The plaintiff corporation sued its real estate agent and brokerage for breach of fiduciary duties arising from the sale of a commercial property.
The court found that the agent acted as an undisclosed dual agent, failed to provide required written disclosure under the Real Estate and Business Brokers Act Code of Ethics, failed to recommend a counter-offer, failed to disclose material information relevant to the transaction, and failed to strongly encourage independent legal advice before execution of the agreement.
The court held that these breaches deprived the seller of an opportunity to negotiate a better deal and constituted a breach of fiduciary obligations owed by a real estate agent to a client.
Although the plaintiff could not prove damages from an improvident sale, the agent had no contractual entitlement to a commission and, in any event, forfeited the commission due to the fiduciary breaches.
The defendants were ordered to return the commission plus prejudgment interest.