Lussier v. Stevens
Lussier v. Stevens
Opinion of the Court
This case presents the question of whether defendant’s oral promise to pay one-half of a judgment against plaintiff is unenforceable because it is subject to the statute of frauds, 12 V.S.A. § 181(2) (“promise to answer for the debt, default or misdoings of another”).
The focus of this appeal is an oral agreement made between Lussier and Stevens during the Eccomunity action. Stevens asserts that his oral agreement with Lussier to pay one-half of any Eccomunity recovery violates the statute of frauds. Stevens had been Lussier’s partner and was also named as a defendant in the Eccomunity action based on an allegation of fraud in his capacity as a realtor. Stevens, however, was dismissed prior to the verdict in favor of Eccomunity.
Stevens continued to participate, however, in helping Lussier defend against Eccomunity. Lussier did not cross-claim against Stevens for indemnity in the Eccomunity action, relying on their oral agreement to split any judgment. Following the Ec-comunity verdict, Stevens refused to pay his share of the judgment, prompting Lussier to begin this suit in March, 1985. Two years later, Eccomunity and Lussier settled their dispute for a discounted amount, $33,000, which was paid by Lussier to the president and sole stockholder of Eccomunity.
The trial court in this case decided that the statute of frauds did not apply to the parties’ oral agreement. It reasoned that Lussier and Stevens secured each other’s cooperation in Ec-comunity’s action against them in order to reduce the gamble that one of them would be liable for the total sum of a possible plaintiff’s verdict. Stevens had the added incentive to secure Lussier’s cooperation because his realtor’s license was in jeopardy as a result of the alleged fraud.
Stevens argues that the record does not substantiate the court’s findings that “new consideration” was given for his oral promise to pay one-half the judgment.
Affirmed.
12 V.S.A. § 181(2) states:
An action at law shall not be brought in the following cases unless the promise, contract or agreement upon which such action is brought or some memorandum or note thereof is in writing, signed by the party to be charged therewith or by some person thereunto by him lawfully authorized: ... (2) A special promise to answer for the debt, default or misdoings of another; ....
A claim of error predicated on Lussier satisfying the Eccomunity judgment by paying Eccomunity’s president and sole stockholder instead of the corporation itself is decidedly without merit. Viewed in context, the Eccom-unity judgment was satisfied, as demonstrated by the parties’ written agreement and the trial court’s findings.
In furtherance of his contention that the parties’ oral agreement is unenforceable, Stevens argues that an indemnification for intentional wrongdoing is contrary to public policy and unenforceable. Specifically, Lussier’s reciprocal promise to pay one-half of a judgment by Eccomunity against Stevens constitutes inadequate consideration, according to Stevens, because he was charged with fraud. This doctrine, however, was not designed to reward the wrongdoer, and we will not apply it here to benefit Stevens.
Reference
- Full Case Name
- Roger Lussier v. John Stevens
- Status
- Published