A.L. Green & Co. v. Great-West Life Assurance Co.

738 F. Supp. 965, 1990 U.S. Dist. LEXIS 7591, 1990 WL 83375
CourtDistrict Court, W.D. North Carolina
DecidedJune 12, 1990
DocketNo. C-C-89-340-P
StatusPublished
Cited by2 cases

This text of 738 F. Supp. 965 (A.L. Green & Co. v. Great-West Life Assurance Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.L. Green & Co. v. Great-West Life Assurance Co., 738 F. Supp. 965, 1990 U.S. Dist. LEXIS 7591, 1990 WL 83375 (W.D.N.C. 1990).

Opinion

MEMORANDUM OF DECISION AND ORDER

ROBERT D. POTTER, Chief Judge.

THIS MATTER is before the Court on the Defendants’ Motion for Summary Judgment, filed February 12, 1990. After the Defendants filed the Motion for Summary Judgment, the Plaintiffs filed a Brief in Opposition to the Defendants’ Motion. The Defendants responded by filing a Reply Brief. The Plaintiffs then filed a Surreply Brief. Both the Plaintiffs and the Defendants have presented the Court with deposition transcripts, affidavits, and numerous documentary exhibits.

To assist the Court in disposing of the Defendants’ Motion for Summary Judgment, and upon the Defendants’ request, the Court conducted a hearing on May 15, 1990, to listen to the parties’ oral arguments. At the hearing, the Plaintiffs were represented by Mitchell J. Aberman, and [967]*967William R. Culp, Attorneys at Law. The Defendants were represented by F. Joseph Treacy, Jr. and David L. Ormand, Jr., Attorneys at Law.

I. FACTUAL BACKGROUND

Plaintiff A.L. Green & Company, Inc. (hereafter “A.L. Green”), acting through Mr. A.L. (“Buddy”) Green, and Plaintiff Meridian Properties, Inc. (hereafter “Meridian”), acting through Mr. Richard L. Sig-mon, are real estate brokerage firms seeking to recover $74,250.00 allegedly earned by them as commissions. The Plaintiffs are seeking to recover under four separate claims for relief: (1) breach of contract; (2) quantum meruit; (3) breach of an implied duty of good faith and fair dealing; and (4) prevention.

Defendant Great-West Life & Annuity Insurance Company (hereafter “Great-West Annuity”) and Defendant GWL Properties, Inc. (hereafter “GWL”) both are wholly-owned subsidiaries of Defendant Great-West Life Assurance Company (hereafter “Great-West Assurance”). Great-West Annuity owned an apartment complex in Myrtle Beach, South Carolina, known as Carolina Ridge Apartments Phase I and Phase II (hereafter “the Property”). GWL acted as an agent for Great-West Annuity in negotiating and consummating the sale of the Property in August 1988 to Singleton Enterprises, Inc. (hereafter “Singleton”). Mr. Eric Bell was an officer and representative of GWL.

In 1988, Fleet Funding Corporation, through Mr. Fred D. (“Bubba”) Ross, Jr., assisted Great-West Annuity in screening potential purchasers of the Property and in gathering pertinent information regarding potential purchasers. In June or July 1988, Meridian’s Sigmon informed Ross that Sig-mon and a co-broker, A.L. Green, knew a potential purchaser for the Property. The potential purchaser was SYNCO, Inc. (hereafter “SYNCO”). Sigmon inquired whether Ross would protect the Plaintiffs’ interests as brokers and pay them three percent of the negotiated sales price. Ross conferred with Great-West Annuity and, on July 15, 1988, telephonically informed Sig-mon that Great-West Annuity would pay the Plaintiffs a three percent sales commission. According to Sigmon’s deposition testimony, the commission would not be paid to the Plaintiffs, however, until Great-West Annuity fully accepted an offer for the Property brought forward by the Plaintiffs.

