Business Law: Principles for Today's Commercial Environment 3rd Edition by Marianne Moody Jennings, David Twomey, Marianne Jennings

Exercise 15

Medistar is a real estate development company specializing in the development of medical facilities. Dr. Schmidt, the team physician for the San Antonio Spurs basketball team, sought to develop "The Texas Center for Athletes" medical center next to the Spurs facility and urged Medistar to obtain the real estate and develop the project on his group's behalf. Medistar spent more than $1 million and thousands of man-hours on the project from 2000 to July 12, 2004 when Dr. Schmidt's new group of investors purchased the property next to the Spur's facility for the project; subsequently, Medistar was informed that it would have no role in the project. Medistar asserts that it relied on Dr. Schmidt's assurances that it would be the developer of the project-and after four years and the $1 million in time and expenses it spent, it is unconscionable to be excluded from the project. Dr. Schmidt and associates contend that Medistar has presented no contractual agreement tying it to any legal obligation to Medistar. Is there a viable legal theory available to Medistar If so what is the remedy [Medistar v Schmidt, 267 SW3d 150 (Tex App)]