McCane-Sondock Protection Systems, Inc. v. Emmittee
540 S.W.2d 764 · Court of Appeals of Texas · 1976
Facts
James Roy Emmittee sued McCane-Sondock Protection Systems for negligently installing a burglar alarm. McCane-Sondock failed to connect hold-up button wires and test the system, leading to the alarm's failure during a robbery and subsequent loss.
Issue
Did McCane-Sondock's negligent installation proximately cause Emmittee's loss, and was the contract's $25 liquidated damages clause applicable given the improper installation?
Holding
The court affirmed the judgment for Emmittee, finding McCane-Sondock's negligence was the proximate cause of the loss and that the liquidated damages clause was inapplicable because the system was never properly installed.
Rule
An intervening cause reasonably foreseeable by the defendant does not break the chain of causation. A liquidated damages clause for "failure of the performance of the alarm system to operate" does not apply when the system was never properly installed and thus never functional.
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