County National Bank & Trust Co. v. Investment Corp.

WHITE, J. This appeal involves an action brought to recover brokerage commissions on a realty transaction had between appellant and the County of Santa Barbara. Respondent bank is the assignee of one A. F. Krebaum, who was the real estate broker in question. The written agreement relied upon by respondent to recover the commissions earned by the real estate broker was dated January 15, 1935, and was in the following words and figures:

"... Investment Corporation of Santa Barbara hereby delegates to A. F. Krebaum, Real Estate Broker, doing business as Krebaum & Krebaum, the sole and exclusive right to [501]sell and offer for sale or lease our property known as the Ambassador Ballroom located on West Cabrillo Boulevard, together with 200' of frontage, for the price of $55,000.00 for a period of 30 days from date hereof. We further agree to pay A. F. Krebaum a commission of 5% on the listed price or any other price or terms or deal that may be offered and accepted by us. ... ”

Following the execution of this agreement and in conformity with prior negotiations brought about by the real estate broker between the Board of Supervisors of Santa Barbara County and appellant investment company, there was executed, through the efforts of such broker, a lease and option agreement between the county and respondent bearing date January 19, 1935. In effect, this agreement first provided that appellant investment company demised and let to the lessee, County of Santa Barbara, the property in question for a period commencing February 1, 1935, and ending either on December 1, 1938, or on the date of the payment of the purchase price of the property thereafter described in the agreement under what was designated ‘ ‘ Option Four ’ whichever date occurred first. It was, however, provided in the contract that the lease should terminate as to all the involved property on December 1, 1935, unless the option designated “One” was exercised by the lessee on or before the lastmentioned date, and it was similarly provided that unless “Option Two” and “Option Three” were exercised as therein provided, the lease should terminate as to portions of the property remaining at the time of the failure to exercise any of the last-named options. It was then stipulated in the agreement that the rentals should be as follows :

“ (a) For the period commencing with the 1st day of February, 1935, and ending with the date of the payment of the purchase price for the parcel of property hereinafter described under Option One, at the rate of Three Hundred ($300.00) dollars per month, pro-rated for any partial month;