A ruling that Gosling Brothers would be made to pay out $50,000 in a legal wrangle over the commission fee on a real estate deal from seven years ago, was overturned in an Appeals Court decision last week.

The fight over the commission fee - between Beverly Sgobba, as Collier Real Estate (CRE) and Gosling Brothers - stemmed from the sale of the 'Green Shutters' building on Burnaby Street by Gosling's to the Bermuda Monetary Authority (BMA) in 1995.

The sale was made by real estate agent Peni Gosling, once an agent of Collier Real Estate but by the time of the sale an employee of Lusher Real Estate.

Mrs. Sgobba's lawyer Saul Froomkin argued that CRE should have been paid the commission - not Lusher Real Estate - as the BMA first showed an interest in the property in 1994. It was at that time that Ms Gosling, as an agent of CRE, made introductions between Nancy Gosling, as president of Gosling Bros. and the Bermuda Monetary Authority (BMA) which was looking for new headquarters.

It was argued that the initial introduction between the two parties was the "effective cause of the sale".

In total Mrs. Sgobba was suing Gosling's for $175,000 in lost earnings over the sale of the "Green Shutters" building although she was awarded judgment of $50,000 with Puisne Judge Norma Wade-Miller finding: "I calculate the commission of $50,000 based on the $100,000 commission that was paid to Lusher Real Estate - which ought to have been paid to the Plaintiff (Mrs. Sgobba and CRE) - less the 50 percent which was paid to Miss Gosling."

On appeal however the court found that any initial interest by the BMA in the building had been "dead and buried" and that the fact that the Authority showed interest a year later could not be attributed to the initial introductions under CRE.

"We are firmly of the view that between the two agencies Lushers have by far the stronger claim to have been the effective cause of the sale. We therefore allow the appeal, set aside the judgment of the court and dismiss the claim of the Plaintiff," the written judgment from Sir James Astwood, Sir Derek Cons and Peter Clough said in their judgment last Thursday.

Gosling Borthers was represented by lawyer Mark Diel, who said after the court of appeal decision: "My client (Gosling's) are very pleased. They felt very strongly that the judgment was incorrect and hats off to them for pursuing the appeal."