Rogier v. American Testing & Engineering Corp.

734 N.E.2d 606, 2000 Ind. App. LEXIS 1309, 2000 WL 1211300
CourtIndiana Court of Appeals
DecidedAugust 28, 2000
Docket49A02-9910-CV-707
StatusPublished
Cited by97 cases

This text of 734 N.E.2d 606 (Rogier v. American Testing & Engineering Corp.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogier v. American Testing & Engineering Corp., 734 N.E.2d 606, 2000 Ind. App. LEXIS 1309, 2000 WL 1211300 (Ind. Ct. App. 2000).

Opinion

OPINION

NAJAM, Judge

STATEMENT OF THE CASE

David A. Rogier, d/b/a Rogier Associates (“Rogier”), filed suit against American Testing and Engineering Corporation, a/k/a ATEC Associates, Inc. (“ATEC”), for breach of the parties’ exclusive listing agreement to sell ATEC’s business. Rogier sought recovery of his fee for the lost *611 opportunity to make a sales presentation to the Michael Baker Corporation (“Baker”) and for a commission from the sale of ATEC’s business to ÁTC Environmental, Inc. (“ATC”). The trial court entered summary judgment in favor of ATEC, and Rogier appeals.

We affirm in part, reverse in part and remand for further proceedings.

ISSUES

Rogier and ATEC present several issues for our review, which we restate as follows:

1. Whether any damages resulting from Rogier’s inability to make a sales presentation to Baker were unforeseeable as a matter of law.
2. Whether the parties’ exclusive listing agreement conferred upon Rogier an exclusive right to sell and, therefore, the right to a commission even if he was not the procuring cause of the sale of ATEC’s business to ATC.
3. Whethér the parties’ exclusive listing agreement was unenforceable as a matter of law.
4. Whether the parties’ exclusive listing agreement lapsed as a matter of law.
5. Whether Rogier abandoned the parties’ exclusive listing agreement as a matter of law.
6. Whether Rogier waived his rights under the parties’ exclusive listing agreement as a matter of law.
7. Whether ATEC’s conduct in excluding Rogier from its negotiations with ATC prevented him .from performing his obligations under the parties’ exclusive listing agreement.

FACTS AND PROCEDURAL HISTORY

Rogier is a marketing consultant experienced in the merger and acquisition of architectural, engineering, and environmental firms. ATEC is an environmental engineering firm. On April 24, 1984, the parties entered into an exclusive listing agreement in which ATEC appointed Ro-gier as its exclusive agent to search for a buyer for ATEC’s business. The agreement reads in pertinent part as follows:

1. PRESENTATION MATERIALS. [Rogier] will help prepare a presentation report on [ATEC’s] firm to include [ATEC’s] goals, sales forecast, backlog, professional staff capability, and assets and income statement. [ATEC] will provide [Rogier] with company records and data for the purpose of preparing the presentation.
[[Image here]]
3. SEARCH. [Rogier] will search for a buyer or buyers.
4. APPROVAL OF BUYER. [Rogier] will obtain [ATEC’s] approval of proposed buyers prior to making a presentation to the buyer.
5. PRESENTATION. [Rogier] will make a presentation to those buyers deemed acceptable to [ATEC].
6. EXCLUSIVE AGENT. [ATEC] appoints [Rogier] as the exclusive agent with an exclusive listing and all prospective buyers shall send copies of all correspondence and purchase offers to [ATEC] and to [Rogier],
7. SERVICES NOT INCLUDED. Both parties agree that [Rogier] shall function as a marketing Consultant and that [Rogier] has not and will not provide legal, accounting, securities, or investment advice. Valuation of [ATEC’s] company and negotiation of the Buy & Sell Agreement shall be the responsibility of [ATEC]. [Rogier] shall not be responsible for any guarantees or warranties. [ATEC] shall rely upon [ATEC’s] investigation and opinion of the Buyer.
8. METHOD OF PAYMENT. The services outlined in this agreement may result in a merger, acquisition, joint-venture, sub-contract, association, teaming or employment contract; if any such *612 event occurs, the Buyer (the other firm or individuals) shall pay [Rogier],

Under the agreement, Rogier supplied ATEC with a merger and acquisition manual containing a form search agreement that he would execute with a buyer interested in acquiring or entering into a business combination with a firm such as ATEC. The form agreement provided that Rogier would “search for acquisition candidates which meet the [b]uyer’s geographic, discipline and market goals” and “interview the [s]eller and obtain financial data.” The form agreement also provided that the buyer would pay Rogier a commission on the date of closing.

From 1984 to' 1989, Rogier routinely contacted ATEC with opportunities to sell the company. However, Gerald Mann, the president of ATEC, did not begin to take “active steps” to sell the business until 1990, nearly six years after signing the exclusive listing agreement with Rogier. In June of 1990, Rogier entered into a search agreement with Baker, a large engineering firm, under which Rogier agreed to search for companies that Baker could purchase. The search agreement was similar to the form agreement contained in the merger and acquisition manual Rogier had supplied to ATEC in 1984. But instead of requiring the buyer to pay a commission only on the date of closing, the Baker search agreement called for payment of a commission equal to five percent of ATEC’s gross income for the year prior to the sale, with two percent to be paid immediately upon Rogier’s sales presentation and an additional three percent to be paid at closing. The two percent portion of Rogier’s fee was nonrefundable even if a closing did not occur; however, it could “be credited towards other seller presentations.” From mid-1990 until the end of 1993, Rogier did not communicate with ATEC. The record reflects that he continued to work under the parties’ exclusive listing agreement, but that ATEC was unaware he was doing so.

On or about January 21, 1994, Rogier sent written notification to ATEC that Baker was interested in acquiring an environmental engineering firm such as ATEC. Rogier requested that ATEC sign a purchase offer letter, which would serve as ATEC’s authorization for Rogier to present ATEC as an acquisition candidate to Baker. After Rogier’s third request, ATEC forwarded a purchase offer letter to Rogier on May 5, 1994. The letter stated in part:

If the prospective buyer is interested in making an offer to purchase our firm, we will provide you with materials describing our firm, such as brochures, financial statements, etc. so that the Buyer can make a realistic offer.

ATEC further acknowledged that Baker would be paying Rogier’s commission and specifically requested that this term be included in Baker’s purchase offer.

On May 26, 1994, Baker reaffirmed its interest in making an offer to purchase ATEC’s business and requested that Rogier obtain five years of ATEC’s financial statements, backlog report, stockholder list, and asking price “so that we can make a realistic offer[.]” In June and July of 1994, Rogier communicated with ATEC and Baker in an effort to finalize the sale of ATEC’s business.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
734 N.E.2d 606, 2000 Ind. App. LEXIS 1309, 2000 WL 1211300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogier-v-american-testing-engineering-corp-indctapp-2000.