Vessels, 823 S.W.2d at 762; Theriot v. Smith, 263 S.W.2d 181, 183 (Tex. Which remedy is awarded as well as the amount of compensation will be determined by the court or jury. 490, 341 S.W.2d 892 (1960). Specifically, the court considered the defendants argument that the trustee was precluded from recovery under the defense of equitable estoppel, and held that it could not conclude, that as a matter of law, [the defendants] came to the table with clean hands and [were] entitled to raise the equitable defense of quasi-estoppel. Id. App.Houston [14th Dist.] What is an Affirmative Defense to Breach of Contract? Id. App.Dallas 2011, pet. A Q&A guide to common defenses to contract claims under Illinois common law. Beneficiaries may argue that the trustee did not prove all of the elements if the equitable defenses set forth above. 2 v. Callewart, 837 S.W.2d 693, 699 (Tex. Law, Immigration 16 people have successfully posted their cases, 5 people have successfully posted their cases, 10 people have successfully posted their cases, 6 people have successfully posted their cases, 20 people have successfully posted their cases, 7 people have successfully posted their cases, 9 people have successfully posted their cases. denied). denied). It also covers procedural and equitable defenses specific to breach of contract. Performance of the contract has become impossible or the purpose of the contract has become frustrated. The existence of imminent harm. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. However, the wife submitted evidence that she was led into the agreement by the husbands fraud and threats. App.Fort Worth 1999, pet. (citing Loggins v. Gates, 301 S.W.2d 525, 527 (Tex. They can advise you of your rights, represent your interests in negotiations and settlements, and be your advocate throughout a trial or any other legal proceeding. Copyright 1999-2023 LegalMatch. 2023 This Q&A covers defenses to contract formation, performance, and damages. Equitable defenses are appropriate for breach of fiduciary duty claims as fiduciary relationships originate in equity. Co. v. Ed Bell Invs., 864 S.W.2d 211, 215 (Tex. Legal remedies refer to monetary award damages, such as compensatory, nominal, and liquidated damages. Where one party claims that the other has breached a contract, there may be the availability of the defense of "equitable estoppel." The term "estoppel" refers to "stopping" someone from taking a certain position that differs from a prior position-and "equitable" refers to that certain degree of fairness that is expected of . . App.Houston [1st Dist.] In re EGL Eagle Global Logistics, LP, 89 S.W.3d 761, 766 (Tex. They may accomplish this through inducement, or by disrupting a party's ability to perform as detailed by the terms of the contract. where the tortious conduct leaves the innocent party with no real choice but to act in a manner consistent with the tortious conduct, the innocent partys actions do not constitute ratification of the tortious conduct. Civ. The Beneficiaries may argue that they did not know all of the material facts to make an informed decision in accepting the trustees conduct and/or they were misled by untrue statements by the trustee. The trustee may inadvertently use its standard formula for compensation, which was technically too much and over the amount allowed under the trust document. Vessels, 823 S.W.2d at 762. Breach of Contract Defenses | NYC Bar (implicitly holding that, by selling his business, plaintiff did not ratifythe tortious conduct that put him in the position of having to sell it). Ins. When Is a Contract Considered Void or Voidable? A contract is an enforceable promise. 1965). Bldg. Practice tip. Id. At the core of these equitable defenses is the concept that a party should not be allowed to act inconsistently: have knowledge of conduct and fail to object to it for a period of time (thereby. Therefore, Deborahs claims for breach of fiduciary duty are barred by the affirmative defense of quasi-estoppel. (citingLoggins v. Gates, 301 S.W.2d 525, 527 (Tex. );Breaux v. Allied Bank, 699 S.W.2d 599, 604 (Tex. It is not uncommon for beneficiaries to sue a trustee for actions that the beneficiaries had knowledge of but where they failed to object to that conduct for a period of time. App.Dallas 1992, writ denied). You will need to prove that the contract should have been in writing and that it was not in writing. For example, contracts for an amount of money over $500. Law, Insurance This Q&A covers defenses to contract formation, performance, and damages. jury trial is a matter of right in a civil action at law, but not in equity. A sister filed a breach of fiduciary duty claim based on this failed investment. Rosenbaum v. Tex. The hardship must be significant and material. A contract which contains agreements for an illegal act, such as drug trafficking or murder is unenforceable; Unconscionability. A defense of unclean hands can be used in any legal proceeding, although it is typically used in cases where one party feels they have been wronged and seeks to enforce a contract or seek fair and equitable remedies. He is admitted to practice law before the State Bar of California, and the United States District Court for the Northern District of California. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials. The Beneficiaries may argue that they did not know all of the material facts to make an informed decision in accepting the trustees conduct and/or they were misled by untrue statements by the trustee. Lack of consideration. SeeDigesu v. Weingardt, 91 N.M. 441, 575 P.2d 950 (1978). The defense involves a new contract, either express or implied, in which the existing obligation is released by agreement of the parties through means of [a] lesser payment tendered and accepted. Richardson v. Allstate Tex. denied), a court found that a trustee was not barred from challenging an oil and gas lease under an equitable ratification theory by accepting royalty payments. Ratification occurs when a person who knows all the material facts confirms or adopts a prior act that did not then legally bind him and which he could have repudiated. After a bench trial, the court rendered judgment approving the trust accounting, approving the trustees administration, and holding that the trustee, individually and in his capacity of trustee, was completely discharged and relieved of all duties and was fully and completely released and discharged from any and all claims, duties, causes of action or liabilities (including taxes of any kind) relating to any and all actions or omissions in connection with his administration of the DPH Trust. Id. . Estate 1991, no writ). Equitable remedies are also available for breach. Equitable defenses are appropriate for breach of fiduciary duty claims as fiduciary relationships originate in equity. Sometimes, the application or inapplication of equitable defenses can be proven as a matter of law by a judge; but more often, these defenses will have be resolved by a fact finder (by a judge, or if requested, by a jury). App.Houston [14th Dist.] Later, a beneficiary is in conflict with the trustee and then, for the first time, alleges that the trustee has breached its duties by overcompensating itself. InGoughnour v. Patterson, a beneficiary sued a trustee based on a failed real estate investment. BREACH OF CONTRACT Generally, the elements of a cause of action for breach of contract are: The formation of a contract between the plaintiff and the defendant. There are, however, some situations in which money alone will not properly compensate the non-breaching party. Faulty/Defective Products/Services (Auto, Drug), Investments (Annuities, Securities, IPOs), (this may not be the same place you live), Online Law Law, Products National Law Review, Volume X, Number 342, Public Services, Infrastructure, Transportation. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. your case. Did Failure to perform by the defendant. To establish the affirmative defense of accord and satisfaction, the defendant must show that in the new contract: (1) the parties agree to discharge the existing obligation; (2) the parties agree that one party will perform and the other will accept something different from what each expected from the existing obligation; (3) the parties unmistakably communicate that the different performance will discharge the existing obligation; (4) the agreement to discharge the existing obligation is plain, definite, certain, clear, full, explicit, and not susceptible of any other interpretation; and (5) the parties agreement must be accompanied by acts and declarations that the creditor is bound to understand.Honeycutt v. Billingsley, 992 S.W.2d 570, 576-77 (Tex. Civ. K.B. In the broad body of laws called contract law, there are, in general, four types of defenses which may be used against a claim of a breach of contract, including: Anticipatory repudiation; Defense by waiver; Tortious interference; and Unclean hands.
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