Carol Gilbert, Inc. v. City of SF O'Farrell
A real estate broker enters into an exclusive listing agreement with the master tenant of a city-owned parking garage for the purpose of finding a replacement subtenant for restaurant space on the ground floor. The listing agreement provides that a commission will be paid to the broker “[i]f a lease[] is entered into during the Term of this Agreement.” The broker finds a subtenant, who signs a lease with the master tenant, but that sublease is never approved by the city that owns the garage, as was required by the master lease between the city and the master tenant. Was the sublease “entered into,” such that the broker had a right to be paid the commission specified in the listing agreement? The trial court concluded the answer is yes.
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