Folds v. Barber

The parties never reached a meeting of the minds as to a set fee for real estate referrals the plaintiff gave to the defendant.

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Carolyn Folds and Donald Barber were real estate agents. They became romantically involved and decided to purchase a house together. When they found the house they were looking for, Folds entered into a lease/purchase agreement with the owner and made a down payment of $10,000. Thereafter, Barber agreed to buy the house from the owner. He put down $18,864, and took title solely in his name. Folds and Barber agreed to contribute money to a joint checking account to pay the mortgage and household expenses. Folds had more real estate experience than Barber and she referred a number of prospective sellers and buyers to him. As a result, Barber earned more than $77,000 in commissions. Ordinarily, when one real estate agent makes a referral to another, the agents enter into a written referral fee agreement specifying the amount of the referral fee. Such fees are negotiated and typically range between 15 and 25 percent of the commission. Folds entered into such agreements with other agents, sometimes for as much as 50of the commission when the referral was a “sure thing.” However, because she had a romantic relationship with Barber, and believed that he was going to marry her, Folds and Barber did not negotiate or agree upon a referral fee.

Ultimately, Folds and Barber ended their relationship and Folds sued Barber for breach of promise to marry, fraud and specific performance. Barber answered and counterclaimed, seeking equitable partition of the house and property. The case was tried by the court without a jury. At the conclusion of the trial, the court denied Folds’ claims, but granted Barber’s request to partition the property. In that regard, the court decreed that the property would be appraised and sold; that Folds would receive $10,000, and Barber would receive $18,000, from the proceeds of the sale; and that Folds and Barber would divide evenly the excess proceeds.

Folds v. Barber

The parties never reached a meeting of the minds as to a set fee for real estate referrals the plaintiff gave to the defendant.

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