Cushman & Wakefield, Inc. v. Dollar Land Corp. Ltd. (U.S.)

In Cushman & Wakefield, Inc. v. Dollar Land Corp. Ltd. (U.S.), 44 AD2d 445 (1st Dept. 1974), aff'd, 36 NY2d 490, 369 N.Y.S.2d 394 (1975) the contract between the broker and the sellers provided that part of the broker's commission would be payable at the closing and the remainder would be paid thereafter. (44 AD2d at 447.) The closing did not take place because a group of dissident shareholders brought an action to rescind the contract of sale on behalf of the sellers. The shareholders prevented the transfer of title from occurring by obtaining a preliminary injunction. They also elected a new Board of Directors to manage the selling entities. The new Board of Directors cancelled the contract of sale and formally repudiated it. (Id.) The broker sued and moved for summary judgment. In opposition, the sellers argued that no commission was due because a transfer of title did not take place. (Id. at 449.) The lower court denied the broker's motion. However, the Appellate Division, First Department, in an Order that was affirmed by the Court of Appeals, reversed and granted summary judgment. It rejected the contention that the sellers were not liable for the commission because title did not transfer. The Court, held that the broker was entitled to receive its commission because it was "abundantly clear that title failed to close because of the sellers' refusal to go through with the contract." (Id.)