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Shalimar Development, Inc. v. Federal Deposit Insurance

Citations: 515 S.E.2d 120; 257 Va. 565; 1999 Va. LEXIS 64Docket: Record 981365

Court: Supreme Court of Virginia; April 16, 1999; Virginia; State Supreme Court

Original Court Document: View Document

Narrative Opinion Summary

In this case, Shalimar Development, Inc. appealed a trial court decision that set aside a jury verdict awarding it $222,000 for breach of a real estate brokerage contract with Heritage Savings Bank. The central issue was whether Shalimar was the procuring cause of a sale of condominium units, which the trial court ruled it was not, due to interruptions such as the termination of Shalimar's contract and subsequent receivership of Heritage Savings. The appellate court upheld this decision, explaining that a verdict may only be overturned if it lacks credible evidence or is plainly wrong. Shalimar's contract was deemed special, not general, meaning no commission was due because the sale was not completed under the terms of its contract and occurred after Heritage's failure. The court concluded there was insufficient continuity linking Shalimar’s efforts to the final sale, affirming the trial court's judgment and rendering the FDIC's cross-error moot.

Legal Issues Addressed

Procuring Cause in Real Estate Brokerage

Application: The court determined Shalimar was not the procuring cause of the sale as the continuity of events leading to the transaction was interrupted.

Reasoning: The trial court ruled in favor of the FDIC, determining that the evidence did not sufficiently prove Shalimar as the procuring cause due to interruptions in the continuity of events, including the termination of Shalimar's brokerage contract and the receivership.

Real Estate Broker Commission Entitlement

Application: Shalimar’s entitlement to a commission was negated by the lack of a completed sale during its contractual engagement, as the sale concluded at a later date under different terms.

Reasoning: The FDIC argued that Shalimar had a special contract with Heritage Savings, asserting that no commission was due since the sale had not been completed at the time Heritage Savings failed, and thus no liability for future commissions could arise.

Setting Aside a Jury Verdict

Application: The appellate court emphasized that a jury verdict can only be set aside if it is plainly wrong or lacks credible evidence, and conflicts in testimony must favor the jury's conclusions.

Reasoning: The court reiterated the standard for setting aside a jury verdict, emphasizing that it can only occur if the verdict is plainly wrong or lacking credible evidence, and that reasonable conflicts in testimony must favor the jury's conclusions.

Special vs. General Broker Contracts

Application: The court distinguished between general and special contracts, finding that Shalimar's contract did not entitle it to a commission without meeting specific conditions.

Reasoning: In the case of Edmonds v. Coldwell Banker Residential Real Estate Services, Inc., the court clarifies the distinction between general and special contracts of employment for brokers.