Texas Towing Co. Says State's Lost Profits Law Is 'Arbitrary'

Law360, New York (September 22, 2015, 6:59 PM EDT) -- A Texas towing company urged the state's high court on Tuesday to reverse an appellate decision barring its recovery of profits lost when its only truck was destroyed in a crash, urging the court to undo an "arbitrary" distinction between partial destruction cases and total destruction cases under state law.

During oral arguments, J&D Towing claimed that it was deprived of full and fair compensation when a state court of appeals ruled that American Alternative Insurance Corp. wasn't liable for $28,000 in loss-of-use damages, and said there's no reason to distinguish between repair and replacement costs.

"In a partial destruction case...

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