City of Turlock v. Paul M. Zagaris, Inc.

Statement of the Case and Facts

Appellant Paul M. Zagaris, Inc., appeals from the trial court’s ruling that it take nothing in respondent City of Turlock’s eminent domain action or on its cross-complaint for money damages. Appellant contends the trial court erroneously ruled it was not entitled to a broker’s commission in this action.

In early 1986, representatives of appellant, a real estate broker, approached Irving and Roylene Garcia regarding the sale of their property, a 19.91-acre parcel adjacent to the Turlock city limits, to Joaquin Construction Company (Joaquin). An agreement dated March 14, 1986, was entered into between the Garcias and Joaquin for the sale of this property, and an escrow was opened.

This sales agreement provided that escrow would open within 30 days and close within 180 days of the signing of the agreement. Further, the close of escrow was contingent upon the following conditions being met: “a. The property above-described being annexed to the City of Turlock.

“b. Buyer obtaining all necessary governmental approvals to permit the property to be subdivided.

“c. Buyer’s approval of on-site improvement costs by Mid-Valley Engineering. . .…