Dohner v. Bailey

485 N.E.2d 727, 20 Ohio App. 3d 181, 20 Ohio B. 225, 1984 Ohio App. LEXIS 12560
CourtOhio Court of Appeals
DecidedAugust 9, 1984
Docket1931
StatusPublished
Cited by3 cases

This text of 485 N.E.2d 727 (Dohner v. Bailey) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dohner v. Bailey, 485 N.E.2d 727, 20 Ohio App. 3d 181, 20 Ohio B. 225, 1984 Ohio App. LEXIS 12560 (Ohio Ct. App. 1984).

Opinion

Brogan, P.J.

This appeal arises from the December 30, 1983 judgment of the Court of Common Pleas of Clark County, Ohio, wherein defendants, Sheridan and Norma Bailey, were granted summary judgment in their favor.

Appellant, Arthur P. Dohner, is and was at all times pertinent to this matter a real estate broker licensed to do business in the state of Ohio. On December 1, 1980, appellees, Sheridan Bailey (a.k.a. Sherdan Bailey, a.k.a. Sherclam Bailey) and his wife Norma, executed an exclusive, one-year listing agreement with the appellant to sell their hotel. The agreement provided for a ten percent commission to be paid to appellant if certain conditions were met. At the insistence of Bailey, the parties to the agreement also added a cancellation clause which gave him the right to terminate the agreement under specified conditions. This clause provided that:

“This agreement may be terminated by owner at any time after 30 days from the date hereof, by 10 days notice in writing delivered to broker by registered mail, provided no negotiations are pending for the sale or exchange of the property or business; and if within a period of 12 months subsequent to such revocation, the property or business or any part thereof shall be sold or exchanged to anyone with whom the broker had thereto had contact or negotiations, the owner agrees to pay broker the commission as herein specified.”

On February 22,1981, Bailey sent a *182 ten-day notice of termination to appellant pursuant to the terms of the above provision. Appellant promptly responded by informing Bailey that he was presently negotiating the sale of the property with several individuals. He also requested certain financial records be furnished in order for him to complete his negotiations. Appellant maintains the requested records had not been provided resulting in the termination of the then existing negotiations. Appel-lees maintained the position that the agreement had been terminated by the February 22, 1981 letter and refused to pay appellant his commission.

On February 18, 1982, appellant filed his complaint alleging inter alia a breach of the listing agreement by the appellees thereby entitling him to a commission of $48,500. Relying upon the terms of the cancellation clause, appel-lees moved for summary judgment based upon the pleadings, affidavits, memoranda and depositions submitted to the court. Upon consideration thereof, the trial court found:

“* * * [cjonstruing the facts most favorably to the Plaintiff, that there is no genuine issue of any material fact and that reasonable minds can reach but one conclusion which is adverse to Plaintiff and Defendants are entitled to Summary Judgment as a matter of law.”

From this judgment appellant has timely perfected this appeal and submits for our review the following single assignment of error:

“The trial court committed prejudicial error when it granted the defendant-ap-pellees’ motion for summary judgment despite the fact that there were a number of material facts in dispute.”

The granting of summary judgment is appropriate only upon a demonstration by the moving party, (1) that there is no genuine issue as to any material fact; (2) that the moving party is entitled to judgment as a matter of law; and (3) that reasonable minds can come to but one conclusion, and that conclusion is adverse to the party against whom the motion for summary judgment is made, who is entitled to have the evidence construed most strongly in his favor. Harless v. Willis Day Warehousing Co. (1978), 54 Ohio St. 2d 64 [8 O.O.3d 73]. See, also, Williams v. First United Church of Christ (1974), 37 Ohio St. 2d 150 [66 O.O.2d 311]. It is appellant’s position the trial court improperly applied this standard in reviewing the record below.

Appellant asserts there were material issues of fact in dispute thereby rendering the granting of summary judgment inappropriate. Appellant maintains the dispute over whether negotiations were taking place at the time the notice of termination was delivered is material to the disposition of this matter. Appellees maintain on the other hand that the contract between the respective parties did not become binding until the appellant had actually secured a purchaser. Alternatively, ap-pellees maintain the termination was effective as no negotiations were taking place as that term was understood by the parties. The trial court’s judgment entry is of no assistance to this court in our effort to review the propriety of its action as it merely concluded summary judgment was appropriate without providing reasons therefor. Our task of reviewing the judgment has consequently been made more difficult.

Initially, we will address appellees’ claim that the contract was not binding as the broker had not actually secured a purchaser at the time of termination. It is appellees’ position that the broker’s contract involved was merely a unilateral offer under which no consideration passes until the broker effectuates an acceptance by finding a purchaser for the premises, citing Brenner v. Spiegle (1927), 116 Ohio St. 631; and Cramer v. Paterson (1926), 25 Ohio App. 130. A review of the applicable case law reveals this argument is without merit.

*183 As concerns brokers, there are fundamentally three types of existing contracts of which the “exclusive agency” contract and “exclusive right to sell” contract are pertinent to our review. Under the exclusive agency contract, the broker becomes the exclusive agent of the owner. Thus, the broker may sell and obtain his commission to the exclusion of all other brokers. However, under such an agreement, the seller reserves the right to sell the property himself without incurring an obligation to pay the broker’s commission. See 10 Ohio Jurisprudence 3d (1979) 114, Brokers, Section 81. Thus, a condition precedent to the broker’s entitlement to his commission is that he be the procuring cause of the sale. In Brenner v. Spiegle, supra, upon which appellees rely, the court in discussing an oral exclusive agency agreement stated in dictum:

“* * * that the contract is unilateral; that the acceptance is the doing of the act contemplated (in this case securing of the purchaser), and that there is no mutuality, no consideration, and no binding obligation, and hence no contract prior to acceptance.”

An exclusive right to sell contract differs in that in addition to granting the broker the right to sell to the exclusion of all other brokers, the seller also gives the broker the right to sell for the period of the contract even to the exclusion of the seller himself. Thus, should the property be sold during the term of the agency, the broker would be entitled to his commission regardless of whether or not he was the procuring cause of the sale. See 10 Ohio Jurisprudence 3d, supra, at Section 81. Such provisions have been construed to provide adequate consideration by part performance on behalf of the broker, despite his failure to bring about the sale. See Stroffregen v. Roney (App. 1933), 15 Ohio Law Abs. 118.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Acquisition Servs., Inc. v. Zeller
2013 Ohio 3455 (Ohio Court of Appeals, 2013)
Disalle Real Estate Co. v. Howell
690 N.E.2d 25 (Ohio Court of Appeals, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
485 N.E.2d 727, 20 Ohio App. 3d 181, 20 Ohio B. 225, 1984 Ohio App. LEXIS 12560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dohner-v-bailey-ohioctapp-1984.