Sometimes the “new kid” has to fight.

Although diplomacy usually worked for Jeff, during his freshman year as a Realtor, he did get into a couple of scrapes.

The first fight was triggered when his managing broker, Harry, tried to give Jeff a 15% “referral fee,” for a transaction in which Jeff had procured the buyer, and was entitled to 50%. In answer to Jeff’s protest, Harry said: “It’s too late... It’s a done deal!”

But Jeff ended up getting the money due to him, when he brought documentation to Pip, the company president. Pip did not like trouble, preferring to take the course of least resistance.

After that, Jeff left the agency, and signed up with a larger firm: Mordechai and Horowitz. It was there that Jeff’s second dogfight turned into a lawsuit.


The firm required it’s agent to put in 12 hours each week taking calls, and dealing with walk-ins. It was called, “floor time,” or “up time” As a new agent, Jeff was excited about floor time and did not realize that when experienced agents referred to it as “opportunity time,” it was sarcastic. Agents on floor time -- particular new agents -- often found that they ended up spending many hours following up on telephone requests, rarely resulting in compensation.

But when Jersey Bill and Jersey Bob walked in asking about large acreage with snow-mobile trails, Jeff -- still inexperienced -- got excited.

“Let’s look at MLS,” he said. He lead them downstairs to the windowless conference rooms, and pulled out the book (this happened before computers). Bill and Bob picked out 3 properties that interested them.

“Can you take us to see them right now?” asked Bob.

“I can’t, I have to pick up my son at nursery school.”

Bob and Bill got up to leave.

“Wait! Let me make a call,” implored Jeff.

They sat back down, Jeff dialed.

“Hello Manny. Look, I’ve got a couple of guys here who want to see your land listing on Grantbust Road but I have to pick up my son. They also want to see two properties listed with Bighatch Realty. Can we work something out?”

Manny worked in a branch office of the same agency as Jeff, over in the resort area.

“Sure, Jeff, send them over.” said Manny, “If they buy my listing on Grantbust, I’ll split the selling side of the commission with you 50/50. But if they buy one of Bighatch’s listings, I can only give you a referral fee, because I won’t be getting the listing side. OK?”

“That works for me,” agreed Jeff, and he told the Jersey boys that Manny would take care of them, and gave them instructions to his office.

Manny’s listing was a large land parcel with snowmobile trails, which was what appealed to the Jersey boys. Even better: It was unbuildable, so that they could get a lot of land at a low price. Without much delay, they signed a Purchase and Sale Contract.

This was a time when real estate was in the dumps. Ever notice a spider, still in the corner of a web, with legs so thin they look like strands of dust and you think the spider is dead until a gnat comes by, and suddenly the spider moves? That is how it felt in those hard times to rely solely on sales commissions for income.

So Jeff, trying to get by supporting his small family, counted the days to closing, and counted the money before it was in his hand.

One morning, Manny was at the home office for the Friday sales meeting. The feature of this week’s meeting was a video about phone answering techniques, the main point being that everyone in an office should be a robot answering the phone with the same script, every time.

After the video and discussion, the “fun” part of the meeting began. Frank Mordechai had a list of all the marketing agreements taken during the past week, each of the properties which went under contract, and any closings.

Balloons were attached to a bulletin board, and Mel Horowitz gave each agent on the list one dart for each listing, one dart for each new Purchase & Sale Contract, and two darts for each closing. Then... high drama!

One at a time, the lucky agents took their turn standing behind a chalk line on the floor, aimed, and threw their dart.

POP! A balloon broke and out fell a slip of paper. With great fanfare, Horowitz stooped down, picked up the paper and read:

“A $25 gift certificate to the Beef Bull Restaurant! See me later, Norm.”

The trouble was, half the time, when the agent went to see Mel later, instead of a gift certificate, Mel gave him a promise: “Come back and remind me.”

Actually getting the certificate out of Horowitz was an exercise in persistence... probably the lesson that Mel intended.

So after this Friday’s meeting, as the agents straggled up the stairs, and as Jeff started to head up the next stairway to his second floor office; from the vestibule Manny spoke to get his attention:

“Jeff, the Jersey boys’ deal is going to close in 10 days.”

“That’s great!” exclaimed Jeff, revived by the thought.

Manny did not reply. Then, after a long pause, in a low voice he said: “Jeff, I haven’t had a closing for a very long time. I really need the money. Could you take 25%?”

Jeff was horrified. Even the 50% they had agreed to would be his only income in almost 3 months, and it only came to $1,000. Besides, Manny was already getting the entire listing side, as well as half of the selling side. Why would he think that Jeff should agree to give up even more?

“Well no, Manny, I can’t. We’re going to have to stick to our agreement.”

“OK,” said Manny. And he left.


As the closing approached, Jeff started to get nervous about whether he could trust Manny. Jeff decided that, just to be sure, the day before the closing he would verify with Mel Horowitz how the commission split was to be calculated.

But two days before the scheduled closing date, Manny called Jeff to tell him that the closing had been rescheduled, and had already happened.

“Did you tell Mel what our agreement was, and make sure that he will split the commission properly?”

“Yes,” said Manny. Jeff was relieved.

