State Real Estate Commission v. Evers

45 Pa. D. & C.2d 24, 1968 Pa. Dist. & Cnty. Dec. LEXIS 164
CourtPennsylvania Court of Common Pleas, Dauphin County
DecidedApril 29, 1968
Docketno. 457 of 1967
StatusPublished

This text of 45 Pa. D. & C.2d 24 (State Real Estate Commission v. Evers) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Dauphin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Real Estate Commission v. Evers, 45 Pa. D. & C.2d 24, 1968 Pa. Dist. & Cnty. Dec. LEXIS 164 (Pa. Super. Ct. 1968).

Opinion

Bowman, J.,

In this appeal from an adjudication of the State Real Estate Commission revoking appellant’s license as a real estate broker, he readily admits that incident to the transaction which led to the commission’s adjudication he was guilty of violating provisions of the Real Estate Brokers License Act of 1929,1 but insists that the penalty imposed by the commission constituted an arbitrary, capricious and unreasonable act on its part.

[25]*25From the record made before the commission it appears that an individual engaged in the laundry business was required to relocate his business, and, in late November 1965, sought appellant’s services for this purpose.2 A particular property was believed to be' available and suitable for this person’s needs and he was induced to execute an agreement to purchase the same. This writing provided for a purchase price of $39,000 and deposit money of $5,000 to be returned to the client if the offer to purchase was not accepted by the owner within 60 days. This document was dated November 24,1965. The owner of the subject property did not accept the offer to purchase within 60 days or thereafter, and, to date of the board’s adjudication, appellant had not refunded the deposit money received by him. After frequent demands for the return of the money, complainant retained counsel who later obtained a judgment note from appellant in favor of his client for the amount of the deposit. This note was dated March 17, 1966, and was later entered as a judgment against appellant and remains unsatisfied.

While the record discloses only that appellant deposited the complainant’s deposit money to his own account in a particular bank, he does admit it was disbursed by him for his own business purposes or personal use and that he did not maintain an escrow account which complied with the regulations of the commission on this subject. While not admitted, it is nevertheless clear that appellant either did not maintain adequate business records as tested by any reasonable standard, or if such were maintained they were not disclosed to the commission’s investigator when investigating the complaint which led to the revocation of appellant’s license.

[26]*26At the hearing before the commission appellant offered no direct testimony on his own behalf but did make a statement, while cross-examining complainant, to the effect that the deposit money in question in some fashion was converted into a loan from the complainant to appellant. Evidence in the record affords the commission ample justification for rejecting any such contention.

In contending that the severity of the commission’s action in revoking his license was arbitrary and capricious, appellant points to a number of findings of fact and conclusions of law based in part on such findings of fact as being unsupported by substantial evidence. From this he would have us conclude that the multiple violations of the Real Estate Brokers License Act of which appellant was found guilty by the commission unreasonably influenced its severe penalty, particularly when considered in the context of a single incident and as applied to a person whose record is otherwise unblemished by citation or other prior commission action.

Based upon its findings of fact, the commission made 8 conclusions of law which found appellant to be guilty of violating 8 different subsections of section 10 of the statute in question. Appellant excepted to 5 of these 8 conclusions.

Those not excepted to found appellant to have (1) Failed to account for and pay over money belonging to others which came into his possession incident to a real estate transaction; (2) acted with respect to a real estate transaction with incompetency, bad faith or dishonesty; and (3) failed to retain in his possession money accepted by him incident to a real estate transaction and to account therefor in full upon its termination or consummation.

Those conclusions of law to which appellant excepted found appellant to have (1) Knowingly made a sub[27]*27stantial misrepresentation; (2) knowingly made a false promise of a character likely to influence, persuade or induce another to act; (3) commingling of money of others with his own; (4) failing to deposit a client’s money in an escrow account and to account for same on termination or consummation of the transaction for which deposited: (5) failing to keep adequate records of deposited funds indicating time, source, place of deposit and withdrawal and other pertinent information.

We have carefully reviewed the record to determine if there is substantial evidence upon which the commission based its findings of fact and the conclusions of law to which appellant has filed exceptions.

We do not propose to review in detail the evidence or the findings of fact made by the commission based upon the record. We are of the opinion that all of the conclusions of law made by the commission are supported by facts based upon substantial evidence with two exceptions, namely, the legal conclusions that appellant (1) Knowingly made a substantial misrepresentation and (2) knowingly made a false promise of a character likely to influence, persuade or induce another to act. Both of these conclusions are based upon factual findings incident to the original discussions between complainant and appellant as to the former’s need to relocate his business. The commission found that appellant falsely represented to the complainant that a particular property was for sale at a particular price. Considering complainant’s testimony at face value, we can find no substantial basis for such findings. At best, the evidence discloses that appellant represented the property in question was suitable and was generally on the sales market. We can find no evidence that he represented that the owner unqualifiedly offered it for sale at a fixed price. This is evident to us by the terms of the agreement to purchase which [28]*28complainant executed and which clearly indicated it was binding only upon acceptance by the owner of the property.

Therefore, we conclude that the commission’s findings of fact and conclusions of law based thereon are supported by substantial evidence with the exceptions noted.

This brings us to appellant’s basic contention which is that the penalty imposed by the commission in revoking appellant’s license was an arbitrary, capricious and unreasonable act under the circumstances of this case and which appellant would have us modify.

With substantial evidence lacking to sustain 2 of the 8 legal conclusions reached by the commission, we cannot unqualifiedly affirm the commission’s determination in its entirety. This being so, do we possess the authority to set aside or modify the penalty imposed by the commission, and, if so, by what criteria or standard do we act?

Section 44 of the Administrative Agency Law3 under which this appeal was taken directs us to hear it on the record made before the commission and then further provides:

“After hearing, the court shall affirm the adjudication unless it shall find that the same ... is not in accordance with law, ... or that any finding of fact made by the agency and necessary to support its adjudication is not supported by substantial evidence.. If the adjudication is not affirmed, the court may set aside or modify it, in whole, or in part, or may remand the proceeding to the agency for further disposition in accordance with the order of the court”.

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Cite This Page — Counsel Stack

Bluebook (online)
45 Pa. D. & C.2d 24, 1968 Pa. Dist. & Cnty. Dec. LEXIS 164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-real-estate-commission-v-evers-pactcompldauphi-1968.