Case ID: ny_248/html/0573-02.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Silver’s Lunch Stores, Inc., Appellant, v. Richard L. Lee, Respondent.
    
      Principal and agent ■ — ■ brokers — action to recover secret profits alleged, to have been realized by a real estate broker in a real estate transaction wherein he was employed.
    
    
      Silver’s Lunch Stores, Inc., v. Lee, 222 App. Div. 748, affirmed.
    (Argued May 2, 1928;
    decided May 29, 1928.)
    Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered December 30, 1927, affirming a judgment in favor of defendant entered upon a verdict. The action was to recover secret profits alleged to have been gained by defendant in a real estate transaction wherein defendant acted as broker for plaintiff’s assignor. The complaint alleged that plaintiff’s assignor had employed defendant to obtain a purchaser for a dominant lease; that defendant obtained a purchaser who was willing to purchase only if a sublease was canceled; that defendant, .as part of his employment, undertook to procure a cancellation of the sublease which he did in consideration of a substantial payment to the sublessee by plaintiff’s assignor; that thereupon the sale of the dominant lease went through and defendant was paid the agreed commission; that thereafter plaintiff’s assignor learned that defendant had also received a commission out of the money paid by it to secure the surrender of the sublease. The answer was that plaintiff’s assignor had full and complete knowledge of the transaction.
    
      Henry M. Flateau for appellant.
    
      Henry Waldman and Joseph G. Abramson for respondent.
   Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Ch. J., Pound, Crane, Andrews, Lehman, Kellogg and O’Brien, JJ.