Alanton Corp. v. Myers Corp.

144 S.E. 610, 151 Va. 581, 1928 Va. LEXIS 257
CourtCourt of Appeals of Virginia
DecidedSeptember 27, 1928
StatusPublished
Cited by1 cases

This text of 144 S.E. 610 (Alanton Corp. v. Myers Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alanton Corp. v. Myers Corp., 144 S.E. 610, 151 Va. 581, 1928 Va. LEXIS 257 (Va. Ct. App. 1928).

Opinion

Chinn, J.,

delivered the opinion of the court.

This is an action to recover broker’s commissions alleged to be due on account of a real estate transaction. In the court below Myers Corporation of Norfolk was the plaintiff, and Alanton Corporation the defendant, and the parties will be herein designated accordingly.

The plaintiff was engaged in the business of real estate agent and broker, and employed as saleman one Dal Garrison. The defendant was the owner of a tract of land containing approximately eighty-five aeres located in Princess Anne county, near Virginia Beach, and in the transaction referred to was represented by its secretary and treasurer, F. W. McCullough.

One, Lee Umberger, of Wytheville, Virginia, being interested in the purchase of property in the vicinity of Virginia Beach, addressed a letter to the plaintiff making inquiries. After some correspondence Umberger came to Norfolk, and the plaintiff instructed Mr. Garrison, its saleman, to take him out and show him some property. The defendant had not listed its property for sale with the plaintiff, and at that time there were no contraetural relations between them; but Garrison knew about defendant’s property, and, dur[583]*583ing the last week in February, 1926, he took Umberger to Mr. McCullough’s home, introduced him to McCullough, and asked McCullough to show the property to Umberger. McCullough willingly did so, and after looking it over, Umberger asked him for the price and terms. MeCullough informed him the price was $85,-000.00; payable $25,000.00 cash, and the balance in installments secured by a deed of trust on the property. Garrison and Umberger returned the following day and again on Sunday, February 28th, meeting Mr. McCullough on the property on both occasions. On the latter occasion Umberger asked McCullough if he would accept $5,000.00 cash, and give him sixty days to convert certain securities, and pay the balance of the cash payment. McCullough agreed to this, and Garrison, Umberger and McCullough went to the latter’s house, where McCullough drew up a temporary contract of sale, which he and Umberger signed, and Umberger wrote a check for $5,000.00 payable to McCullough. It was understood that Umberger was to return home that night, and that Garrison and McCullough were to meet in the office of the plaintiff the following morning for the purpose of drawing up a formal contract, and Umberger delivered the check to Garrison to be held until that was done. McCullough and Garrison met at plaintiff’s office the next morning as agreed, when, after some discussion, another contract was drawn up by McCullough and Mr. Baldwin Myers, of the Myers Corporation, which was then and there signed by Mr. McCullough in behalf of the defendant, and Umberger’s check turned over to him. Umberger returned to Norfolk and signed this contract about ten days later. The only provisions of the contract which may in any way be deemed pertinent, read as follows:

[584]*584“Norfolk, Virginia, March 1, 1926.
“Alanton Corporation, through its secretary and treasurer, F. W. McCullough, has this day sold, and Mr. Lee Umberger, of Wytheville, Virginia, has this day purchased, the tract of land” (describing it) “for the sum of eighty-five thousand dollars ($85,000.00); the sum of twenty-five thousand dollars ($25,000.00) to be paid in cash and the remainder of sixty thousand dollars ($60,000.00) to be evidenced by four (4) notes of fifteen thousand dollars ($15,000.00) each, payable respectively one (1), two (2), three (3), and four (4) years after date, * * * * with interest at six per cent (6%) payable semi-annually, and said notes to be secured by a deed of trust on the property.
“Mr. Lee Umberger is to have sixty (60) days in which to examine the title and make payment of the sum of twenty thousand dollars ($20,000.00), being the remainder of the cash payment of twenty-five thousand dollars ($25,000.00), five thousand dollars ($5,000.00) of which has this day been paid, and the receipt thereof is hereby acknowledged.
“Alanton Corporation agrees to pay to the Myers Corporation of Norfolk, the agents making this sale, the regular five per cent (5%) commission at the time the cash payment is made, on April 30, 1926.”

A few days before the $20,000.00 under the above contract was due, Umberger asked for an extension of thirty days in which to make payment, which McCullough for certain reasons refused. Umberger failed to meet the $20,000.00 payment on April 30, 1926, giving as his reason therefor his inability to raise the money. Some time during the following August, plaintiff made demand on the defendant for $4,250.00, claiming the same to be due as the five per cent com[585]*585mission provided for in the above contract, and, upon defendant’s denial of liability, instituted this suit to recover the amount. Upon the trial of the case the jury rendered a verdict for the defendant, which at the motion of the plaintiff the court set aside on the ground that it was contrary to the law and the evidence and without evidence to support it,, and entered final judgment for the plaintiff for the entire amount of the claim sued for. This action of the court is the only error assigned.

,It is urged on behalf of the defendant that the plaintiff is not entitled to recover the commission claimed for the reason that Umberger failed to consummate the contract of sale in accordance with its terms, without the fault or wrongdoing of the defendant, and the plaintiff did not, therefore comply with the general rule that the broker must produce a purchaser ready, willing and able to buy before he can claim commissions. On the other hand, it is contended by the plaintiff that Umberger was accepted as a satisfactory purchaser, and an enforceable contract made with him by the defendant, without being induced to do so by any representations of the plaintiff as to Umberger’s responsibility; and, such being the case, the defendant is estopped from refusing to pay the commissions because of Umberger’s financial inability to perform the contract.

The general rules of law applicable to the foregoing propositions have been frequently laid down by the courts in those cases in which the question has been whether the broker had earned his commissions, under an express or implied contract therefor between the broker and the property owner; but these rules have no application and cannot be invoked where there is no such contract, and it is, therefore, unnecessary to dis[586]*586cuss them. In the case now under consideration the defendant had not placed the property in the plaintiff’s hands for sale, there was no contract of employment, and, prior to the sale of the property to Umberger by McCullough, no agreement between the parties relative to commissions, either express or implied. The part that plaintiff took, through Mr. Garrison, in bringing about the sale was that of a mere volunteer: It is well settled that a real estate broker can only recover commissions by virtue of a contract with the owner, and that a mere volunteer cannot recover commissions simply because he introduced the customer who ‘finally bought from the owner. Leicht-Benson Corp. v. Stone & Co., 138 Va. 511, 121 S. E. 883, 43 A. L. R. 1100.

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Bluebook (online)
144 S.E. 610, 151 Va. 581, 1928 Va. LEXIS 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alanton-corp-v-myers-corp-vactapp-1928.