law-illegality-defense | illegal contract unenforceable as contrary to public policy |
A contract to do a thing that cannot be performed without a violation of the law is void. Lewis v. Davis, 145 Tex.
468, 472, 199 S.W.2d 146, 148-49 (1947). The policy is not to protect or punish either party to the contract, but is
for the benefit of the public. Lewis, 145 Tex. at 477, 199 S.W.2d at 151. "In Texas there is a presumption that
contracting parties are knowledgeable of the law and contract accordingly." Plumlee v. Paddock, 832 S.W.2d 757,
759 (Tex.App.-Fort Worth 1992, writ denied). Accordingly, Texas courts will generally leave the parties as they find
them. See Mercury Life & Health Co. v. Hughes, 271 S.W.2d 842, 846 (Tex.Civ.App.-San Antonio 1954, writ ref'd).
Courts no more favor aiding one attempting to enforce such a contract than they are disposed to assist the party
who uses the illegality to avoid liability. Loggins v. Stewart, 218 S.W.2d 1011, 1015 (Tex.Civ.App.-El Paso 1949,
writ ref'd).
Even were the alleged contract in question not void, parties who wish to recover on such a contract must prove
their case without reliance on their own illegal act. Kokernot v. Gilstrap, 143 Tex. 595, 600, 187 S.W.2d 368, 370
(1945).
HOUSTON CASE LAW ON THIS LEGAL CONCEPT: ILLEGALITY & CONTRACTS
Merry Homes, Inc. v. Luu (Tex.App.- Houston [1st Dist.] Feb. 18, 2010)(illegality as bar to enforcement of
commercial lease, liquor regulation, zoning)
In this commercial lease dispute, we determine whether a landlord may enforce a lease to operate a “nightclub or bar” and for “no
other” purpose when the tenant cannot legally obtain a liquor license for the leased premises and the lease requires that any activity
on the premises comply with applicable law.We hold that the trial court correctly determined that the lease was void because Luu
could not perform his obligation under the lease to avoid violating a City of Houston ordinance. We further hold that the trial court’s
award of $23,500 in attorney’s fees to Luu was not inequitable or unjust. We therefore affirm the judgment of the trial court.
AFFIRM TRIAL COURT JUDGMENT: Opinion by Justice Bland
Before Chief Justice Radack, Justices Bland and Massengale
01-09-00187-CV Merry Homes, Inc. v. Chi Hung Luu
Appeal from 151st District Court of Harris County
Trial Court Judge: Hon. Michael Engelhart
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