218 Conn. 512 | Conn. | 1991
These two appeals arise from an action to recover a real estate commission. The defendants appeal from the denial of their motion to dissolve a prejudgment attachment of real estate, while the plaintiff appeals from the granting of the defendants’ motion to dismiss. The principal issue in both appeals is whether a real estate listing agreement satisfied the requirements of General Statutes § 20-325a (b).
The material facts are not in dispute. The plaintiff, McCutcheon and Burr, Inc., is a licensed real estate broker. On or about October 3, 1989, the plaintiff entered into an open listing agreement to sell certain
On October 10, 1989, Anchor Companies (Anchor) addressed a letter of intent to the plaintiff broker setting forth its proposal to purchase the property in question for $3,950,000. The letter was signed by Berman on October 11,1989, indicating his assent to enter into negotiations to draw up a purchase contract at that price. On October 24,1989, the defendants and Anchor executed a purchase contract that identified Berman, Silverman and Marocchini as the sellers of the property. The contract was signed by each of the sellers and listed a post office box as their address.
In the first appeal, Docket No. 14113, the defendants challenge the denial of their motion to dissolve the prejudgment attachment.
In its challenge to the dismissal of the complaint (Docket No. 14114), the plaintiff asserts that: (1) the trial court incorrectly concluded that the requirements for an enforceable listing agreement set forth in § 20-325a (b) were not met; (2) under the law of the case, the trial court was bound by the earlier ruling by the state trial referee that the provisions of § 20-325a (b) were satisfied; and (3) even if the trial court was correct in concluding that the listing agreement did not meet the requirements of § 20-325a (b), it should not have dismissed the CUTPA count in the complaint because the plaintiff’s CUTPA claim was not subject to those requirements. We find none of these arguments persuasive.
The right of a real estate broker to recover a commission is dependent upon whether the listing agreement meets the requirements of § 20-325a (b). New England Land Co. v. DeMarkey, 213 Conn. 612, 621, 569 A.2d 1098 (1990); Revere Real Estate, Inc. v. Carato, 186 Conn. 74, 77, 438 A.2d 1202 (1982). Section 20-325a (b) requires that the listing agreement: “(1) be in writing, (2) contain the names and addresses of all the parties thereto, (3) show the date on which such contract was entered into or such authorization given, (4) contain the conditions of such contract or authorization and (5) be signed by the owner or an agent authorized to act on behalf of the owner only by a written document executed in the manner provided for conveyances in section 47-5, and by the real estate broker or his authorized agent.” In addition, the broker ordinarily must prove that it has found a buyer that is ready, willing and able to purchase the property on terms agreed to by the seller. Storm Associates, Inc. v. Baumgold, 186 Conn. 237, 242, 440 A.2d 306 (1982); Revere Real Estate, Inc. v. Cerato, supra, 77-78.
The defendants contend that the trial court properly concluded that “owner,” as used in § 20-325a (b), means “record owner” and that the listing agreement is therefore unenforceable because it does not include the names, addresses or signatures of Silverman and Marocchini.
It is well established that the requirements of § 20-325a (b) are mandatory rather than permissive and that the statute is to be strictly construed. New England Land Co. v. DeMarkey, supra, 623 (listing agreement must include sale price of property); Jay Realty, Inc. v. Ahearn Development Corporation, 189 Conn. 52, 54, 453 A.2d 771 (1983) (listing agreement lacking addresses of both parties unenforceable); Thornton Real Estate, Inc. v. Lobdell, 184 Conn. 228, 230-31, 439 A.2d 946 (1981) (brokerage contract signed by owner’s agent unenforceable under the statute as then worded); Hossan v. Hudiakoff, 178 Conn. 381, 383, 423 A.2d 108 (1979) (failure to include broker’s address fatal to listing agreement); Rostenberg-Doern Co. v. Weiner, 17 Conn. App. 294, 305-307, 552 A.2d 827 (1989) (omission of rate of broker’s commission fatal); Howland v. Schweir, 7 Conn. App. 709, 713-15, 510 A.2d 215 (1986) (commission not recoverable where broker could not prove he produced a buyer during effective term of listing agreement); Arruda Realty, Inc. v. Doyon, 35 Conn. Sup. 617, 620, 401 A.2d 625, cert. denied, 176 Conn. 763, 394 A.2d 201 (1978) (owner’s address requirement not satisfied even though the listing agreement included the address of the subject property, which was the same as the owner’s address). “A broker who does not follow the mandate of [§ 20-325a (b)] does so at his peril.” Thornton Real Estate, Inc. v. Lobdell, supra, 230-31.
