Raddatz v. Northland Development Co. of Minneapolis

352 N.W.2d 474, 1984 Minn. App. LEXIS 3960
CourtCourt of Appeals of Minnesota
DecidedJuly 24, 1984
DocketC7-83-1757
StatusPublished
Cited by3 cases

This text of 352 N.W.2d 474 (Raddatz v. Northland Development Co. of Minneapolis) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raddatz v. Northland Development Co. of Minneapolis, 352 N.W.2d 474, 1984 Minn. App. LEXIS 3960 (Mich. Ct. App. 1984).

Opinion

OPINION

RANDALL, Judge.

Northland appeals from a judgment awarding James Raddatz a real estate broker’s commission upon a completed lease. Northland contends the trial court erred by directing the jury that the parties had an enforceable written listing agreement and that Raddatz had earned a commission under the agreement. Northland also contends the court erred by calculating the judgment without regard to a stipulated set off for services Northland provided to Raddatz. We affirm.

FACTS

Northland owns Northland Park, an industrial park in Brooklyn Center. In 1977 Northland hired Raddatz to head its marketing efforts and to work with outside brokers. Under the oral agreement, Rad-datz received a 20 percent override on commissions earned by outside brokers. He received free office space, supplies and secretarial services, and membership in North-land’s sports and health club. Raddatz also received commissions for sales and leases he arranged.

Written Listing Agreement

The trial court instructed the jury that a real estate brokerage commission schedule prepared and distributed by Northland to brokers was the listing agreement between the parties. From 1977 through 1979 Northland paid Raddatz more than 60 commissions according to the terms of the schedule.

James Stuebner, president of Northland, argued that the schedule was merely advertising used to let the brokerage community know that Northland pays commissions to outside brokers. He said North-land uses written listing agreements, but could not recall any particular written listing agreements Northland had with outside brokers.

Performance to Earn Commission

Raddatz’s involvement with the Network Systems deal is clear. He registered Network Systems with Northland as a prospective tenant to preclude anyone else from collecting a commission on a lease signed by the company. He made the initial contact and arranged for Network Systems officials to tour Northland Park. After the first few meetings Stuebner took over the protracted planning and negotiations which eventually culminated in Network Systems signing a “build to suit” lease. Stuebner told Raddatz he would take over the final negotiations at that point, and there was no claim by appellant that Stuebner took over the negotiations because Raddatz had not done something he was supposed to have done.

The commission schedule specifies that Northland pays full commissions for introductions. It provides:

Unlike many commercial and industrial parks, Northland park does not maintain its own sales staff to the exclusion of independent, experienced real estate brokers. We pay full commissions to brokers that introduce clients to us even though Northland’s design, engineering and executive staff may become deeply involved in planning the client’s building and closing the sale. Under those circumstances, we do not believe in discounting a full commission to a “Finder’s Fee.”

Raddatz testified and an outside broker confirmed that Northland has paid brokers commissions for nothing more than an introductory telephone call where the prospect eventually signed a lease.

*477 Stuebner testified that Raddatz worked “under the same ground rules” as outside brokers in earning commissions. He said that to earn a commission from Northland a broker had to procure the tenant, bring him to the park, show him the space and be responsible for execution of the lease. He said Northland denied Raddatz the commission because of Stuebner’s own extensive involvement in the Network Systems deal. The record supports no inference that Northland could deny or cut down on earned commissions by voluntarily interjecting themselves into the lease negotiations with prospective tenants.

Stuebner conceded Raddatz was entitled to some commission in a letter to Raddatz. The letter stated:

Dave asked me yesterday if there was a commission due on the Network Systems lease to you, since he knew that you had been involved in the early negotiations on this deal. I told him I felt there was but in reviewing my files, I cannot find that we ever discussed the exact amount of the commission to be involved.

ISSUES

1. Did the trial court err in directing the jury that the parties had an enforceable written listing agreement and that Raddatz had earned a commission under the agreement?

a. Was the commission schedule the listing agreement between the parties?
b. Did Raddatz earn a commission under the terms of the listing agreement?
e. Does the commission schedule satisfy the requirements of Minn.Stat. § 82.-33 (1978)?

2. Did the trial court err by calculating the judgment without regard to a stipulated set off for services provided to Raddatz by Northland?

ANALYSIS

I.

A court should grant a directed verdict only in those cases where:

(1) in light of the evidence as a whole, it would clearly be the duty of the trial court to set aside a contrary verdict as being manifestly against the entire evidence, or where (2) it would be contrary to the law applicable to the case. Despite the fact that a motion for a directed verdict admits for the purposes of the motion the credibility of the evidence for the adverse party and every inference which may be fairly drawn from such evidence, a court should direct a verdict in favor of the party in whose favor the evidence overwhelmingly preponderates even though there is some evidence in favor of the adverse party. Not every conflict in the evidence gives rise to a jury question.

J.N. Sullivan & Assoc, v. F.D. Chapman Const., 304 Minn. 334, 336, 231 N.W.2d 87, 89 (1975) (emphasis added).

1(a)

Northland contests the existence of a written agreement between the parties. The company argues that Raddatz’s oral employment contract, not the commission schedule, governed dealings between the parties. According to Northland, the schedule is merely advertising aimed at outside brokers rather than Raddatz. Moreover, the company claims the schedule is too indefinite to be treated as an offer accepted by performance.

If Stuebner’s testimony about the schedule were considered in a vacuum it would be sufficient to raise a jury question. However, Stuebner admitted that Raddatz operated under the same ground rules as outside brokers in earning commissions. Northland used the commission schedule as a listing agreement with outside brokers. It paid Raddatz more than 60 commissions according to the terms of the schedule. The evidence establishes that the schedule was the listing agreement between the parties.

Kb)

Northland contends that even if there was an agreement Raddatz did not earn a *478 commission because he was not the procuring cause of the lease. The company argues that because Stuebner took over the negotiation Raddatz is not entitled to a commission.

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Cite This Page — Counsel Stack

Bluebook (online)
352 N.W.2d 474, 1984 Minn. App. LEXIS 3960, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raddatz-v-northland-development-co-of-minneapolis-minnctapp-1984.