You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Information Exchange, Inc. v. Alligator Point Campground, Inc.

Citations: 498 So. 2d 624; 11 Fla. L. Weekly 2558Docket: No. BH-242

Court: District Court of Appeal of Florida; December 7, 1986; Florida; State Appellate Court

Narrative Opinion Summary

In this case, a real estate broker (appellant) contested a summary final judgment that denied them a commission from the sale of a campground owned by the appellee. The brokerage contract stipulated that a commission would be due upon securing a buyer ready, willing, and able to purchase at or above the listed price. The appellant facilitated a purchase contract with Kampgrounds of America (KOA), intending to resell the property through its franchise system. Although the initial sale between KOA and the appellee did not conclude, the negotiations led to a franchisee, Mellott, purchasing the property directly from the appellee at a higher price. The court invoked the procuring cause doctrine, emphasizing that a broker is entitled to commission if their initiated negotiations lead to the eventual sale, even if indirect. Citing Leon Realty Inc. v. Hough, the court concluded that the appellant's actions initiated the chain of events resulting in the sale, thereby entitling them to the commission. Consequently, the summary judgment was reversed and the case remanded for further proceedings. Judges Mills and Nimmons concurred with this decision.

Legal Issues Addressed

Brokerage Commission Entitlement

Application: The appellant, a real estate broker, was deemed entitled to a commission as they initiated negotiations that ultimately led to the sale of the property, despite not directly engaging with the final purchaser.

Reasoning: The court found that the undisputed material facts indicated that the appellant should be entitled to a commission, leading to a reversal of the judgment.

Procuring Cause Doctrine

Application: The court applied the procuring cause doctrine to determine that the broker's initial negotiations with KOA, which led to the eventual sale to Mellott, entitled the broker to a commission.

Reasoning: The court referenced the principle from Leon Realty Inc. v. Hough, stating that a broker is entitled to a commission if they are the procuring cause of the sale through continuous negotiations they initiated.

Summary Judgment Reversal

Application: The summary judgment that initially denied the broker's commission was reversed due to the broker's role as the procuring cause of the sale.

Reasoning: The court found that the undisputed material facts indicated that the appellant should be entitled to a commission, leading to a reversal of the judgment.