Reserve Realty, LLC v. Windemere Reserve, LLC

CourtConnecticut Appellate Court
DecidedJune 22, 2021
DocketAC38167, AC38440, AC38442
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 Connecticut Appellate Court 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. Ct. App. 2021).

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. (AC 38167) THE RESERVE REALTY, LLC, ET AL. v. BLT RESERVE, LLC, ET AL. (AC 38440) THE RESERVE REALTY, LLC, ET AL. v. WINDEMERE RESERVE, LLC, ET AL. (AC 38442) Alvord, Prescott and Suarez, Js.

Syllabus

The plaintiffs, R Co., a real estate marketing company, and H, the executor of the estate of J, a real estate broker who 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 group of real estate developers, D Co., engaged the services of J and another real estate brokerage firm, S Co., to negotiate the purchase of a large parcel of undeveloped land. D Co. thereafter entered into an agreement which, inter alia, gave J and S Co. the exclusive right to sell and/or lease any property that was to be developed on that land, and also required D Co. to inform any subsequent purchasers of any part or individual lots on the land that the exclusivity provision applied to them. After D Co. purchased the land, it sold two separate parcels of the land to W Co. and B Co., who, pursuant to their respective purchase agreements, executed a buyer’s agreement and listing agreements with J and S Co., who had formed R Co. for the purpose of marketing the properties. Thereafter, B Co. constructed a rental apartment complex on its parcel, and W Co. planned to develop a commercial office building on its parcel. Neither B Co. nor W Co. used R Co. as the listing agent for its respective project, and the plaintiffs brought an action alleging a breach of the buyer’s agreement and the listing agreements. The plaintiffs also brought two actions seeking to foreclose real estate broker’s liens on the parcels of property that are the subject of the breach of contract action. The trial court rendered judgments discharging the liens in the foreclosure actions and judgment in favor of W Co. and B Co. in the breach of contract action, concluding, inter alia, that the purchase and sale agreements containing the exclusiv- ity provision on which the plaintiffs based their claim for commissions under the listing agreements constituted illegal tying arrangements and violated the Connecticut Antitrust Act (§ 35-24 et seq.), and the listing agreements did not satisfy statutory requirements (§ 20-325a) as to the duration of the authorization. The court further concluded that the agreements did not substantially comply with the statutory requirements and that it was not inequitable to deny commissions to the plaintiffs despite the lack of compliance. The plaintiffs appealed to this court, which affirmed the trial court’s judgments, concluding that the defen- dants’ antitrust special defense, under which the exclusivity provisions in the purchase and sale agreements constituted illegal tying arrangements, barred the plaintiffs’ claims, pursuant to the governing standard set forth in State v. Hossan-Maxwell, Inc. (181 Conn. 655). The plaintiffs, on the granting of certification, appealed to our Supreme Court, which overruled its decision in Hossan-Maxwell, Inc., and concluded that the trial court had incorrectly determined that the defendants prevailed on their antitrust special defense and reversed this court’s decision, remanding the cases to this court with direction to consider the plaintiffs’ remaining claims. Held: 1. The trial court properly determined that the listing agreements were unenforceable because they failed to comply with the requirement of § 20-325a that they specify the duration of the broker’s authorization to act on behalf of W Co. and B Co. a. The trial court erred in finding that the buyer’s agreement and the listing agreements were ambiguous as to their intended duration; although the buyer’s agreement had a stated duration of years, between September 10, 2003, and September 10, 2010, and the listing agreements had a stated duration of ten years from the date of the first sale or lease, the intent of the parties was to create different durations for different transactions, thus, effect can be given to both provisions, which used definitive language, and this court did not consider extrinsic evi- dence regarding the parties’ intent. b. The trial court correctly determined that the listing agreements did not strictly comply with the duration requirements of § 20-325a (b) and/ or (c) and such failure was contrary to public policy and custom in the commercial real estate industry, as the agreements failed to set forth a measurable, definite duration; although the agreements specified a ten year period, it was unclear, at the time the agreements were executed, how far into the future the parties would be bound by the provision, and the provision did not provide a ceiling on the ultimate amount of time the agreements could last, as the amount of time for which the parties could be bound by the agreements was indeterminate because it could only be calculated by reference to an uncertain future event, the conveyance of an individual unit or executed lease. 2. The trial court’s finding that it would not be inequitable to deny the plaintiffs’ recovery was not clearly erroneous: the listing agreements did not substantially comply with § 20-325a (b) and/or (c), as they were indefinite as to the key element of the duration of the agreement, which was imperative to the parties’ understanding of their respective rights under the contracts; moreover, it was not inequitable to deny recovery of commissions under the circumstances in which there was no sale or lease with regard to either parcel of property until almost ten years after the listing contracts were executed, the evidence having supported conclusions that the plaintiffs failed to use best efforts to market the properties and that the defendants did not wrongfully prevent the plain- tiffs from performing their obligations under the listing agreements, and, once the plaintiffs became aware of the rental apartment complex constructed by B Co., they made no effort to lease the apartments. Argued December 2, 2020—officially released June 22, 2021

Procedural History

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Reserve Realty, LLC v. Windemere Reserve, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reserve-realty-llc-v-windemere-reserve-llc-connappct-2021.