Blanton v. Friedberg

819 F.2d 489 (4th Cir. 1987)

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Nature of the Case

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Facts

P claims that he entered into an oral agreement with D to develop a parcel of land. According to Ps' evidence, the contract provided that P would represent D, who owned the tract, in connection with all activities necessary for the development and marketing of the land. P's company, Landmark, would receive either a 10% commission on all sales of property from the development, or the reasonable value of their services, plus expenses. P also maintained that defendant agreed to pay him a 5% commission on the sale of any timber from the property. P invested considerable time and money in the development seeking to enhance the property's marketability. P had arranged for the sale of timber from the land in the amount of $417,905. He was not paid the 5% commission of $ 20,895.25. The property was ultimately not developed due to a problem with the reservation of mineral rights. P also claims he contacted D about another tract of land and that on June 1, 1980, D agreed to purchase the property, orally contracting with P to manage its development. P was to act as the property's sales agent and was also to obtain all zoning approvals, sell portions of the land, and to fully develop the property for commercial purposes. A shopping center was eventually developed. P conceded that he had received partial payment for his services, which included one payment of $100,000 and a monthly payment of $5,000 for a ten-month period between September 1980, and June 1981. In August 1981, D terminated his relationship with P. D claimed P had been his employee from June 1980, until August 1981, at which time he was terminated for unsatisfactory performance. D introduced into evidence P's 1981 tax return and W-2 form, which listed him as an employee of D's company. P was given a leased automobile and that his car and other expenses, including office overhead, were fully paid. D denied the existence of any contract for commissions in connection with the real estate at issue, except for commissions on actual sales of property. Also, when P was terminated in August 1981, P claimed a balance due of only $21,937.67 and made no request for commissions or development fees. P sued for breach of contract and quantum meruit. The jury returned a verdict for $438,580 for P. The jury awarded P $20,895 and Landmark $21,000 on their breach of contract action and P $394,525 and Landmark $2,160 on the action in quantum meruit. D appealed.