Daugherty v. Kessler

286 A.2d 95 · Court of Appeals of Maryland · 1972

Facts

Kessler orally leased a store building to Pratt and Griffith for ten years. Daugherty, a bank president, induced Pratt and Griffith to break this lease and move into a building Daugherty had an interest in. A jury found Daugherty, Pratt, and Griffith liable for wrongful interference and conspiracy, awarding actual and punitive damages.

Issue

Can a third party be held liable for tortious interference with an oral lease agreement that is unenforceable between the parties due to the Statute of Frauds or registry laws?

Holding

Yes. The court affirmed actual damages against Daugherty, Pratt, and Griffith for tortious interference and conspiracy, but struck the punitive damages due to insufficient evidence of actual malice.

Rule

An oral agreement, though unenforceable between the contracting parties due to the Statute of Frauds, is not "void" and can still form the basis for a tort action against a third party who knowingly interferes with its performance.

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Case brief last reviewed 2026-05-18. Prepared by CaseReader from the published opinion.