Morgan v. Williams
Morgan v. Williams
Opinion of the Court
The appellees, John Williams and Catherine Williams (sellers), Century 21 Better Homes, Inc. and French Whitten Realtors (brokers), sued the appellant, Marilyn Kay Morgan (purchaser), on a real estate contract. The appellees sought payment of the real estate commission, damages for breach of the real estate contract, punitive damages and attorney’s fees. Appellees subsequently abandoned their claim for attorney’s fees and punitive damages. The trial court directed a verdict in favor of appellant Morgan and against the appellees, John and Catherine Williams, on their claim for damages resulting from the breach of the real estate contract. Consequently, the only issue left for resolution was French Whitten Realtors’ and Century 21 Better Homes, Inc.’s claim for payment of their real estate commission. At the close of all the evidence, the trial court directed a verdict in favor of French Whitten Realtors and Century 21 Better Homes, Inc. We affirm.
1. In the instant case, the real estate contract provided in pertinent part that “the Agent in negotiating this contract has rendered a valuable service and Seller agrees to pay Agent’s commission in accordance with the listing agreement. If sale is not consummated due to default of purchaser, Seller shall not be obligated to pay any commission, but Purchaser hereby agrees to pay said commission to said Agent.” (Emphasis supplied.) (Morgan contends there was sufficient evidence of default, on the part of the appellees Mr. and Mrs. Williams, to submit the case to the jury. We disagree.)
Under the terms of the real estate contract, Morgan had the
2. Morgan contends that the trial court erred in granting French Whitten Realtors’ and Century 21 Better Homes, Inc.’s motion for a directed verdict because evidence was introduced showing that the extent of Morgan’s liability, in the event the existing mortgage could not be assumed by Morgan, was the earnest money provided. Morgan relies on the following provision in the real estate contract as support for this proposition: “It is agreed by the purchaser that, in the event this application is disapproved by the lending agency, the cost of the credit report and direct expenses are to be deducted from the earnest money held by broker.” At the outset, it must be noted that this provision was not operative under the facts in the instant case because the loan application signed by Morgan and her father was, in fact, approved by the bank. Contrary to Morgan’s contention, this provision related only to the disposition of the earnest money in the event a certain contingency occurred, viz. that the bank failed to approve the loan application. It did not limit Morgan’s liability for the real estate commission to the amount of earnest money. Accordingly, this enumeration is without merit.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.