Sparks v. Fidelity National Title Insurance Company

294 F.3d 259 (2002)

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Sparks v. Fidelity National Title Insurance Company

United States Court of Appeals for the First Circuit
294 F.3d 259 (2002)

  • Written by Rose VanHofwegen, JD

Facts

Broker Robert Sparks (plaintiff) entered three listing agreements with Nations Title Insurance Company of New York and its successor Fidelity National Title Insurance Company (together, Fidelity) (defendants) to sell a Martha’s Vineyard subdivision. The agreements entitled Sparks to a commission if he procured buyers who bought a lot or the whole subdivision. However, the third agreement specified that if Fidelity found a buyer who bought over 10 percent of the subdivision, Sparks would earn no commission for that sale. Sparks found interested buyers, but never got a signed purchase contract or closed a sale. One couple offered to buy a lot on terms acceptable to Fidelity, but Fidelity wanted a buy-back provision and acceptance of future restrictive covenants. Sparks also found buyers interested in the whole subdivision. One planned to build a golf course and submitted a $15 million draft contract but failed to obtain financing and withdrew it before signature. After Sparks’ listing agreements expired, Fidelity found another golf-course developer that bought the subdivision for nearly $16 million. Sparks sued for a commission. The trial court entered summary judgment for the title companies. Sparks appealed.

Rule of Law

Issue

Holding and Reasoning (O’Toole, J.)

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