Years ago I was the managing broker of a large real estate office with a national franchise affiliation. One of my agents listed a condominium with a tenant in place that's intended to be sold to an investor who would continue to lease the unit.
Along comes an agent who claims to represent investor interested in the unit. They submit an offer which was rejected. It was communicated to the agent, in writing, that the offer was too low to deserve a counter.
Selling agent communicates with his out of state investor that he has a deal! Buyer books passage to Florida with the idea he will inspect the unit and proceed to closing. He arrives to learn the real facts.
He sues on the theory our office should reimburse his travel expenses since he was unsuccessful in getting the unit. We go to mediation.
At the mediation our position was "we ain't to blame" since we have no relationship with the proposed buyer or have ever had any direct communication with him. Mediator thought it was his job to get the poor misinformed fellow something and hence if we did not agree he would suggest to the judge assigned that the parties settle the matter in litigation. (side note - it was the mediator's last mediation. He was let go after the case was decided).
Judge wants a conference with all parties before any formal litigation. We meet and present our side of the story. At this point we have legal counsel. Legal counsel states that if this goes any further he will ask the court for reimbursement by plaintiff of our legal costs as this is a frivolous lawsuit and presents case law to support his claim.
We go to trial and win. Judge rules plaintiff is responsible for our legal fees. Why? By now you might have guessed: "We were not to blame"! Sometimes common sense wins over nonsense. And when you are on the side of nonsense, it can be costly.
This is the third post for the March challenge sponsored by Kathleen Daniels, Probate & Trust Specialist and Patricia Feager, MBA, CRS, GRI,MRP. Thanks!
Comments (12)Subscribe to CommentsComment