Mark v. Hahn
This text of 177 So. 2d 5 (Mark v. Hahn) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Mitchell MARK, Petitioner,
v.
Ethel HAHN, as Ancillary Administratrix of the Estate of Louis Hahn, Deceased, Respondent.
Supreme Court of Florida.
*6 Anderson & Nadeau, Miami, and Bernard C. Fuller, Miami Beach, for petitioner.
Blackwell, Walker & Gray and James E. Tribble, Miami, for respondent.
HOBSON, Justice (Ret.)
This case is before us upon a petition for writ of certiorari directed to the District Court of Appeal, Third District. The alleged basis for issuance of such a writ is that the decision of the District Court *7 is in direct conflict on the same point of law with the decision of this Court in the case of Knowles v. Henderson, 156 Fla. 31, 22 So.2d 384, 169 A.L.R. 600.
The District Court determined that this case is controlled by the Supreme Court's decision in Hanover Realty Corp. v. Codomo, Fla. (1957) 95 So.2d 420, rather than by our decision in Knowles.
In the latter decision we held, consistent with many of our prior decisions, that a failure to close a real estate transaction due solely to the fault of the seller would not defeat the right to a commission of a broker who had been employed to sell and who had produced a purchaser ready, able and willing to buy upon the terms specified by the seller. In Codomo we pronounced an exception to this rule which is that said rule is not applicable "in the face of a specific agreement to the contrary." (Italics supplied.)
Two of the judges of the District Court were of the view that under the facts and circumstances of this case the exception to the rule set forth in Codomo should control. One judge who dissented expressed the opinion that under the circumstances of this case he felt that there was justification for the application of the rule enunciated in the Knowles case.
This suit originated in the Circuit Court of Dade County, Florida. Petitioner filed an action at law against respondent in which he sought judgment for a real estate commission allegedly due him. The case was tried without a jury and judgment was entered in favor of petitioner. Upon appeal the District Court, as previously suggested, reversed the Circuit Court in and by a two one decision.
We turn now to the facts as they are set forth upon the face of the opinion filed in the District Court. Petitioner queried the respondent as to whether the property was for sale. In response to this inquiry respondent sent to the petitioner (broker) a written communication which contained the following language:
"Please advise whether you wish to have a listing of the above parcels. The listing will not be exclusive with you and will be on the understanding that the usual rate of commission recommended by the local Real Estate Board will apply, and that commission will be due and payable only if and when title is actually closed.
"The property is being offered at a price of $225.00 per front foot cash. A substantial offer embodying terms will be considered."
Petitioner secured a purchaser who made an offer for the property upon certain specified terms which offer was by the petitioner submitted to respondent who rejected the proffered terms and demanded an all cash deal. The facts appearing in the opinion of the District Court do not disclose that at this juncture, when the demand for all cash was made, respondent made any reference whatsoever to her alleged right, if any she had, to renege or back-out at the last moment and be relieved of all responsibility for payment of a broker's commission. Consequently, we must assume that respondent remained silent upon this subject. Petitioner's prospective purchaser agreed to buy the property for cash. When petitioner informed respondent of this fact the latter then refused to sell and took the property off the market.
Counsel for both parties, as well as the District Court, have dwelt at length upon a comparison of the language contained in the listing in the Codomo case with wording which is found in the listing in the instant suit. In Codomo it was stated:
"* * * and if, for any reason, these leases are not signed, you will not have any claim against either the owners of the property, or Mr. William W. Kamm and myself as Agents." (Italics supplied.)
*8 In this case, the listing contained the following statement:
"* * * and that commission will be due and payable only if and when title is actually closed." (Italics supplied.)
The listing in Codomo is couched in language which makes it reasonably clear that the owner might arbitrarily at any time before the leases were signed refuse to go through with the deal and thus relieve himself of any liability for payment of a commission. On the other hand, it does not appear quite so clearly that the seller reserved unto herself the right to renege in the instant suit, indeed there is room for the implication that the seller would do nothing to interfere with the actual closing of the deal. We do not, however, turn out decision entirely upon this admittedly close question of semantics. We are impelled before turning from the subject discussion to say, by way of caveat, that in Codomo when we used the expression "specific agreement to the contrary" we meant exactly that. We did not mean that a listing could be worded in such manner as to require the astuteness of the proverbial "Philadelphia lawyer" to determine that the seller intended to reserve until himself the right to change his mind or back out arbitrarily at any time he might see fit and thereby avoid payment of a commission. Although some brokers are also lawyers, many, many of them are not. Perhaps most lawyers would suspect from the language used in the listing in this case that the seller meant to reserve the right to refuse to go through with the deal if she should so elect. Few laymen would have the same reaction. We think the "specific agreement" to which we referred in Codomo should be expressed in language which would be readily understood by a layman and leave no room for doubt. The specificity of such an agreement should be precisely formulated, explicit, positive, direct and should admit of no misunderstanding. The agreement should clearly put the lay-broker on notice that he might expend both effort and substance in vain.
We are of the view that under the facts of this case regardless of the sufficiency of the so-called "specific agreement" our decision must be in favor of petitioner. This is so because of the failure of the respondent, at the time she refused the proffered terms and demanded all cash, even to mention the fact, if it were a fact, that she was reserving the right to back out. Her demand for all cash amounted to a novation or in other words a new contract with the petitioner or, if this not be true, then her silence upon the subject of the alleged right to renege amounted to, at least, a waiver of any such right.
We appreciate the fact that there is a well-recognized distinction between the doctrines of waiver and estoppel. Ordinarily, waiver must be supported by a valid consideration, but this is not true in a case such as this where there is also present conduct or silence which injects an estoppel into the factual picture limned by the record.
When respondent refused the proffered terms, demanded all cash and remained silent with reference to her presently asserted right to renege and absolve herself of liability for a real estate commission for services of petitioner[1]
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177 So. 2d 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mark-v-hahn-fla-1965.