Baker v. Dennis Brown Realty, Inc.
New Hampshire Supreme Court
433 A.2d 1271 (1981)
After Sharon Baker (plaintiff) signed an unconditional purchase agreement at full asking price for a home listed with Dennis Brown Realty (defendant), one of the realty's other agents insisted on adding financing and home-sale contingencies to her already-signed contract; that same agent then showed the house to another family who offered $300 more without any contingencies, and communicated both offers to the seller without ever telling Baker about the competing offer, resulting in the seller accepting the other family's bid. Baker sued Brown Realty for intentional interference with a prospective contractual relationship, and the trial court found for her and awarded $3,525.29 in damages; Brown Realty appealed.
Whether a real estate agency that induces a seller not to complete a sale with a buyer it represents, by soliciting and presenting a competing, contingency-free offer without disclosure, is liable for intentional interference with a prospective contractual relationship, and if so, how damages for that interference should be measured.