Barney v. Yazoo Delta Land Co.

101 N.E. 96, 179 Ind. 337, 1913 Ind. LEXIS 43
CourtIndiana Supreme Court
DecidedMarch 11, 1913
DocketNo. 21,825
StatusPublished
Cited by18 cases

This text of 101 N.E. 96 (Barney v. Yazoo Delta Land Co.) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barney v. Yazoo Delta Land Co., 101 N.E. 96, 179 Ind. 337, 1913 Ind. LEXIS 43 (Ind. 1913).

Opinion

Spencer, J.

Action by appellants to recover a commission alleged due them from appellee for the sale of certain [339]*339tracts of timber lands. The complaint is in eight paragraphs. The court overruled separate demurrers to each paragraph and issues were joined by general denial to the complaint as a whole. Trial by court without the intervention of a jury, special finding of facts and conclusions of law thereon in favor of appellee. Appellants’ motion for a new trial overruled and judgment accordingly.

The errors assigned and not waived are, (1) the conclusions of law, and (2) overruling motion for a new trial. No question is raised as to the sufficiency of the complaint. The material facts as stated by the court in the special findings, are in substance as follows: in 1906, The Yazoo Delta Land Company, a corporation organized under the laws of Indiana, with its main office in the city of Indianapolis, owned about 30,000 acres of timber lands in Washington and Sharkey counties, Mississippi. Appellants, Barney and Hines, are real estate brokers of Memphis, Tenn. Nov. 7, 1906, appellee, by resolution of its directors, authorized appellants to sell said lands on a commission of ten per cent with a proviso that if buyers were found by any of appellee’s stockholders or other parties, they were to divide said commission equally with the party furnishing such purchaser. This authority was limited to July 1, 1907. Appellants were to pay all expenses in showing lands to purchasers. They sold 5,693.93 acres for $85,408.80 and received a commission of $8,540.88. This sale was consummated and approved by appellee’s directors. On Jan. 24, 1907, appellants were again authorized as sole agents to sell the remainder of said lands. This commission was to extend to July 1, 1907, on certain terms and prices to be fixed by appellee with a proviso for extension of time conditionally. Appellee’s directors fixed certain prices and appellants consummated a sale of 10,050.23 acres of this land to the Interstate Cooperage Company, of Cleveland, O., for $15 per acre, which sale appellee’s directors approved and paid appellants their commissions. Later appellants were given an option [340]*340of the remainder of said lands in event they should find a buyer. The net cash price for all the lands was to be $10 per acre, and if only portions were sold, higher prices were named. Appellee authorized appellants in said option to find a buyer and The Interstate Cooperage Company was the expected purchaser. Appellants endeavored to induce the Interstate Cooperage Company to purchase the remainder of said lands, and from time to time made reports to appellee. Nov. 9, 1907, appellants notified appellee that the Interstate Cooperage Company, on account of existing conditions of money matters in the East were not ready to make the purchase. They asked an extension of their option as the outcome would depend upon what shape money matters would take within the next thirty days, but expressed their confidence in consummating the sale. Feb. 3, 1908, appellee’s directors met and extended appellants'’ option to March 1, 1908, and requested appellant, Hines, to notify appellee in case he could not take the option before March 1, 1908. On Feb. 21, 1908, appellants notified appellee that the Interstate Cooperage Company had declined to make the purchase of the lands at that time, but might want to consummate the deal later in the summer, if unsold. The writer closed his letter by saying, ‘ ‘ if you have other parties interested in these lands, do not hesitate to take it up with them, as we do not know of any parties that we could interest in these lands under existing conditions’”.

On March 3, 1908, the directors of app,ellee passed a resolution to select agents to sell the remaining lands, expressing a readiness to sell to any purchaser produced by appellants who did not have the lands, under consideration when they wanted to take up this matter again. The directors of appellee granted an option to Messrs. Davis and Steele, and fixed prices at which they might sell. These men represented themselves as agents of New York parties and denied any connections whatever with the Interstate Cooperage Company. Appellee did nothing to hinder or prevent ap[341]*341pellants from consummating the proposed sale of the remaining lands to the Interstate Cooperage Company, and were ready and willing at all times to convey said lands, should appellants have made a sale. After a reasonable length of time and full opportunity had been given appellants to make said sale, appellee’s secretary notified appellants of the action of the directors, but expressed a willingness to consider a purchaser from them on the conditions stated. Appellants then requested appellee to consider no negotiations with the Interstate Cooperage Company except through them as they had reserved the right to consummate any sale with it. Mr. Davis was given a sixty day option at a net price of $10.25 per acre cash, by appellee’s directors. A few days later Davis sold his option to the Interstate Cooperage Company which notified appellee it was going to purchase the land. Up until this time the directors did not know Davis was representing the Interstate Cooperage Company, and had acted in good faith in granting thej option without intending to avoid in any way paying appellants for any services or commissions. The directors accepted and confirmed the assignment of the option of Davis to the Interstate Cooperage Company on Nov. 9, 1908, and a sale of 15,125.66 acres of land was consummated and confirmed for $155,038.00, and Davis was paid a commission of 25 cents per acre, or $3,781 41. The court found further that appellants were not the producing cause of the sale of this remaining tract of land.

The court stated as its conclusions of law on the special findings, (1) appellants had full and ample opportunity to consummate their proposed sale of said lands to the Interstate Cooperage Company prior to Feb. 21, 1908, (2) appellee had full and complete right to offer said lands for sale either directly or through agents selected by it and on terms acceptable by 'them, to any person whomsoever, after the receipt of appellants’ letter of Feb. 21, 1908, (3) appellants had no right to demand that any future negotiations [342]*342for sale of said lands to the Interstate Cooperage Company after Feb. 9, 1908, should be conducted through them, (4) appellants were not the procuring cause of the sale of 15,125.66 acres of said lands to the Interstate Cooperage Company, (5) appellants have no right to claim 'any compensation for their services for such sale, (6) that appellants are not entitled to recover any sum whatever under this action, and (7) appellee is entitled to recover its costs.

1. Appellants insist the conclusions of law are erroneous and do not support the special findings. By excepting to the conclusions of law, based on the special finding of facts, they admit, for the purpose of the exception, that the facts were correctly found. Grant Trust, etc., Co. v. Tucker (1912), 49 Ind. App. 345, 96 N. E. 487; Warrick v. Spry (1912), 49 Ind. App. 327, 97 N. E. 361; Kline v. Dowling (1911), 176 Ind. 521, 96 N. E. 579. This insistence raises the question of good faith on the part of appellee upon which this appeal must be decided. Had there been an absence of good faith and a showing of fraud on the part of appellee’s directors, then appellants’ theory would have been valid, but the court found specially otherwise: "25th.

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Cite This Page — Counsel Stack

Bluebook (online)
101 N.E. 96, 179 Ind. 337, 1913 Ind. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barney-v-yazoo-delta-land-co-ind-1913.