Middelsteadt

Defendant Robert W. Karpe, Real Estate Commissioner of the State of California ("appellant") appeals from the trial court's judgment ordering the payment of funds to respondent out of the Real Estate Education, Research and Recovery Fund ("Recovery Fund"): respondent Bernice Middelsteadt cross-appeals from that portion of the judgment disallowing interest on the sum awarded.

The undisputed facts reveal that in July 1967 respondent, a licensed real estate broker, engaged the services of Mary Ann Lowell (“Mary”), a licensed real estate saleswoman. The oral agreement entered between them provided for a 50-50 division of commissions earned by Mary. On or about November 16, 1967, while in the employ of respondent, Mary, together with Ernest R. Smith (“Smith”), a licensed real estate broker, negotiated and consummated an exchange of an apartment house owned by one Pasquet for two parcels of unimproved real property owned by Dalton and Ima Ford (“Fords”). For negotiating the aforesaid transaction Mary received $12,750 commission from Fords and $10,000 from Pasquet. It is uncontradicted that Mary obtained the commissions without the knowledge, consent or authorization of…