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 owned, facilitating financing. Kessler sued Daugherty, Pratt, and Griffith for wrongful interference and conspiracy.

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, finding the oral lease, though unenforceable between parties, was not void. However, punitive damages were struck due to insufficient evidence of actual malice.

Rule

An oral contract, though unenforceable between the parties due to the Statute of Frauds or similar laws, is not 'void' and can still form the basis for a tort action for interference by a third party who knows of the contractual facts.

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Case brief last reviewed 2026-03-19. Prepared by CaseReader from the published opinion.