A state court judge ruled in favor of “finders, keepers” in a commission dispute over a West Chelsea penthouse unit.
The dustup centered on a $4 million sale at 525 West 22nd Street in 2022, in which Serhant’s Sean McPeak alleged that the commission on the deal was wrongfully paid out to an agent from Douglas Elliman.
New York State Supreme Court Judge Nicholas W. Moyne found that McPeak, whose exclusive broker agreement with the seller had expired, was entitled to the $196,500 commission because the buyer appeared on a list he sent to the seller of buyers who had inspected the property while the agreement was still active.
In his decision, the judge granted Serhant’s motion for summary judgment.
“The court’s summary judgment ruling confirms what we knew all along — this case was clear-cut, and justice prevailed,” said Ryan Serhant, CEO of the eponymous firm. “We believe in standing up for what is right, and this victory reinforces our commitment to integrity, protecting agents, and championing our principles.”
McPeak entered into the exclusive brokerage agreement with the seller, Santa Federico, in April 2021 for the unit. The agreement allowed McPeak to submit a list of six prospective buyers who had inspected the property within seven days of its expiration. McPeak would be owed a commission if any of those buyers signed a contract to purchase the property within 90 days of the expiration, according to the agreement.
Douglas Elliman’s Josh Rubin, who signed an exclusive brokerage agreement with Federico in February 2022, claimed that the use of the survival agreement ran afoul of a law prohibiting automatic extensions of listing exclusives.
But in his decision, the judge said provisions like McPeak’s are “frequently used” to prevent sellers from waiting to sign a deal until after their listing agreement has expired.
The judge also found that Rubin began communicating with the seller in December 2021, before McPeak’s listing agreement expired, and had knowledge that McPeak brought the buyer. In a deposition, Rubin maintained that he was under the impression that Federico’s agreement with McPeak had expired when they began communicating.
When the offer was accepted in March, Federico wrote to Rubin that he thought they “need to include McPeak” in some manner, and that “he’s been working this buyer [Purchaser] for quite some time.”
The buyer also emailed Rubin in April that “there is no ambiguity regarding the fact that I made my offer for this apartment through Sean McPeak…Your claim that any sale to me of this unit entitles your firm to any commissions are not valid.”
“I have never met or spoken with you or any other employee of Douglas Elliman regarding this apartment,” the email continued.
The complaint named Rubin and Federico, who never responded to the allegations, as defendants.
Lawyers for McPeak and Rubin did not immediately respond to requests for comment.
This article has been updated with a statement from Ryan Serhant.
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