Schultes Real Estate Co., Inc. v. Curis

425 N.W.2d 559, 169 Mich. App. 378
CourtMichigan Court of Appeals
DecidedJune 20, 1988
DocketDocket 91452
StatusPublished
Cited by4 cases

This text of 425 N.W.2d 559 (Schultes Real Estate Co., Inc. v. Curis) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schultes Real Estate Co., Inc. v. Curis, 425 N.W.2d 559, 169 Mich. App. 378 (Mich. Ct. App. 1988).

Opinions

J. H. Gillis, P. J.

Defendant-appellant appeals by leave granted from the circuit court’s order affirming the district court’s judgment awarding plaintiff a brokerage commission. We reverse.

On June 28, 1982, plaintiff obtained a listing agreement from Doctor and Mrs. Pokorny, the land contract vendees, of the home at 80 Stillmeadow in Grosse Pointe Shores. The Pokornys agreed to pay plaintiff a seven percent commission if it sold their interest in the home. Plaintiff’s agent Paula Moore attempted to sell the home.

Defendant Michael Curis (hereinafter defendant), a licensed real estate broker, made an offer to Moore on September 30, 1982. The offer provided that plaintiff’s commission, as the selling broker, would be reduced from seven percent to three and one-half percent. Defendant, as the purchasing broker, would waive his three and one-half percent commission in order to make the offer more attractive to the seller and to reduce defendant’s cost. Defendant, who was purchasing the home with his wife, was also acting as his own [380]*380broker on behalf of Curis Investment Company. Moore presented defendant’s offer to the Pokornys, who rejected it.

On October 12, 1982, defendant paid for a title search and learned that the Pokornys owed city and county taxes and had two mortgages and an attorney’s lien on the property. Defendant also learned that the land contract vendor was Doctor Joseph Sazyc.

On October 27, defendant made another offer. This offer was higher than his first offer, but its terms were similar. The Pokornys rejected defendant’s second offer.

On December 20, 1982, defendant purchased the home directly from Sazyc. He then foreclosed on the Pokornys’ land contract and, when they failed to redeem, he received the home. Plaintiff attempted to sell the property until the redemption period expired.

What occurred between the time the Pokornys rejected defendant’s second offer and defendant purchased the home is in dispute.

At trial, defendant testified that he requested a meeting with Alice Schultes, plaintiff’s manager, because he was dissatisfied with Moore’s handling of the transaction. Defendant claimed that Moore kept calling him to inform him that there were other higher offers on the home and, if he did not increase his offer, the home would be sold to someone else. Defendant then asked Ms. Schultes to handle the sale. Defendant claimed that Ms. Schultes then suggested a meeting between Sazyc, the Pokornys and defendant to see if an arrangement could be worked out where Sazyc would reduce his demands and enable the Pokornys to receive some money from the sale and, thereby, secure a sale to defendant and a commission for plaintiff. A meeting was set up; defendant did not [381]*381know who arranged the meeting. Before the meeting, Moore called defendant and told him that she was bringing a commission letter for him to sign before the meeting could take place. Defendant stated that he would look the letter over. Defendant attended the meeting. The Pokornys were not present; however, their attorney was. Defendant was surprised that the Pokornys were not present. At the lunch meeting, nothing was resolved; however, Moore presented defendant with an agreement providing that he would pay plaintiff a commission if he purchased the home directly from Sazyc. Defendant read the agreement and gave it to his attorney, Paul Bringer. Because defendant had never agreed to pay a commission, the agreement was not signed. Defendant paid for the lunch. Defendant claimed that he was never asked to sign the agreement thereafter or contacted by Ms. Schultes. Defendant was contacted by Moore on the day after he signed the purchase agreement with Sazyc. At that time, she told defendant that plaintiff had received better offers for the Pokornys’ interest and that she could not represent defendant unless he signed the agreement. Defendant told Moore that he had already purchased the property.

Ms. Schultes testified that defendant asked for a meeting with her. Defendant asked her to personally handle the transaction. At that meeting, defendant also asked for her help in obtaining the home. Ms. Schultes suggested some higher prices to defendant and also suggested that they could work with Sazyc to mitigate his stance on the amount owing on the land contract. Thereafter, Moore contacted Ms. Schultes and told her that defendant wanted to meet with Sazyc because defendant could not spend more money than he had offered the Pokornys. Defendant was unable to [382]*382reach Sazyc and, therefore, asked for plaintiffs help. Defendant had another meeting with Ms. Schultes. He told her "I will take care of you.” Although no amount was mentioned, Ms. Schultes claimed that it was understood that they were talking about one-half of the seven percent commission. The meeting between Sazyc and defendant took place on November 12. Prior to the meeting plaintiffs office prepared the following agreement:

It is hereby agreed that if an agreement results in a sale of property known as 80 Stillmeadow by and between Dr. Czak [sic] and Michael Curis, that a commission of 3.5% of the sale price shall be paid to Schultes Real Estate, Inc.
Dr. Czak [sic]
Michael Curis
Schultes Real Estate, Inc.

Ms. Schultes claimed that defendant asked Moore to bring the drafted agreement to the lunch meeting. Defendant agreed to sign the agreement if Sazyc appeared at the meeting. Ms. Schultes could not explain why Dr. Sazyc’s name was on the agreement even though only defendant had allegedly agreed to it. Ms. Schultes conceded that Sazyc never listed the property with plaintiff.

The next morning, Ms. Schultes found out from Moore and Bill Pratt, the Pokornys’ friend and attorney who had been present at the lunch meeting and who was also a real estate agent for plaintiff, that the agreement was unsigned. Ms. [383]*383Schultes’ subsequent efforts to contact defendant or Bringer by telephone were unsuccessful and she later learned from the Pokornys that defendant had purchased the property from Sazyc. Plaintiff continued its attempts to sell the Pokornys’ interest until the redemption period was over.

Moore testified that, after the Pokornys rejected defendant’s second offer, defendant called her and asked her to set up a meeting with Sazyc. Moore obtained Safe’s unlisted telephone number from the Pokornys. Defendant suggested meeting at Paul’s Chop House but, because it was too far, the meeting was held at Pernie’s. Moore claimed that defendant promised to cover plaintiff’s commission if Moore brought Sazyc to the meeting. Moore, defendant, Bringer, Pratt and Sazyc were at the meeting. Moore represented plaintiff. Pratt, although also plaintiff’s agent, represented the Pokornys because they were unable to attend. Moore testified that she brought the agreement concerning the commission to the meeting. Moore claimed that Ms. Schultes and defendant had arranged for preparation of the document and had agreed over the telephone that defendant would sign it before the meeting. Moore asked Curis to sign the agreement two or three times. Defendant declined to do so, stating: "Don’t worry, I’ll handle it later.” Moore did not stop the meeting because Sazyc was there. After the meeting, she tried to call defendant and left messages, but he never returned her calls.

MCL 566.132(e); MSA 26.922(e) provides:

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Bluebook (online)
425 N.W.2d 559, 169 Mich. App. 378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schultes-real-estate-co-inc-v-curis-michctapp-1988.