COLONY HOTEL, INC., A FLORIDA CORPORATION, AND CHARLES MARTEL, PETITIONERS,
v.
LOUIS N. POKRESS, RESPONDENT

Fla. | 1956-06-20
DREW, C. J., and TERRELL and ROBERTS, JJ., concur.
88 So. 2d 618 Florida Supreme Court (1956) Caution
Cited by 6 cases

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Synopsis

A real estate broker sought a declaration of constructive trust against a hotel buyer, alleging the buyer fraudulently conspired with the seller to avoid paying the broker's commission. The Florida Supreme Court held that the broker failed to state a cause of action in equity because he lacked a binding contract with the buyer and failed to allege essential elements of fraud and an inadequate legal remedy.


Holding

The broker failed to state a cause of action in equity. The complaint was deficient because: (1) there was no binding contract between the broker and buyer; (2) the complaint contained no allegations regarding the amount of commission allegedly agreed to by the seller; (3) there were no allegations of inadequacy of legal remedy; (4) except for a bald conclusion, no factual allegations showed knowing conspiracy or collusion to evade commission payment; (5) there was no showing of a trust res; and (6) there were no allegations supporting tortious interference with a contract.


Key Quotes

“a real estate broker is attempting to establish through an equitable proceeding a claim for a commission against the buyer in the transaction which the broker asserts he brought into being”

Identifies the recurring problem the court addresses in determining when equitable relief is available to brokers

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Facts & Procedural History

Pokress, a real estate broker, alleged he was employed by the seller to find a purchaser for the Emerald Isle Flotel at $1,500,000 and separately empl…

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Opinion of the Court
THORNAL, Justice.

THORNAL, Justice.

Petitioners, Colony Hotel, Inc., a Florida corporation, and Charles Martel, by a petition for certiorari seek review of an order of the Chancellor denying their motion to dismiss a complaint in equity filed by respondent Pokress seeking the declaration of a constructive trust in connection with a claimed real estate commission.

The question for our determination is whether under the circumstances hereafter summarized a real estate broker can proceed in equity against the buyer in a real estate transaction by way of a complaint seeking the declaration of a constructive trust.

Pokress, a real estate broker, alleged by his complaint in equity that he was employed by one Charles Henry, individually and on behalf of Florida Hotel Corporation and Emerald Isle, Inc., to find a purchaser for the Emerald Isle Flotel for the price of $1,500,000. He alleged further that Charles Martel employed him to find a hotel to purchase and that after a great deal of effort, he brought the parties together. The complaint further states that “in an effort to defraud plaintiff Pokress of his commission rightfully earned,” the seller and the buyer consummated a deal for $1,450,000, paying another broker a commission of $5,-000 and thereby “saving for themselves a total of $70,000, in just commissions, of which the buyer saved $50,000, and the seller saved $20,000.” The transaction was closed and the title was taken in the name of Colony Hotel, Inc., which allegedly Martel owned and controlled. The broker sought a decree declaring that he had earned his commission and that “the defendants and each of them be decreed to be trustees of a constructive trust to the extent of $70,000 gained by them.” The buyer filed a motion to dismiss the complaint on the ground that it failed to state a claim for relief and the Chancellor, after hearing, en tered an order denying the motion to dismiss. Review of this order is sought by the petition for certiorari.

Petitioners contend that the complaint failed to state any cause of action against them and further that if under any conditions the realtor had a right of action against the petitioners, it would be one at law and not in equity. ,

The respondent realtor contends that he grounded his complaint on an alleged fraud and that there is adequate basis in the allegations to justify the declaration of a constructive trust. Although the complaint alleged that the buyer “employed the plaintiff for the purpose of finding a hotel,’’.the respondent in his brief specifically stated that, “It is admitted by the plaintiff that there was no binding contract between the. plaintiff and the Buyer defendant to pay the plaintiff any commission for the sale of the property involved.”

