McIntosh v. Vector Properties, Inc.

1995 OK CIV APP 1, 889 P.2d 911, 66 O.B.A.J. 510, 1995 Okla. Civ. App. LEXIS 1, 1995 WL 54375
CourtCourt of Civil Appeals of Oklahoma
DecidedJanuary 3, 1995
Docket81215
StatusPublished
Cited by6 cases

This text of 1995 OK CIV APP 1 (McIntosh v. Vector Properties, Inc.) 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
McIntosh v. Vector Properties, Inc., 1995 OK CIV APP 1, 889 P.2d 911, 66 O.B.A.J. 510, 1995 Okla. Civ. App. LEXIS 1, 1995 WL 54375 (Okla. Ct. App. 1995).

Opinion

OPINION

STUBBLEFIELD, Judge.

This is an appeal from judgment in favor of plaintiffs after trial to the court on a claim for payment of real estate sales commission in connection with a lease. After a review of the record on appeal and applicable law, we affirm.

Plaintiff Burt H. McIntosh d/b/a The Lad-eo Group filed this action alleging that Defendants Tulsa Properties, Inc., and Vector Properties, Inc., had agreed to pay him a real estate sales commission for its brokerage services connected with the lease between Flint Industries and Bartlett Collins. Plaintiff originally sought judgment in the amount of $46,000 plus interest, attorney fees and costs.

Defendant Vector Properties, Inc., denied the allegations and asserted the affirmative defenses that Plaintiff had “no capacity to recover for agreements concerning leasing commissions between [Vector Properties] and others.” After filing a motion to dismiss Tulsa Properties, which was sustained, Plaintiff filed an amended petition against Vector, seeking judgment in the amount of $21,-182.25, as his share of the commissions.

The cause proceeded to trial to the court after amendment of the petition to reflect that Plaintiffs were Burt H. McIntosh, Patton, Inc., and Bob Boyne d/b/a The Ladeo Group. The trial court entered judgment in favor of Plaintiffs in the amount of $21,182.29 and awarded attorney fees in the amount of $10,000. After the trial court overruled Vector’s motion for new trial, Vector appeals.

In an action tried to the court with the jury waived, the finding of the trial court is as binding on appeal as the verdict of the jury. Consequently, if there is any competent evidence to support the trial court’s judgment, it will not be disturbed on appeal. United Engines, Inc. v. McConnell Constr., Inc., 641 P.2d 1101 (Okla.1980).

Vector first proposes that the trial court “erred in granting judgment to ... ‘the Lad-eo Group’ because it failed to possess a valid real estate license.” Citing 54 O.S.1991 § 83, Vector maintains that because Ladeo was not licensed or registered, Ladeo was prohibited from bringing the action and precluded from obtaining a judgment against Vector.

The style of the case clearly denotes that the action was brought by parties who were real estate brokers. The original petition was filed by Burt H. McIntosh, an individual, doing business as “The Ladeo Group.” However, through amendments, Stan Patton as an individual, and Bob Boyne as an individual, both of whom were both associated with McIntosh in “The Ladeo Group,” were added as Plaintiffs. Patton, Inc., was later substituted for Stan Patton. The evidence indicated that McIntosh, Boyne and Patton were all real estate brokers.

Thus, “The Ladeo Group” was not the “Plaintiff,” and the journal entry of judgment recites that the trial court granted “judgment in favor of the Plaintiffs.” Therefore, there is no merit to this proposition of error.

.Vector also contends that the trial court erred in finding that Vector’s vice-president, Robert Stewart, had apparent au *913 thority to bind Vector to a contract to share brokerage commissions. Citing McCall v. Monarch Royalty Corp., 179 Okla. 213, 64 P.2d 871 (1937), and State v. West, 796 P.2d 1178 (Okla.Ct.App.1990), Vector asserts that Plaintiffs acted at their peril by dealing with Stewart without first discovering what, if any, authority he had to bind Vector.

The trial court carefully and thoughtfully explained its decisional process in applying the facts to the law. It distinguished between actual authority and “implied or apparent authority.” It stated: “[T]his is not a buyer beware type of society where a ... person dealing with a corporation, has to deal with that corporation at [his] peril. You can deal with that corporation as to how the corporation allows its agents to conduct themselves.” The trial court found that, while it may not have been the specific personal intent of Vector’s president, James Dill, that Stewart enter into a contract on behalf of the corporation to pay commissions to Plaintiffs, Stewart had made binding commitments, at first orally and then verified by letter, to pay commissions.

“Apparent authority” of an agent is the authority that the principal knowingly allows the agent to assume or that he holds the agent out as possessing. Rosser-Moon Furniture Co. v. Oklahoma State Bank, 192 Okla. 169, 136 P.2d 336 (1942).

Three elements must exist before a third party can hold a principal liable for the acts of another on an apparent-agency principle]: “(a) conduct of the principal [which would reasonably lead the third party to believe that the agent was authorized to act on behalf of the principal], (b) reliance thereon by [the] third person, and (c) change of position by the third party to his detriment.”

Sparks Bro. v. Texas Moran Exploration, 829 P.2d 951, 954 (Okla.1991), quoting Rosser-Moon, 192 Okla. 169, 135 P.2d 336 (syllabus 2).

The evidence clearly indicates that Plaintiffs undertook action to procure a lease but upon agreement allowed Vector to pursue the prospect 1 , and thus relied upon representations and changed their position to their detriment. The critical issue was the conduct of Vector that might have reasonably led Plaintiffs to believe Stewart could commit Vector to an agreement. Plaintiffs introduced into evidence correspondence on Vector’s letterhead from “Vector Properties, Inc.,” signed by “Robert S. Stewart, Vice President.” The July 15, 1985, letter stated: “The purpose of this letter is to set forth commission guidelines between Vector or Phyllann Stansbarger and COMPROP for prospectsAistings Phyllann generated or worked on while with COMPROP.” COM-PROP was a business entity in which Stan Patton of Plaintiff Patton, Inc., was the broker and Stansbarger had been an associate under his license.

A second letter from “Vector Properties, Inc., Robert S. Stewart, Vice President,” written on Vector letterhead and dated December 30, 1985, was addressed to Plaintiff McIntosh of “The LADCO Group.” In that letter, Stewart acknowledged that “one half of any commissions received by Vector Properties on the Bartlett Collins lease [would be paid] to LADCO. LADCO will then distribute commissions to its agents or owners as it sees fit.” In, that letter, Stewart further stated:

I have been aware from the beginning of my talks with Ms. Stansbarger that this prospect originated from LADCO, and that while at COMPROP, Ms. Stansbarger continued to pursue this prospect. Because of Stan’s relationship with both COMPROP and LADCO and because Ms. Stansbar-ger’s license was with COMPROP, I erroneously assumed (and I think custom dictates) that Vector would pay COMPROP and COMPROP would pay LADCO. Also, it has never been my thought to pay (regardless to whom) less than a co-brokerage or 50/50 split of whatever Vector received from this transaction.

*914

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1995 OK CIV APP 1, 889 P.2d 911, 66 O.B.A.J. 510, 1995 Okla. Civ. App. LEXIS 1, 1995 WL 54375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcintosh-v-vector-properties-inc-oklacivapp-1995.