Hampton Park Corp. v. T. D. Burgess Co.

311 A.2d 35, 270 Md. 269, 1973 Md. LEXIS 683
CourtCourt of Appeals of Maryland
DecidedNovember 9, 1973
Docket[No. 31, September Term, 1973.]
StatusPublished
Cited by5 cases

This text of 311 A.2d 35 (Hampton Park Corp. v. T. D. Burgess Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hampton Park Corp. v. T. D. Burgess Co., 311 A.2d 35, 270 Md. 269, 1973 Md. LEXIS 683 (Md. 1973).

Opinion

Levine, J.,

delivered the opinion of the Court.

This appeal stems from a case tried without a jury in the Circuit Court for Prince George’s County (Bowie, J.), which resulted in a judgment in the total sum of $213,159.10, including interest, against appellant, Hampton Park Corporation (Hampton Park). The judgment was recovered by appellee, T. D. Burgess Company, Inc. (Burgess), which had sued Hampton Park for a real estate broker’s commission alleged to have been earned for selling a parcel of land owned by Hampton Park to the United States Government. With limited exceptions, which we shall note later, the material testimony in this case is undisputed.

Being desirous of acquiring a large parcel of land in Prince George’s County for the purpose of building a bulk mail facility, the Post Office Department, as it was then known, entered into a contract on June 2, 1969, with a New York firm known as Drake Sheahan/Stewart Dougall, Inc. (Drake Sheahan). The latter is a marketing and physical distribution consultant. In addition to conducting a study of “present and projected mail flow in the Washington, D. C. area” for the purpose of determining “if there is a need for major new facilities in the area,” Drake Sheahan was to chart the patterns of mail flow, evaluate plans for future facilities, develop specifications for recommended facilities and review the effect of transportation patterns upon the volume of mail handled in the Washington area. Also it was to undertake the following:

“5. The development of the criteria for selecting sites. The contractor [Drake Sheahan] shall provide a description of the factors to be considered. These shall include, but not be limited to, the needs of transportation, site size, personnel access, mail flows, service, land cost, prevailing *271 wage rates, labor availability and community characteristics.
“6. Recommended sites in priority of their desirability. The final selection of a site, or sites, if they are required, will require negotiations by postal officials. Therefore, the contractor, working with local and regional postal officials, shall provide a priority listing of potentially available sites to form the basis for negotiation.” (emphasis added).

In pursuance of the part of the study related to the proposed bulk mail facility, Drake Sheahan was referred to Burgess. A representative of the former, one A. L. Lowe (Lowe), called on Burgess in late October 1969 for the purpose of visiting prospective sites. Mr. T. D. Burgess, president of the company, delegated the assignment to Frank Principe, vice president, and his son, John Principe, a salesman in the firm. Burgess thereupon proceeded to obtain from Hampton Park, which was then known as The Jean Corporation, a listing agreement which reads as follows:

“As owners and developers of an industrial complex at the intersection of Central Avenue and the Capital Beltway, we authorize your firm to offer for sale, subject to prior sale, properties contained within this industrial complex. We agree to pay you a commission of six per cent (6%) of the total sales price for any properties sold by you.
“It is our understanding you are now offering to the U.S. Post Office a parcel containing approximately 40 acres. We agree, in the event the above-said firm elects to purchase in said industrial complex, as a result of your efforts to pay you your full commission amounting to six per cent (6%) of the total sales price irregardless [sic] of any claims by others.” (emphasis added).

In early November, the Principes met with Lowe, Burder Smith Athey (Athey) of the Washington, D. C. Post Office, *272 and J. Kevin Malloy (Malloy), vice president and secretary of Hampton Park. It is undisputed that this was the first occasion on which Malloy had met anyone from the Post Office Department in connection with the purchase of any land owned by Hampton Park; and it is equally undisputed that this was the first time anyone from Drake Sheahan had ever met Malloy. On this occasion, Lowe expressed an interest in parcels of approximately 40 acres in size, with industrial zoning, close to the Capital Beltway (Interstate 495) between Pennsylvania Avenue and Route 50. Malloy then indicated that Hampton Park’s 350-acre industrial park complex — located within the area designated by Lowe — included at least one tract which met the requirements of the Post Office Department. The Hampton Park property is located at the Beltway and Central Avenue in Prince George’s County.

Subsequently, a description of the Hampton Park site and its favorable characteristics — prepared by Malloy with some assistance from John Principe — was mailed to Drake Sheahan. In the ensuing months, the Principes furnished Lowe with additional data and documents pertaining to the Hampton Park property. On at least one other occasion, John Principe revisited the Hampton Park site with Lowe and Athey. In addition, he showed them three other parcels, none owned by Hampton Park, all of which were located within the preferred area. Throughout this period, the Principes remained in communication with Malloy.

On March 6, 1970, Drake Sheahan submitted its report entitled “Proposed Bulk Mail Handling Plant” to the Post Office Department. As the contract had contemplated, the report dealt with a number of subjects: The Washington area mail volume; mail flow; space requirements; available site and property costs; mechanization and cancellation costs; and a variety of economic analyses projections.

On May 1, 1970, one Earl S. Godfrey (Godfrey), employed in the real estate division of the Post Office Bureau of Facilities, was given the assignment of investigating property sites for the proposed bulk mail facility. He “was *273 given a preferred area within which to survey, and criteria for the sites as far as size and so on was concerned.” This was furnished to him in the form of a three-page extract from the Drake Sheahan study. It may be described as sketchy and merely states:

“The weighted center of gravity of the Washington, D. C. Bulk Mail Facility Service Area is approximately four miles southeast of Alexandria. This area, however, consists of national parks and memorials and cannot be considered as a site for the BMF [bulk mail facility].
“The recommended area for the Washington, D. C. BMF is the Beltway (1-495) between Route 50 and Marlboro Pike (Pennsylvania Avenue). This area provides ready access to Baltimore, Richmond and Norfolk, and southwest Virginia via the Beltway. Washington, D. C. parcel post delivery operations are also acceptable from this area.
“This area also has good access to existing piggyback ramp yards in Washington. It may be possible to have additional pig facilities at the Penn Central Yards at Route 50 and the Beltway.
“Five available sites which have been developed in the recommended area are listed below in 'priority order. A minimum of 50 acres is recommended for the site.

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Bluebook (online)
311 A.2d 35, 270 Md. 269, 1973 Md. LEXIS 683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hampton-park-corp-v-t-d-burgess-co-md-1973.