New Jersey, in order to secure a bidder.'
'On at least one occasion, plaintiff took Mr. Sydney Jacoby to New Jersey to view the Teaneck property.'
'After approval of the bid by defendants, plaintiff participated in attempts to secure mortgage financing for the grantee in the State of New Jersey, which financing was ultimately secured from the Howard Savings Institution at Newark, New Jersey.'
It is evident, therefore, from the legislative language and its construction by the courts of New Jersey, that the Act is a strong expression of public policy. It comes well within a reasonable exercise of the police power of the State to protect the public from fraud, misrepresentation, incompetence and sharp practice. The closing of the courts of the State to suits by brokers not licensed in New Jersey is an implementation of that policy. Therefore, since New Jersey courts can properly be closed to suits of this nature, a federal court sitting as a state court in a diversity action can do no differently. Guaranty Trust Co. of New York v. York, 1945, 326 U.S. 99, 65 S. Ct. 1464, 89 L. Ed. 2079.
Aside from the legal question which has been determined by the foregoing, an examination of the plaintiff's claim for the brokerage fee discloses it to be without merit because he has failed to establish by a preponderance of the evidence that he acted as a bona fide broker in this case.
There is considerable doubt surrounding the circumstances under which plaintiff allegedly assumed the role of broker. He insisted he entered into negotiations as broker following his receipt of a letter addressed to him and sent by the Public Housing Development Authority of the State of New Jersey.
A witness for the defendants testified that while the records of the Public Housing and Development Authority disclosed that plaintiff's name was on an addressograph plate for the mailing of advertisements for the sale of temporary veterans' housing, the information concerning sales of permanent veterans' housing, as is the property in this case, was mailed to addressees from cards containing the names of potentially interested persons. In this connection it must be noted that although plaintiff produced many envelopes addressed to him by the defendant Administrator, he did not produce the one concerning the Teaneck property which allegedly induced him to solicit Jacoby's interest.
On the other hand, it was established that Jacoby's name was on defendant's mailing list prior to the case in question, and in fact, that he had made inquiry of defendant concerning at least one other property prior thereto.
Many of the circumstances brought out in the evidence such as plaintiff's cotenancy in the same office with Jacoby; the latter's previous interest in the purchase of permanent veterans' housing under the jurisdiction of the Public Housing and Development Authority in New Jersey; the extent of plaintiff's activities ranging from seeking mortgage financing to participation in the organizing of the Hill Street Realty Company may be consistent with the relationship of broker when viewed as individual elements.
However, plaintiff's testimony concerning the origin and extent of his own investment and stockholder interest in the Hill Street Realty Company was left in a vague and indeterminable state. Records ordinarily producable were not brought forth, although opportunity to do so was furnished.
When all of the circumstances are brought into focus in totality it is more reasonable to infer that plaintiff's role was not that of a broker but of a participant in a joint venture.
I conclude, therefore, that plaintiff has failed to carry his burden of establishing, by a preponderance of the evidence, that he acted as a broker in the instant case, and his claim for $ 25,007.50 fee must be denied.
The above shall constitute findings of fact and conclusions of law pursuant to Rule 52(a) of the Federal Rules of Civil Procedure, 28 U.S.C.
Defendants should submit an order in conformity herewith, consented to as to form by plaintiff, or move to settle an order on the next motion day.