top of page

Heights Realty, Ltd. v. Phillips

New Mexico Supreme Court

749 P.2d 77 (N.M. 1988)

Summary
Procedural History
Judicial Opinion
Citations

A contracting party’s mental incapacity at the time of contract formation may void the existence of a contract.

Relevant Facts

Heights Realty, Ltd. (the plaintiff) entered into an exclusive listing contract with Johnye Gholson. In 1984, Gholson telephoned Pat Eichenberg, a real estate broker and owner to Heights Realty to secure his services in selling her property. At this time, Gholson was 84 years old. In September 1984, Gholson entered into a contract to list the property for one year at $250,000 with a $75,000 cash down payment. No other terms were included in the contract. In October 1984, Gholson signed an addendum increasing the down payment to $100,000. In November 1984, an offer was made to purchase Gholson’s property for $255,000. Gholson did not accept that offer. The plaintiff brought suit against Gholson seeking the commission it earned for finding a buyer for Gholson’s property. During the proceedings, Gholson was adjudicated incompetent. As a result, Gholson’s son-in-law, Phillips (the defendant), was appointed conservator of her estate.

At trial, the plaintiff argued that the contract it made with Gholson was enforceable because she did not lack the mental capacity to contract at the time of contract formation. Based on expert testimony from psychiatrists, testimony from Gholson’s relatives, and from Gholson herself, the trial court found that Gholson did not have the requisite mental capacity to enter into the contract with the plaintiff. Accordingly, the trial court voided the contract. The plaintiff appealed.

Issue

Get access to our database of over 17,000+ case briefs today. Access our issue statements for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Holding & Reasoning

Get access to our database of over 17,000+ case briefs today. Access holding & reasonings for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Concurrence

Get access to our database of over 17,000+ case briefs today. Access all available concurrences for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Dissent

Get access to our database of over 17,000+ case briefs today. Access all available dissents for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Last updated:

December 20, 2020

Judicial Opinion

Get access to our database of over 17,000 case briefs today. Our database of judicial opinions will be released soon, for free!

Procedural History

Get access to our database of over 17,000+ case briefs today. Access the entire procedural history for every case you'll encounter in law school for a low monthly price. The largest database on the internet is now available with Lawwly, the central legal hub. Use our case briefs to comprehend your casebook readings in seconds, to supplement your notes and outlines, and to outshine your classmates. No one has a more comprehensive case brief database than Lawwly. All of our briefs are handwritten by real legal experts and law professors and our stringent editing process ensures you'll get the best quality briefs available.

Citations

749 P.2d 77 (N.M. 1988)

bottom of page