Newman v. James M. Vardaman & Co.

293 S.E.2d 462, 162 Ga. App. 878, 1982 Ga. App. LEXIS 2373
CourtCourt of Appeals of Georgia
DecidedJuly 8, 1982
Docket63826, 63827
StatusPublished
Cited by6 cases

This text of 293 S.E.2d 462 (Newman v. James M. Vardaman & 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
Newman v. James M. Vardaman & Co., 293 S.E.2d 462, 162 Ga. App. 878, 1982 Ga. App. LEXIS 2373 (Ga. Ct. App. 1982).

Opinion

Pope, Judge.

Appellee James M. Vardaman & Co. brought suit against appellant W. A. Newman, seeking to recover a real estate commission allegedly earned as a result of the sale of some three hundred acres of timberland owned by appellant in Wilcox County. Appellant filed a counterclaim for damages allegedly resulting from appellee’s breach of contract. The case proceeded to trial and the jury returned a verdict for appellee on both the claim and the counterclaim.

Appellant asserts eighteen enumerations of error, seventeen of which relate to the jury instructions and one relating to the trial court’s alleged refusal to allow certain evidence in the case. Appellee filed a cross-appeal as a precautionary measure in the event of a decision for reversal and remand for new trial on the main appeal.

The facts were in dispute and we have endeavored herein to glean from the conflicting evidence, in light of the jury verdict, what transpired. Appellant, defendant below, was the owner of approximately 304 acres of land in Wilcox County. Appellee, plaintiff below, is a real estate broker.

In December 1978 appellant responded to a newsletter published by appellee, requesting information regarding the services offered by appellee. As a result, appellant was contacted by Edwin Orr, a real estate salesman employed by appellee. Orr met with appellant, surveyed the property to be sold and submitted an offer of services. Appellant declined at that time.

In June 1979 appellant contacted appellee again regarding the same piece of property. Orr again visited appellant. On June 27 Orr submitted an offer to appellant in the form of a letter. The letter was *879 signed by appellee’s registered broker and it set forth the terms of the proposed agreement. Appellant was requested to indicate his acceptance by signing the letter, which he did. The agreement provided in part: “We [appellee] will measure and mark all of the sawtimber and cruise the pulpwood. We will then prepare and send out sale announcements to prospective timberland buyers, advertise in local newspapers, receive bids for opening by you and close the sale. These sales are sealed-bid, lump-sum, cash-in-advance transactions. Our fee for the entire operation is 10% of the high bid, payable when we close the sale.”

Appellee marked, measured and cruised the timber, prepared and sent out sale announcements and advertised in the local newspaper. In addition, appellee’s salesman, Orr, contacted several local prospective buyers. One of these was Gilman Paper Company.

Two bids were submitted by the bid closing date of September 27,1979. One was a sealed bid in the amount of $146,550. The other was a bid by W. K. Ward, president of W. K. Ward Enterprises, Inc., in the amount of $192,405. The latter bid was communicated to Orr via telephone, which Orr reduced to writing and submitted to appellant in a sealed envelope along with the other bid.

The Ward bid, as submitted, was acceptable to appellant. Appellee, through Orr, discussed terms with appellant and then Orr telephoned Ward, stating the proposed terms. The proposed payment terms basically spread the purchase price over three tax years. Ward was unwilling to agree to the payment terms over the telephone and by himself but indicated his willingness to buy the land during the conversation. He told Orr that he was purchasing the property as part of a land swap deal with Gilman Paper Company. Following the telephone conversation, Ward mailed Orr a written confirmation of his bid and Orr sent Ward the proposed terms in writing.

The attorney initially handling the transaction for Ward was Tom J. Crosby, counsel also for Gilman Paper Company. On October 16, 1979 Crosby wrote a letter to appellant, with a copy to Orr, proposing to close the transaction on October 26, 1979. Enclosed with the letter was a closing statement and warranty deed. The closing statement indicated the buyer to be Zippy Mart, Inc. and it listed as part of the charges to seller the ten percent brokerage fee to appellee. (The deed enclosed was not produced at trial and it is unclear who was named grantee therein.)

Because Ward could not raise the down payment by the October 26 closing date, the deal was not closed then. On November 9 Crosby sent Orr a proposed six month option contract. On November 27 appellant and Ward signed a sales contract for the property. Closing *880 date was set for May 27, 1980. The purchase price was $192,405, the same as the September 27 bid price. The contract provided for appellee’s ten percent commission to be paid by appellant. (Appellee was not present during this transaction.) After signing the sales contract with appellant, and on the same day, Ward executed an assignment of his interests under the contract to Zippy Mart.

On May 27, 1980 appellant consummated the sale to Zippy Mart. Despite efforts to be included at the closing, appellee was excluded. (The related exchange of property between Gilman Paper Company and Zippy Mart took place on June 10, 1980.) Appellant refused to pay appellee the ten percent real estate commission. On July 11, 1980 appellee filed suit. Appellant now appeals the jury verdict for appellee.

1. Appellant’s first enumeration of error is that the trial court erred in charging the jury that appellee was a licensed real estate broker. Appellant’s second enumeration contends that the court erred in failing to charge that appellee was required to allege and prove it was a duly licensed real estate broker at the time the cause of action arose. Because appellant failed to object to these charges, our standard of review is the substantial error test. Code Ann. § 70-207 (a) and (c); Sturdivant v. Polk, 140 Ga. App. 152 (5) (230 SE2d 115) (1976), and cases cited. See also Collins v. Martin, 157 Ga. App. 45 (4) (276 SE2d 102) (1981); Yale & Towne, Inc. v. Sharpe, 118 Ga. App. 480 (2) (164 SE2d 318) (1968).

Code Ann. § 84-1404 (a) provides: “No person shall bring or maintain any action in the courts of this State for the collection of compensation for the performance of any of the acts mentioned in this Chapter without alleging and proving that he was a duly licensed real estate broker or salesman at the time the alleged cause of action arose.”

Appellee alleged in its complaint that it was duly licensed and submitted documentary evidence at trial, in the form of a certification from the Georgia Real Estate Commission, as proof thereof. The certification was admitted without objection and it was not disputed or controverted by appellant. At the close of the trial, in its charge to the jury, the court did charge that appellee was a licensed real estate broker. This was improper. Under § 84-1404 (a) the burden was upon appellee to prove this fact to the jury and the court should have so charged. However, we do not find this to be substantial error. Although it was a question of fact for the jury, it was supported by strong, undisputed evidence. A rational trier of fact could not have concluded otherwise. See Sturdivant v. Polk, supra.

Appellant argues that appellee failed to comply with Code Ann. § 84-1417 and therefore the conditions of § 84-1404 (a) were not met. *881 Appellant raises this argument for the first time on appeal.

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293 S.E.2d 462, 162 Ga. App. 878, 1982 Ga. App. LEXIS 2373, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-james-m-vardaman-co-gactapp-1982.