McCutcheon & Burr, Inc. v. Berman

590 A.2d 438, 218 Conn. 512, 1991 Conn. LEXIS 135
CourtSupreme Court of Connecticut
DecidedMay 7, 1991
Docket14113; 14114
StatusPublished
Cited by125 cases

This text of 590 A.2d 438 (McCutcheon & Burr, Inc. v. Berman) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCutcheon & Burr, Inc. v. Berman, 590 A.2d 438, 218 Conn. 512, 1991 Conn. LEXIS 135 (Colo. 1991).

Opinion

Callahan, J.

These two appeals arise from an action to recover a real estate commission. The defendants appeal from the denial of their motion to dissolve a prejudgment attachment of real estate, while the plaintiff appeals from the granting of the defendants’ motion to dismiss. The principal issue in both appeals is whether a real estate listing agreement satisfied the requirements of General Statutes § 20-325a (b).1 We conclude that those requirements were not satisfied.

The material facts are not in dispute. The plaintiff, McCutcheon and Burr, Inc., is a licensed real estate broker. On or about October 3, 1989, the plaintiff entered into an open listing agreement to sell certain [515]*515real property, known as the Cromwell West Office Park, the record owners of which were the defendants William W. Berman, Edward Silverman and Loreto G. Marocchini. The defendant Washington Ridge Associates is a Connecticut partnership whose general partners are Berman, Silverman and Marocchini.2 On the bottom of the listing agreement next to the preprinted term “OWNER(S)” appears the typed name “WASHINGTON RIDGE ASSOCIATES, PTNSHP.” Under this name is the signature of Berman, and typed below his signature is “WILLIAM BERMAN, PARTNER” and a post office box address.

On October 10, 1989, Anchor Companies (Anchor) addressed a letter of intent to the plaintiff broker setting forth its proposal to purchase the property in question for $3,950,000. The letter was signed by Berman on October 11,1989, indicating his assent to enter into negotiations to draw up a purchase contract at that price. On October 24,1989, the defendants and Anchor executed a purchase contract that identified Berman, Silverman and Marocchini as the sellers of the property. The contract was signed by each of the sellers and listed a post office box as their address.3 The contract was contingent upon Anchor obtaining financing under certain stated terms. Anchor subsequently requested the return of its deposit when it was unable to obtain financing according to those terms. In its complaint the plaintiff claimed that the reason the sale did not go through was its refusal to acquiesce in the defendants’ alleged request that it compromise its commission. [516]*516The plaintiff brought this action in three counts: (1) a breach of contract claim on the basis of its alleged right to a commission under the listing agreement; (2) a claim for the value of its services under the theory of quantum meruit; and (3) a violation of the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq. On January 23, 1990, the trial court, R. O’Connell, J., granted the plaintiff’s application for a prejudgment attachment of real estate owned by the defendants. On February 13,1990, the defendants filed a motion to dissolve the prejudgment attachment pursuant to General Statutes § 52-278e.4 After a hearing, the trial court, Hon. Harry W. Edelberg, [517]*517state trial referee, denied that motion. The court concluded that although the listing agreement did not include the names, addresses or signatures of Silver-man and Marocchini, the requirements of § 20-325a (b) were satisfied because Berman had signed the agreement on behalf of the partnership. The court reasoned that a strict interpretation of § 20-325a (b) would conflict with the provisions of General Statutes § 34-475 concerning the authority of a partner to bind the partnership. The defendants subsequently filed a motion to dismiss pursuant to Practice Book § 142,6 and the trial court, Higgins, J., granted the motion on the ground that the court lacked subject matter jurisdiction. In so doing, the trial court concluded that Berman’s signature alone did not satisfy § 20-325a (b) [518]*518because title to the property was in the names of the three individual sellers, rather than in the name of the partnership. The court concluded that § 20-325a (b) required the names, addresses and signatures of Silverman and Marocchini to be included in the listing agreement in order for it to be binding. Both parties filed an appeal in the Appellate Court, and that court granted the plaintiffs motion to consolidate the appeals. We transferred the cases to ourselves pursuant to Practice Book § 4023.

In the first appeal, Docket No. 14113, the defendants challenge the denial of their motion to dissolve the prejudgment attachment.7 In the second appeal, Docket No. 14114, the plaintiff claims that the trial court improperly granted the defendants’ motion to dismiss. We conclude that the plaintiff’s cause of action was properly dismissed, although we reach our conclusion by a different procedural route than that traveled by the trial court.

In its challenge to the dismissal of the complaint (Docket No. 14114), the plaintiff asserts that: (1) the trial court incorrectly concluded that the requirements for an enforceable listing agreement set forth in § 20-325a (b) were not met; (2) under the law of the case, the trial court was bound by the earlier ruling by the state trial referee that the provisions of § 20-325a (b) were satisfied; and (3) even if the trial court was correct in concluding that the listing agreement did not meet the requirements of § 20-325a (b), it should not have dismissed the CUTPA count in the complaint because the plaintiff’s CUTPA claim was not subject to those requirements. We find none of these arguments persuasive.

[519]*519I

The right of a real estate broker to recover a commission is dependent upon whether the listing agreement meets the requirements of § 20-325a (b). New England Land Co. v. DeMarkey, 213 Conn. 612, 621, 569 A.2d 1098 (1990); Revere Real Estate, Inc. v. Carato, 186 Conn. 74, 77, 438 A.2d 1202 (1982). Section 20-325a (b) requires that the listing agreement: “(1) be in writing, (2) contain the names and addresses of all the parties thereto, (3) show the date on which such contract was entered into or such authorization given, (4) contain the conditions of such contract or authorization and (5) be signed by the owner or an agent authorized to act on behalf of the owner only by a written document executed in the manner provided for conveyances in section 47-5, and by the real estate broker or his authorized agent.” In addition, the broker ordinarily must prove that it has found a buyer that is ready, willing and able to purchase the property on terms agreed to by the seller. Storm Associates, Inc. v. Baumgold, 186 Conn. 237, 242, 440 A.2d 306 (1982); Revere Real Estate, Inc. v. Cerato, supra, 77-78.

The defendants contend that the trial court properly concluded that “owner,” as used in § 20-325a (b), means “record owner” and that the listing agreement is therefore unenforceable because it does not include the names, addresses or signatures of Silverman and Marocchini.8 The plaintiff argues that when construing the term “owner” in § 20-325a (b), this court must read that statute in light of § 34-47, which states that [520]

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Bluebook (online)
590 A.2d 438, 218 Conn. 512, 1991 Conn. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccutcheon-burr-inc-v-berman-conn-1991.