Boat broker commission demand letter

[Captain]

I signed a standard boat brokerage contract with a Florida broker. After
a year had past with no offers, I cancelled the contract and found my own buyer.
The contract included a clause stating that if the boat was sold within 1 year
after the contract was terminated to a buyer 'introduced to the boat by the broker'
then a commission would be due.

The broker's lawyer sent me a demand letter claiming that the broker had introduced
the boat to the buyer. The buyer denies this stating that the first he heard of the
boat was when I contacted him.

My question is what legal tests are applied by an arbitrator or court to determine
whether a boat was 'introduced' to the buyer by the broker. Must the buyer be told
the name of the boat and owners name? Must the buyer take action on the introduction
by contacting the owner of the boat? Must the buyer be sent specific written
documentation describing the boat? Any advise on how to deal with this problem
will be appreciated.

 

[ALawyer]

The general test is that of being a "procuring cause". The courts and arbitrators know that a lot of people try to welsh out of paying commissions to brokers. This issue is one of fact -- did the broker do something that caused the buyer to buy?

It can be an introduction or a referral. As a seller you could have protected yourself with a statement from the buyer that there were no brokers and agreement that if any claim is made, he has to defend or pay the commission.

Again it will be a question of fact, and the broker has to prove that he was the procuring cause. My suggestion, get a local lawyer now and have him/her respond with a letter on your behalf to show you'd fight it.

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