Prats v.

CA, 81 SCRA 360

G.R. No. L-39822. January 31, 1978

Facts:

Alfonso Doronilla (Doronilla) was the registered owner of a 300-hectare land in Montalban, Rizal. He for
some time tried to sell the land and designated several agents. At one time he offered it to SSS at a
compromised price of Php3.25 per sq. m. but failed to consummate the sale. After failing time and time
again to sell his land, he granted Antonio Prats (Prats), who is doing realty business under the trade name
Phil. Real Exchange, an exclusive 60-day option to and authority to sell the property. It was agreed that
the authority shall expire and become null and void if no written offer was made to Doronilla until the last
day of the authorization. The authority expired on 18 April 1968 but was extended for another 30-days.

Prats took diligently took steps to discuss the sale of the property to SSS. On 16 May 1968, he made a
written offer to sell the land Php6.00 per sq. m. SSS replied on 17 May 1968 informing him that they are
considering the purchase of the land. On 18 May 1968, Prats wrote a letter to Doronilla offering to buy
the land for Php4.50 per sq. m, but didnt disclose his buyer. Consequently, Doronilla terminated Prats
authority to sell the land, since he did not receive any offer to purchase the land except Prats.

On 19 June 1968, Doronilla renewed his offer to SSS. The sale was finalized on 30 July 1968, with SSS
buying it at its original counter-offer of Php3.25 per sq. m (That around Php 9,750,00). Thereafter, Prats
billed Doronilla for professional service as a real estate broker amounting to Php1,380,000. Doronilla
refused to pay. Hence this case. The trial court rule in favor of Prats, and ordered Doronilla to pay the sum
of Php1,380,000. The Court of Appeals reversed the decision.

Issue: Whether Prats the efficient procuring cause of the sale between SSS and Doronilla and whether
he must be compensated?

Held: The court found that the broker, Prats, is not the efficient procuring cause of bringing about the
sale. Nevertheless, it is evident based on the factual finding of the court that the agent-broker diligently
took steps to bring back together his principal - Doronollo, and the prospective buyer- SSS back to the
transaction table. Among of which are as follows:

- On 23 February 1968 Prats communicated with the Office of the Presidential Housing Commission
offering the property.
- On 18 April 1968 the Commission suggested that the property be offered directly to the SSS.
- On 16 March 1968,discussed the sale of the property to Chairman Ramon Gaviola, Jr.
- On May 6, 1968, Prats made a formal written offer to the SSS and received a positive reply from
SSS.
- Prats and his witness Raagas testified that Prats had several dinner and lunch meetings with
Doronila and/or his nephew, Atty. Manuel D. Asencio, regarding the progress of the negotiations
with the SSS.

The agent-broker, therefore, maybe granted relief in equity because of his efforts (P100,000).