Steve Schmidt & Co. v. Berry Case Brief
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Case Brief Summary & Legal Analysis
tl;dr: A cooperating real estate broker sued a seller for a commission after producing a buyer—its own president—who accepted the exact terms of the listing agreement. The court affirmed judgment for the broker, holding the commission was earned despite the seller’s subsequent refusal to sell.
Legal Significance: Establishes that a cooperating broker, authorized by a listing agreement, can directly sue the seller for a commission as a subagent or third-party beneficiary when a “ready, willing, and able” buyer is produced, even if the sale does not close due to the seller’s fault.
Steve Schmidt & Co. v. Berry Law School Study Guide
Use this case brief structure for your own legal analysis. Focus on the IRAC methodology to excel in law school exams and cold calls.
Case Facts & Court Holding
Key Facts & Case Background
Defendant Berry (owner) executed an exclusive listing agreement with Tingey (listing broker) to sell an apartment building for a specified price and terms. The agreement expressly authorized Tingey to cooperate with other brokers and divide the commission. Pursuant to this authorization, Tingey entered into a written agreement with plaintiff Schmidt & Co. (cooperating broker) to split the commission if Schmidt & Co. procured a qualified buyer. Steve Schmidt, the president of Schmidt & Co., made an offer to purchase the property individually. After Berry responded with a counteroffer containing several new terms not included in the original listing agreement, Schmidt rejected the counteroffer. Schmidt then sent a letter unequivocally accepting the “exact terms” of the original listing agreement. Berry refused to proceed with the sale unless his new terms were incorporated. The sale never closed. Schmidt & Co. sued Berry directly for its share of the commission, alleging it had fully performed by producing a ready, willing, and able buyer. The trial court granted summary judgment in favor of Schmidt & Co.
Court Holding & Legal Precedent
Issue: Does a cooperating broker earn its commission and have standing to sue the seller directly when it produces a ready, willing, and able buyer who accepts the precise terms of the listing agreement, even if the seller then refuses to complete the sale and the contract makes payment due “at the close of escrow”?
Yes. The court affirmed summary judgment for the cooperating broker. The commission Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo c
IRAC Legal Analysis
About IRAC analysis
IRAC (Issue, Rule, Analysis, Conclusion) is the structure professors expect in exam answers. Each LSD.Law brief states the issue, the governing rule with citations, the court's application of that rule, and the conclusion - the same reasoning pattern you will use on exams and in practice.
Legal Issue
Does a cooperating broker earn its commission and have standing to sue the seller directly when it produces a ready, willing, and able buyer who accepts the precise terms of the listing agreement, even if the seller then refuses to complete the sale and the contract makes payment due “at the close of escrow”?
Conclusion
This case solidifies the "ready, willing, and able" buyer rule and provides Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation
Legal Rule
A broker's commission is earned upon producing a buyer who is ready, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud ex
Legal Analysis
The court's analysis treated the listing agreement as a contract of employment, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proid
Flash-to-Full Case Opinions
Flash Summary
- A broker earns a commission by producing a buyer who accepts