Arneson v. Webster

226 Cal. App. 2d 370, 38 Cal. Rptr. 88, 1964 Cal. App. LEXIS 1292
CourtCalifornia Court of Appeal
DecidedApril 17, 1964
DocketCiv. No. 21526
StatusPublished
Cited by2 cases

This text of 226 Cal. App. 2d 370 (Arneson v. Webster) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arneson v. Webster, 226 Cal. App. 2d 370, 38 Cal. Rptr. 88, 1964 Cal. App. LEXIS 1292 (Cal. Ct. App. 1964).

Opinion

SHOEMAKER, P. J.

Plaintiff Verne Arneson, a licensed real estate broker, brought this action to recover a real estate commission in the amount of $7,500 from defendant Marvin Webster.

The complaint alleged a written agreement by defendant to [372]*372pay plaintiff the commission on the sale of a motel to Albert Hines; that plaintiff had fully performed under the agreement but had not been paid. Defendant, answered, admitting that he had entered into the agreement with Hines, but denying any obligation to pay plaintiff a commission in any amount.

The evidence developed that in June or July 1961, plaintiff employed Kenneth Peterson as a real estate salesman. At the time of his employment, Peterson was new to the real estate business and had just obtained his salesman’s license following a two-month real estate course. Pursuant to the terms of his employment, Peterson was authorized to sign real estate contracts on plaintiff’s behalf and was entitled to receive 50 per cent of the commission on any property sold by him.

In August, Peterson learned that the defendant’s motel was for sale. He called on defendant’s manager and inquired about the property. Shortly thereafter, defendant came to plaintiff’s office, saw Peterson, and discussed the selling of the motel for $110,000 in cash, or $125,000 in trade or paper, net to him, and that Peterson could keep as a commission any excess. According to Peterson, he informed the defendant that he worked on a 6 per cent basis, as he had been taught in school, but that he would be willing to work on the property and present any offer he might obtain to the defendant. When the defendant indicated that he was willing to have him list the property for sale, Peterson produced a notebook in which the defendant wrote the words “$110,000 cash, $125,000 trade or paper” (it will be noted that these are round figures, and not “net”), and signed his name and address.

Peterson then submitted the property to Hines. Hines was unwilling to make a definite offer, but was interested in the property. At the time he was liquidating his grocery business. He discussed with Peterson the possibility of applying a portion of the stock toward the purchase price. When Peterson told him that he thought such an arrangement could be worked out, Hines agreed to meet with defendant. Peterson then called defendant and informed him that he thought he had a buyer. The only testimony pertaining to the details of this conversaton was that of the defendant, who stated that Peterson had informed him that he thought he had found a party who would be willing to purchase the motel for $125,000. When the defendant asked Peterson how he intended to obtain his commission, Peterson stated that the buyer was going to give him a truckload of groceries.

[373]*373On the evening of August 25, 1961, Peterson, Hines and the defendant met at plaintiff’s realty office. After certain preliminary negotiations between the defendant and Hines, the basic terms of the purchase and sale were agreed upon. Peterson then began filling in a printed deposit receipt agreement. His first attempt to complete the form was unsuccessful in that he applied $2,000 worth of groceries toward the purchase price. Hines instead asked for a $2,000 increase on defendant’s second deed of trust and defendant agreed. Peterson then drew up the final agreement, which provided that the defendant was to receive the home property of Hines at a value of $18,000 in trade, and a second deed of trust on the motel in the sum of $21,000. The total purchase price was $125,000 (including assumption of the first deed of trust of $86,000).

After Peterson had filled out the deposit receipt agreement in four duplicate copies, he handed these copies, which were joined together at the top with carbons between, to defendant and Hines. At this time, the blank providing for the amount of the commission due the real estate broker had not been filled in. After defendant and Hines had signed the agreement, they handed it back to Peterson, who tore the four copies apart, retained the original and one copy for himself, and passed the other two copies to the defendant and Hines. After examining his copy, Hines pointed out to Peterson that he had neglected to include a provision to the effect that the agreement was to be performed within 30 days. Peterson then added the 30-day provision to each. He then handed back to the defendant and Hines their copies. The meeting terminated without any discussion of a 6 per cent commission being due on the sale.

Peterson testified that on separating, defendant instructed him to try and increase the loan on the house he had taken in trade “so you can get your commission.” Hines confirmed that he had heard defendant say at this time that Peterson should attempt to increase the loan, but that he had no recollection of anything being said about any commission. The defendant denied that any such discussion had taken place on the evening of August 25, and stated that he had asked Peterson to increase this loan some two or three weeks later in connection with a sale of the property which he had taken in trade on the motel transaction. Peterson admitted that he had in fact handled such a sale for the defendant approximately a month after the completion of the motel transaction, [374]*374He stated that at that time he had left the plaintiff’s employ and was working for one Jack McCoey. This second sale resulted in a commission of approximately $2,000.

On the day following the execution of the deposit receipt agreement between the defendant and Hines, Peterson took the original copy of the agreement to the title company to place it in escrow. While reading the agreement over, he discovered that it did not provide that Hines was to assume the existing first deed of trust on the motel. Peterson added a provision to that effect.

He then attempted to increase the loan on the property which the defendant had taken in trade, but was unable to do so. He informed defendant that the loan could not be increased until the property was occupied, and from the conversation had at that time he got the impression that defendant did not intend to pay him a commission and considered the motel sale a “net deal’’ pursuant to which he had obtained a net price of $125,000 by trade or paper. Peterson never requested that defendant pay him a 6 per cent commission.

All four copies of the deposit receipt agreement were introduced into evidence at the trial. The original and the copy retained by Peterson both had the figure “6’’ written in the space provided for the insertion of a number designating the per cent to be paid as the broker’s commission. On the copies given to Hines and defendant, this blank was not filled in. When Peterson was questioned regarding this alteration of the documents in his possession, he evinced considerable uncertainty as to the time and circumstances. He conceded that the “6” was not in the agreement when it was signed by the defendant and Hines, and that he actually did not know when it had been added. He stated that he might have added it on the evening of August 25 or on the following day, but admitted that he was not positive that the “6” was in his handwriting and that it could have been written by someone else. Both defendant and Hines testified unequivocally that the “6” was not in the agreement when it was signed by them, and that they had never authorized Peterson to add the “6” on any subsequent occasion.

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226 Cal. App. 2d 370, 38 Cal. Rptr. 88, 1964 Cal. App. LEXIS 1292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arneson-v-webster-calctapp-1964.