Boyd v. Margolin

421 S.W.2d 761, 1967 Mo. LEXIS 727
CourtSupreme Court of Missouri
DecidedDecember 11, 1967
Docket52505
StatusPublished
Cited by22 cases

This text of 421 S.W.2d 761 (Boyd v. Margolin) 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
Boyd v. Margolin, 421 S.W.2d 761, 1967 Mo. LEXIS 727 (Mo. 1967).

Opinion

PRITCHARD, Commissioner.

Plaintiff recovered judgment for $10,000 for a broker’s fee in the sale of the Knaus Truck Lines, Inc. He contends that he was entitled to a directed verdict of $36,000 upon his contract made by Ezra D. Knaus (deceased since the time of trial), being 5% commission upon the sale of the Knaus Company to Consolidated Freightways, Inc., for 60,000 of its shares, said to be of a value of $720,000, the allegations for which were embodied in Count I of the petition. Defendants counter plaintiff’s contentions and say that he has failed to prove that he in entitled to $36,000 on the alleged express contract as a matter of law, and further by cross-appeal that he is not entitled to the $10,000 verdict and judgment on the theory of an implied contract (Count II of the petition) .

Plaintiff, Boyd, now of Carthage, Missouri, has been in the trucking business since the early 1930’s. He started with one truck, built the company up for 20-odd years, then sold it to Knaus Truck Lines, Inc. in 1955. He then worked for a time for Knaus as a consultant and advisor concerning matters involved with its acquisition of *763 Boyd Truck Lines. Before his sale to Knaus, he sold the England Brothers Truck Line to A. E. Gallagher. Presently, Boyd is president and general manager of Tri-State Motor Transit Company. By reason of his long experience, Boyd was familiar with truck lines throughout the United States.

Boyd’s version of the facts are that in May of 1957 he had a conversation with Mr. Knaus who told him he might be interested in selling his truck line. Mr. Knaus owned the biggest part of the capital stock of Knaus Truck Lines, Inc., and of the Transport Equipment Company. Boyd told Mr. Knaus he thought he could find him a buyer, and Mr. Knaus gave him a letter of authorization (which he personally typed) to represent him in an effort to sell his truck line, Plaintiff’s Exhibit No. 1 (A):

“George F Boyd.
“This is your authority, to off all the stock in Knaus Truck lines for Sale, to your prospect, or prospects, For the Net Sum of $1,000,000.00 one Million Dollars. I agree to pay %5 Commission to you if you are able to effect a sale to a party suitable to me, I require a minimi», of 30% down, and terms to be negotiated for the balance,
“I agree to make this offer for one week only, as I have other committments, that I cannot hold up longer than that length of time, That would effef the price, I agreed to sell for at this time, which I have discussed with you on the phone,
Knaus Truck Lines Inc.
/s/ Ezra Knaus. pres.”

Afterwards, Boyd told Mr. Knaus that he was going to Menlo Park, California, to see Consolidated Freightway s and that he should have financial information to take with him to show the present financial condition of the company; also a copy of his operating authorities and routes, “just general information that a prospective purchaser would be interested in seeing.” Mr. Knaus also supplied Boyd with Plaintiff’s Exhibit 3, dated June 19,1957, a letter reciting that enclosures were made of (1) a certified audit of Knaus Truck Lines, Inc. (as of 12/31/56); (2) a certified audit of Transport Equipment Co. (as of 12/31/56); (3) a list of equipment (over-the-road and city); (4) note schedules of both companies; and (5) blueprint of the Kansas City property showing terminal and parking areas. Boyd then called Mr. Kassebaum, vice president of Consolidated, and made an appointment with him. He purchased an airplane ticket, and conferred with Mr. Kassebaum who requested further information to be supplied on one of Consolidated’s forms, which Mr. Kassebaum gave to Boyd on June 24 or 25, 1957. Boyd conferred with Mr. Knaus as to Consolidated’s requested information. Mr. Knaus told Boyd that he would make the information available to him through Mr. Troupe, his accountant, which was done. Then Mr. Knaus gave Boyd a copy of Plaintiff’s Exhibit 1, upon which Mr. Knaus wrote at the bottom: “this agreement is extended 1 week from today till July-5th. and is understood to Include transport Equip Co — on sale June-27 E. K. (signed) Ezra Knaus.” This was in response to Boyd’s objection that he could not sell a truck line in a week, to which Mr. Knaus replied that he wanted to be assured that Boyd had an interested party before he made any extensions in the agreement. Boyd then placed a call to Mr. Kassebaum and introduced him to Mr. Knaus over the telephone, they talked, and Mr. Knaus said he was convinced that Consolidated was interested, that they would go ahead and give the additional information. Mr. Knaus caused to be prepared, gave to Boyd who passed it on to Consolidated, Plaintiff’s Exhibit 6, which is a detailed account of the assets of Knaus Truck Lines and Transport Equipment Company. Listed are the book values (total $452,000) and the actual values (total $1,182,110).

After June of 1957, Boyd made several telephone calls, and in September, 1957, Mr. Kassebaum and Mr. Knaus met at the lat *764 ter’s office with Boyd present. Mr. Knaus showed Mr. Kassebaum the property and talked to him. Mr. Knaus said that he preferred to sell to an investor and that he was not right sure that he was going to make a deal with Consolidated. Boyd made efforts to secure an investor who might be interested in buying the line, but was unsuccessful. Boyd testified he also contacted an operator-trucker, Mr. Harvey Jones, in Spring-dale, Arkansas, about a sale of the truck line. Mr. Kassebaum returned in October, 1957, and Boyd had dinner with him and his lawyer. Mr. Knaus later met with Mr. Kassebaum, but requested that Boyd not be present, saying that he would handle the negotiations himself from that time on. Mr. Knaus never at any time said he was not interested in Consolidated as a purchaser, and in December, 1957, he sold to Consolidated. Although he requested it, no commission or compensation was paid to Boyd for what he had done. The Interstate Commerce Commission approved the purchase by Consolidated of the Knaus Truck Line in October, 1961.

Edward B. Watkowski, Jr., testified that the over-the-counter bid and asked prices of Consolidated’s shares of stock on January 3, 1958, were 12¾ and 13⅝ according to the quotations of Blyth & Company, Inc., a general brokerage firm.

Lester Earl Kassebaum, Portland, Oregon, was employed by Consolidated. He testified by deposition that sometime between 1956 and 1960 he learned that the Knaus Truck Line might be for sale when he was approached by Boyd. He told Boyd that Consolidated would not pay a finder’s fee on the purchase. He would not go into anything but a “stock deal.” He did not talk to Mr. Knaus prior to Boyd’s contact. He made two trips to Kansas City in connection with the Knaus Truck Line purchase, and he made a final agreement for 60,000 shares of Consolidated stock in exchange for the Knaus Truck Line. Boyd did not tell him that his authority in finding a buyer was limited to one who was not in the trucking industry at the time. On his first visit to Kansas City he did not have a joint meeting with Boyd and Mr. Knaus. Mr. Knaus first rejected a Consolidated stock offer, but later he agreed to accept 60,000 shares, and the agreement to sell was made about December 15, 1957.

As admissions against interest, portions of Mr.

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Bluebook (online)
421 S.W.2d 761, 1967 Mo. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyd-v-margolin-mo-1967.