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Rotemi Realty, Inc. v. Act Realty Co., Inc.

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eBook details

  • Title: Rotemi Realty, Inc. v. Act Realty Co., Inc.
  • Author : Supreme Court of Illinois
  • Release Date : January 07, 2005
  • Genre: Law,Books,Professional & Technical,
  • Pages : * pages
  • Size : 68 KB

Description

We consider whether the common practice of paying real estate commissions contingent on consummation of the sale violates the public policy of this state when applied to a purchase or sale by the government. In the decision we review, the Third District Court of Appeal invalidated such an arrangement, concluding that "contracts which provide for contingency awards for securing public monies are against public policy." Act Realty Co. v. Rotemi Realty, Inc., 863 So. 2d 334, 336 (Fla. 3d DCA 2003) (citing City of Hialeah Gardens v. John L. Adams & Co., 599 So. 2d 1322 (Fla. 3d DCA), review denied, 613 So. 2d 5 (Fla. 1992)). This holding expressly and directly conflicts with our decision in Robert & Co. v. Mortland, 33 So. 2d 732 (Fla. 1948), where we announced that as a "general rule" contingency fee contracts involving government procurement violate public policy only if shown to involve "favors or corrupt means." Id. at 734. We have jurisdiction to resolve the conflict. Art. V, § 3(b)(3), Fla. Const.; Rotemi Realty, Inc. v. Act Realty Co., 880 So. 2d 1212 (Fla. 2004) (granting review). For the reasons explained below, we reaffirm the general rule we announced more than fifty years ago and apply it to real estate brokerage commissions. We hold, first, that the brokerage agreement in this case complies with Florida public policy; and second, that competent, substantial evidence supports the trial courts ruling that the brokers were a procuring cause of the sale and therefore are entitled to their commission.


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