Fowler v. Taylor

554 P.2d 205, 1976 Utah LEXIS 905
CourtUtah Supreme Court
DecidedAugust 16, 1976
Docket14399
StatusPublished
Cited by13 cases

This text of 554 P.2d 205 (Fowler v. Taylor) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fowler v. Taylor, 554 P.2d 205, 1976 Utah LEXIS 905 (Utah 1976).

Opinions

MAUGHAN, Justice:

Plaintiff initiated this action, alleging she was employed by defendant as a real estate broker, to engage in the sale of condominium units owned by Treasure Mountain Corporation. She claimed she acted as a real estate broker, at the request of defendant; performed all duties as such; and defendant was indebted to her for the reasonable value of her services, work, and labor in her capacity as a real estate broker. She alleged that a reasonable and customary amount, to be awarded for such services, was one per cent of the total sales made during the period she was so employed.

Upon trial to the court plaintiff was awarded judgment in the sum of $9,715.25. Defendant appeals therefrom.1 We reverse, with instructions to dismiss plaintiff’s first claim. Costs to defendant.

During the autumn of 1972, both parties were employed as real estate salesmen for Treasure Mountain Corporation. Defendant was director of the corporation’s real estate sales and was plaintiff’s supervisor; both were licensed with the State under an officer of the corporation, who was a licensed real estate broker. The corporation constructed two condominiums. In connection with the sales of the units the corporation offered a rental pool management agreement, which was deemed a security. Appropriate registration of the security was made, and both parties were licensed as security salesmen in October 1972. In December of 1972, defendant was licensed as a securities broker-dealer. Treasure Mountain determined to employ an independent sales agent to market the units, and it entered into a contract with defendant engaging him in that capacity for a commission of 3½ per cent. The salesmen were to receive 2½ per cent, and defendant [207]*207was to retain one per cent for his services as sales agent for the corporation.

Defendant’s sales organization had a list of persons who had indicated an interest in purchasing the units as soon as defendant was qualified to market them. Defendant was not eligible to procure a real estate broker’s license; so he asked plaintiff if she would activate her license and permit his organization to use her broker’s license. She agreed; however, defendant performed all the paperwork, and paid the license fees and bond. The broker’s license was issued in plaintiff’s name with defendant and two others listed as salesmen.

With the necessary licensing completed, defendant’s organization commenced operation on January 1, 1973, defendant as the securities broker and plaintiff as real estate broker. On February 19, 1973, defendant acquired his real estate broker’s license, and plaintiff deactivated her license. During this 50-day interim defendant received pursuant to his contract with Treasure Mountain his one per cent commission, which amounted to $21,930.50. During this same period of time plaintiff as a salesman received $12,335, her 2½ per cent commission on the units she sold. Plaintiff continued as a salesman in defendant’s organization until May 4, 1973, when defendant discharged her. On about July 25, 1973, plaintiff for the first time demanded that defendant pay her the one per cent commission that he had received from Treasure Mountain.

At trial, both parties agreed that at the time defendant requested to use plaintiff’s license no compensation was discussed. Defendant testified plaintiff did not request compensation, and he proffered none. Plaintiff unequivocally testified her duties did not change after January 1, 1973, from those she had prior thereto. Nevertheless, she testified that when she consented to be the broker, she expected the one per cent commission.

Defendant testified that he had contacted a friend, Robert Monson, a real estate broker, and inquired whether he would broker for defendant’s sales organization until defendant qualified for his license. Mr. Monson had offered to so act without charge. He also testified that another salesman in his organization had a broker’s license, which could have been activated and defendant would have so requested, if plaintiff had demanded compensation. He presented evidence showing the compensation paid to a real estate broker for the “use” of his license varies according to the circumstances.

A review of the record does not reveal a scintilla of evidence to sustain the allegation in plaintiff’s complaint that she had performed services, work, and labor in the capacity of a real estate broker for defendant. Her sole services were the execution of her signature on the applications in connection with the broker’s license, bond, and trust account; and the assumption of any risks incidental to her status as a broker for defendant’s sales organization. The record further reveals defendant performed all management duties for his organization and paid all the expenses arising from his performance, as selling agent of Treasure Mountain Corporation.

The trial court found between January 1 and February 19, 1973, plaintiff performed services as a real estate broker and salesman in behalf of defendant. Also, that performing these services, as a broker, plaintiff expected to be compensated; that defendant knew or should have known of such expectation.

It is customary for a real estate broker to receive a portion of the commission paid by the seller of real property. Defendant earned a brokerage commission of one per cent of his sales under his contract with Treasure Mountain, which totaled $21,930.-50 for the period in question. These commissions were as compensation for defendant’s services as a real estate broker and a securities broker. Defendant incurred expenses of $2,500 in connection with his operations as selling agent for Treasure Mountain Corporation, thus the net commission was $19,430.50. The trial court [208]*208found that the reasonable value of the services performed by plaintiff, for defendant as a real estate broker, was one half of the net commissions earned by defendant, or $9,715.25.

The court concluded as a matter of law there was an agreement, implied in fact and in law, that defendant would pay to plaintiff the reasonable value of her services as a real estate broker, and that this agreement was not required to be in writing under the Statute of Frauds, Section 25-5-4(5), U.C.A.1953.

On appeal, defendant contends that the trial court erred in its ruling that the alleged agreement was not required to be in writing to be valid under Section 25 — 5— 4(5), U.C.A.1953.

Section 25-5-4, U.C.A.1953, provides: In the following cases every agreement shall be void unless such agreement, or some note or memorandum thereof, is in writing subscribed by the party to be charged therewith:
(5) Every agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation.

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Fowler v. Taylor
554 P.2d 205 (Utah Supreme Court, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
554 P.2d 205, 1976 Utah LEXIS 905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fowler-v-taylor-utah-1976.