Moody Realty Co., Inc. v. Huestis

237 S.W.3d 666, 2007 Tenn. App. LEXIS 191
CourtCourt of Appeals of Tennessee
DecidedApril 4, 2007
StatusPublished
Cited by63 cases

This text of 237 S.W.3d 666 (Moody Realty Co., Inc. v. Huestis) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moody Realty Co., Inc. v. Huestis, 237 S.W.3d 666, 2007 Tenn. App. LEXIS 191 (Tenn. Ct. App. 2007).

Opinion

OPINION

DAVID R. FARMER, J.,

delivered the opinion of the court,

in which ALAN E. HIGHERS, J., and HOLLY M. KIRBY, J., joined.

This is a breach of contract action for the recovery of a real estate brokerage commission. The trial court found that the parties did not enter into a binding buyer’s representation agreement because there was no meeting of the minds. Instead, the court awarded the plaintiff real estate broker damages in quantum meruit. On appeal, we find that the parties mutually assented to the terms of the buyer’s representation agreement and that the broker was entitled to its commission as stated in the contract. We vacate the award of damages in quantum meruit, affirm in part, reverse in part, and remand for entry of judgment in accordance with the contract.

In this action to recover a real estate brokerage commission, Moody Realty Company, Inc. (Moody Realty) alleged that Ronald and Lisa Huestis (Mr. Hues-tis, Mrs. Huestis, or the Huestises) breached the buyer representation agreement when they refused to pay the commission for their purchase of a dairy farm specifically listed in the agreement. After telling Moody Realty agents they were not interested in the farm, they proceeded to negotiate directly with the seller and to purchase it without Moody Realty’s involvement. The dispositive issue on appeal involves the question of contract formation. Specifically, the Huestises contend they were not bound by the buyer representation agreement because there was no meeting of the minds. To support this argument, they rely upon the absence of Mrs. Huestis’s signature, Moody Realty’s alleged refusal to sign the contract in Mr. Huestis’s presence, the alteration of the contract termination date, and Moody Realty’s alleged failure to provide the Huestises with a copy of the contract. The trial court found there was no meeting of the minds and therefore no contract, but it awarded $20,000 in quantum meruit to Moody Realty. On appeal, the Huestises raise the issue of whether the lower court erred in awarding damages in quantum meruit when no proof was offered at trial regarding the reasonable value of the agents’ services. Moody Realty raises the additional issue of whether the lower court erred by finding an absence of contract between the *669 parties. We believe the evidence in the record preponderates against the trial court’s finding. There was a meeting of the minds, and thus a binding contract, between the parties. We vacate the award of damages in quantum meruit, affirm in part, reverse in part, and remand for entry of judgment in accordance with the contract.

Facts and Procedural History

In July of 2004, the Huestises sought the assistance of Moody Realty in locating a dairy farm to purchase in Tennessee. In late July of 2004, they drove to Paris, Tennessee from their home in Vermont and met with associate broker William Fuchs (Mr. Fuchs) and broker James Oliver (Mr. Oliver), both employees of Moody Realty, to view available farm properties. Mr. Fuchs first showed Mr. Huestis one of their listed properties, the Arnold farm. Then, Mr. Fuchs and Mr. Oliver (the agents) drove the Huestises by the Arnold farm again and proceeded to show them two other farms, the Leach farm and the Hazelton farm, that were not listed by Moody Realty. The Hazelton farm was not listed by anyone at the time of the Huestises’ visit, but the agents knew the owners of the Hazelton farm would entertain offers to purchase the property.

On that day, the agents presented a standard, two-page Buyer’s Representation Agreement (“buyer’s representation agreement” or “agreement”) provided by the Tennessee Association of Realtors to the Huestises. The first page identifies “Ron Huestis and wife” as the client employing Moody Realty as a non-exclusive agent to locate property for purchase and to advocate on their behalf during any negotiations. The agreement also provides that it is effective from the date of execution until “1-1-06” or until the closing if it occurs before that date. Moody Realty agents had written the termination date of “1-1-06” in the blank supplied. Under the section listing the client’s obligations, paragraph two (2) states that the client

authorize^] Broker to negotiate for a fee paid by the Seller and/or the Seller’s agent, the payment of which will be fully disclosed to Client. If a fee is not offered or paid to Broker, as could occur, for example, in the purchase of an unlisted property, Client agrees to pay Broker a total of ... 8% compensation based on the total sales price.... Broker’s fee is earned at the signing by both parties of an agreement to purchase any property(ies) as described above through the efforts of Broker and is due at the closing of any such transaction.

On the first page, the agreement specifically exempts the “Wilford Duncan” property and, on the second page, specifically includes the Hazelton and Leach farms in the space provided for other terms and conditions. This section, also penned by Moody Realty agents, provides as follows: “This agreement valid on Ron Huestis and is valid for David Leach and Richard Ha-zleton [sic] dairy farms.”

It is undisputed that Mr. Huestis signed the agreement and that Mrs. Huestis did not. Moody Realty offered the original page two (2) into evidence, bearing the signatures of Mr. Huestis, Mr. Fuchs, and Mr. Oliver. At the time it filed suit, Moody Realty could not locate the first page of the agreement but obtained it from attorney Max Speight (Mr. Speight), who had earlier obtained it from the Huestises. 1 *670 Excluding Mr. Speight’s notations in the margin (which are irrelevant to this case), both parties authenticated the copy of the first page. All appear to agree that the agents discussed the buyer representation agreement while they were en route from the Arnold property to the Leach farm. And, with the exception of the termination date dispute, the Huestises testified to knowing and understanding the terms of the agreement, which included an eight percent (8%) commission on the sales price of the Hazelton or Leach farm if purchased.

The parties vigorously dispute when the agents signed the agreement and what they provided to Mr. Huestis to evidence the contract. There is no dispute that Mr. Huestis received a copy of the written contract, including the terms penned by Moody Realty, but little in the record clarifies whether Mr. Huestis received a partially or fully executed copy in addition to a completely blank one. First, Mr. Fuchs and Mr. Oliver testified that they both signed the agreement in the presence of Mr. Huestis and that Mr. Fuchs copied the agreement for the Huestises in the Moody Realty office at the end of that day. Yet, their testimony fails to account for the Huestises’ possession of partially executed and/or blank copies of the agreement including the handwritten terms.

Unfortunately, the Huestises’ testimony brought no clarity to the matter. Mr. Huestis testified that the agents did not sign the agreement in his presence. Alongside these assertions, however, Mr. Huestis made ambiguous statements that clouded his version of events. When recounting his trip to the Moody Realty office at the end of the day, Mr.

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Bluebook (online)
237 S.W.3d 666, 2007 Tenn. App. LEXIS 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moody-realty-co-inc-v-huestis-tennctapp-2007.