Capital Consulting Group, Ltd. v. Rochman

589 A.2d 877, 218 Conn. 396, 1991 Conn. LEXIS 113
CourtSupreme Court of Connecticut
DecidedApril 23, 1991
Docket14074
StatusPublished
Cited by5 cases

This text of 589 A.2d 877 (Capital Consulting Group, Ltd. v. Rochman) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capital Consulting Group, Ltd. v. Rochman, 589 A.2d 877, 218 Conn. 396, 1991 Conn. LEXIS 113 (Colo. 1991).

Opinion

Hull, J.

The sole issue in this appeal is whether the trial court properly determined that an action brought by the plaintiff, Capital Consulting Group, Ltd.,1 to recover a brokerage commission from the defendant Argus Laundries, Inc.,2 was not barred by General Statutes § 20-325a (a).3 We affirm.

[398]*398The material facts are as follows. The plaintiff is a professional business broker and is not licensed as a real estate broker in Connecticut. The defendant is a corporation engaged in the laundry and dry cleaning business in various locations throughout the Danbury area. On April 7,1986, the plaintiff and the defendant executed an exclusive right of sale agreement, pursuant to which the plaintiff agreed to use its efforts to secure a buyer for the defendant’s business, “including furniture, fixtures, machinery, equipment, trade name and good will.” In exchange, the defendant granted the plaintiff, for a period of six months, “the exclusive right and authority to sell, lease, trade or otherwise dispose” of the business, according to specified terms.4 The agreement further specified that, in exchange for finding a buyer, the defendant would pay the plaintiff a commission of 10 percent of the sale price or $50,000, whichever was greater.

In its efforts to secure a buyer for the business, the plaintiff prepared a valuation on the basis of the gross annual sales of the business. The plaintiff also prepared a detailed brochure, known as the book, that described the business, its operations, locations, leases and facilities. Although the book mentioned the leases, the defendant had expressly forbidden the plaintiff’s negotiation of the leases and had advised the plaintiff to refrain from discussing the leases, in order to conceal the proposed sale of the business from the lessors. [399]*399Thereafter, the plaintiff presented to the defendant a ready, willing and able buyer, Andrew Sohn, who eventually purchased the defendant’s stock and a portion of the defendant’s business assets at a price of $650,000.

The plaintiff instituted the present action, claiming, inter alia, that the defendant had wrongfully withheld a $65,000 commission owed to the plaintiff following the sale to Sohn.5 The defendant denied the claim, arguing, inter alia, that because the plaintiff was not licensed as a real estate broker, pursuant to General Statutes (Rev. to 1985) § 20-312,6 the plaintiff’s action to recover a commission was barred by § 20-325a (a).7 Having determined that, in procuring a buyer for the business, the plaintiff had not engaged in a real estate transaction and that, therefore, the plaintiff had not acted as a real estate broker within the meaning of the licensing statute; General Statutes (Rev. to 1985) § 20-312; see also General Statutes § 20-311 (1) (defining real estate broker);8 the trial court rejected [400]*400§ 20-325a (á) as a defense and rendered judgment, in part, for the plaintiff, in the amount of $65,000.9 The defendant appealed to the Appellate Court and we subsequently transferred the appeal to this court pursuant to Practice Book § 4023.

The defendant claims that because the proposed sale of the business contemplated the continuation of the business’ leases, the trial court should have determined that the plaintiff, in attempting to initiate the sale, had acted as a real estate broker without a license, in violation of § 20-312, and that, therefore, the action to recover a commission was barred by § 20-325a (a).10 We disagree.

The trial court determined, as a matter of fact, that the services for which the plaintiff sought a commission did not involve a real estate transaction and that, [401]*401therefore, the plaintiff did not act as a real estate broker within the meaning of § 20-312. See LaMalfa v. Higgins, 38 Conn. Sup. 509, 513, 452 A.2d 320 (1982); see also Guaranty Bank & Trust Co. v. Connecticut Real Estate Commission, 192 Conn. 439, 442, 471 A.2d 1389 (1984); Kingsley v. Sadi International Co., 5 Conn. App. 76, 78, 496 A.2d 986 (1985). “Under familiar principles of appellate review, a trial court’s factual finding will not be reversed or modified unless it is ‘clearly erroneous in view of the evidence and pleadings in the whole record.’ Practice Book § 4061; Gorra Realty, Inc. v. Jetmore, 200 Conn. 151, 159-60, 510 A.2d 440 (1986); Pandolphe’s Auto Parts, Inc. v. Manchester, 181 Conn. 217, 221-22, 435 A.2d 24 (1980).” DiBella v. Widlitz, 207 Conn. 194, 198, 541 A.2d 91 (1988). “The issue is not whether the trial court could have reached a different conclusion but whether the conclusion which it did reach is clearly erroneous.” Dooley v. Leo, 184 Conn. 583, 588, 440 A.2d 236 (1981); see also Lupien v. Lupien, 192 Conn. 443, 446, 472 A.2d 18 (1984); Salvio v. Salvio, 186 Conn. 311, 326-27, 441 A.2d 190 (1982). Because these factual findings provide firm support for the trial court’s judgment, in order to succeed on its claim, the defendant must show that these findings were clearly erroneous. This the defendant has failed to do.

The defendant cites cases in which courts have concluded that evidence that the sale of a business involves some element of real property, no matter how insignificant, is sufficient to sustain a finding that the sale involves an interest in real estate. See Marina Management Corporation v. Brewer, 572 F.2d 43, 46-47 (2d Cir.), cert. denied, 439 U.S. 829, 99 S. Ct. 104, 58 L. Ed. 2d 123 (1978) (sale of physical assets of marina included sale of land); T.R. Preston Co. v. Pasay, Superior Court, judicial district of Windham, Docket No. [402]*402CV-84-0028111-S (January 23, 1985) (11 Connecticut Law Tribune, No. 31, p. 10, August 5,1985) (contract for sale of package store business involved an interest in real estate, i.e., right of purchaser to continue to operate business on defendants’ real estate); Salvatore v. Pray, Superior Court, judicial district of Stamford-Norwalk, Docket No. 0041220 (January 27, 1981) (7 Connecticut Law Tribune, No. 23, p. 16, June 8,1981) (sale of used automobile franchise included sale of land on which located). These cases are inapposite, however, because in the present case the trial court found that no element of real estate was involved in the transaction that the plaintiff sought to initiate.

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Bluebook (online)
589 A.2d 877, 218 Conn. 396, 1991 Conn. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capital-consulting-group-ltd-v-rochman-conn-1991.