TRIAL COURT’S DENIAL OF COMMISSION REVERSED ON APPEAL
While working for a licensed real-estate broker out in Nassau County, HK, a licensed real-estate salesman found a buyer for a piece of property what hadn’t yet been listed for sale. After showing the property, and providing information to the purchaser, a $390,000 offer was accepted by seller.
Because his employing broker believed that HK was a “probationary employee,” and thus wasn’t entitled to a commission, HK was compelled to file a lawsuit with the Nassau County District Court seeking compensation.
After the judge found that HK wasn’t the “procuring cause" of the deal, and dismissed his case, he appealed to the Appellate Term, Second Department, which disagreed with the trial court’s conclusions.
Since the parties’ had an “independent contractor agreement,” which afforded HK the right to earn a commission, and did not list a “probationary period,” the AT2 didn't believe his employer's argument held any weight.
And even though he left the company before the deal was consummated, the AT2 thought that HK “`generated a chain of circumstances that proximately led’ to its consummation.” Given he was found to be the “procuring cause,” and was thus entitled to payment, the AT2 sent the matter back for a new trial to determine the amount of his commission.
Looks like he won’t be out of commission much longer …..
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