Blunt v. Wentland

93 N.W.2d 735, 250 Iowa 607, 1958 Iowa Sup. LEXIS 418
CourtSupreme Court of Iowa
DecidedDecember 16, 1958
Docket49611
StatusPublished
Cited by9 cases

This text of 93 N.W.2d 735 (Blunt v. Wentland) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blunt v. Wentland, 93 N.W.2d 735, 250 Iowa 607, 1958 Iowa Sup. LEXIS 418 (iowa 1958).

Opinion

*609 Oliver, J.

This is an action at law to recover a real-estate commission, 'allegedly due John Kepple, a broker, for procuring a purchaser for a farm owned by defendant, and by Kepple assigned to plaintiff. Trial to the court resulted in judgment for plaintiff for $855 and this appeal by defendant.

Although, he was present in court throughout the trial,, appellant elected not to' testify nor to offer any other evidence. Upon appeal the only errors assigned are the overruling by the trial court of appellant’s motion for judgment, which asserted that, as a matter of law, the evidence failed to prove a purchaser had been secured who- was ready, willing and able to purchase on defendant’s terms and also1 that there was not sufficient evidence to sustain a verdict for plaintiff. We hold the evidence was sufficient to support the judgment. Under the established rule the record will be here considered in the light most favorable to appellee.

John Kepple was a licensed real-estate broker with offices at 96 Main Street, Charles City, Iowa. In the fall of 1956 appellant told Mr. Kepple he wished to sell a 115-acre farm and orally engaged Kepple to find a purchaser for it. The price asked was $17,100, payable $6000 down and $1000 per year plus interest at 5%.

Mr. Kepple contacted Henry J. Lore and wife. October 20, through his efforts, they made appellant a signed offer to purchase the farm for $17,100, payable $3000 down, to be held by Mr. Kepple as seller’s agent, pending delivery of final papers, $2500 March 1, 1957, and $1250 per year thereafter, which included interest at 4% %. The offer was made upon a form approved by Iowa Real Estate Association and was accompanied by a check for $3000. The offer is in evidence as Exhibit A. Mr. Kepple submitted this offer to- appellant who- rejected it.

Mr. Kepple continued his efforts to- procure a purchaser for the farm and arranged a meeting with appellant and the Lores at his office the evening of October 30. At that meeting appellant produced a written contract for the sale of the property which had been prepared by or for him. The Lores did not know appellant had prepared a contract, nor did they expect they would be asked to execute it later that evening. However, when *610 it was presented to- them they proceeded to- look at it and to consider and discuss its provisions with appellant and Mr. Kepple.

The record does not disclose all the terms and provisions of this instrument, which was taken away by appellant and which he did not offer in evidence in the trial. The record does show the purchase price stated in the instrument was $17,100, the same as previously quoted, and that although “they were made out in different forms, there was not too- much” difference between the contract submitted by appellant and the prior written offer of Mr. and Mrs. Lore. Appellant’s contract provided for a payment of $5000 at the time the contract was signed, $1000 when possession of the property was taken, Max*ch 1, 1957, plus interest thereon at 7%, -and the balance to be paid $1250 per yeax’, which included interest at 4%%.

Mr. and Mrs. Lore were to take possession Max-clx 1, 1957, but were not permitted to make any major alterations in the buildings without appellant’s consent. There was a discussioxx that the Lores planned to mortgage their house in Ohax-les City for $4500 -to secure the money to make the $5000 payment. They had also betweexi $1000 and $2000 deposited in a local bank. Mr. Kepple had made arrangements for the loan to the Lores and “the money was committed for that loan.” The record shows that at one time previously the Lores had made a loaxx upon this property.

Mr. Lox-e testified that, after discussing the eoxxtract, they told appellant that the terms he proposed were acceptable and agreeable to- them but they would like to have the-ir lawyex*, Mr. Zastro-w, look over the contract before they signed it, “to- see that the form was all right.”

“We told Mr. Wentland our attorney was Mr. Zastro-w, and he stated if we were going to- have anythiixg to- do with Zastrow he didn’t want axxything to- do- with us; he got up and said we might as well call the whole deal .off and walked out.”

Before Mr. Zastrow’s name was mentioned a.ppellaxxt had not asked that the contract be- signed that evening. It was after such mention that appellant insisted it be- then signed.

I. The record supports the findings of fact of the distinguished trial court, which state in part:

*611 “6. That the defendant refused to- sell to the Lores because he did not desire to deal with the attorney chosen by them to handle the transaction.”

There is no suggestion in the record, or elsewhere, that this attorney was not of high character, ability and reputation. Nor did appellant, then or subsequently, give any reason for his objection to this attorney and his refusal to- complete the deal with the Lores if the latter consulted such attorney.

The general rule governing such situations is thus stated in 12 C. J. S., Brokers, section 95a(2), pages 223 and 224: “* * * the principal must have an adequate ground or valid excuse for refusing to- complete the transaction in order to defeat the broker’s right to- a commission; his refusal must not be arbitrary, capricious-, unreasonable, wrongful, or fraudulent.”

8 Am. Jur., Brokers, section 184, page 1097, states: “Once the broker has procured a person who is able, ready, and willing to purchase the property on the- terms offered by the owner, he is entitled to commissions, even though the failure to complete the contract is due to- -the- default or refusal of the employer.”

See annotation in 43 L. R. A. 595 et seq., and annotation in 169 A. L. R. 607 et seq.

The record in the case- at bar shows no- adequate- ground or valid excuse for appellant’s refusal to complete- the transaction. On the contrary, it supports a finding that such refusal was arbitrary, capricio-us and unreasonable-.

In Raymond v. Stinson, 196 Iowa 881, 195 N.W. 588, where the vendor gave a prospective purchaser until a certain date- to accept an offer, but withdrew the offer before- that time, though the vendee was ready and willing to accept on the specified date, the broker was held entitled to his commission, even though as between himself and the purchaser the vendor had the right to withdraw the offer before acceptance.

Jones v. Ford, 154 Iowa 549, 557, 134 N.W. 569, 572, 38 L. R. A., N. S., 777, states: “It is well settled that, if the undertaking is to find a purchaser ready, willing and able to buy on terms satisfactory to the seller, the commission is earned when such a purchaser is produced, although for some reason *612 noifc attributable to- the fault or inability of the proposed buyer no binding contract of sale and purchase is actually entered into. [Citations].”

A recovery by a broker was affirmed in Brown v. Wilson, 98 Iowa 316, 317, 318, 67 N.W. 251, although, through fault of the principal, the sale was not consummated. It states: “In Cassady v. Seeley, 69 Iowa 509 (29 N.W. Rep.

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Bluebook (online)
93 N.W.2d 735, 250 Iowa 607, 1958 Iowa Sup. LEXIS 418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blunt-v-wentland-iowa-1958.