X Technologies, Inc. v. Marvin Test Systems, Inc.
719 F.3d 406
5th Cir.2013Background
- X Technologies and Geotest entered an exclusive teaming agreement to jointly pursue USAF solicitation FA8224-09-R-0104.
- Geotest bid with Raytheon, while X Tech relied on Geotest’s data/software to complete its bid.
- USAF amended the solicitation to full and open; Geotest won the contract.
- X Tech sued in state court for breach of contract; Geotest removed to federal court and moved to transfer venue.
- Jury found Geotest breached; district court awarded X Tech $336,000 plus fees; Geotest appealed on causation, prior material breach, and breach findings.
- On appeal, the Fifth Circuit affirmed the district court’s judgment and remanded for appellate fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Causation sufficiency | X Tech contends evidence supports foreseeability of loss. | Geotest argues Garner’s testimony forecloses causation as a matter of law. | Sufficient evidence supported causation; jury could infer loss from Geotest’s breach. |
| Prior material breach | X Tech did not breach; exclusivity limits Geotest’s teaming, not X Tech’s submissions. | Geotest asserts X Tech’s separate bid breached the agreement as a material breach. | X Tech did not breach under the agreement; district court did not err in directed verdict for X Tech. |
| Geotest breach | Geotest’s teaming with Raytheon violated the exclusivity terms. | Geotest contends it was a licensee, not a teammate; no breach. | There was sufficient evidence the Geotest-Raytheon relationship constituted teaming; verdict supported. |
Key Cases Cited
- Mead v. Johnson Group, Inc., 615 S.W.2d 685 (Tex. 1981) (causation/foreseeability in contract damages)
- Strakos v. Gehring, 360 S.W.2d 787 (Tex. 1962) (jury determines causation unless no factual dispute)
- Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133 (Supreme Ct. 2000) (standard for evaluating evidence supporting verdict)
- Boeing Co. v. Shipman, 411 F.2d 365 (5th Cir. 1969) (directed verdict standard; evidentiary review)
- Bryant v. Compass Group USA Inc., 413 F.3d 471 (5th Cir. 2005) (plainly stated standards for appellate review of verdicts)