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CONTRACT WAS AMBIGUOUS CONCERNING WHETHER PLAINTIFF BROKER WAS ENTITLED TO A COMMISSION, SUMMARY JUDGMENT IN FAVOR OF DEFENDANTS SHOULD NOT HAVE BEEN GRANTED (FIRST DEPT).

The First Department, in a full-fledged opinion by Justice Tom, reversing Supreme Court, determined that a contract concerning plaintiff-broker’s entitlement to a commission was ambiguous requiring a trial. The facts are too complex to fairly summarize here:

Crucially, an agreement can be deemed unambiguous “if the language it uses has a definite and precise meaning, unattended by danger of misconception in the purport of the [agreement] itself, and concerning which there is no reasonable basis for a difference of opinion'” … .

However, a contract is ambiguous when “read as a whole, [it] fails to disclose its purpose and the parties’ intent” … , or when specific language is “susceptible of two reasonable interpretations”… . Moreover, the agreement must be read as a whole “to ensure that excessive emphasis is not placed upon particular words or phrases” … .

Stated differently, the existence of ambiguity is determined by examining ” the entire contract and consider[ing] the relation of the parties and the circumstances under which it was executed,'” with the wording viewed ” in the light of the obligation as a whole and the intention of the parties as manifested thereby'” … . And, importantly, “[i]n construing a contract, one of a court’s goals is to avoid an interpretation that would leave contractual clauses meaningless” … .

We find that the agreement here is ambiguous with regard to which parties are bound to its terms. Georgia Malone & Co., Inc. v E&M Assoc., 2018 NY Slip Op 05525, First Dept 7-26-18

CONTRACT LAW (REAL ESTATE, CONTRACT WAS AMBIGUOUS CONCERNING WHETHER PLAINTIFF BROKER WAS ENTITLED TO A COMMISSION, SUMMARY JUDGMENT IN FAVOR OF DEFENDANTS SHOULD NOT HAVE BEEN GRANTED (FIRST DEPT))/REAL ESTATE (BROKER’S COMMISSION, CONTRACT WAS AMBIGUOUS CONCERNING WHETHER PLAINTIFF BROKER WAS ENTITLED TO A COMMISSION, SUMMARY JUDGMENT IN FAVOR OF DEFENDANTS SHOULD NOT HAVE BEEN GRANTED (FIRST DEPT))/BROKERS (REAL ESTATE, CONTRACT WAS AMBIGUOUS CONCERNING WHETHER PLAINTIFF BROKER WAS ENTITLED TO A COMMISSION, SUMMARY JUDGMENT IN FAVOR OF DEFENDANTS SHOULD NOT HAVE BEEN GRANTED (FIRST DEPT))

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