At Mordechai and Horowitz, commission checks are given out the last day of the business week. That Friday, when Jeff opened the envelope which the secretary handed him, there was a check for $500, and a memo for a 25% referral fee.

Immediately he went into Mel’s office, expecting that it would be straightened out in short order.

When Mel said that he would have to investigate before taking sides, and refused to stop payment on Manny’s check while the investigation was pending, Jeff’s hopes sunk.

This time the path of least resistance was working against him.

Jeff then tried to bring it to arbitration, but Manny refused. Since Realtors pledge to arbitrate monetary disputes with one another, Jeff thought he could compel arbitration. But the Arbitration Committee refused to hear the dispute on the grounds that arbitration is only required between Realtors belonging to different firms, but not for disputes within the same agency.

Jeff scrutinized the arbitration manual and found out that they were right. But he also found that if arbitration is refused, then litigation is permitted.

“Please don’t sue him,” pleaded Jeff’s wife, Lorna.

“Do you like him stealing our money?”

“No, I hate it, but can’t you find another way?”

“What way... ask him to be fair?!!”

Lorna had no answer.

“Lorna, I am being tested. The resort area is ‘Dodge City’ but even here in town I have seen some aggressive agents. If I do not stand up for myself, but allow myself to be robbed, then I will be seen as easy pickin’s, Once that happens, my real estate career will be hell.”

So Jeff filed a Small Claim.

Within a year, Jeff had begun to build momentum in the profession and he decided to leave Mordechai and Horowitz to start his own firm.

To his surprise, when he told Horowitz, Mel could say nothing, but his face turned red and he started to cry.

Jeff thought of Mel’s indifference when he had been asked to intervene, but seeing the tears in Mel’s eyes, Jeff did not have the heart to say anything.


Manny was truly shocked when he received service. He had thought that once he had the check, Jeff might be upset but he would not be able to do anything about it.

Manny was not just shocked, he was mad. And his best friend, Matt, with whom Manny often teamed up taking joint listings, was also mad, and they let Jeff know. This time though, it was Manny who couldn’t do anything about it: A court summons cannot be ignored.

It takes an awful long time before a case gets heard, so by the time a hearing was scheduled, the original incident seemed far in the past.

As the date approached, Jeff increasingly became obsessed. They lived in a cabin, and in that small space there was nowhere to go to get away from Jeff as he endlessly recited the arguments that he would use in court.

The night before the trial, Jeff’s six year old son interrupted his dad’s rehearsal, and said:

“There’s no use practicing. The judge is going to decide the case by flipping a coin.”

Kid’s say the darndest things, and Jeff ignored his son’s silly statement.


The trial was scheduled for 1 p.m. at the Newbrook Firehouse, up on Route 30, but it did not start until nearly 3. That’s how courts are.

The day was hot, and the judge did not seem happy.

Manny brought a letter from the Jersey boys, saying what a great guy he is, and that Jeff stinks.

“I object,” said Jeff, “The witnesses are not present to be examined, so the letter should not be admitted.”

The judge explained Small Claims Court does not follow formalities, and he allowed the letter.

When it was Jeff’s turn to speak, he opened his file and was about to present his impeccable documentary evidence, when to his surprised, Manny spoke:

“Tell you what, I’ll settle for $50.”

After the closing, Jeff had received $500, and he was suing for the other $500 that he was owed.

“No,” said Jeff, “Fifty dollars won’t even cover my filing fee. He owes me $500, but to get it over I would settle for $250.”

“I’ll give you $200.”

Again, Jeff refused.

At this point, the judge glared at Jeff. “You’re persisting with this case over $50?”

“I am owed $500 and he’s offering me $200. That’s $300 less!”

“You offered to settle for $250, and he’s offering you $200. It sounds to me like you are only $50 apart.”

Jeff was flabbergasted. How had he gotten himself into this spot? He thought he was being more than reasonable to offer to settle for half of what Manny had robbed, and now the judge was allowing Manny to nibble more.

“Were not $50 apart,” declared Jeff, “We’re $300 apart.”

The judge now looked really annoy. REALLY ANNOYED.

“Look,” said the judge. “It is hot, I am tired, I have had a hard day.

“Today is the last day of this court’s session, and this is the last case of the day. I want to get this over.

“If you both agree, I am willing to flip a coin for the $50. I’ll flip the coin, and while it’s in the air, the Plaintiff can call it. If it comes up what the Plaintiff calls, then the settlement will be for $250. If not, then the settlement will be $200.

“If you do not agree to that, then I will declare a mistrial, and the case will begin anew when the new court holds session. If you are lucky the case will be heard in October.

“It’s up to you, gentlemen. Do you want me to flip the coin, or declare a mistrial?”

“I agree,” exclaimed Manny without hesitation.

The judge looked at Jeff.

Jeff had a dreamlike feeling as he spoke:

“This is unbelievable,” he said,” Last night my son said, ‘the judge is going to settle this case by flipping a coin.”

Slowly, the judge leaned forward with a smile:

“Your son and I have a psychic connection.”

There must be a Latin phrase for it, but flipping a coin has not yet made it into Black’s Law Dictionary.


Story by Steven K-Brooks

Postscript:
After the case was decided, the conflicting Realtors eventually made their peace with one another. Usually professional respect comes from a recognition of competence and integrity. But occasionally it emerges from the power of a good fight.