Watwood v. Real Estate Commission
Watwood v. Real Estate Commission
Opinion of the Court
This is an appeal from an order of the Real Estate Commission suspending petitioner’s real estate broker’s license upon a finding that she had violated Code Section 45-1408 (g) and (h).
In 1963 the Commission filed charges against petitioner, held a public hearing and entered findings of fact. The most important finding stated in part:
“ * * * instead of making payments of the aforesaid obligations of Mrs. Everson and then remitting the balance to Mrs. Everson as per said agreement [petitioner], did convert to her own use the sum of $566.25.”
Nevertheless, the $566.25 had been secured by a supersedeas bond and was promptly paid to Mrs. Everson at the conclusion of the litigation.
This appeal presents the following questions: (1) Did petitioner have a legal right to set off her claim to a commission against the rent account; and (2) Assuming petitioner acted in “good faith,” is “good faith” a defense to a violation of Code Section 45-1408(g)?
The short answer to the first question is that an agent who receives rent money from tenants is a trustee of such funds,
Petitioner contends that the answer to the second question is controlled by our statement that the purpose of the Real Estate Brokers’ Act is “to protect the public against fraud in real estate transactions.”
Finally, we find no merit in petitioner’s contention that her constitutional right- of free access to the courts has been denied. Petitioner was never prevented from remitting, the monies due Mrs. Ever-son and asserting her claim to the commission in a separate complaint. It was her choice of legal self-help which brought forth the Commission’s charges. If anything, the successive appeals have underlined her right of free access to the courts.
Affirmed.
. “The Commission * * * shall have the power to suspend or to revoke any license issued under the provisions of this chapter * * * where the licensee, in performing or attempting to perform any •of the acts mentioned herein has—
“(g) Failed, within a reasonable time, ■to account for or to remit any money, valuable documents, or other property coming into his possession which belong to others;
“(h) Demonstrated such unworthiness or incompetency to act as a real-estate broker or real-estate salesman or a business-chance broker or a business-chance salesman as to endanger the interests of the public.”
. Robbins v. Roumel, D.C.Mun.App., 138 A.2d 922, 923 (1958); Jay v. General Realties Co., D.C.Mun.App., 49 A.2d 752, 755 (1946).
. Garrison v. Edward Brown & Sons, 25 Cal.2d 473, 154 P.2d 377, 379 (1945) (“ * * * a fiduciary cannot set off claims owed Mm in Ms personal capacity against obligations that he assumes as a trustee.”); First Nat. Bank of Waynesboro v. Johnson, 183 Va. 227, 31 S.E.2d 581, 585 (1944) (“a trustee cannot sot off against the trust fund held by him 1ns individual demand against the creator of the trust.”) ; Wesolowski v. Erickson, 5 Wis.2d 335, 92 N.W.2d 898, 902 (195S) (“ ® * * nor should one who is sued in his legal capacity as a representative of another be allowed to counterclaim on the basis of claims due Mm individually from the plaintiff.”).
. Topas v. John MacGregor Grant, Inc., 18 F.2d 724, 726 (2d Cir. 1927), cert. denied 274 U.S. 754, 47 S.Ct. 766, 71 L.Ed. 1334.
. Eberman v. Massachusetts Bonding & Ins. Co., D.C.Mun.App., 41 A.2d 844, 845 (1945).
. The record discloses that petitioner’s claim was pursued upon the advice of a member of the bar.
. S.Rep. No. 1173, 75th Cong., 1st Sess. 3-4 (1937).
. Hogg v. Real Estate Com’r, 54 Cal.App. 2d 712, 129 P.2d 709, 712 (1942).
. Jay v. General Realties Co., supra note 2; compare St. Germain v. Watson, 95 Cal.App.2d 862, 214 P.2d 99, 103 (1950).
. Since there is substantial evidence to support the order of suspension under Code Section 45-1408 (g), we have not proceeded to examine whether the order is similarly supportable under Code Section 45-1408 (h). Burch v. Board of Commissioners, D.C.App., 191 A.2d 604 (1963).
. Hime v. Florida Real Estate Commission, Fla., 61 So.2d 182, 183 (1952).
Reference
- Full Case Name
- Susie V. WATWOOD v. REAL ESTATE COMMISSION of the District of Columbia
- Status
- Published