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Broderick v. McElroy and McCoy, Inc.
961 P.2d 504
Colo. Ct. App.
1998
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*1 case, cannot occur until a ate in this imposed. has first been

lawful sentence is vacated and the cause is sentence resentencing.

remanded for ROY, JJ.,

NEY and concur. BRODERICK, D.

James M. and Karen

Plaintiffs-Appellees, McCOY, INC.,

McELROY AND Pru d/b/a

dential-McElroy McCoy Realtors, Inc., Properties, Inc., Prudential Prime

Defendants-Appellants.

No. 96CA0712. Appeals,

Colorado Court

Div. III. 16, 1997.

Oct. Rehearing Denial of

As Modified on

Jan. 1998. July Denied 1998.

Certiorari

(contract). Although there was no written and sell- listing agreement between brokers ers, provided rep- that brokers the contract trust, of resented sellers and owed “duties exclusively to sellers. loyalty, and confidence” buyers required apply for The contract days of financing within five the date that, provided and execution of the contract buyers’ approved application if was not on 15, 1993, the contract would before October also contained an terminate. contract provision. March, P.C., Mayatt, March Brad & J. buyers financing, for timely applied After Collins, Plaintiffs-Appellees. Fort for they appraisal learned that valued Grimm, P.C., Grimm, M. M. Victor Victor In property price. real for less than sale Krassa, Madsen, LLC, Stephen Kumli & C. information, buyers reliance antici- Miller, Boulder, Defendants-Appellants. for pated financing request that their for would Johnson, Rothgerber, Appel, & Powers be denied. Clark, Denver, Vogt, for Richard K. Joann L. 14, 1993, On brokers informed October Curiae,

Amicus National Association Real- buyers availability for other sale of tors, Colorado Association of Realtors and buyers’ on property prepared, real and be- Ft. of Realtors. Collins Board half, purchase for real a contract of that property. Buyers purchased prop- the other Judge Opinion by NEY. 1993, erty and on same in late October Defendants, Dixon, Ray McElroy and against day, buyers, filed action sellers Inc., Prudential-McElroy McCoy, d/b/a (as alleging to the first breach contract Inc., Brokers, McCoy and Prudential Prime property) seeking and costs and (brokers) Inc., Properties, appeal trial their subsequently fees. Sellers amended and court’s award of certain against complaint claim brokers to include a in M. costs brokers favor James duty. fiduciary breach (sellers) D. on their and Karen Broderick A trial in October 1995 bench was held duty. fiduciary Brokers claim breach orally after which the trial court ruled appeal award of the trial court’s actual buyers had breached their contract with sell- damages, attorney and costs fidu- ers and that brokers had breached their jointly severally with brokers co-defen- essence, ciary duty by, to sellers in abandon- (buyers) dants William and Karen Eberhart ing their efforts on behalf sellers (who appeal). are buyers. transferring loyalty their part. in part and reverse in affirm 1996, February In trial held a 1993, buyers approached In late summer 1996, In hearing on sellers’ March costs. locating in request a brokers to assistance reflecting a order court entered written buyers type property certain of real wished previous ruling. oral The court concluded purchase. There was no written or oral jointly agreement buyers and brokers. between severally damages in the liable for actual approached inquired sellers $14,437.13and, pursuant 13- amount of selling be interested whether would 16-122, C.R.S.1997, in the amount costs not, property which was at that certain real $969.75. time, ap- on market. When proached it was unclear whether bro- April Following hearing a buyers. representing kers were an amended award- court entered ing attorney pursuant to the contract September exe- $22,500. amount property real favor of sellers a for sale of the cuted contract And, previous Although having reconsidered its had been determined. (in was, therefore, costs, April appeal the trial awarded sellers 1996 notice $969.75) premature, notice previous addition to the their June 1996 amended timely deposition appeal respect their in the amount of of filed with costs $1,541.55 May judgment. trial court’s 1996 amended expert witness fees *3 (notice appeal 4 specified amount See C.A.R. must be filed The order that $945. forty-five days entry buyers jointly within of the date of were and several- ly attorney judgment being appealed). liable for the or order We award of fees and reject costs. thus sellers’ assertion that we are jurisdiction without to decide the merits appeal by This brokers followed. appeal. this II matter, preliminary As a we address ap sellers’ contention that notice contend that the trial court that, thus, peal timely was not filed and determining parties erred in that were jurisdiction court lacks to entertain brokers’ subject to the contract and therefore to the appeal. reject We this contention. attorney fee of the contract. We timely filing appeal The of a notice of agree. mandatory jurisdictional. is Concelman The trial court determined that brokers 181, Ray, Colo.App. 36 538 P.2d 1343 contract; however, parties were to the it did (1975) (decided previous under version of express finding not make an that brokers 4). C.A.R. had breached the contract. The trial court’s 1996, In March the trial court entered a attorney fees brokers is judgment respect final with to all issues ex- attorney provi- nonetheless based on the cept the issue of “the amount and reason- sion in the contract: attorneys’ ableness of fees” which was Anything contrary to the herein notwith- hearing April scheduled for in late 1996. standing, any litigation in the event of Approximately prior two weeks to that hear- contract, arising arbitration out of this 1996, ing, mid-April brokers filed a notice prevailing party shall award to the appeal specific except as to all “the issues expense, including reasonable costs and attorneys’ amount of fees.” attorney fees. 1996, May hearing In after the on the issue prevailing party A dispute gen in a attorney the court entered an amend- erally attorney cannot recover fees unless judgment ed in which it awarded sellers at- specifically such award provided is for $22,500. the amount of In statute, rule, or contract. Bunnett v. Small 1996, June brokers filed with this court a wood, (Colo.1990). And, 793 P.2d 157 provi motion, unopposed by successful sions of a contract cannot be enforced

