Boyert v. Tauber

834 S.W.2d 60, 35 Tex. Sup. Ct. J. 1092, 1992 Tex. LEXIS 86, 1992 WL 148119
CourtTexas Supreme Court
DecidedJuly 1, 1992
DocketD-1885
StatusPublished
Cited by67 cases

This text of 834 S.W.2d 60 (Boyert v. Tauber) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boyert v. Tauber, 834 S.W.2d 60, 35 Tex. Sup. Ct. J. 1092, 1992 Tex. LEXIS 86, 1992 WL 148119 (Tex. 1992).

Opinion

OPINION

COOK, Justice.

This case presents two certified questions from the United States Court of Appeals for the Fourth Circuit. The questions, which require interpretation of the Real Estate Licensing Act (RELA), Tex. Rev.Civ.Stat.Ann. art 6573a, § 20(b) (Vernon Supp.1992), are: (1) “whether parol evidence may be admitted to identify the broker to whom a commission is owed in an action to recover a real estate commission based on a document signed by the purchaser acknowledging a debt to ‘outside brokers’ but not providing a complete listing of their names”; and (2) “whether the doctrine of partial performance permits a broker to maintain an action for a real estate commission where the memorandum evidencing the agreement refers to ‘outside brokers’ but does not provide a complete listing of their names.” We answer that neither parol evidence nor partial performance is sufficient in this situation.

The order of certification presents the following stipulated facts.

Early in 1987, Ross Boyert, a Texas real estate broker, read in the newspapers that an investor named Julian Pars had purchased a Texas office building. Seeking business, Boyert called Pars and offered his services in finding properties for [Pars to] purchase. Pars at that time represented himself as the head of a *62 private investment group looking for properties and asked Boyert to begin searching for suitable investment opportunities. In March 1987, Pars told Bo-yert that his equity partner was Dr. Laszlo N. Tauber, a well-known investor.
Boyert testified that in August of 1987, he reached an oral agreement with Pars to represent the investors. At this time, and until after the transaction upon which Boyert based his suit against Tau-ber, Boyert had no contact with Tauber. Boyert did, however, have continuing contact with Pars, who had told Boyert that he spoke for Tauber. In March of 1988, Boyert located a building for sale in Nashville, Tennessee. He notified Pars of the opportunity and sent him a letter specifying that, if a deal was made between principals, Boyert was to receive a 1.5 percent commission on the purchase price. In April 1988, Tauber sent a letter to the seller of the property confirming an offer to purchase and stating that “we are responsible to pay 1½% commission ($255,000) to outside brokers, including Dr. Julian Pars.”
Tauber knew that there was a broker who was working with Pars concerning the property but did not know the broker’s name.
The deal between Tauber and the sellers was closed in December 1988 for a purchase price of $17 million. However, early the next month, Pars told Boyert that Boyert would not be paid a commission for his work. Shortly afterwards, Boyert had a conference call with Tauber (his first contact with Tauber) and Pars, in which he learned that Pars was not Tauber’s equity partner and that Pars had been paid a “finder’s fee” of $168,-625. Boyert has yet to receive any compensation for his services in locating the building and setting the negotiations in motion and has been unable to serve Pars with process. Tauber has paid no additional commission or fee to anyone. He testified that the balance of the $255,-000 ($86,375) was for closing costs, which he had previously agreed with Pars would be deducted from Pars's commission, and that his agreement with Pars required Pars to pay any other broker out of Pars’s funds.

At oral argument in this court, Boyert agreed that Tauber only owes a total of $255,000 as a commission on the sale. If Tauber paid the full $255,000 commission to Pars then Boyert agrees he has no claim against Tauber because the memorandum did not set out how the commission was to be divided between Pars and any other outside brokers. Boyert maintains that the finder’s fee paid to Pars was not the same as a commission and that Tauber still owes the full $255,000 commission.

I.

Section 20(b) of RELA provides:

An action may not be brought in a court in this state for the recovery of a commission for the sale or purchase of real estate unless the promise or agreement on which the action is brought, or some memorandum thereof, is in writing and signed by the party to be charged....

Tex.Rev.Civ.Stat.Ann. art 6573a, § 20(b) (Vernon Supp.1992). 1 One of the essential elements of the written agreement providing for a commission on the sale of land is that the writing name the broker. See Moser Co. v. Await Indus. Properties, Inc., 584 S.W.2d 902, 906 (Tex.Civ.App.—Amarillo 1979, no writ); Knight v. Hicks, 505 S.W.2d 638, 642 (Tex.Civ.App.—Amarillo 1974, writ ref’d n.r.e.); Levenson v. Alpert, 399 S.W.2d 955, 956 (Tex.Civ.App.—San Antonio 1966, no writ); see also Wasson v. Hartt, 244 S.W.2d 258, 260 (Tex.Civ.App.—Dallas 1951, writ ref’d n.r.e.). The essential elements of a commission agreement cannot be supplied by parol evidence. Buratti & Montandon v. Tennant, 147 Tex. 536, 218 S.W.2d 842, 843 (1949); Wil *63 son v. Fisher, 144 Tex. 53, 188 S.W.2d 150, 152 (1945).

Boyert argues that “outside brokers” is a sufficiently precise description so that the name of the broker is not being supplied entirely by parol. We disagree. We have not located nor have we been directed to authority clearly establishing the minimum requirements for identification of a broker in a writing required by RELA section 20(b). However, the question of adequate description of the land that is the subject of a brokerage agreement is frequently the subject of judicial scrutiny. We find those cases instructive. “Insofar as the description of the property to be conveyed is concerned, the writing must furnish within itself the means or data by which that particular land may be identified with reasonable certainty.” Kmiec v. Reagan, 556 S.W.2d 567, 569 (Tex.1977) 2 (citing Morrow v. Shotwell, 477 S.W.2d 538 (Tex.1972); Wilson v. Fisher, 144 Tex. 53, 188 S.W.2d 150 (1945)); see also Jones v. Kelley, 614 S.W.2d 95, 99 (Tex.1981) (Writing must “furnish within itself or by reference to other identified writings then in existence, the means or data by which the particular land to be conveyed may be identified with specific certainty.”).

A reference to “outside brokers” does not identify Boyert or any other broker with reasonable certainty. See Buratti & Montandon,

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Bluebook (online)
834 S.W.2d 60, 35 Tex. Sup. Ct. J. 1092, 1992 Tex. LEXIS 86, 1992 WL 148119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyert-v-tauber-tex-1992.