Atlantic Coast Realty Co. v. Townsend

98 S.E. 684, 124 Va. 490, 1919 Va. LEXIS 141
CourtSupreme Court of Virginia
DecidedMarch 13, 1919
StatusPublished
Cited by25 cases

This text of 98 S.E. 684 (Atlantic Coast Realty Co. v. Townsend) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Coast Realty Co. v. Townsend, 98 S.E. 684, 124 Va. 490, 1919 Va. LEXIS 141 (Va. 1919).

Opinion

Kelly, J.,

delivered the opinion of the court.

This writ of error calls in question a judgment of the Hustings Court of the city of Petersburg sustaining a demurrer to a declaration in an action of assumpsit, wherein the Atlantic Coast Realty Company was plaintiff and J. M. Townsend, executor of Wirt Robertson, deceased, was defendant.

The allegations of the declaration were as follows:

That the plaintiff had for many years been engaged in the business of selling tracts of land for customers by first improving, developing and sub-dividing the lands into building lots and small acreage parcels, so as to make the same more valuable and salable; that such sales were made by it both at public auction and private sale, and upon contracts with the owners for the exclusive right to sell, and, for compensation to be measured either by commissions or a fixed [494]*494portion of profits over and above an agreed valuation of the land to be sold; that the defendant’s, decedent, Wirt Robertson, was the owner of 418 acres of land, called the “Baker Property,” so situated as to be peculiarly well adapted to profitable sub-division and sale under plaintiff’s method of making sales; that on September 9, 1915, “the said Wirt Robertson made a contract with the plaintiff through a certain W. E. Burke, who was then, and is now, one of the agents of said plaintiff, authorized and empowered by it to enter into contracts on its behalf; that the said Wirt Robertson, in substance and effect, stated that he was familiar with the methods of business of said plaintiff, that he had followed its recent sales made in the neighborhood of the said “Baker Property,” that he knew the said plaintiff had acquired an interest in another piece of land called the “Burén Property” situated near the said “Baker Property,” that he was afraid said plaintiff would sub-divide and sell said “Burén Property” before he could organize a sale of the “Baker Property;” that he wanted the said plaintiff to acquire a pecuniary interest in the sale of the said “Baker Property,” so that it would be just',as vitally interested therein as he was, that he was unwilling to spend any money for development purposes, and proposed that said plaintiff take the exclusive agency for the development, subdivision and handling, together with the exclusive right to sell the said “Baker Property” at public auction and at private sale within twelve months thereafter, and in a manner similar to the way in which the plaintiff had handled the Battle Ground addition, which had been sold as was known to said Robertson in lots and parcels upon terms of one-fourth cash and the balance in four, eight and twelve months, with interest at six per cent; the title to “the said property to remain in said Wirt Robertson, and to be conveyed by him direct to the purchasers; that it would provide a valuable consideration for this exclusive right to sell, by agreeing [495]*495to spend its own money for engineers, laborers, tools, teams, advertising, auctioneers, and other necessary purposes in that connection; that out of the first proceeds of the said sales, said plaintiff be reimbursed for its expenditures, so to be made, upon expense vouchers to be submitted by it to him; that after the payment of said expenses, the said Wirt Robertson should then receive out of the proceeds of said sales the sum of Forty Thousand Dollars ($40,000.00) and that whatever residue might be produced by such sales should be divided equally between said plaintiff and said Wirt Robertson; that said W. E. Burke, agent and contract representative of said plaintiff, as aforesaid, forthwith accepted the said offer so made to him on behalf of said plaintiff, and suggested that he would immediately prepare a written memorandum of agreement embodying said proposition and its acceptance; that said Wirt Robertson replied that he preferred to have a contract drawn up in legal form by his lawyer, which he then and there promised to have done the next day; that said Burke then asked said defendant whether or not said Wirt Robertson understood said offer, and the acceptance thereof by him on behalf of said plaintiff, to be a contract between said Wirt Robertson and the said plaintiff, and said Wirt Robertson then and there replied that he did so understand ft, and whereupon the said Burke, agent-as aforesaid, and the said Wirt Robertson shook hands in token of agreement; that forthwith said Burke informed J. W. Ferrell, president of the plaintiff corporation, who was then in Greenville, N. C., of the terms of the contract he had just concluded with said Wirt Robertson; that said Ferrell, acting for the said plaintiff and within his authority as its president, proceeded at once to buy a road machine, at a cost of, to-wit: two hundred dollars ($200.00), and to hire additional men to enable the said plaintiff to begin at once to carry out its part of the aforesaid contract and undertaking; that on, to-wit, [496]*496the 13th day of September, in the year 1915, said J. W. Ferrell, accompanied by said W. E. Burke, went to the home of the said Wirt Robertson in the county of Chesterfield, near Petersburg, Virginia, for the purpose of executing on behalf of said plaintiff the written memorandum of the contract so entered into which the said Wirt Robertson had promised to have drawn by his lawyer; that when asked whether the papers were ready for signature, said Robertson replied ‘No,’ and when asked when said papers would be ready, said Robertson replied: ‘Gentlemen, I have sold the land;’ that said Robertson was then informed by said Ferrell that the plaintiff had given a valuable consideration for the exclusive agency to sell the said ‘Baker Property/ and had already begun its part of said contract by spending money for necessary tools and by employing additional men; that said Wirt Robertson, notwithstanding his promises and undertakings aforesaid, then and there refused to perform his part of the said contract, and then and there refused to permit said plaintiff to perform its part of said contract, although the said plaintiff was then and there ready, willing and able to perform the agreements on its part to be done, kept and performed; * *.”

The declaration then states that sale by Robertson referred to in the latter part of the foregoing quotation was a sale of the entire property to Chas.,S. Barrow for the sum of $80,000; and concludes thus: “and the plaintiff says that the said Wirt Robertson and the said G. Morton Townsend, his executor, have hitherto neglected and refused, and still do neglect and refuse, to pay to the said plaintiff its part of the profits which might, should and would have been derived from the sale of the said ‘Baker Property/ had the said plaintiff been permitted to improve, subdivide and sell the same in accordance with the terms of the contract above mentioned; * *”

[1] The defendant demurred to the declaration on four [497]*497grounds, which we shall presently take up and dispose of in their order. Before proceeding to do this, however, it may not be amiss to observe that neither of these grounds challenges the validity of the contract on account of the fact that a written memorandum thereof was to be subsequenty executed. It is apparently conceded, as of course it must be under the contract as alleged, that the parties were fully agreed and regarded the contract as complete and binding, notwithstanding that its terms were to be thereafter reduced to writing. (Boisseau v. Fuller, 96 Va. 45, 30 S. E. 457.)

[2]

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Bluebook (online)
98 S.E. 684, 124 Va. 490, 1919 Va. LEXIS 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-coast-realty-co-v-townsend-va-1919.