A real estate agency yesterday went to court to claim $175,000 in lost earnings over the sale of a Goslings' building that went sour more than seven years ago.

CRE Properties Ltd. owner Beverley Sgobba is suing Penny Gosling for the commission of the sale of the Green Shutters Building on Burnaby Street.

At Civil Court yesterday, Mrs. Sgobba told how she had employed Ms Gosling as a sales person back in October, 1984.

She said it was Ms Gosling's first job in the real estate trade, but only a day after she started at the company, which was then called Collier Real Estate, she informed her boss that Gosling Bros., owned by her family, wanted to sell their $4 million property on Burnaby Street.

Mrs. Sgobba said Nancy Gosling was dealing with the sale for Goslings, and her sister Penny Gosling was acting as the agent for the realtors.

Mrs. Sgobba said despite the property only being listed for about two days, Mr. Gosling was immediately showing prospective buyers, the Bermuda Monetary Authority (BMA), around the building.

The BMA looked at the building three times and architects' drawings were supplied so Mrs. Sgobba said, as far as she was concerned, the BMA was very interested in purchasing the property.

Just a few weeks later, the court heard, Penny Gosling presented a 'first option to buy document' to Mrs. Sgobba, which gave the BMA priority over any other prospective buyers to purchase the building.

The BMA had about six weeks to close the deal and arrange its finances before the property would be listed openly again on the market.

However Mrs. Sgobba said she had some concern that Penny Gosling's close personal friend Alan Forrest seemed to be brokering the deal and had drafted the 'option to buy' document.

She said she became concerned that he would demand a cut when the sale went through.

Mrs. Sgobba said: "I had had a prior conversation with Penny about Alan Forrest. To my knowledge he was not a real estate person. I did not know who he was.

"When Penny listed the building (on the market) initially and showed it the next day, I asked her how this had transpired so quickly and where they had come from?

"She told me that they (BMA) were referred to her by her good friend Alan Forrest. I was concerned as to what Mr. Forrest required as compensation."

But Mrs. Sgobba said she was assured that Mr. Forrest required no cut and that he simply owed Penny Gosling a favour.

Mrs. Sgobba added: "I thought he might expect something more than a plane ticket, which Penny had mentioned she would give him."

She said the BMA posed questions about the property, which were promptly answered by Penny Gosling, and a reduced price of $3.5 million was accepted by the Gosling Bros. company.

Mrs. Sgobba told the court that although the finances for the BMA had not been finalised, everyone was so convinced the deal had been done that Nancy and Penny Gosling held a celebratory party with Mr. Forrest.

However, the deal was then to go sour.

"On December 9 Penny came into my office and informed me that she had 'done it all wrong'," said Mrs. Sgobba. "She informed me that Alan Forrest was demanding 12 percent off the top of the deal. I said 'absolutely not' and I referred to the conversation that I had had with Penny about Alan Forrest. She proceeded to inform me that I didn't know how business was done in Bermuda."

The realtor said she told Ms Gosling that if she had made a mistake, she would have to pay for it herself.

Later that night, the two women had a heated exchange on the telephone, with much the same comments, and three days later, Penny Gosling's employment was terminated from the company.

However, in a formal letter of termination to Penny, she said that she could continue to act as the agent for Collier Real Estate with regard to the BMA sale, and said she would receive her 50 percent share of the commission received by the realtor, as agreed.

But the BMA failed to agree the sale by the agreed date on December 23, and Nancy Gosling is said to have withdrawn her listing from Collier's and instead listed it with Joy Lusher Real Estate, where her sister Penny had gone to work in the New Year of 1995.

Mrs. Sgobba said she learned in October, 1995 that the BMA had in fact bought the Green Shutters Building for just under $3 million.

And she told the court that after taking legal advice, she made a demand for the commission on the grounds that Collier Real Estate had made the introductions.

Representing Mrs. Sgobba, lawyer Saul Froomkin said his case was that Collier Real Estate had been behind the whole deal with the BMA.

He said: "We say we were the affected cause of the sale. That's a legal concept which includes introduction by the agent, showing by the agent, and negotiations by the agent. We see introduction being the most important part."

The case continues today before Puisne Judge Norma Wade-Miller. Lawyer Mark Diel was representing Penny Gosling.