The plaintiff contends that “owner” should not be interpreted to mean “record owner” because § 20-325a (b) should be read in conjunction with § 34-47. In other words, the plaintiff asserts that Berman had the authority to bind the partnership under § 34-47 and that his signature, appearing as it did below the name of the partnership, obviated the need for including the names, addresses and signatures of the other two record owners on the listing agreement. The plaintiffs argument, however, ignores the principle that “[a] statutory provision that articulates with greater specificity the resolution of a particular controversy is presumed to prevail over a more general provision.” State v. Daniels, 207 Conn. 374, 393, 542 A.2d 306 (1988); State v. Torres, 206 Conn. 346, 359, 538 A.2d 185 (1988); McKinley v. Musshorn, 185 Conn. 616, 623-24, 441 A.2d 600 (1981). Section 34-47 is a general provision that governs the authority of partners to bind the partnership when carrying on the partnership business. Section 20-325a (b), however, includes specific provisions that dictate when the signature of an owner’s
We conclude that “owner,” as used in § 20-325a (b), means the record owner or owners as displayed on the land records. The listing agreement in issue, therefore, is not in compliance with the statute because the names, addresses and signatures of Silverman and Marocchini, both record owners, were omitted. Although we might reach a different result if title to the property had been held in the name of the partnership, under the facts of this case we cannot apply the general provisions of § 34-47 when the legislature has specifically addressed in § 20-325a (b) the conditions under which an agent will be allowed to sign a listing agreement on behalf of an owner.
The focus of our inquiry on this issue, therefore, is whether either the listing agreement or the purchase contract “points unquestionably to the other document so as to create a consistent contract.”
The plaintiff also argues that because the state trial referee had concluded that § 20-325a (b) was satisfied when it denied the defendants’ motion to dissolve the prejudgment attachment, the subsequent granting by the trial court of the motion to dismiss on the ground
“The law of the case is not written in stone but is a flexible principle of many facets adaptable to the exigencies of the different situations in which it may be invoked. See 18 Wright, Miller & Cooper, Federal Practice and Procedure: Jurisdiction § 4478. In essence it expresses the practice of judges generally to refuse to reopen what has been decided and is not a limitation on their power. Messenger v. Anderson, 225 U.S. 436, 444, 32 S. Ct. 739, 56 L. Ed. 1152 (1912).” (Emphasis added.) Breen v. Phelps, 186 Conn. 86, 99, 439 A.2d 1066 (1982); Daley v. Hartford, 215 Conn. 14, 29, 574 A.2d 194, cert. denied, U.S. , 111 S. Ct. 513, 112 L. Ed. 2d 525 (1990); Rosenblit v. Danaher, 206 Conn. 125, 132, 537 A.2d 145 (1988). “From the vantage point of an appellate court it would hardly be sensible to reverse a correct ruling by a second judge on the simplistic ground that it departed from the law of the case established by an earlier ruling.” Breen v. Phelps, supra, 100.
When a defendant moves to dissolve an ex parte prejudgment remedy, the trial court must determine whether “there is probable cause to sustain the validity of the plaintiff’s claim.” General Statutes § 52-278e (c). It is well established that a probable cause hearing is not intended to be a full scale trial on the merits of the plaintiff’s claim. New England Land Co. v. DeMarkey, supra, 620; Three S Development Co. v. Santore, 193 Conn. 174, 175, 474 A.2d 795 (1984); Augeri v. C.F. Wooding Co., 173 Conn. 426, 429, 378
In contrast, the ruling of the trial court on the motion to dismiss necessitated a full review of the merits of the underlying issue, namely, whether the listing agreement satisfied the requirements of § 20-325a (b). Because this ruling involved the application of a different legal standard than that employed in ruling on the motion to dissolve the prejudgment attachment, the law of the case is simply inapposite in these circumstances.
