Markman v. Gaitz

499 S.W.2d 692
CourtCourt of Appeals of Texas
DecidedAugust 23, 1973
Docket16157
StatusPublished
Cited by7 cases

This text of 499 S.W.2d 692 (Markman v. Gaitz) 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
Markman v. Gaitz, 499 S.W.2d 692 (Tex. Ct. App. 1973).

Opinion

PEDEN, Justice.

Defendants appeal from a judgment on a jury verdict based on the concept of compromise and settlement in favor of real estate broker J. J. Gaitz for damages of $4800, exemplary damages of $2500 and attorney’s fees of $2500.

This case was the subject of a prior appeal to the 14th Court of Civil Appeals. The opinion in that matter is published at 482 S.W.2d 391 (1972, no writ).

We review the allegations made in the plaintiff’s petition: As a real estate broker he entered into an agreement in September, 1969 with defendants Isaac Tapper and Harry Pepper, partners, to sell three of their apartment projects. This was part of a continuing business relationship he had with Pepper individually and as agent for Pepper and Tapper, and under this arrangement plaintiff secured defendants Phillip Markman and Jack Markman as prospective purchasers.

However, Pepper and Tapper accepted the benefits of plaintiff’s efforts in their behalf and sold the three apartment projects to the Markmans, d. b. a. Markman Brothers Investments, for about $320,000.

Under their continuing agreement, Pepper agreed to pay plaintiff 6% of the sale price of the properties if he brought Pepper someone who bought the properties, but has never paid the $16,000 thus earned, so Pepper and Tapper have been unjustly enriched to that extent.

Alternatively, the defendants Markman entered into a conspiracy to defraud plaintiff of the money he was entitled to receive because of his efforts in behalf of Pepper and Tapper. This deliberate interference with contractual rights, as a result of the conspiracy between the defendants, resulted in plaintiff’s being damaged in the amount of $16,000.

Because of the deliberate plan which caused the plaintiff’s $16,000 loss, each de *694 fendant should be required to pay punitive damages in the total amount of $25,000.

In the alternative, plaintiff would show that he reached a compromise settlement agreement with Jack Markman, individually and as agent for Markman Brothers Investments, to avoid litigation. Under such agreement Jack Markman agreed to pay plaintiff $4800 in consideration for plaintiff’s agreement to allow the sale to be consummated and to refrain from any legal action to enforce the claim in dispute. Payment was to be by check for $1,000 and a note for the balance of $3,800. The check was issued, but the Markmans stopped payment on it, and they refused to sign the $3,800 note as they had agreed to do.

Alternatively, the Markmans agreed to pay $4,800 in settlement of an unliquidated claim; it was accepted by plaintiff, so it became an accord and satisfaction. The plaintiff’s petition was concluded with his prayer for damages.

Defendants Phillip Markman and Jack Markman, individually and d. b. a. Mark-man Brothers Investments, are the appellants here.

In response to special issues the jury found 1) that Pepper gave an oral listing of the apartment projects to Gaitz, but 2) did not find from a preponderance of the evidence that such listing was given in the latter part of 1969, so the jury was not required to give answers to predicated issues asking 3) whether Jack Markman knew of such listing when he began negotiating to purchase the apartments, 4) whether Jack Markman, with intent to deprive Gaitz of compensation, induced Pepper and Tapper to sell the apartments, 5) whether Gaitz was deprived of money as a result of such inducement and 6) if so, in what amount.

The jury found in response to the other special issues 7) that there was a dispute between J. J. Gaitz and Jack Markman as to whether Gaitz was entitled to receive compensation in connection with the sale of the three apartment projects, 8) that Jack Markman and J. J. Gaitz reached an agreement for payment of money in connection with such dispute, 9) that Jack Markman agreed to pay $4,800 to J. J. Gaitz as a result of such agreement and 10) Gaitz should be awarded $2500. against Jack Markman, Phillip Nathan Markman and Markman Brothers Investments as exemplary damages.

Appellants’ first four points of error are: 1) that the trial court erred in its submission of Special Issue No. 7 and in its holding or deemed finding that the settlement of the dispute between appellee and appellant Jack Markman was consideration for appellants’ alleged promise to pay, because there is no evidence to support such submission, holding or finding; 2) that the trial court erred in such submission and in its holding or deemed finding because they are against the great weight of the evidence; 3) that the verdict is not supported by the evidence because there is no evidence of any bona fide dispute between ap-pellee and appellant Jack Markman concerning appellee’s right to compensation for the sale of the three apartment projects; 4) that the verdict is not supported by the evidence because the finding in response to Issue No. 7 is against the great weight of the evidence.

The record does not reflect that the appellants made any objections to the trial court’s charge, but Rule 279, Texas Rules of Civil Procedure, provides that a claim that the evidence was insufficient to warrant the submission of any issue may be made for the first time after verdict.

Special Issue No. 7 was apparently submitted under the theory of a compromise settlement agreement, the elements of which are 1) a bona fide dispute between the parties, 2) the parties entered into a compromise agreement to settle, 3) under the terms of the agreement the offending party agreed to pay (or otherwise perform) in consideration for the other party’s promise to refrain from any action to enforce the claim in dispute and 4) one *695 party has performed his part of the compromise agreement while the offending party has refused to do so. 12 Tex.Jur.2d 300, compromise and Settlement.

Evidence of the existence of a bona fide dispute was a letter signed by Phillip Markman and Jack Markman’s mother on behalf of Jack Markman and addressed jointly to Messrs. Tapper, Pepper and Gaitz dated April 9, 1970 stating in part:

“Dear Sirs:
“We would like to suggest that the group of us getting together to air out all of our grievances and to try to reach an amicable solution.
“We feel that basically we have a moral rather than a legal problem and it can only he solved among ourselves. Since we are all living in the same community, it seems practical for us to settle our disputes and get them behind us.
“If we find at that time a friendly solution is unavailable, we will then step aside and let the matter go through legal channels. If the arrangement is acceptable but the date obligated, call us and we will plan another time and place.”

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499 S.W.2d 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/markman-v-gaitz-texapp-1973.