Reserve Realty, LLC v. Windemere Reserve, LLC

CourtSupreme Court of Connecticut
DecidedApril 4, 2023
DocketSC20635, SC20637, SC20636
StatusPublished

This text of Reserve Realty, LLC v. Windemere Reserve, LLC (Reserve Realty, LLC v. Windemere Reserve, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reserve Realty, LLC v. Windemere Reserve, LLC, (Colo. 2023).

Opinion

*********************************************** The “officially released” date that appears near the be- ginning of each opinion is the date the opinion will be pub- lished in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the be- ginning of all time periods for filing postopinion motions and petitions for certification is the “officially released” date appearing in the opinion.

All opinions are subject to modification and technical correction prior to official publication in the Connecticut Reports and Connecticut Appellate Reports. In the event of discrepancies between the advance release version of an opinion and the latest version appearing in the Connecticut Law Journal and subsequently in the Connecticut Reports or Connecticut Appellate Reports, the latest version is to be considered authoritative.

The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** THE RESERVE REALTY, LLC, ET AL. v. WINDEMERE RESERVE, LLC, ET AL. (SC 20635) (SC 20637) THE RESERVE REALTY, LLC, ET AL. v. BLT RESERVE, LLC, ET AL. (SC 20636) Robinson, C. J., and McDonald, D’Auria, Mullins, Ecker and Alexander, Js.

Syllabus

The plaintiffs, R Co., a real estate marketing company, and H, the executor of the estate of J, a broker who, along with S, was a founding member of R Co., sought to recover damages from the defendants, W Co. and B Co., for, inter alia, breach of certain real estate listing agreements that allegedly would have entitled the plaintiffs to certain brokerage fees and commissions. In 2002, a development group, D Co., engaged the services of J and S to negotiate the purchase of a large piece of property in the city of Danbury. D Co. then executed an agreement with J and S that gave them the exclusive right to sell or lease the property, or any part thereof, and that required any subsequent purchaser of the property to give J and S that same exclusive right. D Co. purchased the property and subsequently sold one parcel to W Co. and another parcel to B Co. Consistent with the exclusivity provision in D Co.’s agreement with J and S, the defendants reluctantly agreed to include in each of their purchase and sale agreements a provision giving J and S the exclu- sive right to sell or lease any part of their respective parcels, and the defendants subsequently executed separate exclusive listing agreements with J and S to that effect. Those agreements expressly provided that their terms would ‘‘begin’’ when the defendants acquired ownership of their respective parcels and would expire ten years ‘‘from the date of the first conveyance of an individual unit or executed lease . . . .’’ Thereafter, B Co. constructed an apartment complex on its parcel, and W Co. devised plans to construct commercial office space on its parcel. J died in January, 2013, and B Co. ultimately used its own leasing agent to market the apartments, with the first lease being entered into in March, 2013. The plaintiffs then initiated the present actions, alleging, inter alia, breach and anticipatory breach of the exclusive listing agree- ments. The trial court heard extensive evidence regarding the con- tracting parties’ intent, as well as testimony about certain contractual duties that J delegated to H, who was J’s husband and employed by J as a licensed salesperson, and J’s son, who is a licensed real estate broker with his own brokerage business. The trial court found for the defendants with respect to certain special defenses, concluding that the exclusive listing agreements were unenforceable because they violated state antitrust law, they did not satisfy the statutory (§ 20-325a (c)) requirement that commercial real estate listing agreements specify ‘‘the duration of the [brokerage] authorization,’’ and they were personal ser- vice contracts that required J’s personal performance. The Appellate Court affirmed the trial court’s judgments in favor of the defendants on the ground that state antitrust law barred the plaintiffs’ claims, but this court reversed the Appellate Court’s judgments and remanded with direction to consider the plaintiffs’ remaining claims. On remand, the Appellate Court again affirmed the trial court’s judgments, concluding that the unambiguous language in the exclusive listing agreements did not satisfy the requirements of § 20-325a (c) in that the agreements did not specify the duration of the brokerage authorization, insofar as the duration identified therein was not capable of being measured because it could be calculated only by reference to an uncertain future event, namely, the date of the first conveyance. On the granting of certification, the plaintiffs appealed to this court. Held:

1. The Appellate Court incorrectly concluded that the exclusive listing agree- ments did not specify the ‘‘duration of the authorization,’’ as required by § 20-325a (c) (2), and, therefore, that they did not comply with the requirements of that statute:

Because neither the statute nor the relevant regulations defined the word ‘‘duration,’’ this court looked to its commonly approved usage and concluded that the term ‘‘duration of the authorization,’’ as used in § 20- 325a (c) (2), plainly and unambiguously refers to a measurable length of time during which the authorization to act on behalf of the buyer or seller exists or lasts.

The express terms of the exclusive listing agreements in the present case provided that they began on the date the defendants acquired owner- ship of their respective parcels and expired ten years from the date of the first sale or lease of a unit on each respective parcel, and, because the length of time that the authorization would exist or last was capable of being measured, the agreements satisfied the requirement of § 20- 325a (c) (2) that they specify the duration of the brokerage authorization.

Moreover, an agreement can establish a fixed duration, even if the dura- tion cannot be determined at the outset of the making of the agreement, and, because the triggering event for the expiration of the authorizations was articulated with sufficient clarity to permit the parties to measure the length of the agreements, it was of no consequence that, when the exclusive listing agreements were executed, it was unclear for how long the parties would be bound insofar as no one knew if or when the first conveyance of an individual unit or executed lease would occur.

Furthermore, this court’s construction of the statute did not yield absurd and unworkable results, but, rather, the duration of authorization speci- fied in the exclusive listing agreements was clear, rational, and capable of being put into practice successfully, and, even if there were good public policy reasons for requiring commercial real estate listing agreements to contain a precise, fixed expiration date, this court declined to import such a requirement into § 20-325a (c) when it was not included in either the statute’s plain language or the governing regulations.

2. This court affirmed the Appellate Court’s judgments on the alternative ground that the exclusive listing agreements were unenforceable per- sonal service contracts that required the personal performance of J:

Although contractual rights and obligations generally survive the death of the contracting parties, there is an exception to that rule for personal service contracts, as such contracts require the personal performance of the obligor, which is rendered impossible by the obligor’s death.

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