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Chambers v. Pingree

Date: 06-17-2002

Case Number: 3518

Judge: Stilwell

Court: In The Court of Appeals of South Carolina

Plaintiff's Attorney: "_new">Charles E. Carpenter, Jr., and "_new">S. Elizabeth Brosnan, both of Richardson, Plowden, Carpenter & Robinson, of Columbia; "_new">James H. Moss and "_new">H. Fred Kuhn, Jr., both of Moss & Kuhn, of Beaufort, for appellant.

Defendant's Attorney: "_new">A. Parker Barnes, Jr., of Beaufort; and "_new">James B. Richardson, Jr., of Richardson & Birdsong, of Columbia, for respondent.

Description:

Henry Chambers filed this action for a real estate commission, and Sumner Pingree, Jr. counterclaimed for recovery on a promissory note. The special referee found Chambers was entitled to the commission and Pingree was entitled to attorney's fees, though nothing on the promissory note. Pingree raises three issues on appeal. We reverse in part and modify in part.

Factural/Procedural Background

Pingree owned a 5,300 acre tract of land on the Beaufort County coast know as Brays Island. He decided to sell the entire tract, and granted Chambers, a real estate broker, an exclusive agency agreement with a minimum sales price of $12,000,000. (1) The agreement provided Chambers would receive a commission of 9% of the sale proceeds, or $1,080,000. Special Stipulation 6 of the agreement provided the commission "of 9% herein provided for shall be paid only if the Sale of the Property is consummated, and only out of the proceeds of such Sale." During the exclusive agency agreement, Pingree decided to develop the property himself with Chambers' help. (2) Pingree created Brays Island Company, Inc. (Company), wholly owned by Pingree, and conveyed the property to Company for development. The plan was to create 325 circular one-acre residential lots, with the remaining acreage conveyed to the property owners' association, the Colony Club, for outdoor pursuits, including equestrian sports, dog kennels, a gun club, a shooting course, a private golf course, and a multi-million dollar clubhouse.

In October 1988, Chambers and Pingree executed a "Memorandum of Agreement" (October Agreement) in which Pingree acknowledged owing Chambers a commission of $1,080,000 as a result of the conveyance of the property from Pingree to Company. The agreement further provided Pingree personally would not receive any money from Company for payment of the purchase price of the property until Company sold lots. Because Pingree expended $3,000,000 of his own money in developing Brays Island, the agreement provided:

[a]fter Pingree has recovered from the sale of lots his development expenditures and the agreed interest thereon, he will pay the commission to Chambers as he receives money from the sale of lots, such payments to be at the rate of 9%, which is the relationship of $1,080,000 to the $12,000,000 sale price. These commissions will continue to be paid on a quarterly basis from Pingree's cash receipts from lot sales until Chambers has received the full $1,080,000.

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Click the case caption above for the
full text of the Court's opinion.

Outcome:

The parties do not dispute that the only payments made on the note were the interest applied by virtue of commissions paid by Pingree to Chambers. Because the commission interest only became payable on the promissory note as Chambers received commission payments, the amount due on the promissory note as of January 7, 1993, $119,793.01, is still owed by Chambers to Pingree, plus accrued interest from that date, together with the attorney's fees awarded by the special referee. We accordingly modify the special referee's order to award judgment to Pingree in such amount.

Reversed in Part and Modified in Part in favor of Defendant for $119,793.00.

Plaintiff's Experts:

Unavailable

Defendant's Experts:

Unavailable

Comments:

C.L.

About This Case

What was the outcome of Chambers v. Pingree?

The outcome was: The parties do not dispute that the only payments made on the note were the interest applied by virtue of commissions paid by Pingree to Chambers. Because the commission interest only became payable on the promissory note as Chambers received commission payments, the amount due on the promissory note as of January 7, 1993, $119,793.01, is still owed by Chambers to Pingree, plus accrued interest from that date, together with the attorney's fees awarded by the special referee. We accordingly modify the special referee's order to award judgment to Pingree in such amount. Reversed in Part and Modified in Part in favor of Defendant for $119,793.00.

Which court heard Chambers v. Pingree?

This case was heard in In The Court of Appeals of South Carolina, SC. The presiding judge was Stilwell.

Who were the attorneys in Chambers v. Pingree?

Plaintiff's attorney: Charles E. Carpenter, Jr., and S. Elizabeth Brosnan, both of Richardson, Plowden, Carpenter & Robinson, of Columbia; James H. Moss and H. Fred Kuhn, Jr., both of Moss & Kuhn, of Beaufort, for appellant.. Defendant's attorney: A. Parker Barnes, Jr., of Beaufort; and James B. Richardson, Jr., of Richardson & Birdsong, of Columbia, for respondent..

When was Chambers v. Pingree decided?

This case was decided on June 17, 2002.