Bishop v. Sanders

624 N.E.2d 64, 1993 Ind. App. LEXIS 1425, 1993 WL 489664
CourtIndiana Court of Appeals
DecidedNovember 30, 1993
Docket36A05-9302-CV-38
StatusPublished
Cited by10 cases

This text of 624 N.E.2d 64 (Bishop v. Sanders) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bishop v. Sanders, 624 N.E.2d 64, 1993 Ind. App. LEXIS 1425, 1993 WL 489664 (Ind. Ct. App. 1993).

Opinion

BAKER, Judge.

Appellant-plaintiff Donn Bishop, d/b/a Century 21 Donn Bishop Real Estate (Century 21), appeals a negative judgment in favor of appellee-defendants Robert and Marian Sanders, in his action to recover a real estate commission.

ISSUES

Century 21 raises two issues which we restate as:

I. May a broker enforce a commission under a real estate listing contract where the broker has not procured the vendor’s buyer?

II. Does the sale to the buyer fall outside the exclusion clause in the listing contract?

FACTS

On May 3, 1991, the Sanders executed an exclusive listing contract with Century 21. Paragraph B of that contract provided:

OWNER agrees to pay principal broker a fee of seven percent which shall be paid upon the occurrence of any of the following events: ... 4. At the time OWNER sells the Property to a Purchaser procured in whole or in part by the efforts of principal broker, a cooperating Broker or the OWNER during the term of the Contract, if such sale occurs within_ days after this contract terminates....

Record at 85. Under the contract, Century 21 could also recover court costs and attor *66 ney’s fees if successful in an action to recover a commission. The contract also provided “This listing contract excludes Ruth Kennedy for [a] two week period starting today’s date.” The listing contract expired on September 3, 1991.

On June 21, 1991, Ruth Kennedy made a written offer to purchase the Sanders’ home. On August 19, 1991, Kennedy and the Sanders completed the sale.

Century 21 filed suit for its commission. Issuing findings of fact and conclusions of law, the trial court denied Century 21’s claim, stating:

1. The case of Campbell et. al. [sic] vs Vencel (1992), 594 N.E.2d 807 is the controlling law in the case at bar....
3. Paragraph B(4) [of the listing contract] is further limited by language in the Listing Contract which states, “This listing contract excludes Ruth Kennedy for a two week period starting today’s date.”
4. The Plaintiffs failed to prove by a preponderance of the evidence either that the Plaintiff procured the buyer or that the Defendants procured the buyer after May 17, 1991.

Record at 72. Century 21 appeals.

DISCUSSION AND DECISION

I. Standard of Review

When a trial court enters gratuitous findings of fact and conclusions of law, the specific findings made control as to the issues they cover, and the general judgment controls as to other issues. Vanderburgh County v. Rittenhouse (1991), Ind.App., 575 N.E.2d 663, 666, trans. denied. We will affirm the general judgment on any legal theory for which there is a factual basis. Id. We will set aside specific findings or conclusions only where they are clearly erroneous. Id. Findings of fact are clearly erroneous when the record lacks any facts or reasonable inferences to support them. Id. at 665. We do not reweigh evidence, and we consider only that evidence which supports the trial court’s judgment. Id. at 666. Where the trial court did not explicitly find facts necessary to support its judgment, we assume the trial court so found. Wolff v. Slusher (1974), 161 Ind.App. 182, 188, 314 N.E.2d 758, 762.

II. Broker Procuring Buyer

Century 21 argues that it did not have to procure the purchaser in order to earn a commission under the terms of the listing contract. In rejecting Century 21’s claim, the trial court relied upon Campbell v. Vencel (1992), Ind.App., 594 N.E.2d 807, rev’d in part, Ind., 604 N.E.2d 601. Our supreme court vacated the part of the Court of Appeals’ decision which required a broker to be the procuring cause of a sale or to produce a buyer ready, willing, and able to purchase the property in order to earn its commission. Campbell, 604 N.E.2d at 602.

Indiana law has long held that a broker earns its commission when it causes a sale or procures a buyer ready, willing, and able to purchase the property. Fischer v. Bell (1883), 91 Ind. 243, 244-45. However, Indiana law has also long held that a buyer is free to contract with a broker so that the broker may, under the contract terms, receive its commission by means other than by procuring a sale or buyer. Lane v. Albright (1874), 49 Ind. 275, 279. Therefore, unless the parties provide otherwise, a broker earns its commission when it procures a buyer ready, willing, and able to purchase, or when it procures a buyer with whom the vendor contracts or to whom the vendor sells. See Wilson v. Upchurch (1981), Ind.App., 425 N.E.2d 236, 238. However, Indiana courts will enforce specific provisions in a listing contract which allow a broker to earn a commission under other circumstances.

Here, the Sanders agreed to pay Century 21's commission even if the Sanders sold their home without Century 21’s efforts during the listing period. The Sanders sold the house to Kennedy on August 19 before the listing period expired. The record is unclear whether Century 21 assisted in the sale of the house to Kennedy. Under the terms of the parties’ exclusive listing contract, Century 21 may earn a commission *67 even though it did not procure Kennedy as the buyer.

III. The Exclusion Clause

Century 21 argues that the evidence does not support the trial court’s finding that it did not prove the Sanders procured Kennedy as a buyer after the exclusion expired on May 17, 1991, and, therefore, that the exclusion clause does not apply to the Sanders’ sale.

The Sanders argue that the exclusion clause is ambiguous. A provision in a contract is ambiguous only if reasonably intelligent people could honestly find its provisions susceptible to more than one interpretation. P.C. Management, Inc. v. Page Two, Inc. (1991), Ind.App., 573 N.E.2d 434, 438. Interpreting the provision “this listing contract excludes Ruth Kennedy for [a] two week period starting today’s date,” reasonable minds could at least differ over the meaning of “excludes” and what conduct the provision “excludes”. Because the provision is susceptible to more than one reasonable interpretation, it is ambiguous.

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Cite This Page — Counsel Stack

Bluebook (online)
624 N.E.2d 64, 1993 Ind. App. LEXIS 1425, 1993 WL 489664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bishop-v-sanders-indctapp-1993.