Uhre Realty V. Tronnes
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In South Dakota, realtor Joshua Uhre, who owns Uhre Realty Corporation (URC) and Uhre Property Management Corporation (UPM), had a dispute with Benjamin and Leslie Tronnes over the sale of their property. The Tronneses had contracted with Uhre to sell their property and entered into a property management agreement that authorized Uhre to lease and manage the property if it did not sell. After the property was leased to a tenant, the Tronneses sold the property directly to the tenant after the listing agreement expired. Uhre claimed that his realty company was entitled to a sales commission and that his property management company was entitled to a management fee for the entire lease agreement, despite its early termination. Uhre sued the Tronneses for breach of the listing agreement, breach of the management agreement, and civil conspiracy. The Tronneses counterclaimed, alleging that Uhre and his companies had interfered with their business expectation with the tenant.
The Supreme Court of the State of South Dakota held that Uhre was not entitled to a sales commission because he did not procure a ready, willing, and able buyer during the term of the listing agreement. The court also rejected Uhre's argument that the lease agreement gave him an option to buy the property, finding that it did not contain the necessary terms for a valid option contract. Additionally, the court found that the Tronneses did not breach the implied covenant of good faith and fair dealing. Regarding the management agreement, the court ruled in favor of the Tronneses, stating that Uhre was only entitled to 10% of the monthly rent that had accrued through June 3, 2021, which he had already received. Finally, the court reversed the lower court's determination that the Tronneses were entitled to attorney fees, finding that the listing agreement only authorized fees in the event of a breach of contract.
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