor, sued Lafarge for breach after Lafarge sold its cement plant and stopped ordering clay. The contract had a clause saying Lafarge didn't have to keep the plant running, but the court ruled this didn't allow Lafarge to simply walk away from the deal. The jury found the contract should survive the sale, and the court ordered a new trial to recalculate damages fairly, accounting for costs Wolff avoided after the work stopped.

KEY FINDINGS

Termination for Convenience

A contract clause allowing the owner to stop operations doesn't automatically let them terminate the entire subcontract—courts will look at what both parties actually intended.

Change Order

When you sell a business or facility, existing subcontracts may survive the sale and bind the new owner; don't assume a change in ownership ends your obligations.

FULL COURT OPINION