Ravenel Co. v. Abraham

275 F. Supp. 797, 1967 U.S. Dist. LEXIS 8658
CourtDistrict Court, E.D. Louisiana
DecidedNovember 22, 1967
DocketCiv. A. No. 3171
StatusPublished
Cited by1 cases

This text of 275 F. Supp. 797 (Ravenel Co. v. Abraham) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ravenel Co. v. Abraham, 275 F. Supp. 797, 1967 U.S. Dist. LEXIS 8658 (E.D. La. 1967).

Opinion

WEST, District Judge:

Defendant, Wilson P. Abraham, domiciled in Baton Rouge, Louisiana, was, at all times pertinent hereto, the owner, either individually or through corporations which he controlled, of certain motor hotel properties which he leased in April, 1964, to a corporation known as Parliament House, Inc. Plaintiff, Ravenel Company, Inc., was, at the time of the leasing of said properties, a real estate brokerage firm domiciled in Atlanta, Georgia. One of the properties so leased, and involved in this suit, is located in Baton Rouge, Louisiana, and the other is located in Atlanta, Georgia. Ravenel claims to have been the real estate broker employed by defendant, Abraham, to lease the properties, and further claims that it did, in fact, bring the parties to the leases together and that it is now entitled to its real estate brokerage fees for services rendered in connection with these leases. Defendant denies that he ever dealt with plaintiff as a real estate agent or broker and denies that the leases were consummated as a result of any activity on plaintiff’s part.

The Court has little difficulty in concluding that as to the Baton Rouge property, plaintiff has no valid claim for real estate commissions. Neither plaintiff corporation nor its employee who worked on this lease, Mr. Gordon W. Cahoon, were licensed as real estate agents, salesmen, or brokers under the laws of the State of Louisiana. Therefore, insofar as the Baton Rouge property is concerned, they are not entitled to recover any real estate commissions related thereto, whether they were instrumental in securing the leases or not. Despite the contention of plaintiff that Louisiana law denying the right of out of state real estate brokers to recover fees in connection with the handling of Louisiana properties relates only to sales of such properties and not to leases, this Court does not read such a distinction in the statutes involved. LSA-R.S. 37:1437 provides:

“No person shall engage in the business or capacity, either directly or indirectly, of a real estate broker, a real estate salesman, or a business chance broker unless he has a license under the provisions of this Chapter.”

It is then provided in LSA-R.S. 37:1450 that:

“No person, not licensed in accordance with the provisions of this Chapter, shall recover any fee, claim or charge for brokerage in the courts of this state.”

A real estate broker is defined in LSA-R.S. 37:1431(3) as follows:

“ ‘Real estate broker’ means any person who, for a compensation or valuable consideration sells or offers for sale, buys or offers to buy, or negotiates the purchase or sale or exchange of real estate, or who leases or offers to lease, or rents or offers for rent, any real estate or the improvements thereon for others, as a vocation.”

Plaintiff contends that these statutes do not prohibit one who negotiates for the purpose of bringing about leases of Louisiana properties, as distinguished from who negotiates for the purpose of bringing about a sale or exchange of Louisiana properties from suing in Louisiana courts for his fee even though he is not licensed in accordance with these statutes. The Court, however, does not accept this distinction. The statutes involved are clearly intended to prohibit a non-licensed person from engaging in any aspect of real estate business in the State of Louisiana for the account of others. As a means of enforcing these statutes, one who violates them is denied access to the courts of Louisiana for the collection of his fee. Insofar as plaintiff’s claim here for fees earned in connection with the leasing of the Baton Rouge property is concerned, this case is governed by Horwitz v. Food Town, D.C., 241 F.Supp. 1, aff’d. 367 F.2d 584. Since neither the plaintiff nor its agents were licensed as real estate brokers pur[799]*799suant to the laws of the State of Louisiana, they may not recover any real estate brokerage fees in connection with negotiations to lease or for any other activities connected with the leasing of Louisiana properties for others.

The dispute concerning the Atlanta, Georgia property, however, raises different questions. There is no question but that plaintiff has a right to earn and collect real estate brokerage fees if his services are contracted for and if the services rendered are in connection with real estate located in the State of Georgia. The questions, therefore, involved here are (1) whether or not plaintiff was employed as a broker to represent defendant in connection with the leasing of the Georgia property, and (2) whether or not plaintiff did in fact perform such services as entitled it to a brokerage fee. The Court concludes, after carefully studying all of the evidence in this case, that both of the above questions must be answered in the affirmative.

During the latter part of 1963, Gordon W. Cahoon, an employee and agent of plaintiff, Ravenel Company, Inc., was thoroughly familiar with the operations of Parliament House Motor Inns, Inc., a corporation engaged in the business of operating motor hotels, and knew that they wanted to expand their operations. Both Cahoon and Ravenel Company were licensed real estate salesmen, agents and/or brokers in the State of Georgia. Some time during the month of December, 1963, Cahoon learned that Abraham owned or controlled certain motor hotel properties, including one under construction in Atlanta, Georgia, containing 240 rooms, to be known as the Atlanta Royale Motor Hotel. At that time Cahoon, as an employee of Ravenel, acting in the capacity of a real estate broker, was looking for properties that might interest Parliament House. He called the president of a company known as Lamplighter Motor Inns of St. Louis, Missouri, concerning a facility which they were building in Atlanta. It was during this phone conversation that Cahoon was told that the defendant, Wilson Abraham, of Baton Rouge, Louisiana, might have some properties that might be available for lease. On December 31, 1963, Cahoon called Abraham by telephone and told him that he worked for Ravenel Company and inquired as to whether or not he, Abraham, had motor hotel properties that might be available for lease. Abraham was interested, and on the same day, December 31, 1963, he wrote to Cahoon giving a short description of the properties that were or would be available, including the one in Atlanta, Georgia. In this letter Abraham also outlined the rental payments that would be required on these properties. This information was then sent by Cahoon to Parliament House, and on January 15,1964, Mr. Byron E. Prugh, of Parliament House, wrote Cahoon stating that Parliament House was interested but that they thought the suggested rental' was too high. He suggested that Cahoon approach Abraham on a different rental basis proposed by Prugh. Prugh further suggested that Cahoon take Abraham to-Birmingham, Alabama, to see one of Parliament House’s typical operations. On January 24, 1964, Cahoon wrote to Abraham advising him that Parliament. House was definitely interested and that Mr. Prugh would contact him to make a visit to inspect, among others, the available facility in Atlanta.

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Bluebook (online)
275 F. Supp. 797, 1967 U.S. Dist. LEXIS 8658, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ravenel-co-v-abraham-laed-1967.