Realty Center New Homes Division, LLC v. Dowlen Construction, LLC

This is a breach of contract case in which the plaintiff, reflected as “Realty Center New Homes Division, LLC” (“Realty Center”), a real estate broker, sued Dowlen Construction, LLC (“Dowlen”), a builder and developer, for unpaid commissions on sales of real estate. Realty Center signed the contracts at issue in a name slightly different from the name on its real estate broker’s license. The trial court held that Realty Center is entitled to commissions, prejudgment interest, and discretionary costs. Dowlen appeals. We hold, in accord with the general rule, that the misnomer in the contracts did not render those documents invalid or inoperative where there was evidence that Dowlen knew the identity of the real party and, in this circumstance, Dowlen was estopped to deny the existence of the entity with which it contracted. We further hold that the Tennessee Real Estate Broker License Act of 1973, Tenn. Code Ann. § 62-13-101 et seq. (“the Act”) does not expressly require a real estate broker to sign contracts in its licensed name, and we decline Dowlen’s invitation to construe the Act to find this requirement. We affirm the trial court’s judgment.