Henry S. Bloomgarden v. Charles B. Coyer

479 F.2d 201, 156 U.S. App. D.C. 109, 1973 U.S. App. LEXIS 10027
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 9, 1973
Docket71-1765
StatusPublished
Cited by225 cases

This text of 479 F.2d 201 (Henry S. Bloomgarden v. Charles B. Coyer) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henry S. Bloomgarden v. Charles B. Coyer, 479 F.2d 201, 156 U.S. App. D.C. 109, 1973 U.S. App. LEXIS 10027 (D.C. Cir. 1973).

Opinion

SPOTTSWOOD W. ROBINSON, III, Circuit Judge:

This appeal follows appellant Bloom-garden’s unsuccessful effort in the District Court to recover a $1 million finder’s fee. The fee was sought for services leading to the inauguration of an enterprise to extensively develop certain property on the Georgetown waterfront in Washington. The principals in the enterprise are appellees Coyer and Guy, individual real estate developers, and ap-pellee Georgetown-Inland Corporation (Georgetown-Inland), one of five companies organized, with Coyer and Guy as two of the stockholders in each, to effectuate the project. At the center of the controversy is Bloomgarden’s assertion that it was he who brought the organizers together in this mutually beneficial venture and who, by the same token, should be rewarded for that contribution.

It is fully conceded that Bloomgarden introduced Coyer and Guy to those with whom they were later to join forces. There was, however, no express agreement, written or oral, pertaining to the part Bloomgarden played or calling for compensation therefor from any of the appellees. Bloomgarden’s quest for a finder’s fee proceeded on the theory that he was entitled to remuneration by virtue of a contract which should either be factually implied from prevalent custom and usage or recognized as a legal consequence of the transaction when viewed in light of the surrounding circumstances.

After the close of the pleadings and some amount of discovery, Bloomgarden moved for partial summary judgment on the issue of liability 1 and appellees for summary judgment on the entire case. 2 The District Court denied Bloomgar-den’s motion and granted appellees’, in each instance on two separate grounds. The court held that because Bloomgar-den did not hold the license required of real estate and business-chance brokers in the District of Columbia 3 he was precluded from charging for what he did. The court further held that Bloomgar-den had no enforceable claim for recompense because it appeared without dispute that at the time he introduced the parties he did not expect to be personally compensated for so doing. Without reaching the first ground relied on by the District Court, we affirm for reasons underlying the second.

I

Bloomgarden’s suit traces its origin to a series of events commencing in the fall of 1969 and extending into the spring of 1970. Throughout this period he was serving as president of Socio-Dynamics Industries, Inc. (SDI), a consulting and research firm in the field of urban and environmental affairs. 4 Nearly half of SDI’s capital stock was owned by David Carley, 5 president of Public Facilities Associates, Inc. (PFA), which was engaged in the development of public and private housing and the redevelopment of urban areas. 6 Carley had requested *205 Bloomgarden to remain alert to any potentially fruitful investment opportunities for PFA in the Washington area.

At the time, Coyer and Guy held contracts or options on several parcels of real estate on the Georgetown waterfront. Bloomgarden met Coyer in the summer of 1969 while arranging to lease office space in a building in which Coyer had an interest. At one of their meetings, Coyer revealed to Bloomgar-den the details of a plan for the assembly and development of a sizeable segment of the waterfront into a multipurpose business complex. Coyer explained that he and Guy lacked the financial resources needed to carry the project through, and Bloomgarden offered to put him in touch with Carley.

Bloomgarden promptly apprised Car-ley of Coyer’s project and set up a meeting between them and others for January 26, 1970. Ideas were then exchanged but no suggestion was made by Bloomgarden to Carley or Coyer that he expected to be paid for bringing them together. By Bloomgarden’s arrangement the group attended another meeting, on February 19 in Chicago, with representatives of subsidiaries of Inland Steel Company (Inland Steel). 7 Again the plan was discussed and again Bloom-garden gave no indication that he anticipated a fee for introducing Coyer and Guy to Carley and his Inland associates. On the contrary, during a ride to the airport on the day after the Chicago meeting, Guy inquired of Bloomgarden as to what he hoped to get out of the project, and Bloomgarden responded merely that possibly SDI, his company, might garner some work in implementing the plan. 8 Aside from furnishing three of the principals — Coyer, Guy and Carley — with information about the others, Bloomgarden had no further role in the transaction.

An agreement in principle was reached between Coyer, Guy and the Inland Steel group in early April, 1970. 9 This was formalized by a contract in June and a shareholders’ agreement executed in August. Five corporations, among them Georgetown-Inland, were organized to handle the project. 10 It *206 was not until the end of March, 1970, however, that Bloomgarden asserted any monetary claim on behalf of SDI for bringing about the initial contact, and it was not until May that he asked for compensation for himself. 11 After each of these demands was rejected, Bloomgarden, on September 14, wrote to Coyer, again claiming-a fee for sparking the business opportunity culminating in the Georgetown project. That likewise failing, Bloomgarden commenced his suit on October 1.

II

The District Court’s judgment rested, as we have said, on two bases. The court ruled that since Bloomgarden was not licensed as a real estate or business-chance broker by the District of Columbia, 12 he could not recover pay for his contribution, to the Georgetown venture. 13 The court also held that, as a matter of law, Bloomgarden was not entitled to relief because at the time he assisted appellees he had no expectation of personal reward for his efforts. Since our analysis leads us to a conclusion similar to the District Court’s second reason, it is unnecessary here to consider the applicability of the licensing statute to Bloomgarden’s activities.

Bloomgarden, we reiterate, sought a finder’s fee on a twofold basis. He said that an agreement to pay such a fee, though not express, might be implied from the circumstances in which he brought the parties together, particularly in view of an alleged custom to reward those who discover advantageous business opportunities for others. Bloomgarden also said that in the context in which he introduced the parties, they came under a legal obligation — a quasi-contract — to compensate him for his services whether or not the elements of an enforceable contract were present.

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Bluebook (online)
479 F.2d 201, 156 U.S. App. D.C. 109, 1973 U.S. App. LEXIS 10027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henry-s-bloomgarden-v-charles-b-coyer-cadc-1973.