Michael Salove Co. v. Enrico Partners, L.P.

23 A.3d 1066, 2011 Pa. Super. 128, 2011 Pa. Super. LEXIS 1092
CourtSuperior Court of Pennsylvania
DecidedJune 21, 2011
StatusPublished
Cited by9 cases

This text of 23 A.3d 1066 (Michael Salove Co. v. Enrico Partners, L.P.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael Salove Co. v. Enrico Partners, L.P., 23 A.3d 1066, 2011 Pa. Super. 128, 2011 Pa. Super. LEXIS 1092 (Pa. Ct. App. 2011).

Opinion

OPINION BY

BOWES, J.:

Michael Salove Company (“MSC”) appeals from the June 4, 2010 order granting summary judgment in favor of Enrico Partners, L.P. (“Landlord”). In this action, MSC sought brokerage commissions allegedly owed pursuant to a purported oral extension of a written exclusive listing agreement. Landlord cross appeals, challenging the trial court’s order of December 3, 2009, denying its claim for attorneys’ fees incurred in defending the broker’s lien claim. After careful review, we affirm the grant of summary judgment in favor of Landlord and we reverse the order denying Landlord’s petition for reasonable attorneys’ fees and costs incurred in defense of the broker’s lien action. We remand for imposition of those costs and fees.

Our review of the record has revealed the following. MSC is a real estate brokerage firm and its principal, Michael Sa-love, is a licensed broker. MSC and Landlord entered into a written exclusive listing agreement for the lease of 14,000 square feet of vacant space owned by Landlord in The Shoppes of Villanova. Mr. Salove prepared a short form agreement on behalf of MSC and submitted it to Jerald Holtz, Landlord’s Vice-President. Mr. Holtz reduced the term of the exclusive listing contract from 180 days to 120 days, and altered the compensation provisions. The parties executed the agreement as modified on February 20, 2007. The agreement, by its terms, expired on June 20, 2007.

At the end of the contract term, MSC had not procured a tenant for the vacant space that was acceptable to Landlord, nor had it identified any prospective tenants with whom it was negotiating. MSC alleged that prior to the expiration of the listing agreement, its principal, Michael Salove, entered into an oral agreement with Mr. Holtz to extend the agreement. Mr. Salove represented that

when the 120 days was coming up we also decided that it wasn’t imperative to get the agreement in writing, the extension in writing, and in conversations with [Mr. Holtz] we discussed let’s keep going, what adjustments we should be making to the type of people we were going after because we weren’t having a great deal of collective success and as such kept our signs on the property, kept the keys, kept showing it, kept [1068]*1068marketing it, all the things that we had been doing after that 120 days had passed.

Deposition of Michael Salove, 12/17/09, at 54.

Mr. Salove could not recall ever discussing the duration of the extension. Id. at 73. It was his understanding that they would proceed in accordance with the exclusive listing agreement. Id. at 74. Mr. Salove did not send any emails to Mr. Holtz memorializing the conversation. Id. at 55. Mr. Holtz flatly denied that there was any agreement, written or oral, to extend the term of the listing agreement. Deposition of Jerald Holtz, 3/2/10, at 50-51.

During the last week in July 2007, Stephen Bajus, then Summit Fitness’s landlord, contacted Landlord’s owner, Dr. Caruso, on behalf of his tenant. He had previously advised Summit President Steve Mountain that he had a new tenant for Summit’s space and, at Mr. Mountain’s request, he agreed to assist Summit in procuring suitable rental space. Mr. Ba-jus expressed to Dr. Caruso Summit Fitness’s interest in leasing the vacant space. Mr. Mountain was in Germany at the time, but Mr. Bajus and Dr. Caruso communicated via email about the property, and Landlord provided floor plans and other information. Mr. Bajus assured Dr. Caruso that when Steve Mountain returned, he would call to see the space and discuss the matter in greater detail.

Meanwhile, Steve Mountain asked his assistant, Chris McNellis, to view the site. Deposition of Steve Mountain, 12/17/09, at 18. Ms. NcNellis did so and saw MSC’s sign in the window. Id. at 19. She telephoned the broker to make arrangements for Mr. Mountain to see the property upon his return. On August 3, 2007, Michael Salove accompanied Mr. Mountain on a tour of the property, and followed up with a telephone call to him “to see what his level of interest was in the space.” Deposition of Michael Salove, 12/17/09, at 107-OS. During that conversation, Mr. Salove suggested a meeting at the property with Landlord’s people to talk about the improvement allowance and costs of construction. Id. at 108. A meeting occurred at the site with Steve Mountain, Jerry Holtz, Rob Shirley, and Mr. Salove in attendance. Id. at 109. Following that meeting, numerous emails were exchanged containing financial information on the prospective tenants. Id. Formal negotiations on the lease began on August 17, 2007, but Mr. Salove did not participate. Deposition of Steve Mountain, 12/17/09, at 78. The lease with Summit Fitness was executed on October 31, 2007, and MSC was not paid a brokerage commission.

On April 24, 2008, MSC filed a broker’s lien claim against Landlord pursuant to the Pennsylvania Commercial Real Estate Broker's Lien Act (“CREBLA”), 68 P.S. § 1051 et seq. Judgment was entered on the docket in the amount of $228,960.00, creating a lien on Landlord’s property. Landlord ruled MSC to file a complaint and MSC did so on May 29, 2008. MSC later amended the complaint to add claims for breach of contract, quantum meruit, and unjust enrichment, all based on services performed pursuant to the exclusive listing agreement. Landlord denied liability and petitioned to strike MSC’s lien. After an evidentiary hearing on the petition to strike, MSC voluntarily moved to dismiss its lien, and the court ordered the lien stricken on July 29, 2009.

The action for commissions based on the breach of contract, unjust enrichment, and quantum meruit proceeded. After the close of discovery, Landlord moved for summary judgment on three grounds: the claims for commissions were barred by the Real Estate Licensing and Registration [1069]*1069Act, RELRA, 63 P.S. § 455.101 et seq., because the nature of the services and the fee to be charged were not set forth in a written agreement signed by the consumer; there was no clear and convincing evidence of an oral contract; and MSC was not the “efficient procuring cause” of the transaction for which the commissions were claimed. On June 3, 2010, the trial court granted summary judgment in favor of Landlord, finding the claim for commissions pursuant to an oral modification extending the term of a written brokerage agreement to be barred under RELRA, and specifically, 63 P.S. § 455.606a(b)(l)(effective November 25, 1999). Landlord’s request for attorneys’ fees incurred in defending the lien was denied.

MSC appealed the grant of summary judgment and Landlord cross-appealed from the order denying attorneys’ fees. The trial court directed each party to file a concise statement of errors complained of on appeal and both parties timely complied. On appeal, MSC raises only one issue for our review:

Whether § 455.606a(b)(l) of the Pennsylvania Real Estate Licensing and Registration Act (“RELRA”) precludes an oral agreement to extend the term of a commercial written real estate broker’s agreement, where such written agreement, by operation of law, permits oral modifications of the written agreement.

Appellant’s brief at 4.

In reviewing the grant of summary judgment our standard of review is well-settled:

A reviewing court may disturb the order of the trial court only where it is established that the court committed an error of law or abused its discretion.

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Cite This Page — Counsel Stack

Bluebook (online)
23 A.3d 1066, 2011 Pa. Super. 128, 2011 Pa. Super. LEXIS 1092, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-salove-co-v-enrico-partners-lp-pasuperct-2011.