Colony Hotel, Inc. v. PokressColony Hotel, Inc. v. Pokress
Pеtitioners, Colony Hotel, Inc., a Florida corporation, and Charles Martel, by a petition for certiorаri seek review of an order of the Chancellor denying their motion to dismiss a complaint in equity filed by respondеnt Pokress seeking the declaration of a constructive trust in connection with a claimed real estatе 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 а complaint seeking the declaration of a constructive trust.
Pokress, a real estate broker, allеged by his complaint in equity that he was employed by one Charles Henry, individually and on behalf of Florida Hotel Corрoration 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 оf 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 сommission 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 savеd $20,000.” The transaction was closed and the title was taken in the name of Colony Hotel, Inc., which allegedly Martеl owned and controlled. The broker sought a decree declaring that he had earned his commission and thаt “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
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 wоuld be one at law and not in equity. ,
The respondent realtor contends that he grounded his complaint on an аlleged fraud and that there is adequate basis in the allegations to justify the declaration of a constructivе trust. Although the complaint alleged that the buyer “employed the plaintiff for the purpose of finding a hotel,’’.thе respondent in his brief specifically stated that, “It is admitted by the plaintiff that there was no binding contract betweеn 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 estаte 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,
In fairness to the Chancellor below as well as to counsel for both parties in thе proceedings here, our opinion in Borinsky v. Cohen, Fla.1956,
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.