Source: All England Reporter
Publisher Citation: [2010] All ER (D) 193 (May)
Neutral Citation: [2010] EWHC 1120 (Ch)
Court: Chancery Division
Judge:

Sir Edward Evans-Lombe sitting as a judge of the High Court

Representation Robert Deacon (instructed by CKFT) for the claimants.
  John Wardell WC (instructed by Davenport Lyons) for the defendant.
Judgment Dates: 20 May 2010

Catchwords

Estate agent - Commission - Entitlement - Parties agreeing to pay commission to claimants for introduction of applicant who subsequently purchased property from defendant company - Agreement further providing for lower commission if property sold to purchaser procured by defendant through own endeavours - Property sold to purchaser procured by defendant through own endeavours - Claimant thereafter entering into agreement with defendant as to commission payable on any onward sale of property - Property sold for second time - Claimants claiming commission on both sales - Whether first sale triggering entitlement to commission under terms of agreement between parties - Whether claimant waiving right to commission on first sale - Whether term of agreement that claimants had to be effective cause of sale - Whether claimants in fact entitled to commission on second sale.

The Case

Estate agent Commission. Construing the agreements between the claimant estate agents and defendant company in respect of the former's entitlement to commission on the sale of a property owned by the latter, the Chancery Division held, inter alia, that the claimants had waived their right to commission on the first sale of the property and had not established such entitlement on a subsequent sale since, for such entitlement to have arisen, they had needed to be, but had not in fact been, the effective cause of that sale.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.