leave to appeal amend the notice of to include parties those who are not to the contract. the issue of fees. its order Airlines, See Frontier Inc. v. United Air motion, granting brokers’ observed Lines, Inc., (D.Colo.1989). F.Supp. 758 1399 appeal that brokers’ notice of amended .“timely filed.” We conclude that the determination in

Here, Weston, the issue of the 44 Colo.App. sellers’ Mitten v. 615 P.2d (1980), supplemental fees was not to the agent 60 that a real estate is not a sought by party substance of the relief sellers but to a contract for buyer sale between a seller, rather “part constituted of the total relief and a plain language controls. The sought” from under brokers and the contract at issue here does not contem- Metropolitan plate therefore, parties, See Corinthian Hill brokers as Keen, (Colo.App. provision District v. 812 P.2d awarding attorney contract 1991). related to the contract fees to a applicable is not was not final until the claim for 13-21-111.5(1), C.R.S.1997, limits § here cause paragraph, In its contract first 13-21-111.5, C.R.S.1997, § con- scope as parties contract

identified above, liability cerning pro As noted rata defendants and the sellers. rep- “brought as a result of a death specified that the brokers actions contract those allegiance person injury property.” owed their resented sellers and or an solely to them. The trial court relied that, conclude under state determining provision in 13-21-111.5(2) record, applicable, is not However, con- we the contract. thus, joint imposition the trial court’s language provision merely clude liability disturbed. will several Estate and the Real mandated statute to a requiring written disclosure Commission IV *4 the buyer agency relationship a to of broker’s 12-61-808, C.R.S.1997; § De- See seller. reject the brokers’ assertion that We F-l, Agencies 4 Regulatory Rule partment awarding deposition in costs to court erred Reg. Code Colo. 726-1. sellers. fiduciary indepen- duties A broker’s exist upon review of the record as Based our dently of this Bro- irrespective by in authority as the cited brokers well parties not to a contract sim- kers are made costs, Cherry to opposition the award disclosing their ply by reciting language Voelker, v. 859 School District No. 5 Creek See, § agency relationship to sellers. 12-61- (Colo.1993), say the we cannot that P.2d 805 (written 808(2)(d)(II),C.R.S. 1997 disclosure deposition consti court’s award of costs trial seller, agency relationship broker to Therefore, an abuse of its discretion. tuted not, thereof, buyer’s acknowledgment does Dewey will be disturbed. the award not See itself, by the bro- a contract with constitute Hardy, (Colo.App.1995)(trial 917 P.2d 305 v. ker). And, agent fact that the mere not court’s award of costs will be overturned signed portion that of the written document shown). is unless abuse discretion agreement memorializing the commission not make with the seller does brokers V thus, and, purchase the and sale contract to provision. subject attorney fee the attorney requested have fees on Sellers

