Sheryl Schey and Tim Schey v. Eric Copper and KWI-1, Ltd., 03-24-00321-CV

Sheryl and Tim Schey entered into an exclusive real estate representation agreement with agent Eric Copper and broker KWI-1, Ltd. to buy property in the Austin area.
The Scheys signed a backup contract to buy a house on Petticoat Lane in Austin, with an unrestricted option to terminate within 7 days; they later exercised this right and cancelled the contract.
During the contract's option period, the Scheys engaged another real estate agent and ultimately bought a different house in San Marcos (outside the Austin area), without involving Copper or KWI-1.
Copper and KWI-1 sued the Scheys for breach of contract, seeking damages equal to the commission they would have received if the Petticoat Lane sale closed, asserting the breach occurred when the Scheys engaged another agent during the exclusivity period.
The trial court granted summary judgment in favor of Copper and KWI-1, awarding damages and attorney's fees; the Scheys appealed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Compensable Damages	Breach made commission on Petticoat Lane contract due & payable	No damages: contract terminated lawfully, so no commission due	For Scheys: No damages shown, commission not owed on terminated deal
Causation Between Breach And Damages	Breach (using another agent) caused loss of commission	Termination of contract unrelated; no causal link to damages	For Scheys: No causal connection between breach and damages
Material Issue of Best Efforts by Agent	Argued agent used best efforts in identifying properties	Asserted agent did not fulfill best efforts obligations	Not reached; first two issues dispositive
Attorney’s Fees and Costs	Prevailing party entitled under agreement	Prevailing party entitled under agreement	For Scheys: Award reversed and remanded to trial court

USAA Tex. Lloyds Co. v. Menchaca, 545 S.W.3d 479 (Tex. 2018) (lists elements of breach of contract, including causation/damages)
J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) (explains interpretation of unambiguous contracts)
Valence Operating Co. v. Dorsett, 164 S.W.3d 656 (Tex. 2005) (outlines summary judgment standard)
Zive v. Sandberg, 644 S.W.3d 169 (Tex. 2022) (summary judgment evidence review standard)
First United Pentecostal Church of Beaumont v. Parker, 514 S.W.3d 214 (Tex. 2017) (definition of genuine issue of material fact)
Heritage Res., Inc. v. NationsBank, 939 S.W.2d 118 (Tex. 1996) (plain meaning for contract terms)
Seelbach v. Clubb, 7 S.W.3d 749 (Tex. App. 1999) (agreement to sell not same as completed sale)