Opinion ID: 1677111
Heading Depth: 1
Heading Rank: 3

Heading: consideration for verbal agreement to endorse check

Text: By reply point Fischer urges that we should consider their contract theory of damages even though the court of appeals did not write on that point. In the interest of judicial economy we have agreed to do so. Fischer contends that the verbal agreement of English to endorse the insurance check and deliver it to them was supported by consideration in that she would benefit by her collateral being increased in value as a result of the rebuilding. They further contend that their reliance on her promise to endorse the check and having the builder commence work toward rebuilding constituted promissory estoppel. We will first consider the question of increase in value of the collateral. The note held by English had a balance of approximately $57,000 and bore interest at 5½% per annum. Fischer's suit asked for and the judgments below provided for $127,616 for the increase in cost of repairs due to inflation. Fischer alleged that the rebuilding could not be commenced without the insurance proceeds because of high interest rates and lack of mortgage money. Fischer is contending on the one hand that a promissory note bearing interest at 5½% per annum secured by a lien on a house worth $200,000 when rebuilt would be of more benefit to English than $57,000 cash. On the other hand Fischer argues that they could not borrow money to rebuild the house because of high interest rates and inflation. The contradiction in the allegations is apparent. As a matter of law English received no consideration for making the verbal agreement to endorse the check. We next consider the question of promissory estoppel. The requisites of promissory estoppel are: (1) a promise, (2) foreseeability of reliance thereon by the promisor, and (3) substantial reliance by the promisee to his detriment. Aubrey v. Workman, 384 S.W.2d 389, 393 (Tex.Civ. App.Fort Worth 1964, writ ref'd n.r.e.). The record shows that the only acts taken by Fischer in reliance upon English's verbal agreement to endorse the check was to clean up some of the burned house in preparation for rebuilding. Everything done by Fischer would necessarily have been done whether the check was endorsed or not. Since Fischer proved no detrimental reliance on the promise by English the theory of promissory estoppel is not operable in this case.