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Ham v. Morris: Broker Entitled to quantum meruit in Commission Dispute Arising Out of Oral Agreement

January 1, 1986: 

In Ham v. Morris, the Supreme Court of Missouri addressed a broker's claims against a seller stemming from an oral agreement regarding a brokerage commission. The court held that the oral agreement was insufficient to support the commission, but that the broker could recover $3,500 (but not a full commission) on a quantum meruit basis.

De la Torres v. Bolger: Fifth Circuit Hold Left-Handed Employee Not Handicapped Within the Meaning of the Rehabilitation Act

January 1, 1986: 

In De la Torres v. Bolger, the Fifth Circuit addressed alleged violations of the Rehabilitation Act of 1973 (Act). The Fifth Circuit affirmed the district court's dismissal of a case, as it found that being left-handed was not an "impairment" within the meaning of the Rehabilitation Act.

Orval Sheppard v. Valinda Freed: Federal Court Defines What Constitutes a Boycott

January 1, 1986: 

In Orval Sheppard v. Valinda Freed & Associates, the district court addressed the applicability of boycott law to the real estate brokerage industry. The court held that absent an express or implied agreement, defendants had not conspired to boycott the plaintiff when they independently decided not to co-broke with him after he went to a flat-fee commission.

Leo v. Neill: Alabama Supreme Court Holds That Purchasers Must Prove Reasonable Reliance to Recover Damages for MLS Errors and/or Fraud

January 1, 1985: 

In Leo v. Neill, the Supreme Court of Alabama addressed the issue of reliance in the context of MLS errors. The court concluded that where purchasers do not reasonably rely on MLS information, they may not recover damages, even though the information is actually in error.

Menzel v. Morse: Iowa High Court Uses National Association of REALTORS® Code of Ethics as Standard for Determining Broker Negligence

January 1, 1985: 

In Menzel v. Morse, the Supreme Court of Iowa addressed the issues of negligence and breach of fiduciary duty. The court found that the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® (NAR) was the standard for determining a broker's negligence. Further, the court held that conduct between the parties can constitute an implied agency relationship with attendant fiduciary duties.

Menzel v. Morse -- Code of Ethics: Iowa Supreme Court Reviews NAR® Code of Ethics

January 1, 1985: 

Article 11 (excerpt): REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.

Leo v. Neill: Alabama Supreme Court Holds That Purchasers Must Prove Reasonable Reliance to Recover Damages for MLS Errors and/or Fraud

January 1, 1985: 

In Leo v. Neill, the Supreme Court of Alabama addressed the issue of reliance in the context of MLS errors. The court concluded that where purchasers do not reasonably rely on MLS information, they may not recover damages, even though the information is actually in error.

Jorgensen Realty v. Box: Court Upholds Board's Award in Arbitration of Inter-Member Dispute

January 1, 1985: 

In Jorgensen Realty, Inc. v. Box, Jorgensen Realty appealed an order confirming a Board arbitration award. The Colorado Court of Appeals affirmed that the Board had legally arbitrated an inter-member dispute.

Farnsworth Samuel Ltd. v. Grant: Louisiana Court of Appeals Examines Elements of Procuring Cause

January 1, 1985: 

In Farnsworth Samuel Limited v. Grant, the Court of Appeal of Louisiana addressed the issue of procuring cause in the sale of property. The court found that although the sale occurred outside of the listing agreement and extension periods, because broker initially introduced the buyer to the property and assisted in the original bid, which differed from the final bid by an amount nearly equal to the commission, broker was procuring cause of the sale.

Cultom v. Heritage House Realtors: Washington Supreme Court Finds Broker Not Engaged in Unauthorized Practice of Law Upon Completing Pre-Printed Earnest Money Agreement

January 1, 1985: 

In 1985, the Supreme Court of Washington held that a real estate agent does not commit the unauthorized practice of law by completing a pre-printed earnest money agreement, provided the transaction is simple and the form was drafted by an attorney. The court held that in drafting such agreements and their addenda, an agent is held to the standard of care of a practicing attorney. Because the agent failed to follow the instructions of the client, she was held liable for damages and interest.

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