First Realty Corp. v. Standard Steel Treating Co.

268 So. 2d 410
CourtDistrict Court of Appeal of Florida
DecidedAugust 7, 1972
Docket71-266
StatusPublished
Cited by21 cases

This text of 268 So. 2d 410 (First Realty Corp. v. Standard Steel Treating Co.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Realty Corp. v. Standard Steel Treating Co., 268 So. 2d 410 (Fla. Ct. App. 1972).

Opinion

268 So.2d 410 (1972)

FIRST REALTY CORPORATION OF BOCA RATON, Appellant,
v.
STANDARD STEEL TREATING COMPANY, a Michigan Corporation Qualified to Do Business in the State of Florida, and Bahama Hotel, Inc., a Florida Corporation, Appellees.

No. 71-266.

District Court of Appeal of Florida, Fourth District.

August 7, 1972.

Robert D. Tylander, and David B. VanKleeck, of Tylander, deClaire, Becker & VanKleeck, Boca Raton, for appellant.

*411 Marshall G. Curran, Jr., of English, McCaughan & O'Bryan, Fort Lauderdale, for appellee — Standard Steel Treating Co.

OWEN, Judge.

In 1969 the Bahama Hotel in Fort Lauderdale was sold. Appellant (a real estate broker), alleging that it had been the procuring cause of the sale, brought this suit against the seller and the buyer, seeking a commission from the seller on both implied contract and quantum meruit, and damages from both defendants for conspiracy to deprive appellant of the commission. After extensive discovery had been completed, the seller sought and obtained summary judgment in its favor. This appeal is from that judgment.

In our judgment, upon a review of the pleadings, depositions, interrogatories and requests for admissions, not only are there genuine issues of material fact present in this case, but also there are conflicting inferences which may properly be drawn from facts which are not disputed. We summarize these facts and inferences in a light most favorable to appellant as follows:

Appellee Standard Steel Treating Company, whose principal officer was Paul Ternes, was the owner of the Bahama Hotel in Fort Lauderdale. In August, 1967, the hotel was listed for sale through the firm of L.C. Judd & Company for a price of $940,000. At that time Bruce Alger, an agent of appellant, produced as a prospect for the property one Robert Bolt, who submitted a written offer of $900,000. Although Mr. Bolt and Mr. Ternes were introduced at that time, and there were some further discussions or negotiations over the next few weeks, Bolt's offer was not accepted and was ultimately withdrawn in September.

Nearly one year later, in August, 1968, Bolt informed appellant of his continued interest in the Bahama Hotel property. One of appellant's agents immediately ascertained from Ternes that the property was still for sale, that no broker held an exclusive listing, and that the asking price was $965,000. Bolt was advised, and he submitted a written offer of $800,000. Although Ternes promptly rejected this offer, he implied that he would entertain an offer of $900,000. Consequently, a few weeks later Alger prepared for Bolt's signature a written proposal to offer $900,000 for the property, mailing the proposed contract to Bolt with the recommendation that he execute the same and authorize its submission to Ternes. In October Bolt responded to Alger's recommendation by stating that he (Bolt) would not be interested in the property at a price anywhere near $900,000, and at the same time intimated his suspicion that Algers' recommendation of the $900,000 price was strongly motivated by a desire to earn a commission. Following that rebuff, neither Alger nor any other agent or representative of appellant actively sought further negotiations between Ternes and Bolt despite the rather extensive negotiations which had transpired during the two months immediately preceding.

Notwithstanding Bolt's apparent lack of interest in the property (as indicated by his letter to Alger in October), shortly thereafter Bolt telephoned Ternes expressing interest, and in January, 1969, Ternes communicated directly with Bolt by telephone to inquire as to whether the latter was still interested in purchasing the hotel. Following Bolt's affirmative response to this inquiry, arrangements were made for Ternes and Bolt to meet and discuss the matter in further detail, resulting in a three-day meeting in Florida in early March. At this meeting Ternes and Bolt settled most of the details of a proposed purchase of the hotel, including a sales price of $900,000 and a provision for Bolt to indemnify Ternes against any real estate commission which might be due appellant from the sale. Remaining details were settled by their meeting in April (in Detroit) and their meeting in May (in Cincinnati), resulting in the sale being consummated in July, 1969. Appellant was unaware of *412 these several meetings between Ternes and Bolt, and only became aware of the sale of the hotel approximately one month after the sale had been closed.

If a broker has brought the parties together and the sale is effected as a result of continuous negotiations inaugurated by the broker, he will be entitled to his commission even though the sale is eventually consummated on different terms and at a different price. Shuler v. Allen, Fla. 1955, 76 So.2d 879. Since it is undisputed that Bolt was appellant's customer and that it was through appellant's efforts that Ternes became aware of Bolt as a prospective purchaser of the hotel property, the broad question arises as to whether the broker conducted continuous negotiations between Ternes and Bolt, within the definition of that term as set forth in the Shuler case.

Appellee contends that there were three separate rounds of negotiations, i.e., those which commenced in August, 1967, those which commenced in August, 1968, and those which commenced in March, 1969, and that as a matter of law there was a hiatus or break between each separate round of negotiations. On the other hand, as it might be expected, appellant contends that all negotiations which led up to the sale were continuous in nature, particularly those following the time of the offer submitted through appellant in August, 1968. If we start with this latter date, it would seem without dispute that from then through the early part of October appellant was conducting continuous negotiations between Bolt and Ternes, and it also seems without dispute that commencing in January, 1969, there were continuous negotiations between Bolt and Ternes (in which appellant did not participate), which negotiations culminated in the sale of the hotel. Thus, the broad inquiry of whether the sale was the result of continuous negotiations inaugurated in August, 1968, narrows into two limited questions, i.e., (1) did the "gap" between the latter part of October, 1968 and the early part of January, 1969 break the continuity as a matter of law, and if not (2) did appellant's failure to participate in the later negotiations held directly between Bolt and Ternes preclude it as a matter of law from the benefit of such negotiations.

First, was the absence of active negotiations between the latter part of October, 1968 and the early part of January, 1969, such that it can be said as a matter of law that it amounted to a break in the continuity of negotiations inaugurated in August, 1968? In our judgment the facts and circumstances of this case would not permit that determination as a matter of law, although upon trial it may be so found and determined as a matter of fact. What is continuous negotiation in a given case does not admit of a precise time formula whereby following each offer there must be an acceptance or a counter-offer within a limited specified period of time in order to keep the negotiations alive. This transaction involved not only a substantial sum of money but also a going business. There were undoubtedly many factors which each party had to consider on a transaction of this magnitude, not the least of which would be the timing and strategy of making the next move in the negotiations.

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Bluebook (online)
268 So. 2d 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-realty-corp-v-standard-steel-treating-co-fladistctapp-1972.