J.B. Canton, individually and dba Twin Oaks Land Co. v. J.R. Smeed individually and dba Chelsea Investment Co.
Published: Jul. 12, 2008 | Result Date: Apr. 30, 2008 | Filing Date: Jan. 1, 1900 |Case number: S-1500-CV-260701 Verdict – $184,372
Facts
On March 29, 2006, plaintiff J.B. Canton, a real estate broker dba Twin Oaks Land Co., entered into a contract with J.R. Smeed to sell real property located within Kern County and to perform surveying as well as other services. Smeed promised to pay Canton under various conditions, including the "bulk sale" of Smeed's property, in which Canton was not involved. Without Canton's knowledge, Smeed sold his land in July for $3 million and never paid Canton the agreed percentage.
Contentions
PLAINTIFF'S CONTENTIONS:
Canton brought an action against Smeed dba Chelsea Investment Co., claiming the contract had been breached. Canton asserted that Smeed failed to pay the agreed percentage payment for the "bulk sale," as required under their agreement.
DEFENDANT'S CONTENTIONS:
Defendant argued there was no "bulk sale" and that the contract provided the broker with the right to sell individual lots in two subdivisions of the land, namely, Pine Ridge and Montclaire. However, because no public report approved by the California Dept. of Real Estate for either subdivision existed, the sale of these lots was illegal pursuant to the California Business & Profession Code.
The defendant also asserted that the agreement was illegal and unenforceable. Further, Smeed contended that the commission provision was required by the California Civil Code to be in writing and to be supplemented with additional writings signed by the property owner. He asserted that the contract failed to name the property subject to the commission provision; that the clause "Spring Creek Estates: To be determined" was insufficient. Defendant claimed he never signed any documents relating to these two sections and that plaintiff's right to commission was barred by the Statute of Frauds.
The two parcels constituted 75 percent of the entire property.
Settlement Discussions
A demand was made pursuant to C.C.P. Section 998 for $120,000.
Injuries
Plaintiff claimed $184,372.40 for all unpaid commission with interest.
Result
A verdict in favor of plaintiff for $184,372.40, which is the unpaid amount plus prejudgment interest.
Deliberation
four hours
Poll
10-2
Length
six days
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