McCane-Sondock Protection Systems, Inc. v. Emmittee

540 S.W.2d 764 · Court of Appeals of Texas · 1976

Facts

McCane-Sondock Protection Systems negligently installed a burglar alarm at Emmittee's Bedford Package Store by failing to connect wires and test the system. During a robbery, the alarm failed to activate, leading to Emmittee's damages. A jury awarded Emmittee $6,839, but McCane-Sondock appealed, arguing lack of proximate cause and a contractual $25 liquidated damages clause.

Issue

Was there sufficient evidence to support the finding that McCane-Sondock's negligent installation proximately caused Emmittee's loss? Is a liquidated damages clause, limiting liability to $25 for 'failure of performance,' applicable when the alarm system was improperly installed and never functioned?

Holding

The appellate court affirmed the trial court's judgment, finding sufficient evidence of proximate cause. It held that the liquidated damages clause was inapplicable because the alarm system was improperly installed and thus never capable of performing, rather than merely failing to operate.

Rule

An intervening cause reasonably foreseeable by the defendant does not break the chain of causation. A contractual liquidated damages clause limiting liability for 'failure of performance' does not apply when the system was never properly installed and therefore never functional.

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Case brief last reviewed 2026-01-31. Prepared by CaseReader from the published opinion.