Coldwell Banker triumphs in fight over commission
Published:Wednesday | August 26, 2020 | 12:24 AM
Broker and Managing Director of Coldwell Banker Jamaica Realty, Andrew Issa, has been awarded $12 million in a court claim against a property seller who the realtor contended had refused to pay him the commission on the sale of a property in St Andrew.
The claimants, Andrew Issa Realty Limited and Andrew Richard Issa, both trading as Coldwell Banker Jamaica Realty, sued Everoy H. Chin Limited, EHCL, for allegedly refusing to honour a commitment to pay the commission on a multiple-listing agreement for the period for the period September 19, 2018 to March 19, 2019.
In the agreement, EHCL listed property it owned at Balmoral Avenue for sale. The agreement had a fixed term of six months, but the claimants said they took steps beyond that to market the property.
Before the expiration of the listing agreement a proposed purchaser was identified and a sale agreement prepared for $285 million. However, the intended purchaser withdrew the offer and did not sign the agreement or pay a deposit.
The multiple-listing agreement expired and was not renewed.
Justice David Batts, who heard the matter in a virtual conference, noted that on July 9, 2019, that is, within six months of the expiration of the multiple-listing agreement, EHCL entered into an agreement to sell the same premises to First Rock Capital Holdings Limited for $345 million.
Issa contended that he and his company were entitled to a commission on the sale agreement ultimately entered into because the deal occurred within six months of the expiry of the multiple-listing agreement – that is, it was sold to a party associated or affiliated with a person with whom they had earlier negotiated and in respect of which EHCL had been given written notification.
The claimants, Issa and his company, applied for summary judgment saying that Everoy H. Chin and Company had no real prospect of successfully defending the claim. Justice David Batts granted the request, saying based on the evidence, EHCL had no real prospect of successfully contesting the lawsuit.
EHCL’s attorney John Graham QC submitted that the claimants could not rely on the clause in the listing agreement because it had expired. Chin’s lawyers further argued that at the time of the property’s purchase Everoy H. Chin and Company had entered into another listing agreement with another broker.
However, Justice Batts said the evidence is clear that the alleged second agent – whose name was withheld as they were not a party to the proceedings – did absolutely no work in terms of promoting or selling the property.
EHCL had also contended that there was no contract with the first claimant, Andrew Issa Realty Limited as only the second claimant, Andrew Richard Issa, had signed the multiple-listing agreement. But Batts ruled that the contract was with “Coldwell Banker Jamaica Realty” and that the unchallenged evidence is that Andrew Issa Realty Limited and Andrew Richard Issa are “partners” trading under the Coldwell Banker name, and as such, either partner, or both, entitled to use that trade name could initiate a claim.
The Supreme Court judge entered judgment in favour of the claimants for $12,057,750.
Attorneys Nigel Jones and Olesya Ammar represented Issa and his company, while John Graham QC, and Peta Gaye Manderson represented Everoy Chin and Company. EHCL’s lawyers declined to comment on whether the company will be appealing the judgement.