Centex Corporation, Petitioner v. John Dalton, Respondent

Summary

The Texas Supreme Court reversed the Court of Appeals, holding that Centex's letter agreement with Dalton is unenforceable because a governmental regulation prohibiting payment of finder’s fees makes performance illegal and discharges Centex's contractual duty. The Court also found that the agreement was conditioned on Bank Board approval, which never occurred, so Dalton's right to enforce never accrued, and affirmed that Dalton’s failure to plead quantum meruit precludes remand. Justice Mauzzy dissented, arguing that an equitable quantum meruit remedy should be allowed.