Gregory White v. Jack Miller

CourtCourt of Appeals of Tennessee
DecidedAugust 30, 2017
DocketM2016-00888-COA-R3-CV
StatusPublished

This text of Gregory White v. Jack Miller (Gregory White v. Jack Miller) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregory White v. Jack Miller, (Tenn. Ct. App. 2017).

Opinion

08/30/2017 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE January 18, 2017 Session

GREGORY WHITE, ET AL. v. JACK MILLER, ET AL.

Appeal from the Chancery Court for Wilson County No. 2013-CV-257 Charles K. Smith, Chancellor ___________________________________

No. M2016-00888-COA-R3-CV ___________________________________

Sellers of home and their listing agent brought suit against a real estate brokerage firm and an agent employed by the firm to recover for alleged violations of the Tennessee Consumer Protection Act and Real Estate Broker License Act, undisclosed dual agency, and breach of fiduciary duty, arising from the sale of plaintiffs’ home. The brokerage firm agent procured a contract whereby the sellers agreed to purchase the buyers’ home, with the purchase price for the buyers’ home to be treated as a credit on the purchase price of the sellers’ home. Upon learning that the agent was also representing the buyers, the sellers brought suit, seeking forfeiture of the agent’s and brokerage firm’s commission; the sellers’ listing agent joined in the suit to recover the commission the brokerage firm agreed to pay her as a referral fee. The trial court dismissed all claims filed by the seller husband for lack of standing, granted summary judgment to seller wife on her claim of undisclosed dual agency, and ordered that the brokerage firm and agent forfeit the commission from the sale. The court awarded the listing agent the commission she sought and granted summary judgment to brokerage firm and agent on the seller wife’s claim under the Tennessee Consumer Protection Act and on the seller wife’s claim that she was entitled to the commission generated by the sale of the buyers’ home. Upon a thorough review of the record, we affirm the judgment in part and reverse in part, and remand the case for further proceedings.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed in Part and Reversed in Part; Case Remanded

RICHARD H. DINKINS, J., delivered the opinion of the court, in which ANDY D. BENNETT and W. NEAL MCBRAYER, JJ., joined.

Teresa Reall Ricks and Laura Adams Hight, Nashville, Tennessee, for the appellants, Jack Miller and Bob Parks Realty, LLC. Thomas B. Luck, Nashville, Tennessee, for the appellees, Gregory White, Robin White, and Carole Palmer.

OPINION

I. FACTUAL AND PROCEDURAL HISTORY

Robin and Gregory White, owners of property located at 2052 Breckenridge Drive, Mt. Juliet, (“the Breckenridge Property”) entered into an agreement with Carole Palmer, a licensed real estate agent, to list the property for sale. Ms. Palmer then entered into an agreement with Bob Parks Realty Co. (“Parks”) wherein she referred Robin White to Parks, and for which she was to receive 25 percent of the commission paid to Parks from the sale of the Breckenridge Property as consideration for the referral (the “Referral Agreement”). Robin White thereafter entered into an agreement, the “Exclusive Right to Sell Listing Agreement (Designated Agency),” with Parks for the sale of the Breckenridge Property (the “Breckenridge Listing Agreement”); Jack Miller, a licensed real estate agent affiliated with Parks, was appointed by Parks as “designated agent” for the sellers.1 In due course, Mr. Miller signed a Confirmation of Agency Status indicating that he was the “designated agent for the seller.”2

Dr. Hoang Phi Nguyen and his wife, Diana Diep Ho (hereinafter “the Nguyens”) contacted the Whites directly about purchasing the Breckenridge Property. The Whites referred the Nguyens to Mr. Miller, who negotiated with the Nguyens on the Whites’ behalf, presenting the Whites with the Nguyens’ offer to purchase the Breckenridge Property for $900,000. In the course of those negotiations, Mr. Miller, on behalf of Parks, entered into an “Exclusive Right to Sell Listing Agreement (Designated Agency),” (“Waterbrook Listing Agreement” herein) with the Nguyens for the sale of the Nguyens’ townhouse at 419 Waterbrook Drive, Mt. Juliet (the “Waterbrook property”); Mr. Miller signed the agreement as “broker or licensee authorized by broker,” with Parks listed as the “Broker/Firm.” The Whites and Nguyens subsequently entered into a Purchase and Sale Agreement whereby the Nguyens agreed to purchase the Breckenridge property for

1 The Breckenridge Listing Agreement defines “Designated Agent for the Seller” as:

The individual licensee that has been assigned by his/her Managing Broker and is working as an agent for the Seller or Property Owner in this consumer’s prospective transaction, to the exclusion of all other licensees in his/her company. Even if someone else in the licensee’s company represents a possible Buyer for this Seller’s Property, the Designated Agent for the Seller will continue to work as an advocate for the best interests of the Seller or Property Owner. An agency relationship of this type cannot, by law, be established without a written agency agreement. 2 Mr. Miller signed this at the request of Robin White to verify that he was only representing the Whites in the transaction.

2 $900,000, and the Whites agreed to accept the Waterbrook property for $155,000, to be applied as a credit toward the purchase price of the Breckenridge property. The closing took place at Brokers Escrow on July 12, 2013. After the closing but on the same day, Brokers Escrow filed an interpleader action, naming the Whites, Mr. Miller, Parks, and Ms. Palmer as defendants, paying the amount of the commissions into the court, and requesting that the court determine how the commissions would be distributed.3

Mr. and Mrs. White filed suit against Mr. Miller, Parks, and Brokers Escrow in Chancery Court on July 12, 2013, alleging that, in addition to acting as their agent, Mr. Miller acted as undisclosed agent for the Nguyens without the White’s consent, violated the duties set forth at Tennessee Code Annotated section 62-13-404, breached his fiduciary duty to them, and violated the Tennessee Consumer Protection Act (“TCPA”). Ms. Palmer joined in the suit seeking to recover $6,750, which she alleged was the commission she was due arising from the sale of the Breckenridge property. Parks and Miller filed an answer and counterclaim against the Whites, asserting that the Whites breached the Listing Agreement and the Purchase and Sale Agreement by instructing the closing agent not to pay the commission; they also sought damages under the TCPA against the Whites for bringing a frivolous claim.

Parks and Miller moved for summary judgment contending that the Whites were unable to prove their claims for two reasons: (1) there was no agency relationship between Mr. Miller and the Nguyens, and (2) even if there was an agency relationship between Mr. Miller and the Nguyens, the Whites were not injured and could not prove that they suffered damages as a result of the relationship. The Whites and Ms. Palmer moved for summary judgment on their respective claims. With respect to the dual agency claim, the Whites argued that by acting as an agent for both parties without the Whites’ approval, Mr. Miller and Parks unlawfully acted as undisclosed dual agents and should forfeit their commission as a result. The Whites and Ms. Palmer also argued that the TCPA applies to real estate agents and brokers and that “[i]f the court determines that the Defendants engaged in unfair or deceptive practices under the Act, it may award [Plaintiffs] treble damages and attorney fees.”

Following a hearing on March 24, 2016, the trial court entered judgment on the motions.

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Gregory White v. Jack Miller, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-white-v-jack-miller-tennctapp-2017.