Marshall Burks, et al. v. Elevation Outdoor Advertising, LLC f/k/a Delta Outdoor Advertising, LLC

The Appellee is a billboard advertising business engaged in selling advertising space on the billboards it maintains. The Appellants contracted with the principal owner of the business to sell the business in exchange for a commission. One of the Appellants had partial ownership interest in three of the billboards serviced by the business. After closing the sale, the Appellee paid the Appellants a significantly smaller commission than the parties had agreed upon. The Appellants brought suit for breach of contract seeking to recover the remainder of the commission allegedly owed. The Appellee subsequently filed a motion for summary judgment asserting that, pursuant to the Tennessee Real Estate Broker License Act of 1973 codified at section 62-13-101 et seq. of the Tennessee Code, the Appellants could not recover a commission as a matter of law. The Appellee also sought to invoke the Act’s provisions to recover the commission already paid to the Appellants.  Finding it undisputed that the Appellants did not have a real estate broker’s license when negotiating the sale of the business and that real estate comprised a significant portion of the Appellee’s assets,  the trial court granted the Appellee’s motion for summary judgment. Further, the trial court ordered the Appellants to return the commission already paid by the Appellee. The Appellants have appealed the trial court’s decision to this Court. We affirm.