Loyd v. Saffa

1986 OK CIV APP 2, 719 P.2d 844, 1986 Okla. Civ. App. LEXIS 42
CourtCourt of Civil Appeals of Oklahoma
DecidedFebruary 11, 1986
DocketNo. 62690
StatusPublished
Cited by6 cases

This text of 1986 OK CIV APP 2 (Loyd v. Saffa) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loyd v. Saffa, 1986 OK CIV APP 2, 719 P.2d 844, 1986 Okla. Civ. App. LEXIS 42 (Okla. Ct. App. 1986).

Opinion

BRIGHTMIRE, Presiding Judge.

The principal issue raised in this appeal is whether the record discloses an absence of material fact issues regarding whether plaintiff is entitled to a 5% finder’s fee for bringing to defendant a purchaser of his land. We hold there exist unresolved material issues of fact and therefore reverse the summary judgment.

[846]*846I

Relevant to the reviewable problem are these facts. Plaintiff, Don Loyd, brought this action alleging that on February 15, 1981, he and defendant, Farris Saffa, entered into an oral agreement in which Saffa agreed to pay Loyd a finder’s fee equal to 5% of the sale price of a 345-acre tract of land located near the City of Tulsa, Oklahoma. Loyd did find a prospective purchaser who bought the land for $2,550,000. Saffa refused to pay Loyd the 5% fee and this action was brought to recover it. Saf-fa defended the action on the ground that plaintiff, having failed to allege that he was a licensed real estate broker, had not stated a recoverable claim. Eventually defendant moved for a judgment on the pleadings because of this assumed allega-tional defect. The trial court sustained it and granted defendant judgment. Plaintiff appealed and the judgment was reversed.1

Upon remand the defendant filed a motion for summary judgment. On May 2, 1984, the trial court “found” that Saffa did agree to pay a finder’s fee as alleged but that “Loyd negotiated or attempted to negotiate the transaction” which made him a “real estate broker” within the meaning of that phrase as defined in 59 O.S.1981 § 858-102(2),2 and concluded as a matter of law that this action is not maintainable under 59 O.S.1981 § 858-311 because of plaintiff's failure to allege or prove he has a broker's license.3 Upon this foundation the trial court rendered a summary judgment for defendant. Plaintiff, of course, appeals.

II

The primal question is, then, whether the record reflects as an undisputed fact that plaintiff is seeking “recovery of a money judgment as compensation for services rendered in listing, buying, selling, renting, leasing or exchanging of any real estate.” We hold it does not.

The trial court’s judgment is founded on the finding that plaintiff in fact “negotiated or attempted to negotiate the transactions,” that is, the sale of defendant’s land. Implicit in the judgment is a further finding that such “negotiation” is a service rendered by Loyd “in listing, buying [or] selling ... real estate.”

In order to resolve the problem presented it is necessary preliminarily to recognize certain applicable principles of public policy and some definitional discriminations.

The public purpose for the Oklahoma Real Estate License Code (59 O.S.1981 §§ 858-101 et seq.) is to regulate the real estate business, and those engaged in it, for the protection of the public. Ratcliff v. Cobb, 439 P.2d 194 (Okl.1968). And a construction of unclear provisions of the Code must be consonant with and in pursuit of such purpose.

Here no one has suggested defendant was taken unfair advantage of, overreached, defrauded, misled, or was otherwise harmed by anything plaintiff did or did not do.

The fact is that plaintiff and defendant were long time acquaintances. Defendant knew plaintiff was not a licensed broker [847]*847but to avoid any possibile of misunderstanding plaintiff reminded Saffa that he “wasn’t a real estate person and all I could do was get them together.” It was for this specific service Saffa agreed to pay 5% of the purchase price if a sale was consummated.

This brings us to the more or less crucial issues which involve two statutory provisions and which to some extent overlap or at least compliment each other.

First there is the question of whether plaintiff’s testimony demonstrates that he acted as a broker. The only thing the trial court found that plaintiff did to create such status was to “negotiate or attempt to negotiate” a sale of subject land. For a definition of the word “negotiate” the trial court referred to Black’s Law Dictionary 934 (5th ed. 1979). This was all right except that he skipped the first definitional paragraph and from the second one lifted a broad generalization which we believe is not consonant with either the context of section 858-102(2), the purpose of the act, or the intent of the legislature. We think the word “negotiate” is used in section 858-102(2) in an ordinary sense as set out in the first paragraph of Black’s, and that is to “bargain with another respecting a purchase and sale” of real estate in an effort to consummate a sale. In other words there must be conduct that places one in the position of bargaining with a party to settle the terms of a real estate agreement — ordinarily on behalf of one party or the other.

The evidence in this record does not sustain the trial court’s express finding that plaintiff negotiated or attempted to negotiate a sale contract. After reaching the finder’s fee agreement with Saffa, plaintiff introduced Chew to Saffa. Some time later Saffa asked plaintiff to tell Chew that he, Saffa, wanted to retain certain land in subject acreage which bordered on a man-made lake. Plaintiff did and Chew said he was not interested unless he could get the entire lake. Loyd passed this information on to Saffa. The only other thing Loyd did was to attend the meeting of Saffa and Chew, listen to them discuss and agree on the terms of the sale, respond to Saffa’s inquiry as to whether a Corps of Engineers’ report Saffa had should be given to Chew, told Chew he ought to get a copy of such report, and, after the written contract had been prepared, told Saffa about a call he had received from Chew expressing dissatisfaction with certain portions of the agreement.

The foregoing activity is what the trial judge concluded amounted to negotiating and, as he put it in his journal entry of judgment, resulted in Loyd “crosspng] the line” which established the limits of a mere “finder” status and entered the real estate broker zone.

We disagree. None of what he did amounted to bargaining in any sense of that word. The facts are, of course, colored by the circumstance that both the buyer and seller were long-time acquaintances and presumably friends of Loyd. This, however, does not raise any kind of an inference of brokerage activity. On the contrary it detracts from such a conclusion by explaining that what Loyd did was at the specific request of a party or in the interest of protecting his finder’s fee interest — something which, as it turned out, was wise to have done. Whatever else may be said about the situation it is undisputed that Loyd expressly told Saffa, as we said, that not being a “real estate person” he could not and would not undertake to act as one. Certainly since the asserted purpose of the Real Estate Licensing Act is for the protection of the public there is nothing in this record to suggest such purpose was the least bit slighted.

The second relevant statutory provision is section 858-311, prohibiting recovery of compensation in certain instances by one acting as a broker or associate sales agent.

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Bluebook (online)
1986 OK CIV APP 2, 719 P.2d 844, 1986 Okla. Civ. App. LEXIS 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loyd-v-saffa-oklacivapp-1986.