Eric H. McPherson v. William E. George, Inc., and John H. Roebuck & Associates, Inc.

This appeal involves the breach of a real estate contract. The plaintiff hired the defendant  auctioneer to sell his home at auction. After the defendant corporate purchaser was the high bidder at the auction, it signed a sales contract and made a substantial down payment on the property. The down payment was retained by the auctioneer as his commission. Shortly after that, the auctioneer promised the purchaser that the purchaser’s real estate agent would be paid a commission on the sale. Later, the defendant auctioneer refused to pay the purchaser’s agent a commission and, consequently, the purchaser refused to close on the sale. The auctioneer retained the earnest money. The seller filed this lawsuit against the purchaser for failing to close on the sale, and against the auctioneer for breach of fiduciary duty. The purchaser filed a counterclaim against the seller and a cross-claim against the auctioneer for breach of contract. All of the parties filed cross motions for summary judgment. The trial court granted summary judgment in favor of the seller against the purchaser, but held in favor of the auctioneer against the seller. The trial court ordered the purchaser to pay damages to the seller for its breach of the sales agreement and permitted the auctioneer to retain the earnest money. The purchaser now appeals. We affirm, rejecting the purchaser’s claim of fraudulent inducement, and concluding that the seller is entitled to damages pursuant to the plain language of the sales agreement.