Gosling Brothers has been made to pay out $50,000 after a drawn-out battle over the commission fee on a real estate deal from seven years ago was decided in the courts.

The fight over the commission fee - which was 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).

The sale took place in 1995 under sales agent Peni Gosling who was then employed by Lusher Real Estate. But the BMA first showed an interest in the property when Ms Gosling was the agent of CRE.

In the case, which was heard by Puisne Judge Norma Wade-Miller, Mrs. Sgobba, was suing Gosling's for $175,000 in lost earnings over the sale of the "Green Shutters" building.

Mrs. Sgobba claimed she was due the commission payment as Ms Gosling was an agent of CRE when she made introductions between Nancy Gosling, as president of Gosling Bros. and the Bermuda Monetary Authority (BMA) which was looking for a new headquarters in 1994.

Lawyer Saul Froomkin represented Mrs. Sgobba and 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 property was sold to the BMA in 1995 for $2.95 million but the commission - at a flat rate of $100,000 rather than the normal five percent, on the request of Gosling Bros. - was split by Mrs. Gosling and her then employer, Joy Lusher Real Estate. The court also heard how Ms Gosling had sought out the help of an Allen Forrest in marketing the "Green Shutters" property and that it was Mr. Forrest who had, according to Ms Gosling, identified the BMA as a potential buyer.

Ms Gosling had allegedly agreed to make a 12 percent "off the top" commission payment to Mr. Forrest but that became a point of contention between Ms Gosling and her then-employer Mrs. Sgobba.

But testimony in the case by Mr. Forrest was thrown out by the court, with Justice Wade-Miller saying: "Insofar as credibility is concerned, Mr. Froomkin submitted that where there is a conflict Mr. Allen Forrest's evidence cannot be believed. Mr. Allen Forrest and Miss Peni Gosling `gilded the lily' as to their involvement.

"Mr. Forrest was extensively examined in chief, cross-examined and re-examined. It is clear to the Court that he is prepared to perjure himself if he believes it suits his purpose.

"His discreditable conduct that is a matter of record has caused me to doubt the truthfulness of his evidence, consequently I reject it in respect of the efforts he claimed he made." she said.

As for Mrs. Sgobba's claim that she was owed a commission on the sale as the agent which "affected the cause of the sale," Justice Wade-Miller said in judgment: "I am satisfied that the introduction had taken place during the currency of the (CRE) listing agreement. Indeed, I am satisfied that that introduction was the effective cause of the sale." Justice Wade-Miller concluded: "In my judgement Ms Gosling, acting as agent for and on behalf of Collier, brought the defendant, Gosling Bros. into relation with the BMA that purchased the "Shutters" building.

"For the above reasons I will give judgment for the plaintiff (Mrs. Sgobba) for the sum of $50,000. "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 - less the 50 percent which was paid to Miss Gosling. Mr. Froomkin accepts that in any event the sum of $50,000 would be due to Miss Gosling," Justice Wade-Miller found.