Opinion ID: 414166
Heading Depth: 2
Heading Rank: 2

Heading: Malicious Intent

Text: 22 The second Leonard Duckworth criterion states that the defendant acted maliciously by intentionally preventing the relationship from occurring with the purpose of harming plaintiff. Leonard Duckworth, supra, 516 F.2d at 956. The trial judge below rejected on two grounds the jury's finding that the plaintiffs had proved the second Leonard Duckworth element. First, he found no evidence that Melroy ever knew of Verkin and Weston. Second, he found no evidence that Melroy intended to harm Verkin and Weston. We shall treat each of those theories in turn. 23 1. Knowledge of Verkin and Weston --To find the necessary intent on the part of the defendant to prevent the contractual relationship, the jury must necessarily find that Melroy had knowledge of the prospective contractual relationship he was accused of blocking. Cf. Frost National Bank v. Alamo National Bank, 421 S.W.2d 153, 156 (Tex.Civ.App.1967, writ ref'd n.r.e.) (knowledge of contract a necessary element of wrongfully inducing breach of contract). 24 The trial judge disregarded the jury's finding of malicious intent in part because there was no evidence showing Melroy knew the identity of Verkin and Weston. He believed that this lack of knowledge of their identity also precluded the requisite knowledge of the prospective contractual relationship. There is no basis in law or logic for this conclusion; all that is necessary is that the tortfeasor know that some party or parties had a prospective contractual relationship. 25 The jury had ample evidence to support its finding that Melroy knew that some brokers had a prospective contractual relationship that would entitle them to a commission on the sale of the apartments. First, Bolin testified that she had told Melroy in her initial discussion with him that two other brokers were to receive a $100,000 commission from the seller. Record at II-98 to 99, III-155, 160, 161, 196 to 97, 212. Second, the information package Melroy received from Bolin about the apartments had some information on the front cover obviously concealed. Plaintiff's Exhibit 19. Bolin testified that this was a common brokerage practice. Record at III-185. The jury could have inferred that a knowledgeable broker such as Melroy understood that this was done to conceal the identity of Bolin's source. In short, there was sufficient evidence to support a jury finding that Melroy knew of the prospective contractual relationship. 26 2. Malicious Intent --The trial court also disregarded the second Leonard Duckworth finding on the theory that no evidence supported a finding that Melroy acted with an intent to harm Verkin and Weston. While there was no direct evidence of malice, there was circumstantial evidence from which a jury could reasonably infer malice. 27 The record contains evidence to show the following: 28 (1) Melroy knew two other brokers would get a $100,000 commission if he worked through Bolin and them; see supra Part II.B.1; 29 (2) Melroy initiated direct contact with the seller, from which he excluded all brokers. Record at II-117, III-148;(3) At the meeting with Banfield Melroy negotiated a reduction in purchase price exactly equal to the amount of commission included in the purchase price in exchange for his agreement to take care of any brokerage commissions resulting from his actions. Record at III-246, 249, 295. 30 Thus the evidence shows that Melroy knew that other brokers normally would receive a commission, that he took steps that resulted in their losing that commission, and that he pocketed for himself the money saved. It does not require any great leap over the chasm of facts to infer from this that Melroy intended precisely the consequences of his actions that in fact resulted. The jury was certainly entitled to draw that inference from the evidence before it.