McLane v. Atlanta Market Center Management Co.

486 S.E.2d 30, 225 Ga. App. 818, 97 Fulton County D. Rep. 1080, 1997 WL 91617, 1997 Ga. App. LEXIS 308
CourtCourt of Appeals of Georgia
DecidedMarch 5, 1997
DocketA96A1685
StatusPublished
Cited by11 cases

This text of 486 S.E.2d 30 (McLane v. Atlanta Market Center Management Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McLane v. Atlanta Market Center Management Co., 486 S.E.2d 30, 225 Ga. App. 818, 97 Fulton County D. Rep. 1080, 1997 WL 91617, 1997 Ga. App. LEXIS 308 (Ga. Ct. App. 1997).

Opinion

McMurray, Presiding Judge.

Laura J. McLane — a licensed real estate agent — brought an action against her former employer, ,The Atlanta Market Center Management Company (“the broker”), the owners of an Atlanta office building known as the Inforum Mart (“the Inforum”), Inforum Associates, Inforum, LTD and Equitable Life Assurance Society of the United States (“the property owners”), and the property owners’ asset manager, Equitable Real Estate Investment Management, Inc. (“Equitable”), alleging the broker, the property owners and Equitable duped her out of a $246,618 lease commission after her primary *819 client, Atlanta Committee for the Olympic Games, Inc. (“ACOG”), “announced intentions to acquire 165,000 additional square feet of expansion space at the Inforum.” Specifically, McLane alleges that the broker hired her on a salary plus commission basis to lease space at the Inforum and that the broker breached this agreement by discharging her without severance pay and failing to pay her commission for ACOG’s subsequent lease expansion. McLane also alleges that Equitable tortiously interfered with her employment contract by refusing to allow her (or the broker) to negotiate with ACOG in violation of the broker’s exclusive right to lease the Inforum; that the broker assured her (after terminating McLane’s employment) that it would protect her commission rights; that contrary to this promise (and the broker’s fiduciary responsibility as a real estate professional and employer) the broker entered into a deal with Equitable resolving its commission claim without protecting McLane’s commission rights and that the broker, the property owners and Equitable unfairly converted her share of this settlement agreement. McLane’s damage claims are based on breach of contract, quantum meruit, unjust enrichment and tort. She also seeks punitive damages, attorney fees and expenses of litigation.

After filing separate answers, the broker, the property owners and Equitable filed a joint motion for summary judgment. McLane filed a motion for partial summary judgment. The matters of record underlying these opposing motions, when viewed from the perspective prescribed in Lau’s Corp. v. Haskins, 261 Ga. 491 (405 SE2d 474), reveal the following:

On October 20, 1987, the property owners granted the broker exclusive rights to manage and lease the Inforum and agreed to pay the broker a percentage of all lease revenues. Three years later, the broker stipulated that this exclusive agency agreement will expire on October 11, 1992, and that its right “to receive any compensation or other remuneration . . . shall expire upon the date of [the exclusive agency agreement’s] termination or expiration.”

In January 1989, the broker hired McLane “[t]o help develop [a] marketing program that attracted technology companies into the [Inforum].” Over two years later, the broker offered McLane a position as a leasing agent or “leasing director.” McLane agreed to change jobs based upon an understanding that her “sole responsibility [would be] to lease the building and to bring in tenants. . . .” She also relied on the broker’s promise to pay her a salary plus $1.50 for every square foot she leased, including additional square footage leased by any Inforum tenant which the broker assigned to McLane. The only conditions to McLane’s commission rights were execution of *820 a lease or lease amendment and the tenant’s occupancy of the leased space. 1

In early 1991, Jim Kranzusch, the broker’s General Manager and Executive Vice President, employed the broker’s entire leasing staff to attract ACOG to the Inforum, including McLane. McLane occasionally “met as a group [with this leasing team] to strategize on how to bring and attract ACOG into the facility [and she] assisted in the actual presentation to ACOG.” 2 When ACOG subsequently executed a lease for 29,081 square feet on the Inforum’s sixth floor (with expansion options on the same floor), the broker paid McLane $3,000 for her contributions to the leasing team and later assigned her the ACOG lease. McLane thereafter devoted most of her time — approximately 75 percent — to ACOG.

In assisting ACOG develop its sixth floor expansion option, McLane “helped [ACOG representatives] from everything to meeting with their architects and identifying needs to helping [ACOG’s Administrative Services Manager, Gladys L. Andrews,] do . . . the conceptual drawing [which helped] determine how much space [ACOG] needed.” McLane’s efforts resulted in five successive lease amendments which provided ACOG with additional space and yielded McLane about $32,000 in commissions. McLane’s efforts were stifled, however, when ACOG asked for more office space.

McLane received a letter from Gladys L. Andrews — dated July 22, 1992 — indicating ACOG’s desire to execute a final sixth floor lease amendment on September 18,1992. Andrews informed McLane that ACOG anticipated occupancy of this space on November 25, *821 1992; that ACOG’s long-term space needs exceeded the lease’s sixth floor expansion options and that ACOG projected a need for an additional 90,000 square feet of office space. Andrews then asked McLane to “provide [her] with rate options to expand on the fifth floor, the Apparel Mart, and/or surrounding Marts.”

McLane informed the broker’s new General Manager and Executive Vice President, Brian D. Hogg, and Equitable’s Director of Asset Management, William Randolph Forth, about ACOG’s expansion requests and asked for their advice. Forth responded by bypassing the broker and McLane and opening direct negotiations with ACOG via a letter dated August 12,1992. Forth then notified the broker (on August 25, 1992) that its exclusive right to manage and lease the Inforum will terminate when it expires on October 31, 1992, and, on September 30, 1992, Equitable instructed the broker and McLane not to contact ACOG regarding further lease expansion. Equitable’s “Investment Officer” and “Senior Vice President,” Grant Grimes, ultimately notified the broker, in a letter dated October 19, 1992, that a commission would not be paid for ACOG’s sixth lease amendment if the deal was not closed before October 31, 1992.

On October 31, 1992, the broker terminated McLane’s employment and offered her a severance package which required her to give up any commission claim for ACOG’s most recent lease expansion request. McLane refused this offer and pressed the broker to honor its promise to pay her a commission for the pending ACOG expansion deal. The broker’s Vice President of Human Resources, Lawrence B. Gardner, responded by posting the following letter, dated December 10, 1992, to McLane: “As I see it, this is a rather simple issue. We, as much as you, are interested in receiving commissions for any ACOG expansions. As stated in [an earlier] letter to you[,] we will endeavor to add ACOG to the list of “INFORUM Associates Acknowledged List of Lease Prospects by AMCMC at INFORUM.” If we receive any commissions from Equitable from [this list], now or in the future, we will pay you your proportionate share of those commissions. . . . It is certainly our intention to continue to pursue this issue with Equitable and resolve it.”

In a letter dated December 22, 1992, Brian D.

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Bluebook (online)
486 S.E.2d 30, 225 Ga. App. 818, 97 Fulton County D. Rep. 1080, 1997 WL 91617, 1997 Ga. App. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mclane-v-atlanta-market-center-management-co-gactapp-1997.