J.D. Land Co. v. Killian

762 P.2d 124, 158 Ariz. 210, 6 Ariz. Adv. Rep. 50, 1988 Ariz. App. LEXIS 96
CourtCourt of Appeals of Arizona
DecidedApril 14, 1988
Docket2 CA-CV 88-0098
StatusPublished
Cited by12 cases

This text of 762 P.2d 124 (J.D. Land Co. v. Killian) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.D. Land Co. v. Killian, 762 P.2d 124, 158 Ariz. 210, 6 Ariz. Adv. Rep. 50, 1988 Ariz. App. LEXIS 96 (Ark. Ct. App. 1988).

Opinion

OPINION

LACAGNINA, Chief Judge.

J.D. Land Co. appeals from judgment in favor of Gerald and Emilie Killian denying recovery of a real estate commission on an exclusive listing agreement. Killians contend that the exclusive agency agreement contemplated the payment of a commission only if a transaction actually closed during the time that the agreement was in effect. J.D. Land argues that if an agreement to sell was entered into before the expiration of the listing, even if the transaction closed after that time, a commission would be owing. We agree and reverse.

FACTS

Killians owned 80 acres of land in Chandler, Arizona; 40 acres were held as husband and wife, and 40 acres were owned by Emilie alone. An exclusive “Authorization to Sell or Exchange” the entire 80-acre parcel (listing), dated May 1, 1984, was executed by Gerald Killian and Gary Davis, a licensed broker with J.D. Land. The listing contained an asking price of $1,800,-000 and gave J.D. Land the “exclusive right to sell or exchange” the subject property. By its terms, the agreement terminated on December 31, 1984.

The agreement also provided as follows:

Upon consummation of the sale or exchange I or we, agree to pay J.D. Land Co. a brokerage fee of $ 6% of Selling Price at close of escrow or 50% of the Earnest Money deposit in case same is forfeited by Purchaser, provided same shall not exceed the full amount of the brokerage fee.
I, or We, further agree that if a prospective Buyer is registered or introduced to us by you and hereafter purchases subject property, the same fee shall prevail.

Gary Davis, J.D. Land’s broker, testified that he made efforts to market the property after receiving the exclusive listing to sell. During that time, Killians entered into agreements with a buyer to sell the property for a total purchase price of $1,600,000. The deal did not close, and the buyer cancelled escrow on October 1, 1984.

On October 22, 1984, without informing Gary Davis or anyone at J.D. Land, Killians entered into an agreement to sell the subject property to another buyer with escrow instructions reflecting that agreement. During that time, Gary Davis continued to make efforts to market the property. He presented three offers from different buyers to Gerald Killian during November and December 1984, offering selling prices ranging from $1,600,000 to $1,680,000. All three offers were rejected. The escrow on Killians’ sales transaction with the buyer was opened on October 22, 1984, and closed on June 25, 1985, with no real estate brokers involved or commissions paid.

J.D. Land filed a complaint alleging that Killians had breached the exclusive agency contract and seeking to recover a 6% commission on the selling price of $1,600,000. Following trial, special interrogatories were submitted to the jury and, based upon the jury’s findings, the court entered judgment in favor of Killians and ordered that J.D. Land’s complaint be dismissed with prejudice.

SPECIAL INTERROGATORIES

Interrogatories were submitted to the jury and answered as follows:

*212 INTERROGATORY # 1
Was the document entitled “Authorization to Sell or Exchange” (Exhibit 4) a valid contract?
X Yes
_ No
(Check one of the above)
If your answer is no, then do not answer the next interrogatory.
If your answer is yes, then answer the next interrogatory.
INTERROGATORY # 2
Do you find that the document entitled “Authorization to Sell or Exchange” (Exhibit 4) was superceded [sic] or revoked by the document dated August 7, 1984 (Exhibit 5) [?]
_ Yes
X No
(Check one of the above)
If your answer to the foregoing interrogatory is yes, then do not answer the next interrogatory.
If your answer to the foregoing interrogatory is no, then answer the next interrogatory.
INTERROGATORY # 3
Under the terms of the “Authorization to Sell or Exchange” (Exhibit #4), at what point did the parties intend that J.D. Land Co. would become entitled to a commission:
_ When a ready, willing and able buyer entered into a valid contract to purchase the property.
X Upon close of escrow for the sale of the property.
(Check one of the above)

OBJECTION TO INTERROGATORY NO. 3

Counsel for J.D. Land requested, and the court refused, to instruct the jury that under an exclusive listing agreement, the broker is entitled to the stated fee “if, during the term of the agreement, an enforceable contract for purchase of the property is entered into, even though the actual transfer of the property or closing of the sale occurs after the listing expires.” J.D. Land’s attorney objected to the court's refusal of its proposed instruction, and from our review of the record, it is clear that J.D. Land’s attorney was also objecting to the court’s submission of the issue framed by Interrogatory #3. Counsel properly objected prior to the submission of the case to the jury.

CONTRACT AMBIGUITY

Killian argues he intended by the execution of the exclusive authorization that J.D. Land would be entitled to a commission only if any sale actually closed during the time the agreement was in force, based on the language that “upon consummation of the sale,” a brokerage fee would be paid. The court found that language ambiguous and submitted the factual question to the jury in Interrogatory # 3. We do not find such an ambiguity.

A contract is not ambiguous merely because the parties disagree as to its meaning. Triangle Construction v. City of Phoenix, 149 Ariz. 486, 720 P.2d 87 (App.1985); Autonumerics, Inc. v. Bayer Industries, Inc., 144 Ariz. 181, 696 P.2d 1330 (App.1984). An agreement is ambiguous only if the language can reasonably be construed in more than one sense and the construction cannot be determined within the four corners of the instrument. McCutchin v. SCA Services of Arizona, Inc., 147 Ariz. 234, 709 P.2d 591 (App.1985); Cecil Lawter Real Estate School, Inc. v. Town & Country Shopping Center Co., Ltd., 143 Ariz. 527, 694 P.2d 815 (App.1984). Whether a contract is ambiguous is a matter for the court to decide. Id. In addition, we are not bound on appeal by the trial court’s legal conclusions.

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762 P.2d 124, 158 Ariz. 210, 6 Ariz. Adv. Rep. 50, 1988 Ariz. App. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jd-land-co-v-killian-arizctapp-1988.