Peter Yates & Co v Bullock and another

Agents appointed to find buyer — Second agents appointed — Second agents securing sale — Whether first agents entitled to commission — Whether cause of sale — Appeal by agents allowedThe appellant company are estate agents; the respondents are the executors of the late Mr Bullock, who died in August 1988. In February 1987 Mr Bullock instructed the appellants to sell the Westmoreland Hotel, Blackpool. A Mr and Mrs Duxbury were introduced; they visited the property four times and in April 1987 they made an offer to purchase, which was rejected. On April 24 1987 Mr Bullock instructed Kays, another firm of agents on a sole agency agreement irrevocable for 10 weeks. Under that agreement a commission was payable wherever the purchaser came from. On May 28 1990 Kays wrote saying that the property had been sold, the purchasers being Mr and Mrs Duxbury and Mrs Hume. Completion took place on July 8 1987 and Kays were paid their commission two days later. The appellants’ claim for commission was dismissed by His Honour Judge Sellers VRD in the Blackpool County Court (June 30 1990), who decided that because Mrs Hume had not been introduced by the appellants, and her role had been essential, the appellants had not been the effective cause of the sale. Held The appeal was allowed. Although Kays introduced Mrs Hume, it was the appellants who introduced the Duxburys. If in May 1987 Kays had not been instructed and the Duxburys and Mrs Hume had contacted Mr Bullock without going through the appellants, the appellants would have been entitled to their commission as their introduction of the Duxburys would have been the effective cause of the sale. Kays were only the channel of communication and they did not break the chain of causation between the appellants and the sale. The form of the agreement between Mr Bullock and Kays was not an issue and was irrelevant to the liability of the respondents to the appellants. John D Wood & Co v Dantata [1987] 2 EGLR 23; (1987) 283 EG 314 approved. Cecil Henriques (instructed by Edwin Coe, for Ascroft Whiteside, of Blackpool) appeared for the appellants; and John Woodward (instructed by Roland Robinsons & Fentons, of Blackpool) appeared for the respondents.