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Haase v. Glazner

A plaintiff cannot assert a fraudulent inducement claim in the absence of a contract.

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On Petition for Review from the Court of Appeals for the Sixth District of Texas

Argued on October 19, 2001

This case requires us to decide whether a party can maintain a claim based on either fraud or fraudulent inducement when that claim is premised on a contract that the Statute of Frauds makes unenforceable. We hold that a plaintiff cannot assert a fraudulent inducement claim in the absence of a contract. We further hold that under the facts of this case, to the extent that Glazner seeks to recover the benefit-of-the-bargain damages related to a contract that is unenforceable under the Statute of Frauds, the Statute bars the fraud claim, but that Glazner’s fraud claim for out-of-pocket damages, if any, may survive the Statute of Frauds. We therefore affirm the court of appeals’ judgment in part, reverse in part, and render judgment that Glazner take nothing on his fraudulent inducement claim and on his fraud claim to the extent that he seeks benefit-of-the-bargain damages.

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