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Burris & MacOmber, PLLC > Articles > Property Law > Commission Due as long as in Good Standing

- Commission Due as long as in Good Standing -

In Focus Properties v. Cleo Johnson Division One of the Court of Appeals considered the Appeal of Cleo Johnson, who, in her capacity as Trustee of Oak Acres Trust had hired Kantor of Focus Properties to lease/sell her commercial property in Apache Junction.  Kantor had put in many hours to aid Johnson in rehabilitating the property and finding tenants/buyers.  After Johnson failed to attend a meeting with a prospective buyer, Johnson entered into a lease without informing Kantor, prompting him to file suit for his commission.  A jury found in favor of Kantor and awarded him his commission.  On Appeal, Johnson argued that Kantor had committed acts, which had the Real Estate Department known of the acts, he would have lost his license, so he ought to be barred from recovering a commission.  The Court of Appeals rejected the argument, ruling that it is up to the Real Estate Commissioner to decide whether or not to suspend or revoke a license, not up to the Superior Court.  However, the Court of Appeals did grant Johnson some relief, agreeing that where she had signed the commission agreement on behalf of the Trust and had not personally guaranteed the Trust’s performance, she could not be held personally liable for the commission

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