Poverman v. Walnut Hill Plaza, Inc.

261 F. Supp. 176, 1966 U.S. Dist. LEXIS 7542
CourtDistrict Court, D. Rhode Island
DecidedNovember 22, 1966
DocketCiv. A. No. 3110
StatusPublished
Cited by2 cases

This text of 261 F. Supp. 176 (Poverman v. Walnut Hill Plaza, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Poverman v. Walnut Hill Plaza, Inc., 261 F. Supp. 176, 1966 U.S. Dist. LEXIS 7542 (D.R.I. 1966).

Opinion

OPINION

PETTINE, District Judge.

This is an action by the plaintiff, Simon Poverman, a citizen of the state of Connecticut and a resident of the city and county of Hartford in said state to recover commissions for procuring for the defendant, Walnut Hill Plaza, Inc., a Rhode Island corporation with its principal office and place of business in the city of Pawtucket, Rhode Island, a tenant for certain real estate situated in the city of Woonsocket, county of Providence, belonging to the said defendant.

At the time of the alleged transaction and throughout the dealings between the parties, the said plaintiff, a real estate broker licensed by the state of Connecticut, was not a holder of a Rhode Island real estate license as required by Title 5, Chapter 20.5 of the Rhode Island General Laws, 1956.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

The plaintiff is and was at the time of the commencement of this action a citizen of the state of Connecticut; the defendant, Walnut Hill Plaza, Inc., is a Rhode Island corporation with a principal office and place of business in the city of Pawtucket, in the state of Rhode Island.

This is an action brought by the said plaintiff to recover certain commissions which he alleges are due by virtue of having procured a tenant for certain real estate belonging to the said defendant situated in the county of Providence, state of Rhode Island, more specifically, in the city of Woonsocket.

The plaintiff is and was at the time of the transaction and throughout the dealings between the parties, a real estate broker licensed by the state of Connecticut ; that at no time was he a holder of a Rhode Island real estate license as required by Title 5, Chapter 20.5 of the Rhode Island General Laws, 1956.

The court further finds that the plaintiff was contacted by a Mr. Arthur Schatz, an attorney in Hartford, and was advised that the defendant might be interested in his services. As a result, he contacted a Mr. Charles Farrell, President of the defendant corporation, and arranged a meeting in Rhode Island which took place sometime in February 1962 at the site of the real estate in question, a. shopping center in the city of Woonsocket. At this meeting, the plaintiff was given several documents such as books, pictures and a plot plan; as a result, he contacted clients including a Mr. Charles Bennington, owner and official cfa discount house known as Big Ben, located in Poughkeepsie, New York. Mr. Bennington indicated interest and met the plaintiff in Hartford, Connecticut who then transported him to Woonsocket, Rhode Island where they conferred with Mr. Farrell and inspected the location in question. At this meeting, considerable discussion took place, most of which was between Mr. Farrell and Mr. Ben-nington. However, the plaintiff, on his own initiative, did speak of the merits of the defendant’s location and gave his opinion in the light of his experience as a real estate broker; driving into Rhode Island and leaving the state, but nevertheless while still within its boundaries, and alone with Mr. Bennington, he did discuss the-proposition with him, giving his views as to its advantages. In substance, as the plaintiff himself testified, he acted as a real estate broker, attempting to lease the property for the defend[178]*178ant.1 * * * The defendant has made a motion for dismissal pursuant to rule 41(b). In support of his motion, among other things, the defendant argues the plaintiff’s status as a licensed broker in Rhode Island. The gravamen of the motion as it pertains to Title 5, Chapter 20.5 is that the plaintiff has acted as a real estate. broker within the state of Rhode Island without a license as required by Title 5, Chapter 20.5 of the Rhode Island General Laws 1956 and should, therefore, be precluded from maintaining this suit for his commission in this court.

The court need not concern itself with Section 2 of this law which deals with those who are exempt from its provisions. The evidence was uncontradicted and the court so finds that the plaintiff was an independent non-resident broker who did not fall within any one of the exempt provisions of this section.

The controlling provisions of the Rhode Island General Laws read as follows:

Title 5, Chapter 20.5, Section 16— Actions for recovery of fee or commission:

“Except as otherwise provided no person shall maintain an action in any court of this state for the recovery of a commission, fee or compensation for any act done, the doing of which is prohibited under this chapter to other than licensed brokers, unless such person was licensed hereunder as a broker at the time of the doing of the act.” Title 5, Chapter 20.5, Section 1 — Definition of terms:

(c) Real estate broker- — -“shall include all persons, partnerships, associations and corporations, foreign and domestic, who for a fee, commission, or other valuable consideration, or who with the intention or expectation of receiving or collecting the same, lists, sells, purchases, exchanges, rents, leases, appraises, or auctions any real estate, or the improvements thereon including options or who negotiates or attempts to negotiate any such activity; or who advertises or holds himself, itself or themselves out as engaged in such activities; or who directs or assists in the procuring of a purchaser or prospect calculated or intended to result in a real estate transaction * *

Title 5, Chapter 20.5, Section 9— Norn-Resident brokers:

(B) * * * “that a licensed real estate broker may pay a commission to a licensed real estate broker of another state; provided, further, that such non-resident real estate broker does not conduct in this state any of the negotiations for which a fee, compensation or commission is paid.”

The courts of Rhode Island have long adhered to the principal that a statute is to be construed with reference to its intended scope and to the purposes sought to be accomplished through the enactment thereof. When the language contained in a particular statute is free from ambiguity and expresses a definite and sensible meaning, that meaning is conclusively presumed to be the one which the legislature intended to convey, and in such circumstances that statute is to be interpreted literally. Cf. Davis v. Lussier, 86 R.I. 304, 134 A.2d 124; New England Die Co. v. General Products Co., 92 R.I. 292, 168 A.2d 150.

We are constrained to conclude that the pertinent provisions in question are to be interpreted so as to bar a nonresident broker, who is not licensed in Rhode Island, from maintaining a suit for his commission if he has done any act in Rhode Island in the furtherance of the prospective sales contract.

The term negotiation, within the statute prohibiting unlicensed real estate broker from maintaining action, has been interpreted as comprehending efforts of the broker to interest a prospective purchaser and bringing him to the point of being considered a likely buyer. See [179]*179George Nangen & Co. v. Kenosha Auto Transport Corp., 238 F.Supp. 157 (D.C. 1965); Munson v. Furrer, 261 Wis. 634, 639, 53 N.W.2d 697 (1952).

In Tanenbaum v. Sylvan Builders, Inc., 29 N.J.

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261 F. Supp. 176, 1966 U.S. Dist. LEXIS 7542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/poverman-v-walnut-hill-plaza-inc-rid-1966.