Belau v. Brown & Sons Realty Co.
Belau v. Brown & Sons Realty Co.
Opinion of the Court
This case arose as the result of an appeal from the granting of a summary judgment against the defendants for commissions earned under a tripartite lease contract. The plaintiff, as real estate agent, sued for commissions it earned under a lease contract which it negotiated after two of the defendants notified it
The punitive damages sought in Count 2 were excluded from the motion for summary judgment. However, the court granted summary judgment against the defendants only as to Count 1, the ex contractu part of the suit, and did not pass upon Count 2, the ex delicto part of the suit.
The lessor, Sims (Sims Realty Company) leased certain facilities to Alpha Enterprises, Inc. (no longer involved in the case in any particular), authorizing it, among other things, to sublease and assign the lease to another. The original lease agreement required payments to the plaintiff as real estate agent of the first month’s rent (to be paid by the lessor) and thereafter, the lessee to pay 5% of all rentals by it. The evidence shows as alleged in the petition, that this lease was assigned by Alpha to the defendant, R.B.M. of Atlanta, Inc. who continued to pay the 5% rental commission until the defendant Belau, a general manager of RBM, and a stockholder therein, negotiated a new lease with the lessor, not authorizing any real estate commissions therein.
Under the provisions of the first contract the owner, Sims Realty Co., was specifically relieved of any obligation to pay rent commissions to Brown & Sons, except for an initial payment which had been made by it at the time. Belau was the general manager of RBM of Atlanta, Inc. Thus, no judgment could be rendered against Belau or Sims Realty Company in the court’s order and judgment on motion of the plaintiff for summary judgment, since Sims was specifically excluded from making any further payments and Belau was not a party to the contract.
It is admitted by the defendant RBM of Atlanta, Inc., that it paid a valuable consideration for transfer of the lease to it, and it
Judgment affirmed in part, reversed in part.
Dissenting Opinion
dissenting in part. The covenant of the original lessee to pay broker’s commissions may be "like rent” but it is a payment to a third party, is not rent, is not a real covenant and does not pass with the lease merely by virtue of assignment. James Talcott, Inc. v. Roy D. Warren Commercial, Inc., 120 Ga. App. 544 (171 SE2d 907). R.B.M. of Atlanta, Inc., assignee of the original tenant, Alpha Enterprises, took the- lease assignment without expressly assuming the obligations of Alpha and quite possibly Alpha remains primarily liable for the covenant of payment of broker’s commissions. See Warehouses, Inc. v. Wetherbee, 203 Ga. 483, 490 (46 SE2d 894). But the assumption of the lease and course of dealing on the part of R.B.M. of Atlanta, Inc., would "ordinarily” render it liable under these facts. Adair v. Smith, 23 Ga. App. 290 (98 SE 224). My only disagreement with the majority opinion is that I consider it a question of fact rather than a question of law as to whether R.B.M. of Atlanta, Inc., assumed these obligations by implication, since it did not expressly do so. Compare National Bondholders Corp. v. Parris, 190 Ga. 513
As Judge Evans so rightly said in Arnold v. Bostwick Banking Co., 121 Ga. App. 131 (5) (173 SE2d 236): "Where, on consideration of a motion for summary judgment, it appears from the evidence that there remains a genuine issue as to any material fact, the moving party is not entitled to a judgment as a matter of law and the motion should be denied.”
I would reverse the judgment.
I am authorized to state that Judges Eberhardt and Quillian join me in this dissent.
Reference
- Full Case Name
- BELAU Et Al. v. BROWN & SONS REALTY COMPANY, INC. Et Al.; SIMS REALTY COMPANY v. BROWN & SONS REALTY COMPANY INC. Et Al.
- Cited By
- 4 cases
- Status
- Published