Tassy v. Hall

429 So. 2d 30
CourtDistrict Court of Appeal of Florida
DecidedMarch 2, 1983
Docket82-385
StatusPublished
Cited by11 cases

This text of 429 So. 2d 30 (Tassy v. Hall) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tassy v. Hall, 429 So. 2d 30 (Fla. Ct. App. 1983).

Opinion

429 So.2d 30 (1983)

Lou TASSY and Holiday Realty, Ltd., a Canadian Corporation, Appellants,
v.
Charles A. HALL, Trustee, Appellee, and
Starr Brothers, Inc., and A. Joan Bellm, Appellees/Cross-Appellants, and
Terrace Village Construction, Ltd., a Canadian Corporation, Appellee/Cross-Appellee.

No. 82-385.

District Court of Appeal of Florida, Fifth District.

March 2, 1983.

*32 Ellen D. Phillips of Meredith & Dobson, St. Augustine, for appellants.

Charles D. Hood, Jr., Daytona Beach, for appellees/cross-appellants.

Jefferson W. Clark and Charles A. Hall, New Smyrna Beach, for appellee/cross-appellee.

COWART, Judge.

May a real estate broker, licensed in a foreign jurisdiction but not in Florida, who procures, in such foreign jurisdiction, a buyer for Florida land recover in Florida a brokerage commission?

In early 1980, a representative of J.B. Steelman, Inc. [hereinafter Steelman], a licensed Florida real estate broker, called appellant Lou Tassy [hereinafter Tassy], a Canadian citizen licensed as a real estate broker doing business as Holiday Realty, Ltd., in Ontario, Canada, requesting Mr. Tassy to be a cooperating broker and to locate Canadian purchasers for land in Volusia County, Florida. Tassy agreed and, pursuant to that agreement, brought two prospective Canadian purchasers to Florida to look at the property. While here, personnel of Steelman introduced Tassy to Harry Starr [hereinafter Starr], whom they represented to be the owner of the property in question. After Tassy and his two prospects returned to Canada, Starr called Tassy several times about the possibility of the two prospective purchasers making an offer to buy, but the original prospects lost interest. Some time later, Tassy interested another Canadian resident, a Mr. Maurice Stein, a principal in Terrace Village Construction, Ltd. [hereinafter Terrace Village], in possibly purchasing land in Florida and brought Mr. Stein to, or met him in, Daytona Beach, Florida. While in Florida, Tassy noticed that the Steelman sign on the property had been replaced with another sign and he assumed that the Steelman listing had expired and that other Florida brokers were involved in trying to sell the property. Desiring to establish a cooperating relationship with any Florida broker having a listing on the property, Tassy called the telephone number on the new sign and Starr answered. Starr informed Tassy that he, Starr, was now a registered Florida real estate broker and handling the sale of this land and that he would cooperate with Tassy on a sale of the property if Tassy could find a buyer. Later Tassy drove to Palm Beach and delivered to Starr a written offer to purchase from Mr. Stein. Starr indicated he desired to discuss the offer with his partners and lawyer but he did discuss a commission and the brokers agreed that Tassy would receive an eight percent commission if the prospective sale was consummated. Starr also assured Tassy that he, Starr, was a registered Florida *33 real estate broker, not a salesman. Later, after a conference in Daytona Beach where Starr, Stein, each of their lawyers, and Tassy were all present, the actual owners of the property, Starr Brothers, Inc. and A. Joan Bellm [hereinafter Starr Bros./Bellm], made a written counteroffer to sell that was accepted by Mr. Stein on behalf of Terrace Village. The contract provided that the sellers would pay a brokerage commission to Holiday Realty, Ltd., according to a letter of directions from the sellers to the closing attorney which "irrevocably" directed that, on closing, an eight percent commission was to be paid to Tassy of Holiday Realty, Ltd. The real estate transaction closed, but Starr revoked his directions and disbursement of the brokerage commission was withheld.

Starr Bros/Bellm filed this action for a declaratory judgment against Tassy, Holiday Realty, Ltd., Steelman, and the closing attorney, demanding that a judgment be entered finding: that Steelman was not entitled to commission because he was not a procuring cause of the Starr Bros./Bellm-Terrace Village sale, nor was he a cooperating broker with Tassy as to this sale; that Tassy (Holiday Realty, Ltd.), not being a registered Florida broker, was not entitled to a broker's commission under section 475.41, Florida Statutes; and to further adjudicate that since no one was entitled to the brokerage commission the court should declare that the plaintiffs, as sellers, were entitled to the sum of the commission held by the closing attorney in escrow. The closing attorney, as escrow agent, answered and cross-claimed against the buyer alleging that the buyer was also claiming the escrowed commission sum. The buyer then answered and counterclaimed against the sellers alleging that the contracting parties contemplated that a commission was to be paid and that if it was not to be paid, then the escrowed sum should be returned to the buyer. Steelman and Tassy answered separately, denying various allegations.

The trial court ultimately entered a summary final judgment finding: (1) that section 475.41 Florida Statutes, was constitutional and applied to prevent Tassy and Holiday Realty, Ltd., from recovering a commission, (2) that Steelman was not a procuring cause of the sale in question, (3) that Starr was a registered Florida broker and agent of the sellers and negotiated the sale and agreed to pay Tassy a commission when he knew, or should have known, that section 475.41, Florida Statutes, would prevent Tassy from recovering a commission and that, accordingly, Starr Bros./Bellm had "unclean hands," and therefore, (4) by applying "equitable principles," the escrowed funds should be divided equally between the sellers, Starr Bros./Bellm, and the purchaser, Terrace Village. The trial court specifically found:

C. That though there are some facts which tend to raise a factual issue as to whether or not the defendants, Lou Tassy and Holiday Realty, Ltd., were co-brokers either with one or both of Defendant, J.B. Steelman, Inc., and Harry W. Starr, III, and agent of the Plaintiffs, this Court specifically finds that that possible disputed issue of fact is not material because this Court finds under the law that even if the Defendants, Tassy and Holiday Realty, were co-brokers either with Defendant, J.B. Steelman, Inc., and/or with Harry W. Starr, III, an agent of the Plaintiffs, that under Florida law as cited and contained in the Plaintiffs' memorandum of law, neither could she [sic] still share in a brokerage fee.

Tassy and Holiday Realty, Ltd., appeal the denial of the commission held in escrow. Starr Bros./Bellm cross-appeal the "equitable division" of the escrow fund. We reverse.

Section 475.41, Florida Statutes (1981), is part of the Florida Real Estate Licensing Act and provides:

No contract for a commission or compensation for any act or service enumerated in s. 475.01(3) is valid unless the broker or salesman has complied with this chapter in regard to issuance and renewal of the license at the time the act or service was performed.

*34 The avowed purpose behind this section (and the act in general) is to protect the public from dishonest or unscrupulous real estate operators.[1] As such, it is clear section 475.41 bars a foreign broker (i.e., a broker licensed in a foreign jurisdiction but not in Florida) from collecting a commission for brokerage services when the services are performed in Florida and no licensed Florida broker is involved.[2]

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Bluebook (online)
429 So. 2d 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tassy-v-hall-fladistctapp-1983.