Estate of Cattalini

97 Cal. App. 3d 366, 158 Cal. Rptr. 640
CourtCalifornia Court of Appeal
DecidedSeptember 28, 1979
Docket44641
StatusPublished
Cited by7 cases

This text of 97 Cal. App. 3d 366 (Estate of Cattalini) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Cattalini, 97 Cal. App. 3d 366, 158 Cal. Rptr. 640 (Cal. Ct. App. 1979).

Opinion

97 Cal.App.3d 366 (1979)
158 Cal. Rptr. 640

Estate of MARIE CATTALINI, Deceased.
N.A. SAPUNAR REALTY, Plaintiff and Appellant,
v.
CUSHMAN & WAKEFIELD, Defendant and Respondent.

Docket No. 44641.

Court of Appeals of California, First District, Division Four.

September 28, 1979.

*368 COUNSEL

William E. Taggart, Jr., and Christie L. Fraser for Plaintiff and Appellant.

Nelson H. Wild for Defendant and Respondent.

OPINION

CHRISTIAN, J.

This appeal presents a novel issue concerning the power of the probate court to apportion commissions earned by real estate brokers upon the sale of an asset of the estate. The administratrix of the estate of Marie E. Cattalini sought confirmation of a sale of real *369 property owned by the decedent. The probate court confirmed the sale and divided the broker's commission equally between N.A. Sapunar Realty and Cushman & Wakefield, Buckbee Thorne & Company. Sapunar appeals, contending that no part of the commission should have been awarded to the Cushman firm.

The administratrix had entered into a written contract with respondent Cushman & Wakefield, Buckbee Thorne & Company, granting an exclusive right to sell real property owned by the decedent. Paragraph five of this printed form contained a statement that the administratrix had obtained the permission of the court to enter into the agreement. In fact, court permission had not been obtained.

Respondent published a description of the property, accompanied by respondent's name, in a local trade journal, the San Francisco Board of Realtors' Multiple Listing Service. To be published in the Multiple Listing Service, property must be subject to a contract granting a broker an exclusive right of sale. Less detailed information concerning the property was also circulated in two other trade publications, Edwards Abstract from Records and the Blue Sheet. Respondent advertised the property in a local newspaper, exhibited the property twice, and received six bids on the property.

An employee of appellant N.A. Sapunar Realty saw a reference to the property in one of the trade publications. Although the Sapunar office regularly received all three of the publications, the principal of the office, Mr. Sapunar, testified that he "[felt] very confident" that his employee had gotten the information from the Blue Sheet rather than from the Multiple Listing Service. Appellant tendered the highest bid on the property on behalf of its client, Eugene Needham. The bid was in the form of a "Uniform Agreement of Sale and Deposit Receipt," which provided, in language inserted by appellant, for payment of the broker's commission to "listing broker if any & selling broker N.A. Sapunar." San Francisco real estate brokers customarily split fees between a listing broker and a selling broker when the listing broker holds an exclusive right of sale.

No higher bid was submitted at the confirmation hearing, and the sale to appellant's client was confirmed. The probate court subsequently divided the broker's commission equally between appellant and respondent.

*370 Probate Code section 760[1] authorizes an executor or administrator to enter into a written contract with a broker to secure a purchaser for real or personal property of the estate. The contract may provide for payment of a commission out of the proceeds of the sale, and if the sale is confirmed this provision is binding "for an amount to be allowed by the court." Section 760 further authorizes a grant of an exclusive right to sell property if the executor or administrator obtains permission of the court to enter into such an agreement. In the present case, the administratrix failed to obtain the required court permission to enter into the exclusive contract with the respondent broker. Appellant contends that the probate court consequently lacked authority to allocate any portion of the broker's commission to respondent.

(1) Respondent contends that the parties stipulated that the court could divide the commission on a reasonable basis, inasmuch as appellant, by arguing the case on its merits and asserting its right to the entire broker's commission, in effect stipulated to the court's deciding the issue. The record, however, reflects neither a filed written stipulation nor an entry of an oral stipulation upon the minutes of the court.

Code of Civil Procedure section 283 provides that: "An attorney and counselor shall have authority: 1. To bind his client in any of the steps of an action or proceeding by his agreement filed with the clerk, or entered upon the minutes of the court, and not otherwise; ...." Although section 283 has been broadly construed, and informal stipulations have been enforced on the bases of estoppel or ratification (see 1 Witkin, Cal. Procedure, Attorneys, § 129, p. 140), courts will apply the statutory rule where the making of a stipulation is disputed by one of the parties and there is no showing of estoppel or ratification. (May v. May (1969) 275 Cal. App.2d 264, 277-278 [79 Cal. Rptr. 622]; Fresno City High School Dist. *371 v. Dillon (1939) 34 Cal. App.2d 636, 644 [94 P.2d 86].) In the present case, appellant denies that it stipulated to a division of the broker's commission on a reasonable basis. The strict requirements of section 283 are therefore applicable and are not shown to have been satisfied, expressly or by estoppel or ratification.

Appellant contends that the probate court violated its own published policy when it allocated the commission equally between appellant and respondent. Section 10.11 of the San Francisco Probate Policy Manual states: "Probate Code Section 760 does not give the Court power to allocate the commission between the exclusive listing broker or multiple group of brokers and the actual selling broker but only to fix the entire amount. The brokers concerned may stipulate at the hearing that the Court hear evidence and divide the commission on a reasonable basis. If they do not, the sale will be confirmed and the amount of commission retained in escrow until the brokers settle their differences by arbitration or suit." (Italics added.) (2) Local court policies are generally enforceable as court rules, which have the effect of procedural statutes so long as they are not contrary to higher law. (Wisniewski v. Clary (1975) 46 Cal. App.3d 499, 504-505 [120 Cal. Rptr. 176].) A court may, however, suspend its own rules or except a particular case from their operation whenever the purposes of justice so require. (Adams v. Sharp (1964) 61 Cal.2d 775, 777 [40 Cal. Rptr. 255, 394 P.2d 943].) The probate court was thus not bound by section 10.11; it could deviate from its policy if required by the purposes of justice. Moreover, section 10.11 does not deprive the probate court of authority to allocate a commission payable under a nonexclusive contract of sale.

(3) Respondent contends that, although the administratrix failed to obtain court permission to grant an exclusive right of sale, the contract between the administratrix and respondent was otherwise valid as a nonexclusive or open listing contract under section 760, and that the commission could be allocated on this basis. The initial question, therefore, is whether the contract could be treated as valid but nonexclusive.

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97 Cal. App. 3d 366, 158 Cal. Rptr. 640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-cattalini-calctapp-1979.