Case Conclusion Date:December 15, 2008
Outcome:Verdict of $461,290.50 in Favor of Charles Dunn Company, Mr. Hammers' Client.
Description:AAA Arbitration. Real Estate Dispute. Action on a listing contract involving sale of a $10,500,000.00 building in Westminster, CA on Goldenwest Circle. The Kymm Trust retained Charles Dunn Company ("Dunn"), Mr. Hammers' client, to list and sell the Property. Dunn's agent entered an exclusive listing agreement with the Kymms, who were sophisticated real estate owners and developers. The listing was for four months and required purchase by either of two named buyers. The Dunn agent brought one of those two buyers to the Kymms for the purchase, with an offer of $10,400,000.00. The Kymms then stated that they wanted the agent to find a 1031 tax exchange property (an "upleg"), although that requirement was not set forth in the Listing Agreement with Dunn. The Dunn agent therefore entered a separate Listing Agreement with the Kymm Trust, as a "buyer's agent," and began searching for an upleg property. Although several properties were identified to the Kymms, they never settled on any. Neither of the listing agreements resulted in a sale. The Dunn agent requested that the Kymms pay the commission on the first listing, which was $416,000.00. The Kymms declined, claiming that the Dunn agent had misrepresented the potential purchase price of the upleg property, and had taken other action in breach of his fiduciary duty. Dunn then filed the Demand for Arbitration with AAA. The Arbitration Panel awarded Dunn the entire commission, as well as all attorneys' fees and costs. Total award issued was $461,290.50.