Grandi v. Watson

237 P.2d 73, 107 Cal. App. 2d 395, 1951 Cal. App. LEXIS 1919
CourtCalifornia Court of Appeal
DecidedNovember 8, 1951
DocketCiv. 14799
StatusPublished
Cited by1 cases

This text of 237 P.2d 73 (Grandi v. Watson) 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
Grandi v. Watson, 237 P.2d 73, 107 Cal. App. 2d 395, 1951 Cal. App. LEXIS 1919 (Cal. Ct. App. 1951).

Opinions

NOURSE, P. J.

Petitioner and appellant, F. Lloyd Grandi, on October 15,1948, brought an action in the Superior Court of San Francisco against R. F. Davis, Acting Real Estate Commissioner, asking for a writ of mandate ordering and directing Davis to cancel and annul an order of September 21, 1948, made by him as Acting Real Estate Commissioner suspending petitioner’s real estate license for 90 days based on alleged violations of the Business and Professions Code, section 10176, subsections (a), (g) and (i). It was stipulated before the trial court that D. D. Watson, now commissioner, may also be considered as respondent.

Section 10176 of the code provides: “The commissioner may, upon his own motion, and shall upon the verified complaint in writing of any person, investigate the actions of any person engaged in the business or acting in the capacity of a real estate licensee within this State, and he may temporarily suspend or permanently revoke a real estate license at any time where the licensee within the immediately preceding three years, while a real estate licensee, in performing or attempting to perform any of the acts within the scope of this chapter has been guilty of any of the following: (a) Making any substantial misrepresentation, (g) The claiming or [397]*397taking by a licensee of any secret or undisclosed amount of compensation, commission or profit or the failure of a licensee to reveal to the employer of such licensee the full amount of such licensee’s compensation . . . under any agreement authorizing or employing such licensee to sell, buy or exchange real estate for compensation or commission prior to or coincident with the signing of an agreement, evidencing the meeting of the minds of the contracting parties, regardless of the form of such agreement, whether evidenced by documents in an escrow or by any other or different procedure, (i) Any other conduct, whether of the same or a different character than specified in this section, which constitutes fraud or dishonest dealing.”

The case was submitted to the trial court upon the testimony and exhibits taken before a Deputy Real Estate Commissioner and Hearing Officer together with briefs and short testimony before the court by the Acting Real Estate Commissioner and one other witness. The trial court made findings upholding the decision of the Real Estate Commissioner and gave judgment denying the petition for writ of mandate. Motion for a new trial was denied and petitioner appeals from the judgment. Appellant’s main contention is that there was no evidence to sustain the findings and judgment of the trial court.

This action arises out of the sale of a lot in Marin County by Charles R. Turner through the Marvelous Marin Realty Company, owned by appellant Grandi. McGrath, whose license was also suspended for 90 days, acted as salesman for Turner in the sale of the lot. In May, 1947, Turner purchased this lot through the realty company for $1,750, $600 down and $40 monthly payments. In November, before he had finished paying for the lot, Turner talked with McGrath, expressed a desire to sell if he could make something on it. He was informed that those lots were selling for around $2,200-$2,250. There is a slight conflict in the testimony as to the price at which McGrath said he would list it but both parties agree that there was originally a listing of the property at the ordinary commission basis of 10 per cent for either $2,200 or $2,250. It was a verbal listing; Turner signed no contract with them. In January an offer was made of $2,100 which McGrath communicated to Turner. There was some talk of splitting the commission of $210 but Turner refused the offer stating he wanted $2,000 net. Appellant states that at that time the records of the company were changed to a net listing of $2,000 which was noted on the back of the card containing [398]*398the listing. From that time on it was handled as a net listing for $2,000.

In February another salesman in Grandi’s office had a, prospect interested in the Turner lot and, according to Mc-Grath’s testimony, Grandi told McGrath to telephone Turner and inquire whether the lot was still available for $2,000. At this point there is a conflict in the testimony which is important in view of appellant’s position that the sale was made on a net listing basis and consequently it was not necessary to divulge the selling price.

McGrath testified: “I told him [Turner] that I thought we might have a possibility of selling it at that time. Q. Did he ask you how much you were selling it for ? A. No, he did not. Q. Did you tell him you were selling it for $2,200? A. I didn’t tell him any price. Q. Why not? A. It was a net listing. In case of that we don’t do it.” McGrath then testified he reported to Grandi that the property was still available at $2,000 net. On cross-examination Turner testified concerning this same telephone conversation. “He told me he had an offer on the property, and I asked him how much. He said $2,200, the amount it was listed for. I said, ‘You listed it for $2,250.’ That is when the conversation I have repeatedly described took place. Q. Isn’t it true that in that conversation he said they had an offer on the property, no price but he wanted to confirm the net listing of $2,000 to you? You deny that? A. I do deny that, because all I know that I had listed my property for $2,250 and that I was supposed to get $2,025 back on it ... it couldn’t have been a net listing, as I have understood it since then, or it wouldn’t have been necessary to have the conversation about how much commission they were going to get.”

The trial court found that Turner had never authorized, expressly or otherwise, the sale of the property on a net listing basis, that Grandi was at all times in possession of full knowledge of the actions of McGrath and concluded that Grandi and McGrath were guilty of violations of section 10176, subsections (a), (g) and (i), Business and Professions Code.

Appellant contends that the findings are not supported by the evidence, that the evidence conclusively demonstrates that there was a net listing and in addition that Grandi knew nothing about the transaction until after it was completed. As for the net listing it is evident in reading the record that Turner intended in stating he would take $2,000 net that that was the least he would sell for, it was quite [399]*399evident that he wanted the company to sell the lot for the best price they could obtain for him and there is substantial evidence to uphold the finding of the trial court that Turner never intended it as a “net listing” in the sense in which McGrath interpreted it.

As to the contention of appellant in his brief on appeal that he had no knowledge of the transaction until after its completion and therefore should not be held liable for the wrongful acts of his salesman or employee under section 10179, Business and Professions Code, and that there was no evidence to sustain the trial court on the finding that at all times Grandi was in possession of full knowledge of the action of McGrath the record discloses:

1. Grandi testified on cross-examination that in November, 1947, McGrath told him Mr. Turner had come in and listed the lot at the same price as the other lots they had there on a 10 per cent commission basis.

2. On January 26, after having been told by McGrath that Turner was getting very anxious to sell, Grandi wrote to Turner offering to take back the lot, return Turner’s equity in the property and cancel the transaction, which offer was ignored by Turner.

3.

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Related

Grandi v. Watson
237 P.2d 73 (California Court of Appeal, 1951)

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Bluebook (online)
237 P.2d 73, 107 Cal. App. 2d 395, 1951 Cal. App. LEXIS 1919, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grandi-v-watson-calctapp-1951.