Opinion ID: 1228810
Heading Depth: 1
Heading Rank: 1

Heading: illegal actions

Text: The Murrays contend that the trial court erred in ruling that they could not recover damages under their fraud claim because they acted illegally. In granting Hadid's motion for summary judgment on the quantum meruit claim, the trial court ruled that the Murrays had acted illegally as unlicensed real estate brokers in negotiating the sale of the Roper property for the valuable consideration of becoming the builders of the townhouses. Because neither of the Murrays had a real estate broker's license, the trial court correctly ruled that they had acted illegally and, therefore, could not recover for those illegal services. See Massie v. Dudley, 173 Va. 42, 3 S.E.2d 176 (1939). This ruling was not challenged, nor did the Murrays assign error to it in this appeal. Thus, the ruling became the law of the case and the Murrays cannot now complain that they did not act illegally in negotiating the sale. Rule 5:25. The trial court, nevertheless, erred in supporting its order to set aside the jury verdict on the fraud claim with its prior ruling regarding illegality. In their quantum meruit claim, the Murrays alleged that Hadid owed them for services they had performed in obtaining the contract for him. However, in their action for fraud, the Murrays did not rely on their illegal activity as a basis for their damage claim. They did not allege, as the trial court's ruling would indicate, that due to Hadid's misrepresentations they were not compensated for their efforts in obtaining the contract for Hadid. They merely alleged that, but for Hadid's fraud, they would have bought the property themselves and they therefore sought reliance damages. While the trial court's first finding is erroneous, we must examine the court's other bases for denying recovery.