93 Clearing House, Inc. v. Khoury

415 A.2d 671, 120 N.H. 346, 1980 N.H. LEXIS 287
CourtSupreme Court of New Hampshire
DecidedMay 12, 1980
Docket79-162
StatusPublished
Cited by37 cases

This text of 415 A.2d 671 (93 Clearing House, Inc. v. Khoury) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
93 Clearing House, Inc. v. Khoury, 415 A.2d 671, 120 N.H. 346, 1980 N.H. LEXIS 287 (N.H. 1980).

Opinion

PER CURIAM.

This case presents four issues. First, whether 93 Clearing House, Inc. (hereinafter 93) is entitled to a commission for services rendered in the sale of the defendant Amin Khoury’s house. Second, whether a new trial should be granted to reconsider evidence relevant to the determination of damages stemming from alleged cost overruns on a construction project. Third, whether the master erred in admitting allegedly prejudicial and irrelevant testimony at trial to support the finding of a binding contract between the parties regarding the sale of condominiums. Fourth, whether the master correctly interpreted the language of a remedies clause contained in a lease agreement. The first issue involves 93 and the defendant Amin Khoury as an individual. The other three issues pit 93 against Amin Khoury and others doing business as Campton Realty Associates (hereinafter Campton).

*348 The case was heard before a Master (Walter D. Hinkley, Esq.) who found for the plaintiff and denied the defendants’ request for a new trial. Johnson, J., entered a decree approving the master's recommendations and,reserved and transferred the defendants’ exceptions.

With regard to the first issue, Amin Khoury argues that the master erred in awarding a commission to 93 for services rendered in procuring the sale of his house. We remand for further findings.

The master found that 93 was engaged in business as a developer and builder, and in those capacities was interested in selling lots and in building homes. 93 also on occasion acted as a real estate agent. It had built Amin Khoury’s residence. After the Khoury house had been completed, a man named Indursky talked to Thomas Mullen, a 93 representative, about buying a lot and building a home. He asked Mr. Mullen to show him homes that 93 had already built so he could have some idea of the company’s workmanship. Mr. Mullen asked Mr. Khoury if he could show his house to Mr. Indursky as an example of 93’s work, and Mr. Khoury agreed. When Mr. Indursky saw the Khoury house he inquired whether it was for sale. 93 checked with Mr. Khoury and was advised that the house might be for sale. Thereafter, negotiations were conducted, largely between Messrs. Indursky and Khoury, that resulted in Mr. Indursky purchasing the Khoury house for $202,000.

The master found that 93 was not entitled to the standard broker’s commission because it did not act as a broker within the usually accepted meaning of the term. The master distinguished 93’s role in the sale of the Khoury house from that of a broker based on the following specific findings: The impetus for the sale came from the buyer rather than the seller, no set fee was. ever stated by 93 or agreed to by Mr. Khoury prior to the sale of the house, 93 did not attend the closing or claim any broker’s fee at the time of closing, and negotiations were mainly conducted directly between the buyer and the seller. In the master’s view, 93’s claimed 6% commission (6% X $202,000 = $12,120) was “more than 93's services were worth.” He therefore recommended an award of $3,500. This result does not conform to the law.

The first inquiry in any real estate commission case is whether the seller and the broker had an agency agreement. If there was none, the broker cannot recover. Richardson v. Sibley, 101 N.H. 377, 143 A.2d 414 (1958). An agency relationship exists *349 only when the seller gives the agent some manifestation that the agent may act on his behalf and the agent consents to do so. Id. The manifestation and consent need not be written; in fact, it may be implied from the parties’ conduct or other evidence of intent. 3 Am. Jur. 2d Agency § 17 (1962); see Richardson v. Sibley supra. In the present case, there was conflicting evidence relating to the existence of an agency relationship and the master could reasonably have found for either party. We remand for such a finding.

