Simank Realty, Inc. v. DeMarco

6 Cal. App. 3d 610, 86 Cal. Rptr. 212, 1970 Cal. App. LEXIS 1364
CourtCalifornia Court of Appeal
DecidedApril 16, 1970
DocketCiv. No. 34145
StatusPublished
Cited by1 cases

This text of 6 Cal. App. 3d 610 (Simank Realty, Inc. v. DeMarco) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simank Realty, Inc. v. DeMarco, 6 Cal. App. 3d 610, 86 Cal. Rptr. 212, 1970 Cal. App. LEXIS 1364 (Cal. Ct. App. 1970).

Opinion

Opinion

FILES, P. J.

This action was brought by a real estate broker, a corporation, against the owners of a ranch for the breach of an exclusive listing agreement. In a trial without a jury defendants prevailed. Plaintiff is appealing from the judgment.

The facts of the case, as shown by the evidence which supports the findings of the trial court, will be stated first.

[613]*613Prior to 1964 the defendants, Mr. and Mrs. DeMarco, were the owners of about 1,100 acres of ranch land in Ventura County. In September 1964 defendants listed their ranch for sale and, through plaintiff’s efforts, sold 700 acres of it. Subsequently Russell Sellers, president of the plaintiff corporation, suggested that defendants give a longterm exclusive listing on the the remaining property. Sellers was aware that defendants were in financial distress and eager to sell. On November 11, 1965, the parties entered into the agreement which is the subject of this action. This contract, which was on a printed form supplied by a realty board, contained the following provisions, among others: “(1) I (We) agree to pay said Realtor 10% of the selling price accepted by me (us) . . . in the event of the sale or exchange of said property by said Realtor or any other source including myself, or if said property be leased, exchanged, transferred, conveyed or withdrawn from sale other than as herein provided . . . (4) It is agreed the seller will permit said Realtor to show property at all reasonable times to prospective purchasers. Should seller cancel the listing before expiration or release the buyer without the consent of said Realtor, or refuse to show property, or refuse to furnish termite report as herein provided, the commission shall become due and payable forthwith . . .

I (we) further agree:

(a) to direct all inquiries concerning the property to said Realtor during the term of this authorization.”

The selling price was $2,500 per acre. The listing was for six months, terminating at midnight, May 11, 1966. When the property failed to attract any interest, the defendants decided to reduce the asking price.

On January 18, 1966, defendants executed another printed form contract headed “Extension, Price Or Term Change Agreement.” The blanks were filled in in such a way as to reflect a new asking price of $577,500, an average of $1,500 per acre for an estimated 385 acres. The printed form also contained the statement that the owners “do hereby request that this listing contract termination date be changed to-.” In the space immediately below that language was the date, in typewriting, July 11, 1966.

The testimony as to the circumstances surrounding the execution of this document is in conflict. The trial court found that Mr. DeMarco’s “attention was focused on reducing the purchase price for a quick sale. If his attention was in fact called to the inclusion of the extension of the date, this information did not register in Mr. DeMarco’s memory and if he did once know it he forgot it.” This finding is supported by the testimony of Mr. DeMarco given at trial.

[614]*614Even with the reduction in price, plaintiff was unable to produce a single offer. Meanwhile, commencing in January 1966 another broker, Mr. Garion, tried to interest DeMarco in entering into a joint venture with a construction company to develop the property. DeMarco told Garion that the plaintiff had an exclusive listing on the property, and to work through plaintiff. DeMarco also told Garion he was more interested in selling than in participating in a joint venture. DeMarco told Sellers he had received such proposals (though without identifying the source) and Sellers advised him to “ ‘lay off of anything like that.’ ” In April 1966 Garion presented to DeMarco a specific proposal of Roger Saevig, owner of Oriole Construction Co., to develop the property. Garion said Saevig was not at all interested in buying the property, but “at least you know what Oriole will do in case it is not sold.” DeMarco made it clear to both Garion and Saevig that he would make no binding commitment to them so long as plaintiff’s listing was in effect.

On May 1 and May 11 DeMarco and plaintiff’s president, Sellers, had telephone conversations, the exact tenor of which is in dispute. The version accepted by the trial court, based upon DeMarco’s testimony, will be stated.

On May 1, 1966, DeMarco told Sellers of his difficulties with the bank which held a trust deed on the property, and that he was worried because plaintiff had made so little progress toward selling the property. The bank was intimating it would foreclose unless DeMarco would “ ‘start liquidating.’ ” He implored Sellers to bring any possible buyers to him. He said, “In the first place I want to know you have a buyer, and in the next place I waqt to see him because your time is very short, you only have a few days.” Mr. Sellers did not contradict this latter statement. DeMarco told Sellers that if a buyer was not found within the listing period he would be forced to put the property into a joint venture as a means of escaping foreclosure.

In a telephone conversation on May 11, 1966, DeMarco told Sellers the listing was expiring and if no buyer was produced by midnight, DeMarco would put the property in a participation venture. Sellers “rather blew up about it.” DeMarco said, “Russell, I have the exclusive here before me. Now, this exclusive expires today, May the 11th. Will you verify it?” Sellers said “ ‘Yes, it’s on that date or near it.’ ” Sellers asked who the other parties to tbi participation deal were, and DeMarco gave the name and address of Saevig and the Oriole Construction Co. and told Sellers he could call them if he wished.

Later that day Sellers telephoned DeMarco, with one of his office employees listening on the branch telephone. Sellers asserted he had some prospects who had not seen the property. He said, “ ‘Did you mean to tell me I couldn’t show the place?’ ” DeMarco answered, “No, Russ, there’s [615]*615an expiration date here and it’s May the 11th. . . . You give me a reason why you want to show this place for the purpose of selling it after the expiration point.” Sellers gave no response to this.

On May 12 Garion presented to the DeMarcos a typewritten draft of an agreement with Roger A. Saevig. This draft was the outgrowth of discussions in April and May between the DeMarcos, Garion, Saevig, bank officials, and the DeMarcos’ attorney. On May 12 the DeMarcos took the tendered draft to their attorney who suggested some changes, the changes were made, and the agreement was executed.

By this contract the DeMarcos agreed to sell to Saevig 386 acres at a price of $500,000, payable $2,000 on June 1, 1966, the balance in specified installments, without interest. Portions of the property were to be released when certain installments had been paid, and the DeMarcos were to receive one-half of any profits of Saevig by resale prior to development.

Garion, the broker who brought in Saevig, testified that he received no commission on the sale. His motivations, he said, were his friendship for the parties and his hope of earning commissions after Saevig developed the property.

The trial court found, among other things, the following:

Defendants did not withdraw the property from sale on or before May 11, 1966. Defendants gave plaintiff a full and fair opportunity to sell the property during the term of the listing as defendants understood it.

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Related

In Re Marriage of Valle
53 Cal. App. 3d 837 (California Court of Appeal, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
6 Cal. App. 3d 610, 86 Cal. Rptr. 212, 1970 Cal. App. LEXIS 1364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simank-realty-inc-v-demarco-calctapp-1970.