appeal pursuant to the Ill we have deter- in the contract. Because applicable provision not to bro- mined that court next contend that the Brokers kers, deny request. we that 13-21-111.5(2), failed, § in C.R.S. violation findings “determining special to make VI negligence fault attrib percentage the parties” and to enter its utable to each of the theory of of at As an alternative recover in damages and costs accor actual torney appellees had raised the the We conclude that brokers’ dance therewith. Legitimate consequences Doctrine as ex 13-21-111.5(2) misplaced. § is reliance Co., v. Moore and 874 pressed Stevens 1994). (Colo.App. the trial P.2d 495 Because consid A statute must read and attorney fees on the court awarded basis legislative as a to ascertain the ered whole argu it this the contract never addressed harmonious, consistent, give intent trial court ment. We therefore remand the parts. Vail and sensible effect to its for it to consider this issue. Associates, Ap Inc. v. Board Assessment (Colo.App.1988). peals, 765 593 P.2d damages and costs The award of actual 13-21-111.5(2) against is affirmed. The award rely upon reversed, against brokers trial is it error for the proposition that cause remanded to the trial court damages, and costs and the is to award actual court modify with buyers jointly and sever- accordance however, assertion, opinion. be- ally. reject contract, HUME, J., arising out of shall concurs. prevailing party all award to the reasonable TURSI,* J., part concurs in and dissents including attorney expense, fees.” costs part. litigation that the here It cannot be denied concurring Judge part TURSI arose out this contract dissenting in part. prevailing parties. were the respectfully part dissent from that 12-16-808(2)(d)(ll) merely holds Section part majority opinion reversing does not con- that disclosure of seller/broker plaintiff. Contrary a and the stitute contract between broker holding majority, to the the rule in buyer. Again confusion of the issues here Weston, Mitten 44 Colo.App. 615 P.2d majority a is is not demonstrated. This (1980) is inapposite undisputed to the buyers. by the It a suit suit underlying dispositive claim facts sellers’ and the And 12-61-808(2)(d)(11) here. Nor is SECTION thus, legal parlance, litiga- in common when applicable. C.R.S. out are tion arises of a contract entities Hence, parties. anything contrary not- Mitten, plaintiffs withstanding, properly at- the court awarded Mitten, sellers. contract in Under the fees to in this though held brokers were *5 16(c) litigation. Paragraph See of the con- parties with the brokers had no tract. obligation contractual to and were not parties to the transfer of land as de- Although parties buying not brokers were problem scribed I the contract. have no selling question, they or the land in were with the rule of Mitten as applied the facts agents as and were sellers therein. Thus, obligated to them under brought litigation against sellers when question The contract in here created dual arising brokers for a claim out privities, one sellers between duty, provision concerning breach at- privity one between sellers and The implicated fees was buy- under contract between sellers and by operation of law the undisputed. ers litigation. Party as used herein is a word privity under the contract between art. specifically sellers and brokers is created appealed have portion which, Paragraph execution judgment concerning the breach of their “party” brokers, “party” spe- and the Rather, fiduciary duty to sellers. would cifically paragraph confirms 19 of the con- the full of the judgment leave burden trust, loyalty tract brokers duties of buyers, fees on the their co-defen- only. confidence seller dants, proceeded guidance. who under their Here, undisputed it is that the broker vio- Hence, under the contract in its en- read fiduciary duty lated his under the sellers tirety giving parts meaning, And, thereof I the contract. distinct from the contract Mitten, would hold that the trial court did not err portion the contract here in assessing attorney fees the brokers. completed by listing company seller and Therefore, since in the por- I concur other specifically paragraph setting referenced the majority opinion, tions of affirm trust, would loyalty, out the brokers’ duties of entirety. confidence the sellers. Mitten, again,

And in distinction to

contract here contains a that:

“Anything contrary notwithstanding, any litigation

in the event arbitration * 24-51-1105, (1996 Sitting by assignment Cum.Supp.). Justice under Chief C.R.S. Const, VI, 5(3), provisions of Sec. the Colo. art.

Case Details

Case Name: Broderick v. McElroy and McCoy, Inc.
Court Name: Colorado Court of Appeals
Date Published: Jan 8, 1998
Citation: 961 P.2d 504
Docket Number: 96CA0712
Court Abbreviation: Colo. Ct. App.
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