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Who do you think will win this battle over $6,500

by LMC
6 replies
Hey Warriors,

A buddy of mine is an art broker, he earns a commission on his finder fees I guess you would call it. Basically someone is looking for some high-end art and he tells them where to go, his fee is 6-8%.

He deals with fancy stuff... and earns probably between $3-$6k per deal.

There is a current battle taking place between John Smith, the broker, and the Gallery. Rich Guy Joe is looking for a very specific piece of fine art and calls John Smith. John understands his needs and provides him a list of 40 dealers that "may" have the piece of fine art. Rich Guy Joe is NOT suppose to do anything with the list except acknowledge it. However, Rich Guy Joe is so excited he took it upon himself to make some calls to the galleries.

John Smith would of normally taken the same list and made the calls himself to find a gallery or two that carry the piece. Then John Smith and Rich Guy Joe are suppose to go to the galleries and negotiate a deal.

Well... Rich Guy Joe all excited randomly chooses a name from the list of 40, and the Gallery owner explains to him that he has the exact piece of art that he wanted. Rich Guy Joe so excited, asked if he can see it.
The Gallery Owner makes an appointment.

You can see where this is going...

Well Rich Guy Joe goes down there without his broker, strikes a deal, and buys the art. He calls John Smith to tell him he no longer need his services.

John Smith feels he is due his finder fees because if it wasn't for him the list of not been received by Rich Guy Joe. His fees are worth $6,500.

Gallery Owner's contract with John Smith basically states that John Smith must bring Rich Guy Joe to the premises.

John Smith is thinking about taking it to court.

Who do you think will win?
#500 #battle #win
  • Profile picture of the author timpears
    Did John have Rich Guy sign a contract? If not, then he is probably out of luck.

    For a person who earns these type of commissions, it seems like John acted very sloppy this time. Like you said, John should have called the galleries, but he didn't. He left it wide open for people to go around behind him. And it looks like they did.
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    Tim Pears

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  • Profile picture of the author terrapurus
    Rich Guy. The broker did not find the piece. He just gave him a list. A reduced referral fee might be in order from the Gallery. The only thing that would help him is what is in the signed contract.

    Any legal action would probably exceed the sum to be gained. And the biggest one - the rich guy then tells all the other rich guys and his name is now mud.

    The appropriate course of action - dealer to rich guy - awesome you found the piece. If you want me to find any other work for you, let me do the leg work. That's how I get paid which does not cost you anything.
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  • Profile picture of the author sbucciarel
    Banned
    So what was John Smith thinking just handing the Rich Guy a list? Seems to me he brought this on himself.

    "Gallery Owner's contract with John Smith basically states that John Smith must bring Rich Guy Joe to the premises."

    Well, he didn't bring him to the premises, unless he somehow proves that his list sort of "brought him" to the premises.

    I think John Smith will lose this one.
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  • Profile picture of the author CDarklock
    Originally Posted by LMC View Post

    Rich Guy Joe is NOT suppose to do anything with the list except acknowledge it.
    Let me make sure I understand.

    John makes a deal with Joe to call a list of 40 galleries for a finder's fee if he's successful.

    He gives Joe the list, and Joe calls them himself.

    It looks to me like John didn't do his job. Why should he get paid?
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    "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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  • Profile picture of the author LMC
    For the most part I agree with all of you. I told him that he's at a losing battle, basically the reason he gave the guy the list was because he was making the calls that day. However, Rich Guy acted so fast and happened to pick the right one.

    John kind of knows he is going to lose, but he figures the threat of court action maybe might squeeze him a $1k -$2k settlement to end on good terms.

    He says he surprised at the Gallery because he has brought them a lot of business.

    Regardless, in court. He will lose because it is whats in the contract and the contract does state that he has to bring him to the gallery.
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    • Profile picture of the author Joe Mobley
      Has Rich Guy Joe used John's services before? Does Joe know that John is a broker? Was there an e-mail about this? Does the state allow for implied contracts on this matter?

      If I were John, I would not be so quick to bail on this. For the one-hour fee with the right attorney, he find out where he stands.

      Another thing to consider, does Gallery Owner and Rich Guy Joe want to be known for "going around their brokers"? Not a good business decision going forward.

      But hey, what do I know???

      Joe Mobley
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      Follow Me on Twitter: @daVinciJoe
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