It is necessary to note, however, that the proper procedural mechanism for addressing whether § 20-325a (b) was satisfied would have been a motion to strike under Practice Book § 152,
Although the trial court should have treated the motion to dismiss as a motion to strike, this procedural anomaly does not affect our decision. In another case involving an issue of compliance with § 20-325a (b), we noted that “where the pleadings and exhibits are the only evidentiary concerns, the dictates of judicial economy instruct us to resolve the legal validity of a particular agreement under an applicable statute at the earliest time practicable.” New England Land Co. v. DeMarkey, supra, 623. For the purposes of the present case, the primary difference between the granting of
II
The plaintiff further contends that, even if the trial court properly concluded that the listing agreement did not satisfy § 20-325a (b), its CUTPA count should not have been dismissed. In support of this claim the plaintiff relies primarily on Dow & Condon, Inc. v. Anderson, 203 Conn. 475, 525 A.2d 935 (1987). That case, however, is readily distinguishable.
The plaintiff in Dow, a real estate brokerage corporation, was serving as co-broker for the sale of property owned by a limited partnership. Id., 476-77. The named defendant was both a general partner in the limited partnership and the owner of the defendant corporation, a real estate brokerage company that served as primary broker for the property. Id. After the plain
The plaintiffs reliance on Dow is misplaced, however, because the CUTPA claim in Dow, unlike the CUTPA count in the present case, did not arise solely from the listing agreement. We specifically noted in that case that the CUTPA claim was not brought simply as a means of enforcing its listing agreement, but rather was an attempt by the plaintiff to recover for the deceptive practices of the defendants. Id., 483-84. In contrast, in this case the plaintiffs CUTPA claim simply states an alternative means for attempting to collect the commission provided for in the listing agreement.
In further support of its CUTPA claim, the plaintiff argues that even if it was not entitled to collect a commission as a result of the deficiencies of the listing agreement, the defendants’ refusal to pay a commission constituted a CUTPA violation because it was equitably entitled to that commission. Assuming, as the plaintiff contends, that it did in fact produce a ready, willing and able buyer and that the defendants asked the plaintiff to compromise its commission as a condition for going through with the sale, we do not agree that such conduct would provide a basis for a CUTPA
The plaintiffs invocation of equitable principles in support of its CUTPA claim is an attempt to effect an end run around the requirements of § 20-325a (b). “Listing contracts are governed exclusively by § 20-325a . . . .” William Pitt, Inc. v. Taylor, 186 Conn. 82, 84, 438 A.2d 1206 (1982). In Currie v. Marano, 13 Conn. App. 527, 530-33, 537 A.2d 1036, cert. denied, 207 Conn. 809, 541 A.2d 1238 (1988), the Appellate Court rejected an analogous claim. In that case, a broker whose listing agreement did not satisfy the requirements of § 20-325a (b) argued that he was still entitled to his commission because the defendant was equitably estopped from asserting the statute as a defense and because the defendant had been unjustly enriched. Id., 530-32. The court noted that to allow the plaintiff to recover under these theories “would nullify § 20-325a and emasculate the state’s real estate sales licensing system.” Id., 531; see also Barrett Builders v. Miller, 215 Conn. 316, 331-32, 576 A.2d 455 (1990) (Shea, J., dissenting); Goldblatt Associates v. Panda, 24 Conn. App. 250, 253-54, 587 A.2d 433 (1991) (broker precluded from recovering in quantum meruit when listing agreement did not satisfy § 20-325a [b]). The plaintiffs attempt to circumvent the requirements of § 20-325a (b) by filing a CUTPA claim must therefore be denied.
In light of our conclusion that the trial court properly dismissed the complaint, the issues in the defendants’ appeal of the denial of their motion to dissolve the prejudgment attachment in Docket No. 14113 need not be addressed.
In this opinion the other justices concurred.
