CRYSTAL RIVER ENTERPRISES, INC., A FLORIDA CORPORATION, APPELLANT,
v.
NASI, INC., A FLORIDA CORPORATION, APPELLEE
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Crystal River Enterprises appealed a judgment dismissing its claim against NASI for indemnification of a broker's commission. The court reversed, holding that Crystal River established the broker was licensed, the broker was the procuring cause of the sale despite not participating in final negotiations, and the commission amount was properly proven.
The court held that Crystal River adequately established the broker was licensed as a salesman and broker well before the 1979 transaction; that the broker was the procuring cause despite NASI's request that he discontinue personal participation; and that the $50,000 commission amount was properly proven by testimony from both parties to the fee agreement.
[1] A broker is entitled to a commission if they are the procuring cause of a sale, even if the owner conducts final negotiations and accepts a lower price.
[2] Testimony regarding the duration and nature of a broker's licensure is sufficient to establish their authorization to engage in real estate transactions.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“If property is placed with a broker for sale at a certain price and the sale is brought about through the broker as the procuring cause, the broker is generally entitled to his commission even though the final negotiations were conducted through the property owner who, in order to make a sale, accepted a price less than that stipulated to the broker.”
Establishes that a broker is entitled to commission as the procuring cause even if the property owner conducts final negotiations directly with the buyer.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceCrystal River owned a motel listed for $1,650,000 through broker International Motel Brokers, which was entitled to a $50,000 fee. After NASI's initia…
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FRANK D. UPCHURCH, Jr., Judge.
This is an appeal from a judgment in favor of NASI, Inc., in an action by Crystal River Enterprises, Inc. to recover on an indemnity agreement executed by NASI.
Crystal River was the owner of a motel which it eventually sold to NASI. Crystal River was initially represented by International Motel Brokers, Inc. and agreed to pay a fee of $50,000 if International obtained a suitable buyer. The listing was for $1,650,-000. The initial offer by NASI was rejected by Crystal River. The president of NASI, Mr. Kouri, then advised the broker, Mr. Sullivan, that he would like to deal directly with Crystal River. Kouri requested Crystal River’s “rock bottom” price and stated that he would be responsible for any commission. Crystal River agreed to reduce the asking price by the $50,000 broker’s fee and another $50,000 for needed repairs. Crystal River also required NASI to sign an indemnity agreement which specifically provided that NASI would hold Crystal River harmless and reimburse it for any expenses or loss incident to any claim asserted by International.
The transaction was closed but International was not paid. International sued Crystal River and obtained judgment by default for the $50,000. Crystal River then filed suit against NASI to recover under the indemnity agreement. Judgment was entered in favor of NASI. This court subsequently reversed the judgment and remanded the cause for trial. Crystal River Enterprises, Inc. v. NASI, Inc., 399 So. 2d 77 (Fla. 5th DCA 1981).
At the trial, NASI moved for involuntary dismissal and summary judgment at the close of Crystal River’s case. The trial court granted the motions on the basis that Crystal River had failed to prove that International or Sullivan, its agent, was a licensed broker at the time of the transaction, that Sullivan had abandoned his right to the commission and that Crystal River failed to establish that a broker’s fee was due if the property were sold at less than the asking price.
With regard to the first matter, Crystal River argues that whether the broker was licensed was not at issue at the trial below. We need not address this question because we find that proof of licensing was adequately established.
At trial, Sullivan stated that he had been licensed in Florida for three and one-half years, the first year as a salesman and the balance as a broker. This testimony established that he was licensed on or about March 1, 1978.
Pursuant to section 475.17, Florida Statutes (1981), Sullivan was then authorized to engage in real estate transactions. The property here was listed in January or February 1979, and the transaction closed in May, 1979, well after the time that Sullivan was licensed as either a salesman or a broker. Regarding the second matter, we conclude that the trial court erroneously found that Sullivan had abandoned any right he had to a commission by not attempting to negotiate further after the initial offer was rejected.
The evidence established that Sullivan brought NASI and Crystal River together but that Sullivan discontinued personal participation at the request of NASI. If property is placed with a broker for sale at a certain price and the sale is brought about through the broker as the procuring cause, the broker is generally entitled to his commission even though the final negotiations were conducted through the property owner who, in order to make a sale, accepted a price less than that stipulated to the broker. Daneli Corp. v. Bryant, 399 So. 2d 387 (Fla. 4th DCA 1981).
