Coldwell Banker & Co. v. Pepper Tree Office Center Associates

Plaintiff Coldwell Banker & Company (Coldwell) appeals a portion of a judgment in favor of defendants Pepper Tree Office Center Associates (Pepper Tree) and its general partner Michael Bonaguidi (Bonaguidi). The judgment denied commissions to Coldwell for three leases between Pepper Tree and (1) United Palomar, (2) First Fidelity, and (3) U.S. Data Systems, all three of which are called the “Palomar Group” (Palomar).

There is one central issue: whether the record supports the trial court’s finding that an exclusive agency agreement between Bonaguidi and real estate broker Coldwell for leasing office space in the then yet-to-be-built Pepper Tree Office Building in Mission Valley was orally modified by the parties, with the modification partially acknowledged in a letter of April 11, 1977, from Coldwell to Bonaguidi.

The record substantially supports the findings of the trial court. Plaintiff Coldwell did not procure the three leases of the Palomar group and is not due commissions on them and the broker’s agreement between the parties was orally modified. Because the modification was fully executed and supported by consideration, it is enforceable under Civil Code section…