Court orders St. John's councillor and real estate agent Debbie Hanlon to pay almost $10K
The Supreme Court dismissed the Hanlon agency's appeal, upholding a 2020 decision
The Supreme Court of Newfoundland and Labrador has dismissed an appeal from St. John's city councillor Debbie Hanlon's real estate agency related to almost $10,000 in unpaid commission.
In a decision released Monday, the Supreme Court upheld a provincial court decision from Dec. 15, 2020, that found Hanlon's company was on the hook to pay after breaching a contract for the payment of real estate commissions.
Hanlon's appeal argued the trial judge hadn't applied the law correctly and that the respondent's claim was prohibited under the province's Real Estate Trading Act. The act allows agents to get commission only if they were licensed when services were rendered.
According to the Supreme Court decision, an agreement was made in June 2019 between Hanlon and a now retired real estate agent for the agent to transfer her current and future real estate listings to Hanlon, who would then give 90 per cent of the commission to the agent if the properties were to sell.
Hanlon would keep the other 10 per cent of the commission and receive $200 a month from the agent, who would be required to pay her own realtor fees. The agent's licence was cancelled effective Sept. 6, 2019.
Among the properties transferred to Hanlon was a house in Paradise, which was listed for sale at a price of $455,000 in August 2019. When the home sold for $365,000 in April 2020, Hanlon refused to pay the other agent the money owed to her under their agreement.
The agent took Hanlon to court to get the money, with the trial judge finding Hanlon liable to pay a total of $9,219.15.
In his 2020 decision, the trial judge said Hanlon's testimony during the provincial court trial showed "somewhat gratuitous" animosity toward the other real estate agent.
The judge found Hanlon tried to unilaterally change the agreement to a 50/50 split of the commission, but when the other real estate agent disagreed with the changes, Hanlon claimed the agreement was illegal and that the agent shouldn't get any money at all.
Monday's Supreme Court decision found no error in the trial judge's application of the law and dismissed the appeal.
Hanlon isn't the only St. John's city councillor who has garnered attention for their real estate work.
Coun. Ron Ellsworth, who is also a real estate agent, caused a controversy with an advertisement posted on Facebook in November that said municipal rezoning could improve the value of a property he is selling.
Memorial University political scientist Russell Williams said the ad was a conflict of interest because it appears to mix his private interest as a real estate agent with his public responsibilities as a city councillor.
Ellsworth declined requests for an interview but emailed a statement saying he's done nothing that breaks the city's rules.