Buck v. Century 21 Beezley Real Estate, Inc.

907 S.W.2d 660, 1995 Tex. App. LEXIS 2229, 1995 WL 548384
CourtCourt of Appeals of Texas
DecidedSeptember 14, 1995
DocketNo. 11-94-087-CV
StatusPublished
Cited by2 cases

This text of 907 S.W.2d 660 (Buck v. Century 21 Beezley Real Estate, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buck v. Century 21 Beezley Real Estate, Inc., 907 S.W.2d 660, 1995 Tex. App. LEXIS 2229, 1995 WL 548384 (Tex. Ct. App. 1995).

Opinion

ARNOT, Chief Justice.

Monty Buck sued Century 21 Beezley Real Estate, Inc., Bonnie Schafer, and Billie Hutchinson (Century 21) for tortiously interfering with his contract to purchase real estate. The trial court granted a summary judgment to Century 21 based on its affirmative defense of “legal justification.” Buck appeals, bringing as his sole point of error that the trial court erred in granting a summary judgment. Because the summary judgment evidence does not conclusively establish that Century 21’s assertion of its contractual rights were in “good faith,” a fact question, we reverse and remand.

Robert and Frances Baker wanted to sell their home situated on 40 acres near Forney. On March 31, 1993, the Bakers executed an exclusive listing agreement with Century 21. The purchase price was $350,000. The agreement provided that Century 21 would be the “sole and exclusive agent ... with the exclusive right to sell ... the [pjroperty” for one year. In July of 1993, unassisted by any real estate agent, Buck met with the Bakers, viewed the property, and made an offer on the land. By deposition, Buck testified that he was aware that Century 21 had a listing agreement on the property when he made his offer. The Bakers and Buck executed a handwritten contract of sale in which the Bakers agreed to sell the property based on a percentage of the appraised value. The contract provided, in the event any reduction in the real estate agent’s commission could be negotiated, that that amount would go to the Bakers. Buck was aware that the property would be subsequently shown to other buyers. When Buck asked Mr. Baker what he would tell the agent who was scheduled to show the property later that day, Mr. Baker replied, “I’ve got it sold.”

That evening, the property was shown to Dr. Cynthia Shughrue by Schafer, the real estate agent. Assisted by Schafer, Baker and his wife executed a contract of sale with Shughrue for $350,000. When no agreement eoidd be reached between the prospective purchasers as to which contract was prior, Buck sued Century 21 alleging tortious interference with a contract. Century 21 filed a motion for summary judgment urging, as an affirmative defense, “legal justification.”

The elements of a cause of action for tortious interference are (1) the existence of a contract subject to interference, (2) an act of interference which was willful and intentional, (3) which was a proximate cause of plaintiffs damage, and (4) the occurrence of actual damages or loss. Holloway v. Skinner, 898 S.W.2d 793 (Tex.1995); Juliette Fowler Homes, Inc. v. Welch Associates, Inc., 793 S.W.2d 660 (Tex.1990); Sterner v. Marathon Oil Company, 767 S.W.2d 686 [662]*662(Tex.1989); Sakowitz, Inc. v. Steck, 669 S.W.2d 105 (Tex.1984).

Century 21 maintains that it exercised its own rights and duties under its exclusive listing agreement with the Bakers. Century 21’s listing agreement with Baker provided that:

Owner agrees to refer to Broker all inquiries received by Owner relating to the purchase or sale of the Property and to conduct all negotiations with prospective buyers of the Property through Broker ... After Owner has accepted an offer with respect to the Property, Owner hereby requests (i) Broker to submit back-up offers ... and (ii) Broker to continue showing the Property. (Emphasis added).

Assuming without agreeing that it interfered with Buck’s contract and that the summary judgment evidence shows that it had knowledge of Buck’s prior existing contract of sale, Century 21 urges that, as a matter of law, it established the affirmative defense of “legal justification,” citing White v. Larson, 586 S.W.2d 212 (Tex.Civ.App.—El Paso 1979, no writ), and Galveston County Fair & Rodeo, Inc. v. Glover, 880 S.W.2d 112 (Tex.App.—Texarkana 1994, no writ), as authority.

In Victoria Bank & Trust Company v. Brady, 811 S.W.2d 931 (Tex.1991), the court discussed the affirmative defense of “legal justification” and stated:

However in Sterner v. Marathon Oil Co., 767 S.W.2d 686 (Tex.1989), this court partially overruled Sakowitz and held that “the privilege of legal justification or excuse in the interference of contractual relations is an affirmative defense upon which the defendant has the burden of proof.” 767 S.W.2d at 690. Under the defense of legal justification or excuse, one is privileged to interfere with another’s contractual relations (1) if it is done in a bona fide exercise of his own rights, or (2) if he has an equal or superior right in the subject matter to that of the other party. Sterner v. Marathon Oil Co., 767 S.W.2d at 691; Sakowitz, Inc. v. Steck, 669 S.W.2d at 107. One may be “privileged” to assert a claim “even though that claim may be doubtful, so long as it asserted a colorable legal right.” Sakowitz, Inc. v. Steck, 669 S.W.2d at 107 (citing Hardin v. Majors, 246 S.W. 100, 102 (Tex.Civ.App.—Amarillo 1923, no writ)). However, the defense of legal justification or excuse only protects good faith assertions of legal rights. See Sakowitz, Inc. v. Steck, 669 S.W.2d at 107, 109; American Petrofina, Inc. v. PPG Industries, Inc., 679 S.W.2d 740, 758-59 (Tex.App.—Fort Worth 1984, writ dism’d by agr.); Bellefonte Underwriters Ins. Co. v. Brown, 663 S.W.2d 562, 573 (Tex.App.—Houston [14th Dist.] 1983), aff'd in part and rev’d in part on other grounds, 704 S.W.2d 742 (Tex.1986); Hardin v. Majors, 246 S.W. at 102 (“[A] party to or interested in a contract may, by legal proceedings or otherwise in good faith, interfere with the execution of the contract where there is a bona fide doubt as to his rights under it.”); Restatement (Second) of Torts § 773 (1979). (Emphasis added)

When reviewing a summary judgment, this court will adhere to the following standards:

(1) The movant for summary judgment has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law.
(2) In deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the non-movant will be taken as true.
(3) Every reasonable inference must be indulged in favor of the non-movant and any doubts resolved in its favor.

TEX.R.CIV.P. 166a; Goswami v. Metropolitan Savings and Loan Association, 751 S.W.2d 487, 491 (Tex.1988); Nixon v. Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bennett v. Computer Associates International, Inc.
932 S.W.2d 197 (Court of Appeals of Texas, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
907 S.W.2d 660, 1995 Tex. App. LEXIS 2229, 1995 WL 548384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buck-v-century-21-beezley-real-estate-inc-texapp-1995.