Law, Products Defense of Lack of Consideration 4. Additionally, quasi estoppel is a defense that prevents a party from obtaining a benefit by asserting a right to the disadvantage of another that is inconsistent with the partys previous position. denied);see also Flores v. Flores, 116 S.W.3d 870, 876 (Tex. App.Texarkana 1992, writ denied). Steubner Realty 19 v. Cravens Road 88, 817 S.W.2d 160, 164 (Tex. Copyright 1999-2023 LegalMatch. LegalMatch Call You Recently? App.Amarillo 1968, writ refd n.r.e.). denied). Use Of Equitable Defenses In Breach Of Fiduciary Duty Litigation. 149, 135 S.W. If one party fails to perform their duties under the contract as they agreed to do, they may be held legally responsible for a breach of contract. & Mort. Co. v. State, 1 S.W.3d 264, 266 (Tex. There are, however, some situations in which money alone will not properly compensate the non-breaching party. The trustee may inadvertently use its standard formula for compensation, which was technically too much and over the amount allowed under the trust document. Van Indep. The court of appeals affirmed the application of the trustees affirmative defense of quasi-estoppel based on the beneficiarys prior consent to trust investments in other real estate investments: The affirmative defense of quasi-estoppel precludes a party from asserting, to anothers disadvantage, a right inconsistent with a position she has previously taken. David is the primary authorof theTexas Fiduciary Litigatorblog, which reports on legal cases and issues impacting the fiduciary field in Texas. App.Waco 1953, writ dismd). at 765. What is an Affirmative Defense to Breach of Contract? Beneficiaries may argue that the trustee has acted with unclean hands and therefore may not take advantage of equitable defenses. (Livingston v. Recission stands in contrast to reformation, where the original contract is rewritten to provide clarification, correct mistakes, and add in terms that were agreed upon after it was signed. The husband argued that she was estopped from pursuing such action, under the doctrines of both judicial estoppel and quasi-estoppel, as she had accepted benefits of the divorce settlement. A few examples of an affirmative defense against a breach-of-contract claim include: You may state that the contract is an oral contract and should have been in writing. Civ. App.Beaumont 1984, writ refd n.r.e.). Co. v. Ed Bell Invs., 864 S.W.2d 211, 215 (Tex. If one or more of the parties to a contract do not perform according to the terms of their contract, a breach of the contract has occurred. App.Beaumont 1984, writ refd n.r.e.). 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. Improvement Assn., 23 S.W.3d 398, 403 (Tex. Law, About Example: Blue Company refuses to sell to Red Company, so Red Company sends Pink Company to buy goods from Blue Company and turn them over to Red Company. Present Id. Dist.] Beneficiaries may argue that they were compelled to accept the trustees improper conduct and that their acceptance was not voluntary. When two or more parties enter into a contract, they make a promise to uphold their end of the bargain based upon the terms of the contract which are agreed to by the parties involved. Ken holds a J.D. For example, inIn Re Marriage Stroud, the wife accepted benefits of the terms of a divorce settlement, which she later sought to challenge in court. v. McCarty, 165 S.W.3d 351, 353 (Tex. A Q&A guide to common defenses to contract claims under Florida common law. your case. Daniel v. Goesl, 161 Tex. at 513. Any retention of the beneficial part of the transaction affirms the contract and bars an action for rescission as a matter of law. See also Hemink Farms, Ltd. v. BCL Constr., LLC, No. Example: The contract states that in the event of a minor breach, the damages will be $100 regardless of the actual loss. Beneficiaries should not generally be allowed to lay behind the log, have knowledge of a trustees conduct, not object to such conduct for a period of time, and then later complain in litigation of that conduct. LEXIS 2209, at *8 (Tex. App.Fort Worth 1999, pet. Any retention of the beneficial part of the transaction affirms the contract and bars an action for rescission as a matter of law. jury trial is a matter of right in a civil action at law, but not in equity. See also Herider Farms-El Paso, Inc. v. Criswell,519 S.W.2d 473, 477-78(Tex. 412, 252 S.W.2d 929 (1952). The court ordered that the successor trustee pay all outstanding legal and accounting fees incurred by the trust, appointed a successor trustee, and relieved the successor trustee of any and all duty, responsibility, or authority to investigate the actions or inactions of the trustee as prior trustee. Exiting Member of LLC May Still Owe Fiduciary Duties, Court Reversed The Appointment Of A Successor Independent Administrator Of An Estate, Court Affirmed Removal Of An Administratrix For Gross Mismanagement, [Virtual Half-Day Seminar] Real Estate Startup - April 18th, 9:00 am - 12:15 pm CST, Texas Supreme Court Affirms The Release In A Family Settlement Agreement That Protected A Former Trustees Estate From Claims And Discusses the Full Knowledge Requirement For Enforcing Releases In Fiduciary Relationships. Co. v. Benton, 728 S.W.2d 35, 37 (Tex. App.San Antonio 2014, pet. lacked important information. Hardship, which is a defense that is cited when a plaintiff can prove that a breach has occurred but forcing the breaching party to perform would cause severe hardship. v. Prize Energy Res., L.P., 510 S.W.3d 497, 505 (Tex. Performance of the contract has become impossible or the purpose of the contract has become frustrated. Sun Exploration & Prod. They all agreed, and the trustee transferred a total of $2.1 million from the four trusts to the real estate investment entity. Ideology or Antitrust? Accord and Satisfaction. The project failed, and the trusts lost the $2.1 million. denied). The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. The project failed, and the trusts lost the $2.1 million. Failure to perform by the defendant. App.Tyler 1993, no writ). Co. v. Benton, 728 S.W.2d 35, 37 (Tex. App.Houston [1st Dist.] For example, in Vessels, the court overturned summary judgment on the defendants defense of ratification. A breach of contract occurs when a party fails to fulfill their obligations under the contract. There are numerous options which may be available to the non-breaching party to compensate them for their losses. When a breach of contract occurs, and a suit is filed, equitable remedies are issued when legal remedies, such as monetary damages, cannot adequately resolve the breach. She is a certified mediator and guardian ad litem. However, it was the defendants tortious conduct which placed the plaintiffs in a position of either having to accept the lease or else lose the property. Library, Bankruptcy Further, waiver is largely a question of intent. Civ. 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.
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