Acadian Investment Co. v. Laird

138 So. 2d 429, 1962 La. App. LEXIS 1655
CourtLouisiana Court of Appeal
DecidedMarch 8, 1962
DocketNo. 488
StatusPublished
Cited by6 cases

This text of 138 So. 2d 429 (Acadian Investment Co. v. Laird) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acadian Investment Co. v. Laird, 138 So. 2d 429, 1962 La. App. LEXIS 1655 (La. Ct. App. 1962).

Opinion

FRUGÉ, Judge.

This is a suit by a real estate brokerage firm (“Acadian”) to recover a commission for the sale of a plantation. The plaintiff appeals from the dismissal of its suit.

On September IS, 1959, the defendant Laird executed an exclusive listing agreement with the plaintiff Acadian, whereby the latter was appointed the exclusive agent to sell a 1275-acre plantation owned by the Island Planting Company, Inc. (This corporation was made a co-defendant; Laird is its president and the stock in it is entirely owned by members of his family.) Plaintiff’s commission was to be five per cent of the sales price.

By the agreement, the plaintiff Acadian was given this exclusive right to sell the property until January 1, 1960. The contract further provided, however, that Laird was nevertheless liable for the stipulated commission if within one year after termination of the listing agreement the plantation was sold “to anyone to whom this property has been exhibited, quoted or offered for sale” by Acadian. Further, by another clause, Laird specifically agreed to refer to Acadian any offers to purchase the property made directly to him.

The evidence shows that the plaintiff Acadian was represented by its agent, La-Borde, in all transactions concerning the listed property. Although LaBorde showed the property to two prospects and attempted to interest approximately three more, he was unable to procure a sale of the plantation prior to the expiration of the exclusive listing agreement on January 1, 1960.

On January 14, 1960, about two weeks after the expiration date of the listing agreement, the co-defendant corporation (through Laird as president) sold about eight hundred acres of the listed property to James D. Tanner and Curry Cason for $172,305.

The plaintiff-appellant contends that the defendants are liable to it for its broker’s commission upon the sale of the 800-acre portion of the plantation previously listed with it for sale, because in violation of his contractual obligation, the defendant Laird had dealt directly with Tanner and Cason, the ultimate purchasers, prior to the termination of the exclusive listing agreement on January 1, 1960, without having informed the plaintiff of these negotiations.

The evidence shows that, upon hearing a rumor that the defendant Laird was negotiating with Tanner and Cason for the sale of the property, the plaintiff’s agent, La-Borde, visited these latter gentlemen on December 24th, one week before the expiration of the exclusive listing agreement. As the trial court noted, LaBorde’s apparent purpose was merely to verify these negotiations and not to sell the property. LaBorde did not inform these prospective purchasers that he was Laird’s agent for the sale of the property, nor did he attempt to sell them all or part of the property. After questioning them about their agreement with Laird, LaBorde left his business card and told them to call upon him if he could help with the sale.

The evidence further shows, as LaBorde was informed, that, at some date before December 24th, during the term of the exclusive listing agreement, Laird had indeed entered into an agreement to sell to Tanner and Cason the 800-acres later purchased by them (about half of the plantation listed with the plaintiff), to be effective, however, only if the plaintiff was unable to secure a purchaser for the entire acreage by January 1st.

It seems that H. B. Staples, another real estate agent, initially interested Tanner and Cason in the purchase of the property. The prospective purchasers denied that Staples informed them that he was acting as broker for Laird in the matter. However, the ulti[431]*431mate purchasers (through Staples) later reached a tentative agreement with Laird to buy the 800-odd acres which were subsequently purchased. (It should be noted that this tentative agreement was directly contingent upon whether or not plaintiff would sell the entire plantation during the period of its exclusive listing.) Although Laird testified on other matters, and although the record shows that Staples was present in the courtroom, neither the plaintiff nor the defendants sought to produce testimony from either of them concerning whether Staples had been authorized by Laird to try to sell the plantation, despite his exclusive listing agreement with the plaintiff.

Further, it is not denied that, despite the contractual obligation to refer offers to purchase the property to the plaintiff real estate agency, Laird did in fact fail to inform it of his negotiations with Tanner and Cason to sell them part of the property (contingent upon the plaintiff’s failure to sell the entire property during the period it had obtained the exclusive listing agreement) .

Under these facts and the applicable jurisprudence, the plaintiff has made out a strong case. When the real estate broker has a contract giving him the exclusive right to sell the property during a specified period of time, he is entitled to a commission upon any sale of the property made during that time, whether the sale.be made, by the owner personally or by another, broker. Donlon v. Babin, La.App. 1 Cir., 44 So.2d 134, and the many cases cited therein. Further, in holding the seller liable for a commission to a real estate agent for property sold subsequent to expiration of an exclusive listing agreement, the courts have placed great emphasis upon a violation by the seller of his contractual obligation to refer all offers to purchase to the real estate agent during the pendency of the agreement and have disallowed arguments that under the circumstances the private negotiations did not actually interfere in any way with the real estate agent’s efforts. Alex F. Dreyfus Co. v. Friedman, 171 La. 90, 129 So. 679; Doll v. Thornhill, La.App. Orl., 6 So.2d 793; Donlon v. Babin, cited above.

In brief, counsel for the plaintiff-appellant states:

“We think the record clearly shows that the defendant acted in bad faith, as defined by the Supreme Court, in dealing with prospective purchasers both individually and through another agent, while the contract was in force and while plaintiff was continuing his efforts to sell the property. Plaintiff is asking only his pro rate commission on the actual sale as made by defendant, and we think that both legally and equitably he is entitled to it. * * *
“Although the actual passage of title here took place a few days after the primary term of the listing agreement, it was generally known that defendant had agreed to sell half of the property to Tanner and Cason. Plaintiff got this information directly from the purchasers themselves. * * * The very fact that it was generally known in the community that the property had been sold would nullify all prior and future efforts of the plaintiff.
“Our position is flatly this: that when the defendant dealt with plaintiff in the manner in which he did, in strict violation of his agreement, this entitled plaintiff to his commission on the basis of previous efforts to sell the property, even though he had no part in the sale to Tanner and Cason.”

The trial court held that the decisions relied upon by the plaintiff were not applicable to the present case because of distinguishable facts. As stated by the trial court’s opinion:

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Bluebook (online)
138 So. 2d 429, 1962 La. App. LEXIS 1655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acadian-investment-co-v-laird-lactapp-1962.