Bowman v. Rahmoeller

55 S.W.2d 453, 331 Mo. 868, 1932 Mo. LEXIS 528
CourtSupreme Court of Missouri
DecidedDecember 20, 1932
StatusPublished
Cited by26 cases

This text of 55 S.W.2d 453 (Bowman v. Rahmoeller) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowman v. Rahmoeller, 55 S.W.2d 453, 331 Mo. 868, 1932 Mo. LEXIS 528 (Mo. 1932).

Opinions

This is a suit by a real estate broker for a commission, for negotiating a 30-year lease of a three-story building in the Wellston district of St. Louis. In 1927 defendant was the owner of this building, which was occupied by the Rahmoeller-Flint House Furnishing Company, a corporation operating a furniture store, in which defendant was one of the principal stockholders. Defendant also owned other business property, adjoining this building, which was leased by the Woolworth Company for a five and ten-cent store. The Furniture Company did not have a lease on defendant's building but occupied it on a month to month basis, expecting to give it up whenever defendant could rent it for more than their business justified paying.

In December, 1927, plaintiff wrote defendant, who was in Florida, asking him if he "would entertain a proposition to make a 30-year lease . . . to a very responsible concern which has a capital of not less than ten million dollars." Defendant answered requesting plaintiff to get into communication with Mr. Flint, manager of the Furniture Store. Defendant also wrote Flint to find out who the tenant was and to submit a proposition for a 30-year lease at a rental of $25,000 per year for the first ten years, $30,000 for the next ten years and $35,000 for the remaining ten years, in addition to the taxes *Page 872 and insurance. Plaintiff met Flint and disclosed to him that his prospect was the W.T. Grant Company, a chain store corporation specializing in merchandise selling from twenty-five cents to one dollar. Plaintiff had been in touch with this company for some time trying to interest them in St. Louis locations. Both plaintiff and Flint wrote defendant on December 29, 1927, about their conference. Plaintiff wrote asking that he might be authorized to submit the proposition mentioned by Mr. Flint which, in addition to the amounts specified by plaintiff to Flint, required the payment of a bonus to the furniture company for giving possession and for improvements made by them on the building. Plaintiff closed his letter to defendant saying: "I assume, of course, that if I negotiate a satisfactory lease to you that the matter of commission will be taken care of in the usual manner." Flint wrote defendant that plaintiff's prospect was the Grant Company and that plaintiff would submit defendant's proposition to them with the furniture company's bonus added.

Plaintiff did submit the proposition to Mr. Sanford of the real estate department of the Grant Company, but he answered that they considered the price "staggering." Plaintiff wrote defendant asking him to reduce the price and also had other conversations with Flint about it, but defendant refused to make a better offer. Defendant also wrote plaintiff asking him to attempt to negotiate a sale to his prospect instead of a lease. Plaintiff continued to write to Sanford, whom he had met in 1927 at the Grant Company's real estate office in New York City, asking him to visit St. Louis and see the property. Sanford promised, in several letters, to come to St. Louis and to notify plaintiff in advance of his arrival. Plaintiff also suggested other buildings and districts as desirable locations for the Grant Company. There is no dispute as to the negotiations between plaintiff and defendant and between plaintiff and the Grant Company throughout the early months of 1928. However, on April 5, 1928, after defendant returned from Florida, he came to plaintiff's office and there is a sharp conflict as to what happened then and thereafter. Both agreed that they talked about a $300,000 valuation for the building; that plaintiff suggested that $18,000 per year would be a six per cent net return on that valuation; and that plaintiff asked to be allowed to submit a 30-year lease on that basis to the Grant Company. Plaintiff said that defendant agreed to this and said "I will give you thirty days' time to negotiate the lease, and I won't offer it to anyone else during that period, and I won't talk to anyone else about it." Defendant's version was that he did tell plaintiff he would not offer the property to anyone else for thirty days; but that he did not tell him he would accept $18,000 annual rental, or that he would change his original price. Defendant said he told plaintiff: "I will give you thirty days to see what you can do and at the end of thirty days, if you have not done anything, I am going to take this matter *Page 873 in my own hands and see if I can find a tenant" and that "if he did not find a tenant during that thirty-day period that I would feel free and clear to get a tenant myself."

After this meeting, plaintiff did write Sanford by air mail that defendant's property was now available at $18,000 per year and received an answer from him saying: "We are now very much interested in this parcel" and "we are expecting to leave on a long trip through the southwest the latter part of the month, which will take us to St. Louis." Plaintiff and Sanford had other correspondence throughout April in which plaintiff urged him to come to St. Louis. Plaintiff finally asked Sanford to come before May 5th, but he answered "that it will be impossible." As to the continuation of his agency plaintiff testified:

"I had quite a few conversations with him (defendant) after May 5, 1928, at which time I tried to persuade Mr. Rahmoeller to stand on the $18,000 net proposition and he told me he had other parties who were figuring with him at higher rentals, but if I could get the same rental that he was trying to get from the other parties he would be glad to have me continue my efforts to get a lease for him, and he told me he had raised his price to $20,000, $25,000, $30,000 net a year."

Defendant denied that he had this or any other conversation with plaintiff authorizing him to continue his efforts after May 5th. Between May 17th and June 18th plaintiff and Sanford corresponded about Sanford's proposed trip to St. Louis. Plaintiff said that he had several locations to show him. According to Mr. Flint, plaintiff had, during March or April, brought to look over the building a representative of Neisner Brothers, another five and ten-cent store corporation. Defendant testified that in June another broker called him about Neisner Brothers and he went to see Mr. Smith, the manager of the Woolworth store, to ask him how he "would like Neisner as a next door neighbor." He said Smith thought they would be an undesirable competitor and suggested that he knew the officers of the W.T. Grant Company and the J.C. Penney Company and would write to them about the location. Since they sold higher priced goods than Woolworth, he said they would not be direct competitors. On June 29, 1928, Smith did write the Grant Company, recommending defendant's building and the Wellston business district. This letter was referred to Mr. Story of the Grant Company, who was the head of its real estate department, and he arranged for their representative, Mr. Mesnier, to go to St. Louis to see defendant. He also wrote defendant asking for information about his building. Defendant answered, offering to rent it at $22,000 for the first ten years, $25,000 for the next ten years, and $30,000 for the final ten years.

On the day after defendant wrote this letter to Mr. Story, Mr. Mesnier arrived in St. Louis. There is some conflict between the *Page 874 statements of defendant, Smith, Story and Sanford concerning Mesnier's trip. According to Story, he did not know that plaintiff had been corresponding with Sanford about defendant's property and when he instructed Mr. Mesnier to go to St. Louis he did not examine the file involving St. Louis real estate. Story also wrote a letter to defendant in which he stated: "Mr. Mesnier thereupon was dispatched in a hurry to St. Louis where he met you.

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Bluebook (online)
55 S.W.2d 453, 331 Mo. 868, 1932 Mo. LEXIS 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowman-v-rahmoeller-mo-1932.