366 S.W.3d 837
Tex. App.2012Background
- Appellees are licensed brokers who listed the Litton-owned asset for HomeEq.
- Litton had management but no standing commission agreement with Litton.
- A $195,000 offer from Karen Vicknair was accepted; closing delayed due to title and signing issues.
- Litton failed to close by the rescheduled date; Vicknair terminated and earnest money was returned.
- Appellees demanded a commission; Litton refused arguing no sale occurred.
- Trial court awarded a commission and attorney’s fees based on emails it found to form a contract; appellate court examined RELA writing requirements and found no compliant writing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a writing satisfies RELA for real estate commission | Manning/IntraRealty rely on several exhibits to form a contract | Litton contends RELA writing requirements not met | No contract compliant with RELA; judgment for appellees reversed |
Key Cases Cited
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (legal sufficiency standard for reviewing evidence)
- Morris v. Wells Fargo Bank, N.A., 334 S.W.3d 838 (Tex. App.-Dallas 2011) (reaffirming substantial evidence standards)
- Lathem v. Kruse, 290 S.W.3d 922 (Tex. App.-Dallas 2009) (RELA writing requirements for commissions)
- Formosa Plastics Corp. USA v. Presidio Eng'rs & Contractors, Inc., 960 S.W.2d 41 (Tex. 1998) (strict RELA compliance; parol evidence cannot supply essential terms)
- Kindred v. Con/Chem, Inc., 650 S.W.2d 61 (Tex. 1983) (scintilla vs. evidence distinction in contract issues)