We also conclude that Crystal River properly established the amount of the broker’s fee. Both Crystal River and the broker, the only parties to the agreement, testified that the amount of the broker’s fee was $50,000. The final purchase price was substantially the same as the list price, diminished only by the cost of needed repairs and the broker’s fee for which NASI specifically agreed to indemnify Crystal River. Therefore, we REVERSE and REMAND for determination of all amounts due under the terms of the indemnity agreement and entry of judgment against NASI.
DAUKSCH and COBB, JJ., concur.
FRANK D. UPCHURCH, Jr., Judge.
NASI has moved for rehearing of this court’s opinion filed July 7, 1982, which directs the trial court to enter judgment for Crystal River on its indemnity claim against NASI. The record reflects that NASI moved for an involuntary dismissal pursuant to Florida Rule of Civil Procedure 1.420(b) or for the entry of summary judgment after Crystal River (the plaintiff) • rested. The trial court granted the motion 1 and later entered judgment in favor of NASI.
Rule 1.420(b) provides as follows:
After a party seeking affirmative relief in an action tried by the court without a jury has completed the presentation of his evidence, any other party may move for a dismissal on the ground that on the facts and the law the party seeking affirmative relief has shown no right to relief, without waiving the right to offer evidence if the motion is not granted .... (emphasis added)
Since the motion was granted, there was no need to complete the trial with the presentation of NASI’s case or any rebuttal by Crystal River. In our opinion, we held that the trial court had erred in granting the motion. However, the cause should be remanded for completion of the trial rather than for the entry of judgment against NASI.
The motion for rehearing is granted, and our opinion of July 7, 1982, is amended to provide that the judgment appealed is REVERSED and this cause REMANDED for completion of the trial.
DAUKSCH and COBB, JJ., concur. . The court did not specify which motion (involuntary dismissal or summary judgment) it was granting. Later in the final judgment, the court stated that it granted both motions.
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Sheldon Greene & Assocs., Inc. v. Rosinda Invs., N.V., 475 So. 2d 925 (Fla. 3d DCA 1985)…d is entitled to a commission where he has shown the buyer the property but makes no further efforts because an initial purchase offer is rejected or the buyer expresses no interest in the property. See Crystal River Enterprises, Inc. v. Nasi, Inc., 418 So. 2d 1038 (Fla. 5th DCA 1982); Gibbs v. Gibbs, 296 So. 2d 613 (Fla. 1st DCA 1974). If the rule were otherwise: “a crafty prospect could reject the contract submitted by the broker, go behind his back to the owner, modify the terms without affording the broke…
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Ruck Bros. Brick, Inc. v. Kellogg & Kimsey, Inc., 668 So. 2d 205 (Fla. 2d DCA 1995)…not the sufficiency of Ruck Brothers’ prima facie case. When a trial court erroneously grants a motion for involuntary dismissal, the case is remanded to the trial court for the completion of the trial. Crystal River Enterprises, Inc. v. NASI, Inc., 418 So. 2d 1038 (Fla. 5th DCA 1982). We reverse the entry of the involuntary dismissal against Ruck Brothers and remand to the trial court for further proceedings consistent with this opinion. Reversed and remanded. SCHOONOVER, A.C.J., and BLUE, J., concur.…
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Loxahatchee River Env't Control Dist. v. L.A. Wilks, 475 So. 2d 1036 (Fla. 4th DCA 1985)…t directs the county court to enter judgment for the respondent. The circuit court should have remanded the case to the county court to permit the petitioner to refute the respondent’s prima facie case. Crystal River Enterprises, Inc. v. NASI, Inc., 418 So. 2d 1038 (Fla. 5th DCA 1982); Trio Towing Service, Inc. v. Murrell, 325 So. 2d 21 (Fla. 3d DCA 1975); Cape Coral Bank v. Kinney, 321 So. 2d 597 (Fla. 2d DCA 1975). Accordingly, we direct the circuit court to remand the action to the county court for a new…
Authorities Cited
- Crystal River Enters., Inc. v. Nasi, Inc., 399 So. 2d 77 (Fla. 5th DCA 1981)
- Danieli Corp. v. Bryant, 399 So. 2d 387 (Fla. 4th DCA 1981)