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Benson Associates6/11/2002
UNPUBLISHED
Following a jury trial, defendants Bodytechniques and B.H. Vanderbeke appeal as of right from the trial court's entry of judgment for plaintiff. The jury returned a special verdict finding for plaintiff with respect to its breach of contract claim against Bodytechniques and its tortious interference with a contract count against Vanderbeke. We affirm.
I.
This case involves plaintiff's claim of entitlement to a real estate commission on a lease of commercial property located in Rochester Hills, Michigan. A limited partnership called Classic Investments owned the commercial property. William W. Benson, a Michigan-licensed commercial real estate broker, Vanderbeke and a third individual formed Classic Investments. Since 1992, the partnership consisted of only Vanderbeke, the general partner, and Benson, a limited partner. Because of financial difficulties, the partnership filed for bankruptcy protection in early 1994.
Benson also had incorporated and was the sole shareholder in plaintiff, which possessed a Michigan real estate broker's license. Benson testified that when he had held the general partner position before Vanderbeke, he had orally appointed plaintiff to act as the partnership's agent for leasing the commercial property. Benson further testified that after assuming the general partnership position, Vanderbeke had knowledge that Benson, through plaintiff, made efforts to locate potential tenants for the property and that Vanderbeke made no objection to Benson's efforts on behalf of the partnership. Vanderbeke testified to the contrary that neither Benson nor plaintiff had any authority, in writing or otherwise, to act as the partnership's leasing agent.
Around the same time that Classic Investments filed for bankruptcy in early 1994, Benson met Michael Lathers, president of Bodytechniques, a health club. After ascertaining Lathers' serious interest in leasing a portion of the commercial property, Benson recalled that in March 1994 he advised Vanderbeke and Timothy Fusco, the partnership's bankruptcy attorney, of the interest of a potential tenant. According to Benson, Vanderbeke expressly approved Benson's continuation of negotiations with Lathers, and Fusco advised Benson to stall Lathers to avoid creating a partnership asset, i.e., a lease, the value of which could be distributed to creditors in the partnership's bankruptcy proceedings.
Much trial testimony from Benson and Lathers recounted their negotiations, which continued from early 1994 through December 1994. Benson testified that he advised Lathers that he was a partner in the bankrupt entity that owned the commercial property and that he was acting as a real estate broker representing the partnership. Benson averred that he maintained Lathers' interest while attempting to stall him for as long as possible, until the fall of 1994 when negotiations began in earnest. Benson and Lathers then negotiated alterations to a draft lease through early December. Benson testified that he kept Vanderbeke apprised of the ongoing negotiations, including the identities of Lathers and Bodytechniques and Benson's intent to seek a commission on any lease ultimately entered, and introduced letters to and from Vanderbeke and Fusco as well as Fusco's billing records, which reflected Vanderbeke's knowledge of and Fusco's involvement in the lease negotiations with Lathers. Neither Vanderbeke nor Fusco could recall with specificity what they had learned regarding the potential tenant or exactly when they had learned it.
According to Lathers, the negotiations proceeded slowly throughout 1994, despite that in the summertime he advised Benson of his strong desire to occupy
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