General Statutes § 20-325a (b) provides: “No person, licensed under the provisions of this chapter, shall commence or bring any action in respect of any acts done or services rendered after October 1, 1971, as set forth in subsection (a), unless such acts or services were rendered pursuant to a contract or authorization from the person for whom such acts were done or services rendered. To satisfy the requirements of this subsection any such contract or authorization shall (1) be in writing, (2) contain the names and addresses of all the parties thereto, (3) show the date on which such contract was entered into or such authorization given, (4) contain the conditions of such contract or authorization and (5) be signed by the owner or an agent authorized to act on behalf of the owner only by a written document executed in the manner provided for conveyances in section 47-5, and by the real estate broker or his authorized agent.”
On August 30, 1979, the three individual defendants filed a certificate of adoption of trade name in which they indicated that they were transacting business under the name of Washington Ridge Associates. The deed to Cromwell West Office Park does not refer to the partnership but simply conveyed the property to the three defendants as tenants in common.
The purchase contract did not refer to Washington Ridge Associates.
General Statutes § 52-278e provides in pertinent part: “allowance OF PRE JUDGMENT REMEDY WITHOUT HEARING. NOTICE TO DEFENDANT. SUBSEQUENT HEARING AND ORDER. ATTACHMENT OF REAL PROPERTY OF MUNICIPAL officers, (a) The court or a judge of the court may allow the prejudgment remedy to be issued by an attorney without hearing . . . upon verification by oath of the plaintiff or of some competent affiant, that there is probable cause to sustain the validity of the plaintiff’s claim and (1) that the prejudgment remedy requested is for an attachment of real property ....
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“(c) The defendant appearing in such action may move to dissolve or modify the prejudgment remedy granted pursuant to this section .... If the court determines at such hearing requested by the defendant that there is probable cause to sustain the validity of the plaintiff’s claim, then the prejudgment remedy granted shall remain in effect.”
Although the defendants’ motion did not state whether it was brought pursuant to General Statutes § 52-278e or General Statutes § 52-278k, the fact that this motion was filed shortly after the attachment leads us to conclude that it was brought under § 52-278e. Gibbs v. Mase, 11 Conn. App. 289, 293-94, 526 A.2d 7 (1987), citing City National Bank v. Davis, 181 Conn. 42, 45-46, 434 A.2d 310 (1980).
In Pinsky v. Duncan, 898 F.2d 852, 854 (2d Cir.), modified, 907 F.2d 17 (2d Cir.), cert. granted sub nom. Connecticut v. Doehr, U.S. , 111 S. Ct. 42, 112 L. Ed. 2d 18 (1990), the Court of Appeals for the Second Circuit held that the ex parte attachment of real estate pursuant to § 52-278e violated the due process clause. Because that decision applies only to attachments filed after March 9,1990; id., 907 F.2d 17; it does not apply to this case.
“[General Statutes] Sec. 34-47. ACTIONS OF PARTNERS. (1) Every partner is an agent of the partnership for the purpose of its business, and the act of every partner, including the execution in the partnership name of any instrument, for apparently carrying on in the usual way the business of the partnership of which he is a member binds the partnership, unless the partner so acting has in fact no authority to act for the partnership in the particular matter, and the person with whom he is dealing has knowledge of the fact that he has no such authority.
“(2) An act of a partner which is not apparently for the carrying on of the business of the partnership in the usual way does not bind the partnership unless authorized by the other partners.
“(3) Unless authorized by the other partners or unless they have abandoned the business, one or more but less than all the partners have no authority to: (a) Assign the partnership property in trust for creditors or on the assignee’s promise to pay the debts of the partnership, (b) dispose of the good will of the business, (c) do any other act which would make it impossible to carry on the ordinary business of a partnership, (d) confess a judgment, (e) submit a partnership claim or liability to arbitration or reference.
“(4) No act of a partner in contravention of a restriction on authority shall bind the partnership to persons having knowledge of the restriction.”
“[Practice Book] Sec. 142. motion to dismiss
“Any defendant, wishing to contest the court’s jurisdiction, may do so even after having entered a general appearance, but must do so by filing a motion to dismiss within thirty days of the filing of an appearance. Except in summary process matters, the motion shall be placed on the short calendar to be held not less than fifteen days following the filing of the motion, unless the court otherwise directs.”
