Facts

On March 7, 2002, plaintiff Groner Enterprises Inc. and defendant American Realty Trust Inc. entered into a written agreement whereby defendant agreed to pay plaintiff a finder's fee of three percent if Cornerstone Development, or any of its affiliates, purchased lots of an undeveloped property that was the subject of a tentative map.

Despite the fact that plaintiff had identified the purchaser, defendant refused to pay plaintiff a finder's fee when it sold the parcel to an affiliate of Cornerstone for $23,785,000.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that he fulfilled his attendant obligations under the contract, and that the parties engaged in a similar course of dealing on various other projects in the past. The plaintiff also alleged that at the time of the agreement, defendant was already in the process of intentionally letting the tentative map to expire so as to render the parcel "unmapped," thereby releasing defendant from its contractual obligation to pay plaintiff a fee for the sale.

DEFENDANT'S CONTENTIONS:
The defendant contended that Groner was not the procuring cause. Groner knew that the map was about to expire, but failed to take any steps that resulted in the ultimate sale. The defense argued that since it allowed the tentative map on the property to expire and thereafter sold the "unmapped" property, that it did not owe plaintiff his finder's fee, as buyer did not technically purchase "lots" as required by the contract.

Damages

The plaintiff sought $713,550, which represented his three percent finder's fee.

Result

Jury verdict in favor of plaintiff for $713,550. Subsequently, the court granted defendant's motion for judgment notwithstanding the verdict, vacating the jury's award. Defendant was awarded costs in the amount of $4,757.

Other Information

FILING DATE: Jan. 15, 2004.