Although the Defendants agreed to pay the Plaintiffs a sales commission under certain circumstances, the Plaintiffs and the Defendants then failed to execute a written sales commission agreement. According to the deposition testimony of Green and Sig-mon, the only written expression of the sales commission agreement was contained in a proposed contract for the purchase of the Property subsequently tendered by SYNCO.1

As of July 27, 1988, Bell of GWL had informed Sigmon that GWL already had received a competing offer on the Property which Great-West Annuity was considering. The competing offer was from Singleton. Sigmon, however, informed Bell, by a letter dated July 27, 1988, that Meridian would continue to seek an offer from SYN-CO for the purchase of the Property until such time as the Defendants committed to another purchaser.

On August 2, 1988, Sigmon, Green, and Elizabeth Dula, a Vice-President of SYN-[968]*968CO, met with Ross in Ross’ office in Columbia, South Carolina and presented Ross a written offer from SYNCO to purchase the Property. SYNCO’s offer was in the form of an unexecuted, proposed contract. SYNCO’s offer to GWL contained a paragraph providing that SYNCO and Great-West Annuity had not dealt with any broker “... in connection with this transaction except for A.L. Green & Company and Meridian Properties” and that Great-West Annuity would pay the brokers a three percent commission at closing. SYNCO also tendered $25,000 as an earnest money deposit. Using a facsimile machine, Ross transmitted SYNCO’s offer to Bell at Bell’s office in Englewood, Colorado. On the same date, Sigmon and Green telephonically confirmed the sales commission agreement with Bell. The parties, however, still had not executed a written sales commission agreement. On August 3, 1988, Bell, acting on behalf of Great-West Annuity, rejected SYNCO’s offer because it contained unacceptable terms.

On August 5, 1988, Singleton tendered another, and second, offer to GWL. Bell made plans to meet with Singleton representatives in Nashville, Tennessee on August 11, 1988. Bell left Colorado on August 10, 1988, negotiated with Singleton on August 11, 1988, and agreed on August 11, 1988, to sell the Property to Singleton.

Sometime between August 3, 1988, and August 8, 1988, Dula of SYNCO contacted Bell to discuss changing the unacceptable terms of SYNCO’s first offer. According to Dula’s affidavit, Bell said that if SYNCO would agree to three specific changes in the original offer, Bell would accept SYN-CO’s written contract and that Bell stated, “If you make the changes, we have a deal.” In her affidavit, Dula states that as a result of her conversation with Bell, she acquired SYNCO’s approval of the proposed changes and revised the original, rejected offer. SYNCO’s revised contract contained the following language in paragraph 21(d):

(i) Acceptance. The submission of this contract by Buyer to Seller constitutes an offer which shall become null and void unless Seller has executed all four (4) originals and returned two (2) fully executed, sealed and acknowledged originals to Buyer before 5:00 p.m. Eastern Daylight Savings Time on August 15, 1988. (emphasis added).

On August 9, 1988, Dula unsuccessfully attempted to contact Bell by telephone. Dula, therefore, informed Bell’s secretary that “we have a deal.” Dula also left instructions for Bell to call her.

When Bell did not return Dula’s telephone call, Dula on August 10, 1988, telephoned Mr. David Thomson, President of Great-West Assurance. At 4:11 p.m. Eastern Time on the same date, Dula forwarded via facsimile machine to Mr. Thomson “for [his] review an updated contract for the purchase of Carolina Ridge Apartments.” The “updated contract” of August 10,1988, was not signed by SYNCO. The August 10, 1988 “updated contract” contained a paragraph providing that SYNCO and Great-West Annuity had not dealt with any broker "... in connection with this transaction except for A.L. Green & Company and Meridian Properties” and that Great-West Annuity would pay the brokers a three percent commission at closing. In her affidavit, Dula states that SYNCO was ready, willing, and able to purchase the Property on the terms of the contract forwarded to Great-West Assurance and required by GWL.

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738 F. Supp. 965, 1990 U.S. Dist. LEXIS 7591, 1990 WL 83375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/al-green-co-v-great-west-life-assurance-co-ncwd-1990.