Ricker v. Abrams

283 A.2d 583, 263 Md. 509, 1971 Md. LEXIS 714
CourtCourt of Appeals of Maryland
DecidedNovember 16, 1971
Docket[No. 73, September Term, 1971.]
StatusPublished
Cited by38 cases

This text of 283 A.2d 583 (Ricker v. Abrams) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ricker v. Abrams, 283 A.2d 583, 263 Md. 509, 1971 Md. LEXIS 714 (Md. 1971).

Opinion

Singley, J.,

delivered the opinion of the Court.

This is another in the seemingly unending series of squabbles over brokerage commissions, which differs from the usual case only because personalty was the sub *511 ject of the sale and Code (1957, 1968 Repl. Vol.) Art. 2, § 17, which sets forth the circumstances under which a real estate broker may be entitled to commissions, in the absence of an agreement to the contrary, is of remote applicability, Wood v. Standard Wholesale Phosphate Co., 140 Md. 654, 657, 118 A. 179 (1922).

In April of 1969, the appellant, Mrs. Helen E. Ricker, a licensed real estate broker, was a co-owner, with her nephew, Richard L. Gary, of a package goods store on; Mountain Road in Anne Arundel County, and owned individually the building in which the business was conducted and an adjacent tract of land.

Charles J. Hopkins, a salesman for Oriole Realty Company, who had recently sold a liquor store for a client, Harold Friedberg, knew that Friedberg was thinking of going back in business. In hopes of promoting a sale, Hopkins stopped to see Mrs. Ricker, and ascertained that her business was for sale — for $45,000, according to Mr. Hopkins, or for $50,000, according to Mrs. Ricker. As Hopkins tells it, Mrs. Ricker wanted $40,000 net, and the additional $5,000 was to take care of his commission. 1

The following day, Hopkins introduced Friedberg to Mrs. Ricker. Hopkins did not participate in the negotiations which ensued between the principals; Hopkins testified that this was at Friedberg’s suggestion, and that he acquiesced. On 30 April 1969, a corporation formed by Friedberg agreed to purchase the business for $35,001 subject to certain contingencies, including the transfer of the liquor license, and agreed to lease the premises occupied by the business for $600 per month. 2 The agreement provided that $10,000 of the consideration was to be paid at settlement, the balance of the purchase price to be paid, with interest at 6%, in 36 monthly install *512 ments commencing 1 January 1970. 3 Mrs. Ricker, in turn, agreed to give Friedberg’s corporation an option to purchase the business premises for $50,000 and an adjoining 2.13 acre parcel for $40,000.

When Oriole Realty discovered, several months later, that settlement had been made, suit was brought against Mrs. Ricker and Friedberg for $5,000, the amount of the commissions allegedly agreed upon. At the end of the case, Friedberg’s motion for a directed verdict in his favor was granted, and the case went to the jury only against Mrs. Ricker. From a judgment against her for $5,000, entered on the jury’s verdict, Mrs. Ricker has appealed.

If we understand Mrs. Ricker’s argument, it is essentially this: she did not employ Oriole Realty as her agent and owes it no commission, and since Frie Iberg did employ Oriole Realty, his motion for a directed verdict should have been denied. If she did employ Oriole Realty, her position is that it was also acting for Friedberg, and an agent who acts for both seller and buyer without the knowledge and consent of both may be unable to collect commissions from either, relying on Stokes v. Wolf, 137 Md. 393, 412, 112 A. 566 (1921); Blake v. Stump, 73 Md. 160, 172, 20 A. 788 (1890). The rule has been stated more recently and with greater precision in Sellner v. Moore, 251 Md. 391, 399, 247 A. 2d 523 (1968), which recognizes that a broker who breaches a fiduciary duty might forfeit his right to compensation.

Oriole Realty counters with the contention that it had been employed by Mrs. Ricker; had never acted for Friedberg; but if it had acted for Friedberg, it did so with Mrs. Ricker’s knowledge and consent; and further, that since Mrs. Ricker never sought to have the jury instructed as to the consequences of a dual agency, she cannot raise that question now, Rule 885, Rule 554 d. and e.

*513 The whole case revolves around disputed issues of fact. Hopkins freely admitted that he had no listing agreement with Mrs. Ricker, but that after she said she would consider selling the store, the conversation went like this:

“* * * I [Hopkins] says, ‘what are you asking.’ She [Mrs. Ricker] says, ‘Well, I don’t know.’ she says, ‘right off-hand what I’d ask for the place.’ She says, ‘I’ll have to think about it’ so as the conversation went on, I says, ‘You know, I’d have to get a commission out of it for the office.’ She says, ‘Well,’ she says, ‘do you think you can get forty thousand dollars?’ So I says, ‘Well, I think I could.’ She says, ‘Well, you will have to ask five thousand dollars more because your commission is in there.’ So I told her that I would.”

Saul Abrams, proprietor of Oriole Realty, and Hopkins categorically denied that Oriole Realty was acting for Friedberg or expected to be paid by him.

Mrs. Ricker says the commission question first came up when she was talking to Hopkins and Friedberg. As she tells it,

“* * * And during the course of conversation and Mr. Friedberg spoke up and said, ‘Well, what would you entertain as a figure.’ I said, T want Fifty Thousand.’ He says, ‘Well, if I were to give you Forty Thousand would you entertain that idea.’ I said, ‘I’m busy.’ I said, T will think it over.’ I said, T will not, however, list the property nor will I pay any commission or be involved in any commission on the property.’ I said, T can sell it myself and don’t need any assistance from an outside source.’ Mr. Hopkins again brought up the question of commission. Mr. Friedberg told him, he says, ‘I’ll tell you what I’m going to do.’ He says, ‘and I don’t want an answer now.’ He says, T want you to *514 think about it.’ He says, T will give you Thirty Five Thousand for the property and pay full commission to Mr. Hopkins.’ Mr. Hopkins says, ‘Well, that’s all right with me.’ He says, ‘Well now, let’s not take this lady’s time up discussing commissions. She’s a busy woman. She has things to do. You know I will take care of you. I have done it in the past and I will do it in any other transaction.”

Friedberg testified that after he had negotiated a purchase price of $35,001, the first draft of a contract of sale, prepared by his lawyer, provided that his corporation would contribute $1,200 toward commissions, and that Mrs. Ricker would hold it harmless for the payment of any balance. This provision was unacceptable to Mrs. Ricker and was deleted at her insistence. Fried-berg’s lawyer, who had prepared the contract, said that when Mrs. Ricker wanted the provision removed, Fried-berg said, “This is what we’re going to do but we’ve got an agreement between us in this regard and it doesn’t have to be in the contract.”

Friedberg said that on 8 July 1969 he had sent to Mrs. Ricker for signature a check drawn on their escrow account for $1,200 payable to Oriole Realty. This check was lost and on 31 July 1969 he mailed to Mrs. Ricker his corporation’s check for $1,200, drawn, at the suggestion of his counsel, to the order of Mrs. Ricker and Oriole Realty.

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Bluebook (online)
283 A.2d 583, 263 Md. 509, 1971 Md. LEXIS 714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ricker-v-abrams-md-1971.