If the master finds agency on remand, the question of the amount of the commission will arise. A broker has a right to his commission if he procures a willing and able buyer. Richardson v. Sibley supra. A broker procures a customer if he informs him of the property and leads him to the seller. Kopka Real Estate Inc. v. MacLeod, 119 N.H. 547, 404 A.2d 298 (1979). It seems clear in this case that 93 “procured” Mr. Indursky. It makes no difference that the buyer initiated the sale. Nor is it dispositive that 93 did not attend the closing and that Messrs. Khoury and Indursky negotiated the sale without assistance from 93. DiMarzio v. Read, 118 N.H. 925, 395 A.2d 1253 (1978). When as in this case, the amount of the commission was not agreed upon, the agent is entitled to the reasonable worth of his services. 3 Am. Jur. 2d Agency § 248 (1962); see Stanton v. Embrey, 93 U.S. 548 (1876). In our view, this should be determined in the light of what others were paid at the time and in that area for similar services. 3 Am. Jur. 2d Agency § 248 (1962). There was evidence in this case that the standard fee in the area was 6% of the selling price. We remand to the master for a finding regarding the existence of an agency relationship, and, in the event that he finds one, for a redetermination of the agent’s compensation.

The remaining issues arise from transactions between 93 and Campton Realty Associates. The first of these stems from a contract by which 93 agreed to build a store and an office building for Campton. The fixed price was $350,000. At trial, Campton alleged that 93’s cost overruns caused it to spend considerably more than $350,000 for the completed project. In attempting to prove the overruns, Campton offered a series of five exhibits consisting of checks, invoices and a ledger sheet, all purporting to represent money that Campton paid to 93, its subcontractors and materialmen. These exhibits totaled $416,115.86. The master’s narrative findings of fact, printed in the reserved case, indicate *350 that he added together only two of the five exhibits in his derivation of Campton’s project-related expenses. Finding this total to be less than $350,000, he did not award Campton damages. Campton now contends that the master erred in considering only two of its five offerings and in denying its motion for a new trial. We disagree.

In reviewing damage awards, this court views the evidence in the light, most favorable to the prevailing party. Dana A. Wein & Sons v. Keller, 118 N.H. 545, 391 A.2d 878 (1978). Further, the factfinder is not bound to believe even uncontroverted evidence. Cragin v. Woollett, 104 N.H. 202, 182 A.2d 457 (1962); see State v. Rullo, 120 N.H. 149, 412 A.2d 1009 (1980).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Todd Harbour & a. v. Henry Farrin, Jr. & a.
Supreme Court of New Hampshire, 2019
State of New Hampshire v. Exxon Mobil Corporation & a.
168 N.H. 211 (Supreme Court of New Hampshire, 2015)
Parsons v. Malpass
D. New Hampshire, 1999
Mulligan v. Choice Mortgage
D. New Hampshire, 1998
Carrier v. McLlarky
693 A.2d 76 (Supreme Court of New Hampshire, 1997)
Proctor v. Macdonald
689 A.2d 1330 (Supreme Court of New Hampshire, 1997)
Banker v. Pauson
647 A.2d 146 (Supreme Court of New Hampshire, 1994)
Fleet Bank v. Chain Construction Corp.
635 A.2d 1348 (Supreme Court of New Hampshire, 1993)
Winterbrook Realty, Inc. v. Federal Deposit Insurance
820 F. Supp. 27 (D. New Hampshire, 1993)
Appeal of Lambrou
609 A.2d 754 (Supreme Court of New Hampshire, 1992)
Finlay v. Frederick
606 A.2d 1375 (Supreme Court of New Hampshire, 1992)
Renovest Co. v. Hodges Development Corp.
600 A.2d 448 (Supreme Court of New Hampshire, 1991)
In re Estate of Buttrick
597 A.2d 74 (Supreme Court of New Hampshire, 1991)
Patterson v. Tirollo
581 A.2d 74 (Supreme Court of New Hampshire, 1990)
Johnston v. Lynch
574 A.2d 934 (Supreme Court of New Hampshire, 1990)
Finlay Commercial Real Estate, Inc. v. Paino
573 A.2d 125 (Supreme Court of New Hampshire, 1990)
Brent v. Paquette
567 A.2d 976 (Supreme Court of New Hampshire, 1989)
Ira H. Shinberg v. Paul Bruk
875 F.2d 973 (First Circuit, 1989)
Cheshire Toyota/Volvo, Inc. v. O'Sullivan
531 A.2d 714 (Supreme Court of New Hampshire, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
415 A.2d 671, 120 N.H. 346, 1980 N.H. LEXIS 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/93-clearing-house-inc-v-khoury-nh-1980.