Mutual Development Corp. v. Ward Fisher & Co.

Summary

The Rhode Island Supreme Court affirmed summary judgment for Ward Fisher & Company, LLP and WF Realty & Investment, LLC in an action seeking compensation for an alleged oral finder’s fee arising from a real-estate sale. The court held that Rhode Island’s Statute of Frauds applies to agreements for commissions or fees connected with the sale of real estate, regardless of whether the claimant is characterized as a finder or broker and regardless of whether compensation is percentage-based or a flat sum. Because the alleged agreement was not in writing, the plaintiff’s claims were barred.

Holdings

1. Rhode Island's Statute of Frauds does not distinguish between a broker and a finder. Any person or entity seeking a commission upon the sale of any interest in real estate must have evidence of the agreement in writing, signed by the party to be charged or an authorized person.
2. The term "commission" in subsection 6 encompasses both flat-sum commissions and percentage-based commissions.
3. Because the alleged real-estate finder’s-fee agreement was oral and not memorialized in a signed writing, it was unenforceable, and the Statute of Frauds barred plaintiff’s breach of contract, fraud, and unjust enrichment claims.

Questions Presented

1. Whether Rhode Island's Statute of Frauds applies to an oral agreement for a finder’s fee arising from the sale of an interest in real estate.
2. Whether the statutory term "commission" encompasses both flat-sum and percentage-based compensation.
3. Whether the Statute of Frauds barred the plaintiff’s breach of contract, fraud, and unjust enrichment claims.

Disposition

affirmed