J. R. Fulton, D/B/A J. R. Fulton & Company v. L & N Consultants, Inc.

715 F.2d 1413
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 28, 1983
Docket79-1841
StatusPublished
Cited by18 cases

This text of 715 F.2d 1413 (J. R. Fulton, D/B/A J. R. Fulton & Company v. L & N Consultants, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. R. Fulton, D/B/A J. R. Fulton & Company v. L & N Consultants, Inc., 715 F.2d 1413 (10th Cir. 1983).

Opinions

[1415]*1415HOLLOWAY, Circuit Judge.

This is an appeal brought by defendant L & N Consultants, Inc. from a judgment awarding $47,458.90 for the recovery of real estate brokerage fees and $9,500 for attorney’s fees to plaintiff, J. R. Fulton, d/b/a J. R. Fulton & Company.

I

Plaintiff Fulton, a licensed Oklahoma real estate broker, entered into a real estate brokerage agreement with defendant L & N to be effective from December 10, 1975 until June 10, 1976 covering certain commercial property in Oklahoma City, Oklahoma. Specifically the agreement concerned the sale of a large warehouse building plus 23 acres of vacant land known as the “Plaza III Industrial Park.” Subsequently these parties entered into a supplemental agreement which extended the listing agreement to December 10, 1976. The supplemental agreement extended the previous agreement under the same terms and conditions except that it provided that if the property was sold to a non-Oklahoma entity by the defendant without any assistance from the plaintiff, the plaintiff would be entitled to a three percent commission.1 This was a commission reduction from that provided by the original exclusive contract, which called for the payment of a six percent commission, regardless of who sold the property. (II R. Pl. Exs. 1 and 2).

During the term of the supplemental listing agreement defendant L & N began negotiations with one Stanley Robert Fimberg concerning the sale of the Plaza III property. The progress of the negotiations is a matter in dispute but there is evidence that these discussions began in September 1976. As the negotiations continued it became clear that the parties contemplated that a limited partnership would be syndicated by Mr. Fimberg and that the partnership would be the purchaser of the property. Subsequently, Mr. Fimberg formed a limited partnership known as Vermont Street Associates, Ltd., on December 14, 1976. Defendant L & N and Vermont Street Associates, Ltd., executed a written agreement for the sale of the Plaza III property. This agreement stated that it was “made and entered into as of the 1st day of September, 1976.”2 In addition a promissory note, a mortgage-security agreement, and a warranty deed were executed. The mortgage-security agreement recites that it is executed “as of the 1st day of September, 1976, on this 16th day of December, 1976.” In addition, the promissory note recites that it was “to be executed as of the day and year first above written” that day being September 1, 1976.

Plaintiff Fulton brought this action in the district court asserting two causes of action in the alternative. In the first cause of action judgment was sought in the sum of $72,000 for the failure of defendant to accept a purchaser procured by the plaintiff Fulton for the Plaza III property, plus interest, costs, and attorney’s fees. On the second cause of action judgment was sought for $41,310.00, plus costs and attorney’s fees, for the failure of defendant L & N to pay a three percent commission on the sale of defendant’s property to a non-Oklahoma entity without the assistance of plaintiff. [1416]*1416The trial court granted defendant’s motion to dismiss as to plaintiff’s first cause of action, but overruled the motion as to the second cause of action.

The defendant asserted that recovery should not be had by plaintiff for the reasons that there was no sale within the life of the listing agreement and, in any event, the plaintiff was not the procuring cause of the sale.

The second cause seeking the real estate commission was tried to the court. The main issue at trial was whether the agreement of sale was executed by December 10, 1976, so as to be within the life of the extended listing agreement. There was no claim by plaintiff that defendant L & N and Vermont Associates delayed execution of the agreement of sale so as to permit the brokerage agreement to expire. (III R. 29-30).

During trial, the court sustained an objection by plaintiff Fulton to defendant L & N’s evidence concerning when the agreement of sale was executed and what terms remained open for negotiation after expiration of the brokerage agreement on December 10, 1976. This objection was sustained on the basis of the parol evidence rule. In a memorandum opinion granting judgment for the commission and attorney’s fees to plaintiff Fulton, the trial court found that plaintiff was not a stranger to the contract because his rights were affected thereby and that he could properly object to the admission of parol evidence. (I R. 295). The court found further that

The Agreement of Sale between the defendant and Vermont Streets Associates, Ltd., is complete and unambiguous. The contract reflects the date of execution to be September 1, 1976. No conflicting date is apparent in the instrument. The date is not ambiguous, but clear from the four corners of the document. In this instance, the date of execution is a material element of the contract. Parol evidence is thus inadmissible to vary or contradict the date of execution. (I R. 297).

The court further held in the alternative that the defendant’s offer of proof “is insufficient, in the face of the evidence presented, including the written agreement, to dissuade the Court from its finding that the Agreement of Sale was agreed upon and executed within the term of the extended listing agreement.” (I R. 297). The court noted that “defendant’s offer of proof included examination of a witness, including cross-examination by plaintiff, and the submission of numerous documents. The record thus appears to be as complete as though the Court had reserved ruling on the parol evidence issue until after trial.” (I R. 295).

It was also found that this sale was accomplished without plaintiff’s assistance and that under the extended listing agreement, plaintiff Fulton was entitled to a commission of three percent of the sale price, and interest. Finally the court held that plaintiff is entitled to recover attorney’s fees under 12 O.S.1971 § 936 because this was an action to recover for the services of a real estate broker.

On appeal, defendant L & N argues that plaintiff was not entitled to the commission under the brokerage agreement which expired before execution of the agreement of sale, claiming error in (1) the exclusion of evidence as to the date of actual execution of the agreement of sale and as to when agreement was reached on all essential terms of the contract; (2) the finding that an enforceable agreement of sale existed on or before December 10, 1976, which is clearly erroneous; and (3) in awarding attorney’s fees to the plaintiff and in doing so without a proper hearing.

II

As noted, the trial judge made two key rulings which led to the entry of judgment for plaintiff Fulton. First, on the basis of the parol evidence rule he rejected proof offered to show that the agreement for sale of the Plaza III property was not actually entered into until after expiration of the [1417]*1417brokerage agreement on December 10,1976. In evidence there remained the Agreement of Sale which recited that the agreement was “made and entered into as of the 1st day of September, 1976 .... ” Second, the trial judge alternatively held that the offer of proof was insufficient in any event to dissuade him from his finding that the agreement of sale was agreed on and executed within the term of the extended listing agreement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
715 F.2d 1413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-r-fulton-dba-j-r-fulton-company-v-l-n-consultants-inc-ca10-1983.