Business Advisors v. Chicago Title Ins. CA4/1

I.

INTRODUCTION

Business Advisors, Inc. (Business Advisors), a real estate brokerage, filed a

complaint against Chicago Title Insurance Company (Chicago Title) alleging that Chicago Title breached an escrow agreement as to which Business Advisors was a third

party beneficiary. Among other defenses, Chicago Title contended that Business

Advisors was statutorily barred from maintaining this action because it had permitted its

associate, Jacques Bouzoubaa, to perform unlicensed real estate brokerage services on its

behalf, related to the transaction subject to the escrow.1

The principal issue that we must decide in this appeal is whether Business

Advisors's lawsuit constitutes an action seeking to recover compensation for the

performance of real estate brokerage services. Business Advisors contends that it is

seeking merely to recover monies owed to it pursuant to the escrow agreement, and that it

is not seeking to enforce a separate commission agreement pursuant to which the monies

were placed into escrow. Chicago Title maintains that Business Advisors's suit is one to

recover compensation for real estate brokerage services, noting that the escrow…