L. Byron Culver & Associates v. Jaoudi Industrial & Trading Corp.

Plaintiff L. Byron Culver & Associates (Culver) appeals a judgment barring recovery of a brokerage commission from a land sale. Culver contends the court erred in finding, after a nonjury trial, an agency relationship existed between Culver and defendant Jaoudi Industrial & Trading Corporation (Jaoudi Industrial) resulting in an undisclosed dual agency. Culver further contends even assuming an agency relationship existed, Jaoudi Industrial knew or should have known Culver was the agent for both Jaoudi Industrial and the buyer Del Rayo Properties (Del Rayo). We conclude the record clearly establishes a dual agency relationship and Culver failed to disclose it. Consequently we affirm the judgment.

Factual and Procedural Background

Beginning in 1984, Culver was engaged in finding suitable property for acquisition by Del Rayo, a business entity of Gene Klein (Klein). Culver became aware of approximately 33.5 acres of land owned by Jaoudi Industrial located in Rancho Santa Fe. Culver obtained approval from Klein to initiate negotiations for acquisition of Jaoudi Industrial’s property. Culver directed one of its agents, Frank Whiteside (Whiteside) to contact Jaoudi…