Buckaloo v. Johnson

In Buckaloo v. Johnson (1975) 14 Cal.3d 815, one of the defendants was an owner of land who posted a sign on her property declaring: "'For Sale--Contact Your Local Broker.'" The plaintiff, a licensed real estate broker, had a prior, but expired listing on the property. The other defendants, the ultimate buyers of the property, contacted the plaintiff about the property "'with the sign'" and the plaintiff proceeded to provide his substantial information about the property. The buyers never returned to contact the plaintiff, but the plaintiff sent a note to the landowner informing her about the potential buyers and informing her that he was the "procuring cause" and the buyers should be referred to him for further dealings. Later the buyers who first contacted the plaintiff bought the land directly from the owner and no commission was paid. The plaintiff filed a complaint pleading a cause of action for intentional interference with prospective advantage. The defendant demurred. The demurrer was sustained. The Supreme Court reversed holding that plaintiff had alleged a viable cause of action for intentional interference with prospective economic advantage. In Buckaloo the complaint alleged in part: "'The Arness group, Goodwin and the Doe defendants purchasers knew that Mrs. Benioff's sign constituted a promise to pay a commission to any local broker with whom a buyer consulted and who, through efforts to expose the . . . property and explain its various features and the properties comparable to it, procured the Arness group as a buyer . . . . With knowledge, the Arness group went directly to Mrs. Benioff and induced her to make an agreement with them for the sale of her property that left Buckaloo totally uncompensated.'" ( Buckaloo, supra, 14 Cal.3d at p. 829.)