Steward Village Shopping Center, Ltd. Partnership v. Melbourne

332 A.2d 626, 274 Md. 44, 1975 Md. LEXIS 1194
CourtCourt of Appeals of Maryland
DecidedFebruary 24, 1975
Docket[No. 95, September Term, 1974.]
StatusPublished
Cited by3 cases

This text of 332 A.2d 626 (Steward Village Shopping Center, Ltd. Partnership v. Melbourne) 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
Steward Village Shopping Center, Ltd. Partnership v. Melbourne, 332 A.2d 626, 274 Md. 44, 1975 Md. LEXIS 1194 (Md. 1975).

Opinion

Levine, J.,

delivered the opinion of the Court.

This case presents yet another dispute between a real estate broker and a property owner resulting from a claim for payment of a commission. Unlike the more typical case, however, here the broker claims to have produced a tenant rather than a purchaser. The appeal is from a judgment of $5,700 awarded by a jury in the Circuit Court for Prince George’s County (Bowie, J.) to appellee, Melbourne Real *46 Estate, Inc. (the broker), against appellant, Steward Village Shopping Center Limited Partnership (the owner). We affirm.

Early in January 1973, Robert D. Lucian (Lucian), a licensed real estate sálesman employed by the broker, while driving by the owner’s shopping center located on Maryland Route 198 between the City of Laurel and the Anne Arundel County line, observed a sign in one of the windows advertising commercial space for lease. He placed a telephone call to the number which appeared thereon, and spoke to a Mr. Joseph Della Ratta (Della Ratta), a principal in the limited partnership which owned the property. He testified that when he asked whether he could act as a leasing agent for the vacant property, Della Ratta replied that although it was his practice to refrain from entering into exclusive listings with real estate companies, he did occasionally “cooperate on a commission basis.” In any event, Della Ratta arranged for the keys to be available at a nearby dental office and authorized Lucian to pick them up and show the premises to prospective tenants. He proceeded to do so.

Among the several prospects to whom Lucian showed the premises were the representatives of a retail concern from Massachusetts known as the Clothes Corner, Inc. This visit occurred on January 22 or 23, following another telephone conversation between Lucian and Della Ratta in which the latter again declined to enter into a written listing but authorized the broker to “show the property.”

After showing the premises to the representatives of the Clothes Corner, Inc., Lucian reported to Della Ratta that they were interested, and then obtained from the owner’s office the lease form which it desired to use for this shopping center. Shortly thereafter, Lucian received a request from the Clothes Corner, Inc. to arrange a meeting between its Massachusetts attorney and Della Ratta. Arrangements to hold such a meeting on February 7, 1973, were made by Lucian, and the conference, with the latter in attendance, took place in Della Ratta’s office on that day or the day after.

*47 Following the negotiations which ensued at the meeting of February 7 or 8, Lucian asked Della Ratta privately whether “there would be a clause in the lease for a commission.” The latter said “no, that we would probably try to arrange a finder’s fee.” In prior conversations, according to Lucian, he had been assured by Della Ratta that he would be paid a commission if the broker produced a tenant.

Following the negotiations in Della Ratta’s office, the visitors from Massachusetts and Lucian repaired to the office of the broker’s attorney where a proposed lease was typed. As drafted, that instrument provided for the payment of a five percent commission to the broker based on the rent paid during the original lease term and any renewal thereof. Della Ratta deleted that provision when the draft was presented to him and, at the request of the Massachusetts attorney, who apparently sensed a portent of what was to come, inserted a provision relieving the tenant of any responsibility for a real estate commission.

With these changes having been effected, the owner entered into a lease with a newly formed subsidiary of the Massachusetts corporation. The lease provided for an original term of three years at a minimum rental of $17,600 a year, and for two renewal options of five years’ each at the same rent plus allowances for increases in the cost of living. Although of no consequence here, the lease also provided for additional rent payments beyond the minimum sum based upon a percentage of gross sales. Immediately upon learning of the lease, Lucian inquired of Della Ratta concerning the commission, and was told by the latter that he recalled no written agreement to that effect.

In regard to the amount of the commission, Lucian testified on behalf of the broker that the usual real estate commission in a lease of this nature is five percent of the “gross amount of the lease.” This, he said, meant $11,440 in this case because the minimum rent for the 13-year period totaled $228,800. An independent expert witness produced by the broker corroborated this testimony. Additionally, the same witness testified that usually such commissions were paid annually not only upon the minimum rent, but also on *48 the percentage of gross sales during the initial term and any renewals thereof. There was expert testimony presented by the owner that commissions ranged up to six percent in such situations. This expert witness also testified that where payment of the commission is made in a “lump-sum” at the outset, it is customary for the broker to receive one-half of the amount which he would ordinarily be paid.

With respect to the commission, Della Ratta stated that had Lucian in fact called, he would have advised him that the owner would pay a commission of only two percent to a broker who handled all negotiations, prepared a written lease and submitted it to the owner; otherwise, it would pay a finder’s fee of only one percent. This is what he claimed to have related to Lucian at the conclusion of the February 7 meeting. Thus, he had deleted the provision for a commission for that reason when the proposed lease had been submitted to him later that day.

On this appeal, the owner does not challenge the jury determination that the broker was the procuring cause of the lease entered into here, and that it, therefore, became entitled to a commission. Instead, because it is obviously provoked at the size of the commission awarded by the jury, the owner advances these contentions:

(1) That the trial court erred in denying its motion for a directed verdict made at the close of the plaintiff’s case.

(2) That the court should have instructed the jury to allow as a commission only a percentage of the rents actually collected.

(3) That the court erred in excluding testimony relating to the amount of time expended by the broker in locating the tenant.

d)

Since the first two questions are so closely interwoven, we shall treat them as one. The owner contends that the trial court erred in denying its motion for directed verdict at the close of the plaintiff’s case because the testimony presented by the broker revealed that commissions become due only *49 when the rent is actually paid, and here there was no evidence that any rent had been paid.

This contention overlooks Maryland Rule 552 b to the effect that if a motion for a directed verdict made at the close of an opponent’s case is denied, the party making the motion is deemed to have withdrawn it by offering evidence during his case-in-chief. Here, as we indicated earlier, the owner presented the testimony of two witnesses following denial of its motion at the conclusion of the plaintiff’s case.

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Cite This Page — Counsel Stack

Bluebook (online)
332 A.2d 626, 274 Md. 44, 1975 Md. LEXIS 1194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steward-village-shopping-center-ltd-partnership-v-melbourne-md-1975.