Opinion ID: 2634644
Heading Depth: 1
Heading Rank: 2

Heading: facts

Text: On April 17, 1992, Sandy Leven and Richard Bell, d/b/a Liberty Realty, executed a written agreement whereby Sandy agreed to procure co-op real estate agents for Liberty Realty. Sandy agreed to pay all costs in connection with advertising and procuring coop agents, and Bell agreed to pay Sandy $50 per month for each co-op agent who became associated with Liberty Realty. The agreement stated that [t]he term of this agreement is perpetual or until terminated by mutual consent [of] all parties. Sandy and her husband Robert worked together to procure co-op agents for Liberty Realty. At some point, the couple formed RSV Limited Partnership. In July 1997, Robert, as general partner of RSV Limited Partnership, drafted a royalty agreement for Bell's approval. The terms of the 1997 agreement were substantially similar to those contained in the 1992 agreement, with the exception of the terms relating to co-op fees and the calculation of the amount Liberty Realty would pay RSV for the co-op agents associated with Liberty Realty. The 1997 agreement was signed only by Robert, on behalf of RSV. Despite the fact that Bell never signed the 1997 agreement, he did perform pursuant to its terms until December 1998. In December 1998, Bell, through counsel, sent a letter to Robert, as general partner of RSV, stating that he would no longer pay according to the terms of the agreement because it had become apparent that a substantial number of the co-op agents associated with Liberty Realty came to Liberty Realty through no efforts or referrals on the part of RSV. Bell claimed that RSV's performance was lacking and stated that he would be instituting litigation to recover alleged overpayments. In response, Robert wrote a letter contending that Bell was in breach of contract by refusing to make royalty payments as agreed. Robert also claimed that the agreement did not require any particular quantity or quality of performance on RSV's part, and that he expected Bell to pay the royalties owed. Thereafter, Bell filed a complaint against respondents, Sandy and Robert Leven and RSV, requesting a declaratory judgment regarding the validity and enforceability of the parties' agreement. Additionally, the complaint alleged unjust enrichment and breach of contract claims. In response, respondents asserted several counterclaims, including breach of contract claims. Before holding a trial on the merits, the district court addressed Bell's request for a declaratory judgment. Following presentation of evidence by both parties, the district court concluded that the 1992 agreement was ongoing and all of the clauses contained therein were enforceable, with the exception of the clauses superseded by the 1997 agreement. The district court acknowledged that Bell did not sign the 1997 agreement, but concluded that Bell ratified the 1997 agreement through his performance in compliance with its terms. The district court also concluded that the perpetual duration clause in the agreement did not provide a legally sufficient duration, and thus, determined that the duration of the agreement was for a reasonable period of time. Consequently, the jury was left to determine whether Bell's termination of the agreement in 1998 was reasonable, and if not, to determine the appropriate damages. Following the district court's ruling, Bell withdrew his remaining claims for relief, believing they were rendered moot by the district court's ruling. Also, respondents withdrew several of their counterclaims, leaving only their counterclaims for breach of contract for non-payment and for unreasonable termination of the agreement. At the close of the trial, the jury returned a unanimous verdict in favor of respondents in the amount of $386,100.