The defendants claim that the trial court improperly: (1) concluded that the listing agreement satisfied General Statutes § 20-325a (b); (2) determined that the prospective buyer was ready, willing and able to purchase the property; and (3) admitted hearsay evidence.
The defendants also argue that the listing agreement is not in compliance with General Statutes § 20-325a (b) because the agreement is dated October 3,1989, yet it states that the term of the agreement commences on October 1,1989. Because we agree with the defendants’ principal argument, we need not address this issue.
Under General Statutes § 34-48, title to property can be held in the name of a partnership. Although title to Cromwell West Office Park was not in the name of Washington Bidge Associates, the record is unclear as to whether the property was in fact an asset of the partnership. This factual issue, however, has no effect on our decision.
General Statutes § 47-5 provides in pertinent part: “(a) All conveyances of land shall be: (1) In writing; (2) if the grantor is a natural person, subscribed, with or without a seal, by the grantor with his own hand or with his mark with his name annexed to it or by his attorney authorized for that purpose by a power executed, acknowledged and witnessed in the manner provided for conveyances or, if the grantor is a corporation or partnership, subscribed by a duly authorized person; (3) acknowledged by the grantor, his attorney or such duly authorized person to be his free act and deed; and (4) attested to by two witnesses with their own hands.”
On January 11, 1990, Marocchini appointed Berman as his attorney in fact. That appointment, however, was made well after the execution of the listing agreement in October, 1989.
We also find support for our conclusion in the legislative history of General Statutes § 20-325a (b). The term “owner” did not appear until 1985 when the statute was amended by replacing the word “seller” with the term “owner.” See Public Acts 1985, No. 85-166, § 1.
The purpose of this change in terminology was to clarify whose signature was required on the listing agreement, especially in cases where the
The purchase contract provides in pertinent part: “Brokerage. Purchaser and Seller represent to each other that they have dealt with no real estate broker, agent or finder, other than McCutcheon & Burr, Incorporated, in connection with this transaction and each agrees to indemnify and hold the other harmless from claims arising from its actions. At Closing, Seller shall pay any fee due to McCutcheon & Burr, Incorporated.”
Although the plaintiff also relies upon the letter of intent, that document does not contain the names, addresses or signatures of Silverman and Marocchini and therefore would not meet the statutory requirements if read together with the listing agreement. The trade name certificate is signed by all three partners, but it clearly does not have the requisite connection to the listing agreement.
Practice Book § 152 provides in pertinent part: “Whenever any party wishes to contest (1) the legal sufficiency of the allegations of any complaint, counterclaim or cross claim, or of any one or more counts thereof, to state a claim upon which relief can be granted . . . that party may do so by filing a motion to strike the contested pleading or part thereof.”
In asserting that a failure to comply with General Statutes § 20-325a (b) creates a jurisdictional problem, the defendants rely primarily on the portion of the statute that provides: “No person . . . shall commence or bring any action . . . .” We note that similar language is found in the statute of frauds; General Statutes § 52-550; and in the statute of limitations for tort actions set forth in General Statutes § 52-577. Neither of those statutes creates a jurisdictional bar. See Seipold v. Gibbud, 110 Conn. 392, 395, 148 A. 328 (1930) (statute of frauds); Orticelli v. Powers, 197 Conn. 9, 15-16, 495 A.2d 1023 (1985) (§ 52-577).
“[Practice Book] Sec. 157. —substitute pleading; judgment
“Within fifteen days after the granting of any motion to strike, the party whose pleading has been stricken may file a new pleading; provided that in those instances where an entire complaint, counterclaim or cross complaint has been stricken, and the party whose pleading has been so stricken fails to file a new pleading within that fifteen-day period, the court may upon motion enter judgment against said party on said stricken complaint, counterclaim or cross complaint.”
The plaintiff was also unable to demonstrate that it could save the CUTPA count if it had the opportunity to amend that count.
The first nine paragraphs of the CUTPA count incorporate by reference the entire first count, which represents the claim for breach of the listing agreement. The remainder of the CUTPA count alleges that the defendants engaged in unfair or deceptive acts when they allegedly refused to sell the Cromwell West Office Park for the agreed price because the plaintiff would not compromise all or part of its commission.