An examination of the record suggests' that we have before us another case in which a real estate broker is attempting to establish through an equitable proceeding a claim for a commission against the buyer in the transaction which the broker asserts he brought into being. This situation has been the source of recurring litigation in this court since our decisions in Moss v. Sperry, 140 Fla. 301, 191 So. 531, 125 A.L.R. 909, and Moss v. Sperry, 147 Fla. 86, 2 So. 2d 123. The allegations of the complaint before us do not parallel those in the complaint in Moss v. Sperry, supra. Here there was no claim that there was an agreement to pay the broker out of the first,, monies paid. In fact there was no allegation whatsoever as to the amount of commission which the seller allegedly agreed to pay the broker. There were no allegations as to the inadequacy of a legal remedy and as a matter of fact .except for one bald conclusion the complaint was completely devoid of allegations showing that the parties knowingly combined, conspired and colluded to consummate the sale in a manner intended to evade the payment of commission. See Moss v. Sperry, 147 Fla. 86, 2 So. 2d 123. Here the transaction was completely closed before the broker moved to> assert his claim. There is no showing in the complaint that because of the efforts of the broker the buyer was willing to consummate the deal bn the terms presented to him by the broker for the seller. For all that appears, the original terms could have been unsatisfactory to the buyer and he ultimately closed on other terms agreeable to him. There is, furthermore, no showing of a trust res upon which a constructive trust could be founded. There were no factual allegations to support even an inference of a tortious interference with a contract.

In fairness to the Chancellor below as well as to counsel for both parties in the proceedings here, our opinion in Borinsky v. Cohen, Fla.1956, 86 So. 2d 814, had not been filed when the order under review was. entered. It is our view that insofar as these petitioners are concerned, their position is supported by the decision of this court in Borinsky v. Cohen, supra, and the cases there cited. An extended discussion of the rule of law applicable here would be without justification in view of our recent pronouncements on the subject. Reference to Borinsky v. Cohen, supra, is hereby made as support for our conclusion that the order of the Chancellor denying the motion to dismiss was erroneous. See also, Nicol v. Bressler, 159 Fla. 668, 32 So. 2d 457, and Robertson v. Williams, 158 Fla. 163, 28 So. 2d 114.

For the reasons stated, the prayer of the petition is granted, the order appealed from is quashed, and the cause remanded for further proceedings consistent with this-opinion.

DREW, C. J., and TERRELL and ROBERTS, JJ., concur.


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Citator

Cited By

  • ORO Verde Groves, Inc. v. Fuchs, 136 So. 2d 12 (Fla. 3d DCA 1962)
    …ind the joint liability of the defendant-prospective purchaser and the defendant-subsequent purchaser established without genuine issue as to material fact because no overt act of conspiracy was alleged or proved. Colony Hotel v. Pokress, Fla. 1956, 88 So. 2d 618; Borinsky v. Cohen, Fla.1956, 86 So. 2d 814; cf. In re Ruch’s Estate, Fla.1950, 48 So. 2d 289; Gair v. Lockhart, Fla.1950, 47 So. 2d 826; Renpack, Inc. v. Oppenheimer, Fla.App.1958, 104 So. 2d 642, 646.…
  • Leitner v. Emory J. Willaford, 306 So. 2d 555 (Fla. 3d DCA 1975)
    …to state a cause of action entitling the appellant to impress a constructive trust. In the first place, we think the appellant has not shown a res upon which a constructive trust might be based. See, [*557] Colony Hotel, Inc. v. Pokress, Fla.1956, 88 So. 2d 618. Secondly, our reading of the complaint convinces us that the appellant has failed to state any facts which tend to show that the appellee or his former wife abused any confidence reposed in them by the appellant or employed any other fraudulent or…
  • Riteway Real Est., Inc. v. Bentley Ocean View, Inc., 659 So. 2d 1194 (Fla. 3d DCA 1995)
    …uently, the court directed that the existing complaint would be dismissed, but without prejudice to the plaintiff to file an appropriately pleaded case on the law side of the court. Id. at 815. Similarly inapposite are Colony Hotel, Inc. v. Pokress, 88 So. 2d 618 (Fla.1956), and [*1196] Schneider v. Binder, 72 So. 2d 909 (Fla.1954), both of which recite numerous pleading deficiencies by the plaintiffs in the respective cases. Contrary to the suggestion of the buyer, we think that Mead Corp. v. Mason is corre…

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