GEORGIA CASE

In the recent case of Howell Realty Company, Inc. v. Boggs, 195S.E. 253, the Georgia Court of Appeals held that under an employment contract between a salesman and broker, the salesman's rights to a commissions vested when she procured buyers for properties and she was entitled to receive her portion of the commissions which had been collected by the broker even though the commissions had been collected after the salesman had terminated her employment with the broker.

Plaintiff salesman, brought suit against her former broker to recover real estate commissions allegedly due for the sale of two parcels of real estate under the terms of a contract of employment which provided:

"Commissions: All commissions resulting from real estate transactions procured by salesman shall be divided between company and salesman on a basis of 30 per cent of the gross commission to Salesman . . . No commission shall be considered earned, or payable, to Salesman until the transaction has been completed and the commission collected by company and check is collected by company bank; . . ."

In affirming judgment for the plaintiff, the court said:

"It is contended by defendant that the terms of the contract conclusively establishes that plaintiff is not entitled to the commissions on the sales of the properties involved since plaintiff voluntarily terminated her relationship with defendant on a date prior to the time that the sales were completed. The contract, however, specifies that the commission is payable upon real estate transactions 'procured' by the plaintiff when the defendant has collected the commission. The undisputed evidence shows that the efforts of the plaintiff were the efficient and the procuring cause of both transactions.

. . . While it is true that the plaintiff was no longer associated with defendant at the time the sales commissions were paid, this will not defeat plaintiff's claim. There is nothing in the contract which by any reasonable construction implies that the plaintiff, in order to be entitled to commissions on sales for which she was the procuring cause, must be still in the employ of the defendant at the time the broker receives the full commission. Plaintiff's rights to the commissions vested when she performed by procuring the buyers."