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Mahoney Marketing Corp. v. Sentry Builders of Colorado, Inc.

Citations: 697 P.2d 1139; 1985 Colo. App. LEXIS 989Docket: 83CA0714

Court: Colorado Court of Appeals; February 14, 1985; Colorado; State Appellate Court

Narrative Opinion Summary

The case involved a dispute between Mahoney Marketing Corporation and others against Sentry Builders of Colorado over a real estate broker's commission following the sale of a property. The Colorado Court of Appeals affirmed the trial court's decisions, which included granting a directed verdict in favor of the defendants. The case stemmed from an exclusive listing agreement that was terminated with a provision releasing the commission unless another agent was involved in the sale, which was not the case when Sentry sold the property. The plaintiffs' claims of entitlement to a commission were dismissed due to the explicit terms of the release agreement. The court also allowed the defendants' counterclaims for breach of fiduciary duty and exemplary damages to proceed to the jury, recognizing the legal nature of such claims. Additionally, the plaintiffs' challenge to the jury instruction on the alter ego doctrine was rejected, as any inaccuracies were deemed not to constitute reversible error. The trial court's judgment was upheld, with Justices Berman and Van Cise concurring in the decision.

Legal Issues Addressed

Breach of Fiduciary Duty and Exemplary Damages

Application: The jury was allowed to consider the defendants' counterclaims for breach of fiduciary duty and exemplary damages, affirming the legal nature of remedies for fiduciary breaches.

Reasoning: Regarding the defendants' counterclaims for breach of fiduciary duty and exemplary damages, the court ruled that these claims were appropriately submitted to the jury, as remedies for breaches of fiduciary obligations can be legal in nature, and exemplary damages can be warranted in cases of wanton conduct.

Directed Verdict in Real Estate Commission Disputes

Application: The court upheld the directed verdict in favor of the defendants, as the release agreement clearly stipulated conditions under which the commission would be owed, which were not met.

Reasoning: The court determined that the trial court correctly granted a directed verdict as the release agreement clearly stated Mahoney was not entitled to a commission without another agent involved in the sale.

Jury Instructions on the Alter Ego Doctrine

Application: The court found that the jury instructions on the alter ego doctrine, while not ideal, were sufficient and any inaccuracies were not considered harmful error.

Reasoning: The court addressed the plaintiffs' objection to the 'alter ego' jury instruction, concluding that while it was not ideal, it sufficiently conveyed the necessary elements of the doctrine, and any inaccuracies did not constitute harmful error.