Brown v. Williams

587 So. 2d 732, 1991 WL 190743
CourtLouisiana Court of Appeal
DecidedSeptember 25, 1991
Docket22716-CA
StatusPublished
Cited by11 cases

This text of 587 So. 2d 732 (Brown v. Williams) 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
Brown v. Williams, 587 So. 2d 732, 1991 WL 190743 (La. Ct. App. 1991).

Opinion

587 So.2d 732 (1991)

William D. BROWN, Appellee,
v.
Don WILLIAMS (Harry R. Coleman, Jr.), Appellant, Intervenor.

No. 22716-CA.

Court of Appeal of Louisiana, Second Circuit.

September 25, 1991.

*734 Jimmie D. Marshall, Jackson, Miss., H. James Lossin, Sr., Jonesville, Brook, Morial, Cassibry Fraiche & Pizza by James H. Brown, Jr., Baton Rouge, for appellant.

Theus, Grisham, Davis & Leigh by Sharon Ingram, Brown & Wicker by William D. Brown, Monroe, Captan Jack Wyly, Lake Providence, for appellee.

Before SEXTON, NORRIS and LINDSAY, JJ.

NORRIS, Judge.

The plaintiff, William D. Brown, filed this suit seeking a judgment declaring that he did not owe any real estate fee or commission to the defendant, Don Williams, a licensed Louisiana real estate broker, and that no contract, agreement or other commitment existed between them. Williams reconvened, claiming a real estate commission of $212,500. Ray Coleman, a real estate broker not licensed in Louisiana but allegedly Williams's "associate" on the transaction, filed a petition of intervention, aligning himself with Williams for part of the fee from Brown; in the alternative he claimed a real estate commission from Williams. Brown contested the intervention, citing a Louisiana statute that prohibits an unlicensed realtor from filing a suit or recovering a commission in Louisiana. The trial court dismissed the intervention but on writ application this court reversed in part, allowing Coleman to intervene for the limited purpose of asserting his claim against Williams. At the trial court level neither Coleman nor Williams urged that the Louisiana statutes or regulations were unconstitutional. The trial court held that Coleman had not complied with the statutes and regulations and could not claim a commission from Williams; it also found no valid agreement between Brown and Williams for a commission. The court therefore granted judgment as prayed for and rejected the claims of Coleman and Williams, who now appeal. For the reasons expressed, we affirm.

Factual background

The transaction that generated this dispute was William Brown's sale of two "islands" called Henderson Island and Newman Towhead, which are located on the east side of the Mississippi River but within the boundaries of Louisiana and East Carroll Parish. Brown had bought the property in early 1985, intending to harvest the timber on both islands, syndicate Henderson Island as a hunting club and sell the smaller island, Newman Towhead, outright. For Newman Towhead Brown granted a non-exclusive listing in December 1985, and an exclusive listing in June 1986, to McCarty and Gates, realtors in Arkansas. The asking price was $2.2 million. Around the same time he also listed Newman Towhead with Coldwell Bankers, but neither realtor produced a buyer. Brown was also unsuccessful in syndicating Henderson Island.

In late summer or early fall 1986, Mr. Gates phoned Brown to say he had found an "aggressive young man" in Mississippi, Ray Coleman, who would be helpful with selling Newman Towhead or syndicating it for a hunting club. Coleman, who is a licensed realtor in Mississippi but not in Louisiana, met with Brown at Brown's office in August 1986. According to Brown, they agreed that Coleman would attempt to sell shares, at $65,000 each, in the proposed Newman Towhead hunting club, and nothing more; the only unsettled point was how many shares Coleman must sell in order to receive one share as commission. According to Coleman, they reached this agreement but also agreed, in this and another meeting in August 1986, that Coleman could attempt to sell Henderson Island outright. Coleman also testified that by September he had a "confirmed commitment" to sell either or both islands for a 5% commission. Brown denied authorizing Coleman to sell anything but shares; on September 23, Coleman handed him a proposed listing agreement to sell Henderson Island for $4.75 million at a 5% commission, but Brown refused to sign.

Coleman understood that without a Louisiana license he could not sell realty in the state, but knew he could do so if he associated with a licensed Louisiana real estate *735 broker. He testified that he phoned Don Williams, a licensed broker in New Roads, Louisiana, in late August or early September 1986. They never made a written agreement. Coleman, however, testified that they orally agreed to associate; if Williams produced a buyer, he would receive 50% of the commission, and if Coleman produced a buyer, Williams would receive only 25%; and Coleman did not expect Williams actively to pursue the project. Coleman also testified that in one of their August 1986 meetings, he told Brown that he had associated Williams.

One of Williams's witnesses, a Mr. Anderson from Jackson, Mississippi, testified that Coleman was showing him the Newman Towhead hunting lodge right after Thanksgiving Day, 1986, and introduced him to Brown. On that occasion, Anderson testified, Brown stated that Williams was Coleman's Louisiana associate.

Williams testified that he spoke to Coleman about the sale in Greenville, Mississippi in the fall of 1986; Coleman said he had a listing to sell some Louisiana property for $4 million. Williams never saw any listing agreement between Brown and Coleman, and admitted that he himself never executed any writing with Coleman. He testified, however, that he orally agreed to serve as Coleman's sponsoring broker, and agreed to receive 50% of the commission if he produced a buyer. Williams never communicated with Brown until after the sale.

Brown testified that Coleman never mentioned any association with Williams; in fact, Brown first spoke to Williams only in 1987, after he sold the islands and Coleman demanded a fee. The syndication of Newman Towhead never succeeded, though everyone admitted that Coleman spent a great deal of time and money trying to make the project work. Brown ultimately sold the islands to Mrs. Magalen Bryant, a wealthy conservationist from Virginia, for $4.25 million in June 1987, with Brown reserving timber rights.

Coleman and Brown each felt that he, and not the other, had brought Mrs. Bryant to the table. Brown insisted that she was his lead and he categorically told Coleman not to pursue her. Coleman denied this and asserted that Brown told him to do whatever was necessary to move the property and free Brown of the $5.5 million debt he had incurred to buy it. Mrs. Bryant testified that Coleman had been "totally responsible" for bringing her to the closing. She could not disagree, however, that it was Brown's willingness to drop the asking price from $6.25 million to $4.25 million less the timber, that finally induced her to buy.

Despite his position that he never authorized Coleman to sell the islands outright, Brown admitted that if Coleman had produced a buyer and a price high enough to cover Brown's indebtedness on the property plus a commission, Brown would have paid that commission. Coleman admitted that after this transaction, he went to work for Mrs. Bryant.

Compliance with Louisiana's regulations

By their first assignment Williams and Coleman urge the trial court erred in finding they did not comply with the Louisiana Real Estate Commission regulations. They argue they intended to comply and should not be penalized for minor deficiencies.

The court initially noted that Coleman, by his own admission, did not have a Louisiana license even though he was selling or attempting to sell Louisiana property. Prior to a 1989 amendment, La.R.S. 37:1436 provided:

§ 1436. License required

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Cite This Page — Counsel Stack

Bluebook (online)
587 So. 2d 732, 1991 WL 190743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-williams-lactapp-1991.