Stern v. Gepo Corp

In Stern v. Gepo Corp., 289 NY 274 (1942) the contract between the seller and the broker provided for the payment of a commission "in connection with the sale, when and if consummated," of a specified parcel of property. 289 NY at 276. A closing was held, but the seller's title was rejected as unmarketable. The broker sued the seller for the brokerage commission, alleging that the sale was not consummated because of liens placed on the property due to the seller's failure to pay certain taxes and assessments. Id. at 275-77. The seller moved for summary judgment on the ground that the condition precedent to its liability for the commission did not occur. The Court of Appeals held that the seller was not entitled to summary judgment. The Court reasoned that the allegation that "title did not close because of the vendor's neglect and refusal to discharge liens against the property is sufficient to avoid the defense of non-performance of a condition precedent under the well-established rule that one may not take advantage of a condition precedent, the performance of which he himself has rendered impossible." Id. at 277.