DELACY INVESTMENTS, INC. V. THURMAN & RE/MAX REAL ESTATE GUIDE, INC.
693 N.W.2d 479 (2005)
NATURE OF THE CASE: Delacy (P) challenges the district court's grant of summary of
judgment to Thurman (D) based on the district court's conclusion that an assignee is not
entitled to a greater right in a real-estate commission than an assignor.
FACTS: D, a licensed real-estate agent, entered into a master repurchase and security
agreement (MRSA) with P. The MRSA 'granted to P a security interest under the UCC in all of
D's right, title and interest in and to D's current and future accounts receivable . . . .'
D then entered into an agreement with RE/MAX. That agreement stated that the portion of
commissions which does not exceed past-due financial obligations shall be deemed to belong
to RE/MAX and shall be used by RE/MAX first to offset arrearages owed by D. Re/Max executed
an acknowledgement of P's security interest in D's account receivable from the sale of a
home on Javelin Avenue and directed that D's commission from that sale be paid directly to
P. On June 7, Re/Max terminated D as a real-estate agent for poor performance, failure to
deposit earnest-money payments in a timely manner, and customer complaints. D had
accumulated $11,126.38 in overhead debts owed to Re/Max. Re/Max refused to pay the assigned
receivable and 'applied the commission to D's balance in accordance with [the
independent-contractor agreement],' claiming a right of setoff based on the overhead
expenses that Thurman owed. P filed a complaint in district court. The court granted Re/Max
summary judgment, finding that 'P's ability to receive a commission from Re/Max is based
upon D's assignment of a contractual right to receive a commission from Re/Max.' D was not
entitled to a commission at the time of the Keller Lake property closing.' As a result, it
was 'impossible for P to obtain a greater right in the commission than D had in the
commission.' P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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