Broker Fee Dispute

BROKER FEES DISPUTE


See Schwartz v. Stradella Investments Inc., binding arbitration; JAMS

Ronald Schwartz, a real estate broker, alleged that defendant and its president Rashid Boroumand breached a written finder’s fee agreement to sell defendants very valuable property located in Rancho Mirage, California. The 640 acres of unimproved property was called “the Eagle” and was one of the largest unimproved parcels in Rancho Mirage. Plaintiff contended that defendant agreed to pay plaintiff 1.5 percent of the purchase price of any buyer that plaintiff brought to him.

Plaintiff brought Sunrise Company to the table that ultimately put a deposit of $68,000,000 on the property. The estimated value of the whole property when paid off was $160,000,000. Defendant refused to pay the commission contending that defendant had participated in prior discussions with Sunrise Company.

At arbitration plaintiff was awarded $997,500.00 plus $159,055 in pre-judgment interest and $19,527 in costs.

If you have a real estate legal question concerning a breach of contract, anticipatory breach or fraud, contact a lawyer at Penney and Associates. See under General Civil Real Estate Division-- www.penneyandassociates.com