Berry v. Heinz

139 N.W.2d 145, 1965 N.D. LEXIS 90
CourtNorth Dakota Supreme Court
DecidedDecember 23, 1965
Docket8171
StatusPublished
Cited by4 cases

This text of 139 N.W.2d 145 (Berry v. Heinz) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berry v. Heinz, 139 N.W.2d 145, 1965 N.D. LEXIS 90 (N.D. 1965).

Opinion

TEIGEN, Judge.

This is a suit to recover a real estate broker’s commission the plaintiff claims is due under a listing contract with the defendants. After both parties had rested, each moved for a directed verdict and objected to the other’s motion. The trial judge granted the plaintiff’s motion and denied defendants’ motion. Judgment was entered for the plaintiff and this appeal is taken from the judgment.

The plaintiff, Lloyd J. Berry, doing business as Berry Realty, is a real estate broker having his principal place of business at Royalton, Minnesota, with branch offices at Brainerd and Minneapolis, Minnesota. The defendants, Ralph and Theresa Heinz, became acquainted with the plaintiff in 1956 and subsequently engaged him to sell a farm located near Royalton in 1957. Then on April 21, 1958, the defendants purchased the Floarno Motel in Grand Forks, North Dakota, through the plaintiff who acted as broker for the former owners.

During the first part of February, 1959, defendant Ralph Heinz contacted the plaintiff at Royalton and asked him to sell the motel. Thereafter the plaintiff came to Grand Forks on February 7, 1959, at which time a listing contract was entered into between the plaintiff and the defendants. Item number eleven of the contract, the nucleus of the 'present controversy, provides : “I hereby agree to give an exclusive contract for sale of Floarno Motel for six months.” Under the terms of the contract, the defendants were to receive $59,-000.00, everything over this amount being the plaintiff’s commission. The only other pertinent provision of this contract is item number ten, which provides as follows: “If the property is sold within one year after contract expires, to anyone to whom Berry Realty has shown the above described property during listing period, full commission is due Berry Realty.”

There is a dispute in the evidence in regard to preliminary discussions between the parties leading up to the execution of the listing contract. The defendants testified that the plaintiff had told them there would be no commission due him in the event they sold the property themselves; whereas, the plaintiff testified that he informed the defendants that he alone could sell the motel under the contract and that nothing was said as to whether they could sell the motel themselves without liability to him for the commission.

After the listing contract had been executed, the plaintiff proceeded to advertise the motel for sale in various newspapers throughout Minnesota and North Dakota. He also received and answered numerous letters of inquiry in response to these ad *147 vertisements. In addition, he testified that he made ten trips to Grand Forks to interview people who had inquired concerning the motel. The evidence demonstrates quite clearly that the plaintiff expended considerable time, effort, and money in attempting to procure a purchaser; however, from February 7, 1959, until July 10, 1959, he failed to bring a single prospect to see the motel; nor did he at any time produce a person, ready, able, and willing, to purchase the motel.

Approximately two weeks before July 10, 1959, Mr. and Mrs. O. J. Flom of Grand Forks stopped at the motel office and asked if the motel were for sale. Subsequent negotiations between the Floms and the defendants resulted in a sale of the motel on July 10, 1959, for $65,000.00. The listing contract was still in force at the time. Flom, however, testified that he had seen none of the advertising and had had no contact whatsoever with the plaintiff before the sale was consummated. The plaintiff admits he-had no contact with Mr. Flom. He does not claim he produced a purchaser for the property. He bases his claim on the terms of the contract.

Sometime during the morning of July 10, 1959, defendant Ralph Heinz telephoned the plaintiff at Royalton and notified him that he had sold the motel. The plaintiff testified that during this conversation he told Heinz that he would be in Grand Forks the following day.

The following day the plaintiff came to Grand Forks where he remained until July 12. Defendant Ralph Heinz testified that the subject of a commission did not enter into their discussions until July 12. At that time the plaintiff informed Heinz that he was due his commission, and Heinz replied that he would never have sold the motel had he known the plaintiff was entitled to a commission because he had accepted too small a down payment. Nothing more came of this matter until the following week when defendant Ralph Heinz telephoned the plaintiff from Little Falls, Minnesota, and offered him $500.00. The plaintiff, however, refused this offer and demanded that the defendants pay him $1,500.00. This suit to recover a commission of $6,000.00 followed.

There are several assignments of error urged by the defendants on this appeal, but we deem it necessary to. consider only two of them. One of these assignments charges that the court erred as a matter of law when at the close of all the evidence he granted the plaintiff’s motion for a directed verdict over the objection of the defendants. This assignment is based upon Rule 50(a), N.D.R.Civ.P., which provides, in part:

When Made: Effect. At the close of all of the evidence any party may move the court to direct a verdict in his favor upon one or more claims and against one or more parties. If the adverse party objects thereto, the court shall submit to the jury the issues of all claims as to which evidence has been received upon all issues and as to such claims the motion shall be denied. * *

In Anderson v. Stokkeland, N.D., 125 N.W.2d 665, 667, which contains our latest pronouncement in regard to this question, we observed:

This court repeatedly has pointed out that trial courts ought not to direct verdicts in favor of some party to an action where there is any evidence to support the plaintiff’s claim. Hadland v. St. Mark’s Evangelical Lutheran Church (N.D.), 111 N.W.2d 775, at 778; Johnson v. Sebens (N.D.), 86 N.W.2d 386. However, we also have held that, where the trial court does direct a verdict in favor of a defendant, and the evidence discloses that the plaintiff had no cause of action against the defendant as to whom the case is dismissed, directing such verdict, while error, is error without prejudice and will not be disturbed on appeal.

*148 In view of the discussion which follows, the trial court erred in granting the plaintiff’s motion for a directed verdict. This error was prejudicial to the defendants and requires a reversal.

In granting the plaintiff’s motion for a directed verdict, the trial court made the following preliminary observation:

What the parties talked about before the contract was signed — we know you cannot change a written contract by parol, as recently demonstrated in Hanes v. Mitchell, 78 N.D. 341, 49 N.W.2d 606.

However true this may be as a general principle of law, there are well-settled exceptions thereto. One such exception applies when a contract is ambiguous or unclear.

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Cite This Page — Counsel Stack

Bluebook (online)
139 N.W.2d 145, 1965 N.D. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berry-v-heinz-nd-1965.