Commercial tenant backed out lease - now partial commission dispute. It get better...Family involved =)
Against my better judgement, I repped a tenant for a commercial space owned by a family member. I know, I know. Never again.

Tenant has now backed out before the space is finished and has willfully forfeited his SD of 5K.  I was paid a partial commission from family member through the listing brokerage. $1300 upon lease execution.

After this went south, I told my family member I would refund their $1300, even though they have 5K SD for their hassle. This was before they told me they are suing the tenant for commissions, flooring (which they were doing anyway), 3 years worth of lease payments, etc. They also want to charge the tenant $1500 for blinds they never purchased or installed to give you an idea of what I am working with here.

I have now said, if you are suing the tenant, you will recoup your 1300 loss twice when I refund it to you. Greedy and shady imo. 

Family member is now bent on the fact that listing brokerage is not charging them again, and they have "refunded the partial commission" so why don't I. Then they clarified and said, they didn't return the $, they are just charging them to release. Big difference.

Listing brokerage sent me an email today saying they will send me to collections (I'm sure family member is complaining to them). To which I replied, it is being handled internally, this is a family member, and I have no contractually agreement with you as the listing broker so beat it.

This has nothing to do with the $1300, it has to do with the principle.  I offered to refund without being asked day one. 

Can someone tell me I am right or crazy to even think like this?

P.S.  I have always had 50% paid at signing and considered it earned commissions. 50% due upon move it. If they were not related, I would tell them they have losses, sue the damn tenant! Not ask me for the partial commission. Family makes it messy. Never again.
[{"id": "io7hdt1", "text": "Honestly I\u2019d just try to break out of this without burning bridges which sounds like what you are already doing. \n\nIt breaks my heart that we have to live in a world where $1300 or even $5000 is enough to make anyone care enough to burn a bridge.", "replies": [{"id": "io7i8pu", "text": "Agree! I'm going to refund. \n\nThere is a 20 year long history of free work (in the over 20K range) and penny pinching in the past. This one just floored me.", "replies": [{"id": "io7jj8p", "text": "It\u2019s wild how family can get. They are supposed to have your back over all but can be the worst clients. I have an uncle who is probably worth north of 50M. My cousin once spilled a bottle of $200 wine at his house that he just opened and my uncle didn\u2019t speak to him for a month. \n\nFamily always amazes.", "replies": [{"id": "io7kb4p", "text": "You ain't lying!\n\nMy take, the more they are worth, the more headache they bring.\n\nI knew better on this one. I swear I did.\n\nPlot thickens, we share a wall in this new development. We get to be LL neighbors for a long time! Things we do for almost 9 caps outta the gate in SW Idaho.\n\nAppreciate your response and insight. I can talk you off the ledge if you ever think to deal with family in the future.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "io7kwcy", "text": "This is why Landlords should require a full personal guarantee.  In the last ten months I've negotiated four leases.  Last two were with local operators.  Full personal guarantees required.  Keep the terms short, include options.  Offers both parties paths to exit.", "replies": [{"id": "io9barf", "text": "They got a PG. They could sue them.", "replies": [], "depth": 2}], "depth": 1}, {"id": "io9rwfp", "text": "I don\u2019t quite follow the fact pattern here. So you returned the $1,300 directly to the LL, but the listing brokerage is also asking you for $1,300? Or are you complaining that you returned it and the LL is going after the tenant aggressively so you wish you hadn\u2019t?\n\nIt\u2019s not a lot of money. I would let it go and move on. Unless they\u2019re trying to get you 2x then obviously deal with it.", "replies": [{"id": "io9uvco", "text": "No, the listing brokerage tried to intervene for the LL and asked for refund since the payment went through them. I have paid the LL directly (my family member). \n\nMy gripe is I refunded the partial commission and now they are going after tenant for the amount as well. Shady imo. Recouping from tenant, and refunding from me. one or the other seem ethical.\n\nThanksgiving should be pleasant this year!", "replies": [{"id": "ioa67qa", "text": "Yea just let it go. Or ask them to pay it to you if they recover from the tenant.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]