Yarber v. Iglehart

264 S.W.2d 474, 1953 Tex. App. LEXIS 1697
CourtCourt of Appeals of Texas
DecidedNovember 20, 1953
Docket14742
StatusPublished
Cited by23 cases

This text of 264 S.W.2d 474 (Yarber v. Iglehart) 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
Yarber v. Iglehart, 264 S.W.2d 474, 1953 Tex. App. LEXIS 1697 (Tex. Ct. App. 1953).

Opinion

DIXON, Chief Justice.

On motion for rehearing the opinion handed down in this case on Nov. 20, 1953 is withdrawn and the following is substituted therefor:

This is an appeal from a summary judgment in favor of appellees, who were defendants in the trial court.

Appellant Robert A. Yarber, a licensed real estate broker, filed this suit against appellees B. K. Jones, owner and seller of a certain house and lot, R. M. Iglehart, purchaser of the real estate, and Mr. and Mrs. John G. Bookout (son-in-law and daughter of Iglehart), who moved into and have occupied the property as their residence since Iglehart bought it'. Appellant sued for his real estate commission and in the alternative for damages for the tort of fraudulent interference with his oral listing contract with Jones, the owner. The latter action is brought against Iglehart and in the alternative on the grounds of conspiracy against all the appellees.

Here is a summary of the material parts of appellant’s petition: He had an oral listing agreement with Jones under which he would be paid a commission for securing a purchaser for a lot including a house built, owned, and offered for sale by Jones known as 6807 Glendora Street, Dallas, Texas; at the time he obtained the listing, he was undertaking at the request of the appellees, including Iglehart, to find a house for the Bookouts; he showed the Jones house and lot several times to the Bookouts; appellee Iglehart, father .of Mrs. Bookout, thereafter contacted Jones directly, purchased the house for the benefit of the Bookouts, but in his own name for the fraudulent purpose of by-passing appellant, thereby depriving appellant of the commission he would have been paid by Jones.

Appellees’ motions for summary judgment were sustained and judgment entered that appellant take nothing. Appellant has appealed asking that the judgment be *476 reversed and the case remanded for trial on its merits.

It is obvious that under no theory of the case is appellant entitled to judgment against appellee Jones. His pleadings allege an oral listing contract between appellant, a real estate agent, and appellee Jones, the owner of the property which was sold. Since the listing contract, if there was one, was not in writing it was not enforceable against Jones. Art. 6573a, § 22, V.R.C.S. Therefore Jones committed no actionable wrong in contract or in tort in refusing to perform the alleged oral contract. Magnolia Petroleum Co. v. Dubois, Tex.Civ.App., 81 S.W.2d 157 (writ ref.). The trial court properly sustained the motion for summary judgment in favor of Jones.

However appellant’s case against the appellees Iglehart and the Bookouts rests on an entirely different basis, and involves an entirely different issue of law. Is a party liable for damages in tort on the grounds of wrongful interference if he purposely and fraudulently causes a party to a contract not to perform his agreement, though- the breached contract may not be enforceable as between the parties thereto because of the statute of frauds? That is the main law question involved in this case as to the appellees Iglehart and the Bookouts. . ⅛

In Texas there is a difference in the expressed opinions of oúr Courts of Civil Appeals. Two cases hold there is no liability under such circumstances. Davidson v. Oakes, 60 Tex.Civ.App. 269, 128 S.W. 944 (no writ history); Little v. Childress, Tex.Civ.App., 12 S.W.2d 648. The judgment in the latter case was affirmed by our Supreme Court (Tex.Com.App., 17 S.W.2d 786), but the Supreme Court in its opinion does not discuss the point, and so far as we have been able to ascertain, did not otherwise pass on it. A contrary view was expressed in Richardson v. Terry, Tex.Civ.App., 212 S.W. 523, 525: “And that the contract was obnoxious to the statute of frauds, as urged in this case by appellees, would not relieve the parties so interfering. 15 R.C.L. pp. 61, 62, §§ 21, 22.” However the court in-the last styled case then held in favor of the appellee because the performance of the breached contract was optional for another reason.

In. our opinion the correct rule is-that if a person with knowledge and fraudulent intent induces a party to breach his-contract with .another, such person is lia-, ble in damages though the breached contract may be unenforceable as between-the contracting parties because of the statute of frauds. Richardson v. Terry, supra; Powell v. Leon, 172 Kan. 267, 239 P.2d 974; Schlesinger v. Rice, 4 N.J. 169, 72 A.2d 197; Bitzke v. Folger, 231 Wis. 513, 286 N.W. 36; Kamm, Inc. v. Flink, 113 N.J.L. 582, 175 A. 62, 99 A.L.R. 1; Vaught v. Jonathan L. Pettyjohn & Co., 104 Kan. 174, 178 P. 623; Krigbaum v. Sbarbaro, 23 Cal.App. 427, 138 P. 364;. Skene v. Carayanis, 103 Conn. 708, 131 A. 497; Jackson v. Stanfield, 137 Ind. 592, 37 N.E. 14, 23 L.R.A. 588; Duckett v. Pool, 23 S.C. 238, 11 S.E. 689.

We think our holding is sound for two-reasons :

First, it is well settled that the statute of frauds may not be invoked by; a stranger to the contract. McManus v. Matthews, Tex.Civ.App., 55 S.W. 589 (writ ref,); 49 Am.Jur. 896, Secs. 588, 589; p. 898, Secs. 590, 591. An oral contract, is, not void, illegal, or inherently wrong beT cause it fails to conform to the require^ ments of the statute of frauds. Hutchings v. Slemons, 141 Tex. 448, 174 S.W.2d 487, 148. A.L.R. 1320. The statute establishes a rule of evidence, which is personal to the person to be charged under the terms-of the contract. Simmons v. Ratliff, Tex.Civ.App., 182 S.W.2d 827 (error ref.). He may avail himself of it or not, as he elects; but it does not rest with others — strangers-to the contract — to say that the parties-will not abide by their agreement regardless of the statute of frauds. We think it is common knowledge that many unenforceable oral contracts are honored and< *477 performed by the parties though one of the parties to the contract could not be required in court to perform his agreement.

Second, the law abhors fraud. The statute of frauds itself was enacted to prevent fraud. It was not intended that it. should be used as a shield or protection to one guilty of fraud, or as a means of perpetrating a fraud. 49 Am.Jur. 898, Sec. 590. “It has always been a peculiar province of the courts to grant relief against fraud, and * * * they should afford relief against fraud wherever it may appear or whatever guise it may assume.” 37 C.J.S., Fraud, § 62, p. 351. Under some, circumstances equity even goes so far as to extend relief to the contracting parties themselves on the grounds of fraud, though their contract may come within the statute. Halsell v. Scurr, Tex.Civ.App., 297 S.W. 524 (writ dis.).

In' the light of our holding as to the applicable law in this case, it is necessary for us to review the record to determine whether there are fact issues present which entitle appellant to a trial on the merits.

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264 S.W.2d 474, 1953 Tex. App. LEXIS 1697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yarber-v-iglehart-texapp-1953.