ARTHUR MARCHETTA, CHARTER INVESTMENTS REALTY, INC., AND JOSEPH WIESELBERG, APPELLANTS,
v.
BETSY LEE TURNER, INDIVIDUALLY, CLUB ALHAMBRA ASSOCIATES, LTD., A FLORIDA LIMITED PARTNERSHIP, TRI-ALHAMBRA, INC., A FLORIDA CORPORATION, AND IVAN GATI, INDIVIDUALLY, APPELLEES
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Brokers appealed a summary judgment dismissing their claim for a brokerage commission in connection with the sale of an apartment complex. The court reversed, finding genuine issues of material fact regarding whether the defendants, as assignees of a purchase contract, assumed liability for the broker's commission.
The court held that summary judgment was inappropriate because the defendants failed to establish conclusively the nonexistence of material issues of fact. If an obligation existed for the initial buyer to pay a broker's commission, genuine issues of fact and law existed regarding the assignee's liability under the assumption clause.
[1] Summary judgment is inappropriate when the defendants fail to establish conclusively the nonexistence of material issues of fact.
[2] An assignee of a contract is generally shielded from liability for obligations unless the assignee expressly assumes those obligations.
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Join FLexlaw to unlock all legal intelligence“The defendants failed to establish conclusively the nonexistence of material issues of fact, therefore, a summary judgment was inappropriate.”
Establishes the standard for summary judgment and the court's reason for reversing.
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Join FLexlaw to unlock all legal intelligenceBrokers alleged they introduced Ivan Gati to Robert Howard, the owner of Club Alhambra Apartments, and that negotiations ensued. On April 28, 1983, Ga…
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PER CURIAM.
The defendants failed to establish conclusively the nonexistence of material issues of fact, therefore, a summary judgment was inappropriate. See Florida E. Coast Ry. Co. v. Metropolitan Dade County, 438 So. 2d 978 (Fla. 3d DCA 1983).
The appellant/brokers allege that the defendant, Robert Howard, as owner and trustee of Club Alhambra Apartments, through his agent, Arthur Levine, entered into an oral, real estate listing agreement to sell the apartment complex. The brokers contend that they are entitled to a commission from Howard, as the seller, or from the other defendants, the purchaser and its assignees. This appeal is brought from a summary judgment entered for four of the six named defendants in an action for the brokerage commission. An intricate web connects the individual and corporate appellee/defendants.
The principal named defendant, Betsy Lee Turner, is the president and sole shareholder of defendant, Turner Properties Inc. The brokers claim that they introduced the defendant, Ivan Gati, who is Betsy Turner’s husband and an employee of Turner Properties, to Robert Howard and that Howard, Levine, and Gati engaged in continuous negotiations regarding the purchase of the Club Alhambra Apartments. On April 28, 1983, Gati allegedly sent a letter to Howard, on Betsy’s stationery, offering to purchase the Club Alhambra Apartments on terms which included that the “buyer pays broker’s commission.”
On March 9, 1984, a contract of sale for Club Alhambra Apartments was executed between the seller, Howard, and the purchaser, Turner Properties, with no mention of a broker’s commission. Betsy Turner, as president of Turner Properties, immediately executed an assignment of the sales contract to herself and then to the defendant, Club Alhambra Associates, Ltd. Betsy Turner also served as the contract-as-signee for the defendant, TPI-Alhambra Inc. (TPI). TPI is the general partner of Club Alhambra Associates, Ltd. No brokerage commission was paid. The brokers contend that because, as assignor, Betsy Turner knew that the buyer assumed responsibility for the broker’s commission, she also had the same knowledge in her role as the assignee.
From what can be gleaned from the record, the summary judgment is based on the general rule that an assignee of a contract is shielded from liability for obligations unless he or she expressly assumes the underlying obligations. However, the evidence in this case includes language in the contract which provides that the “assignee agrees to ... assume purchaser’s obligations under this [ajgreement],” and a showing of a complex agency relationship between the assignor and assignees. If there is an obligation of the initial buyer to pay a broker’s commission — a question not yet resolved — there is at least a genuine issue of fact and law as to the assignee’s liability. See Cusick v. Condominium Mktg. Consults, Inc., 434 So. 2d 25 (Fla. 3d DCA), pet. for rev. dismissed, 436 So. 2d 98 (1983)(assignee of sales contract, who knew his assignor had agreed to pay brokerage commission under purchase agreement, was liable for the commission).
Reversed and remanded.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Fla. E. Coast Ry. Co. v. Metro. Dade Cnty., 438 So. 2d 978 (Fla. 3d DCA 1983)
- Cusick v. Condo. Mktg. Consultants, Inc., 434 So. 2d 25 (Fla. 3d DCA 1983)