LAWRENCE KAGAN, APPELLANT,
v.
HOWARD GARFINKLE ET AL., APPELLEES
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A New York real estate broker sued Florida defendants for his share of a real estate commission on a Florida property sale. The trial court dismissed the complaint because the broker was not licensed in Florida, but the appellate court reversed, holding that a foreign broker may recover commissions from a Florida broker who employed him, and that the statutory bar to unlicensed broker suits must be pleaded as an affirmative defense rather than resolved on a motion to dismiss.
A foreign broker duly registered in another state retains rights to recover his share of a commission from the Florida broker who employed him. The statutory bar to unlicensed broker suits must be pleaded as an affirmative defense and cannot be resolved by dismissing the complaint for failure to state a cause of action based on inferences from the complaint.
[1] A contract for a real estate commission is invalid if the broker or salesperson has not complied with Florida's registration requirements at the time the act or service w…
[2] A real estate broker licensed in another state may maintain an action in Florida to recover a share of a commission from a Florida broker who employed them, even if the f…
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Join FLexlaw to unlock all legal intelligence“No contract for a commission or compensation for any act or service enumerated in subsection (2) of § 475.01 shall be valid unless the broker or salesman shall have complied with this chapter in regard to registration and renewal of the certificate at the time the act or service was performed.”
The statute Kagan relied upon to challenge the trial court's dismissal, showing the general rule that unlicensed brokers cannot enforce commission contracts.
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Join FLexlaw to unlock all legal intelligenceLawrence Kagan, a New York real estate broker, alleged that Guardian Realty, Inc. employed him to assist in finding a purchaser for Carlton Terrace Ap…
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PEARSON, Judge.
The appellant, Lawrence Kagan, as plaintiff in an amended complaint for damages, sought to recover a portion of a real estate commission. Though Kagan is a real estate broker in the State of New York, he is not licensed in the State of Florida.
The trial court dismissed Kagan’s complaint as to all defendants. These defendants are Howard Garfinkle, alleged to have been the purchaser of an apartment house in Dade County, Florida; Adrienne Realty, Inc., alleged to have been a joint venturer with Guardian Realty, Inc., in procuring a purchaser for the property; Howbar of Florida, Inc., a corporation owned and controlled by Garfinkle, alleged to be the ultimate purchaser of the property; and Biscayne Carlton Corp., alleged to be the seller of the property. The gist of Kagan’s complaint is that the seller employed Guardian Realty, Inc., as a real estate broker to find a purchaser for the Carlton Terrace Apartments and thereafter that Guardian associated Adrienne Realty, Inc., as an associate broker. It is alleged that, in turn, Guardian associated the New York broker, Kagan, to assist in finding a purchaser. Further, it is alleged that the three brokers agreed to an equal, three-way division of the commission but that Adrienne Realty Corp., after accepting the services of Kagan in finding a purchaser, completed the sale and retained the entire commission.
The trial court dismissed the cause upon the theory that a broker not licensed in Florida may not sue for a commission. It is true that Fla.Stat. § 475.41 provides as follows:
“Contracts of unregistered person for commissions invalid. — No contract for a commission or compensation for any act or service enumerated in subsection (2) of § 475.01 shall be valid unless the broker or salesman shall have complied with this chapter in regard to registration and renewal of the certificate at the time the act or service was performed.”
However, this statute does not deprive a broker duly registered in another state of all rights. See Pokress v. Tisch Florida Properties, Inc., Fla.App. 1963, 153 So. 2d 346. In the cited case, the practice of employing brokers in other states to assist in finding a purchaser in those states in which they are licensed was specifically approved.
Thus, it appears that such a contract is legal and gives rise to rights in the foreign broker for the recovery of his share of the commission from the Florida broker who employed him.
Therefore, the trial court erred in dismissing the complaint as to the defendant Adrienne Realty, Inc. Kagan attempted to join himself as a plaintiff with Guardian Realty in their suit claiming a conspiracy by the seller, purchaser and Adrienne Realty, Inc., to close the deal through secret meetings and negotiations, thereby excluding Kagan and Guardian Realty from participation therein. The question thus becomes whether the foreign broker may maintain an action for conspiracy in a suit where he alleged the denial of his right to participate in the proceeds of a real estate commission for the sale of property in Florida. The answer to this question depends upon whether the activity of the foreign broker constituted any of the services enumerated in subsection 2 of Fla.Stat. § 475.01, describing the services that may be performed only by registered real estate brokers in the State of Florida.
It is appellees’ contention that a reading of the complaint leads to the conclusion that the plaintiff-New York broker was actually performing in Florida the services prohibited by the above-mentioned section. It is clear that such activity on behalf of the plaintiff may be inferred from the allegations of the complaint.
However, in order to dismiss a complaint for failure to state a cause of action, the basis of the defense which is claimed as a bar to the action must clearly appear upon the face of the complaint and not by way of inferences drawn therefrom. See Rud- man v. Baine, Fla.App.1961, 133 So. 2d 760. We, therefore, conclude that the trial judge erroneously dismissed the complaint as conclusively showing that the plaintiff is without remedy in the courts of Florida. The defense which the appellees urge upon the statute must be pleaded.
The judgment is reversed and the cause is remanded to the trial court for further proceedings in accordance with the views herein set out.
Reversed and remanded.
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Citator
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Krieger v. Ocean Props., Ltd., 387 So. 2d 1012 (Fla. 4th DCA 1980)…rs licensed in other states may recover commissions in connection with the sale of Florida realty where such brokers were employed by brokers licensed in Florida to locate purchasers within the states in which they were licensed. Kagan v. Garfinkle, 312 So. 2d 778 (Fla.3d DCA 1975); Pokress v. Tisch Florida Properties, Inc., 153 So. 2d 346 (Fla.3d DCA 1963). To properly evaluate plaintiff’s complaint, we must turn to the general rules governing motions for judgment on the pleadings. Under Rule 1.140(c), Fla.…
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Lou Tassy & Holiday Realty, Ltd. v. Hall, 429 So. 2d 30 (Fla. 5th DCA 1983)…See, e.g., Krieger v. Ocean Properties, Ltd., 387 So. 2d 1012 (Fla. 4th DCA 1980) (where Indiana brokers performed services in Indiana as cooperating brokers with a Florida broker, Indiana brokers could share in the commission); Kagan v. Garfinkle, 312 So. 2d 778 (Fla. 3d DCA 1975) (where New York broker performed services in New York as a cooperating broker with Florida broker, New York broker could recover a brokerage commission); Seijo v. Futura Realty, Inc., 269 So. 2d 738 (Fla. 3d DCA 1972) (Puerto Rico…
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Rinker Materials Corp. v. City OF Boynton Beach, 338 So. 2d 1132 (Fla. 4th DCA 1976)…aint and affirmative defense. We conclude that there were disputed issues of fact relating to this matter. We hold that an evidentiary hearing should have been held pursuant to the complaint and affirmative defense on this issue. Kagan v. Garfinkle, 312 So. 2d 778 (Fla.3d DCA 1975); Chaulsett v. City of Fort Lauderdale, 272 So. 2d 163 (Fla.4th DCA 1973); Feltner v. Fluder, 252 So. 2d 823 (Fla.4th DCA 1971). [*1133] This cause is reversed and remanded for further proceedings consistent with this opinion. REVE…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Blue v. The Drackett Prods. Co., 153 So. 2d 346 (Fla. 3d DCA 1963)
- Rudman v. Baine, 133 So. 2d 760 (Fla. 1st DCA 1961)