Opinion ID: 2618819
Heading Depth: 1
Heading Rank: 4

Heading: Waiver of Commission and Application of Equitable Principles.

Text: Brokers assign as error the trial court's conclusion of law that they waived their right to a commission by failing to submit to Security in writing the name of any prospective buyer prior to the termination of the listing agreement. Brokers also argue that the court erred in refusing to conclude that it would be inequitable to allow Security to circumvent the listing agreement by the device of granting an option. As Brokers note, a waiver is the voluntary relinquishment or surrender of some known right. Its constituent elements are an existing right; knowledge of such right; and an intention to relinquish or surrender it. Yates v. American Republics Corp., 163 F.2d 178, 179 (10th Cir.1947); see also Cooper v. Albuquerque City Commission, 85 N.M. 786, 518 P.2d 275 (1974). The trial court found that Brokers failed to make diligent efforts to sell the lots covered by the listing agreement and concluded that Brokers had therefore waived their right to a commission. However, because we hold that no commission was earned under the facts of this case, it is unnecessary for us to address the claimed error in the court's conclusion of law finding waiver. Finally, Brokers suggest that it would be inequitable to deprive them of a commission since the listing agreement was part of the consideration Talley and Daugherty received for the sale of their seventeen acres to Security. Brokers also argue that Security's grant of a future option to Wood Brothers was an artifice used to circumvent Security's obligation to Brokers. We find, however, that Security complied by granting the listing agreement to Brokers. At that point the relationship changed. Security owed Brokers good faith dealing, and Brokers assumed a fiduciary relation to Security. Iriart v. Johnson, 75 N.M. 745, 411 P.2d 226 (1965); Canfield v. With, 35 N.M. 420, 299 P. 351 (1931); Amato v. Rathbun Realty, Inc., 98 N.M. 231, 647 P.2d 433 (Ct. App. 1982). Their respective rights and responsibilities flow from the listing agreement. Brokers did not procure a buyer; the sale was not made during the term of the listing agreement; Security did nothing to prevent Brokers from performing under the listing agreement; and there was no fraud or bad faith dealing on the part of Security. For these reasons, equity will not intervene. See Newman v. Basin Motor Co., 98 N.M. 39, 644 P.2d 553 (Ct.App. 1982); Ross v. Ringsby, 94 N.M. 614, 614 P.2d 26 (Ct.App. 1980); Ortiz v. Lane, 92 N.M. 513, 590 P.2d 1168 (Ct.App. 1979). We find no error. The judgment of the trial court is therefore affirmed. IT IS SO ORDERED. PAYNE, C.J., and RIORDAN, J., concur.