Brennan-Love Co. v. McIntosh

87 N.W. 327, 62 Neb. 522, 1901 Neb. LEXIS 240
CourtNebraska Supreme Court
DecidedSeptember 18, 1901
DocketNo. 9,791
StatusPublished

This text of 87 N.W. 327 (Brennan-Love Co. v. McIntosh) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan-Love Co. v. McIntosh, 87 N.W. 327, 62 Neb. 522, 1901 Neb. LEXIS 240 (Neb. 1901).

Opinion

Holcomb, J.

The plaintiff began a civil action and recovered judgment in the trial court. The defendant brings the case here for review by proceedings in error. The suit was instituted to recover the sum of $519.25 for services alleged to have been performed and money expended for and on behalf of the defendant in and about the examination of and perfecting the title to certain real estate belonging to one Charles J. Karbach, who procured a loan thereon in the sum of $150,000 from the New York Life Insurance Company through the defendant acting as a broker or loan agent in negotiating and procuring such loau. The alleged contract was a verbal one and the value of services rendered is undisputed. The answer denied any liability on the part of the defendant, denied that it had made the contract as alleged or that any service had been performed or money expended for or on its behalf. The real grounds of the defense interposed were that, while [523]*523tlie sendees Avere performed as alleged, Avliich Avere conceded to be of the value claimed by the plaintiff, and Avere rendered at defendant’s request, the defendant, hoAA'ever, it is contended, Avas at the time acting as the agent of Karbach, the borroAver, and employed the plaintiff as agent, and for its principal,' and not on its OAvn account, and that Karbach, and not the defendant, .Avas liable to the plaintiff for compensation for the services rendered by reason of such employment. The plaintiff is by profession an attorney and counselor at laAV, residing in Omaha. From the evidence it is made to appear that he had been designated by the insurance company making the loan to examine and pass upon titles to real estate and perform other incidental professional services in relation to contemplated loans to be made by the company, to the end that a valid first lien Avould be acquired on the real estate mortgaged as security for such loans as might be finally consummated.

In a letter of instructions to the plaintiff, as the attorney of the company for the purposes aforesaid, it is stated: “In this and in all similar cases in Avhich you may act for us, please to bear in mind that all your costs and charges are to be paid by the bor'roAver, Avhether the loan goes through or not.” The defendant places considerable stress on this clause as supporting its position that the borroAver, Karbach, and not the defendant, Avas responsible for the value of plaintiff’s services Aidiich are made the basis of the present action. The letter clearly advised the attorney that he must not look to the company for his compensation. It Avould not, lioAvever, preclude the plaintiff from entering into any contract he might think advisable as to Avhom he should look for compensation. The statement that charges and costs are to be paid by the borroAver Avas for the purpose of negativing any responsibility on the part of the company, and left the attorney free to provide for his pay in any manner that he might adopt which was found agreeable and advisable.

[524]*524It is also shown that in a contract between the defendant and the borrower regarding the negotiation of the loan the borrower was to pay for examination of the title and other related services of the kind and nature that the plaintiff performed for which the defendant is sued to recover the value thereof. It is equally apparent from the record that the plaintiff was aware that the defendant was acting as a broker or loan agent in obtaining the loan for the borrower, Karbach.

The court instructed the jury, at the defendant’s request, that, if they found from the evidence that the defendant acted as a broker for the borrower, Karbach, in procuring him the loan and such agency was known to the plaintiff, then the plaintiff must look to the principal, Karbach, for pay .for his services, and not to the- defendant, unless it was further found that the defendant expressly agreed to pay for said services. As presented to the jury the instructions, as a whole, required them to ascertain from the evidence as a question of fact whether in making the contract, which it is conceded was made with the plaintiff for the services he rendered in and about the examination and perfecting of the title to the real estate offered by the borrower as security, the defendant acted in its own behalf as a principal in the transaction or whether it acted only as the agent of the borrower and for that reason assumed no personable responsibility.

An intelligent understanding of the legal principles applicable in determining the respective rights of the parties requires of us, in addition to what has been said, to speak briefly of the relations existing between the parties at and about the time of the alleged contract by virtue of which the plaintiff prosecutes the present action. The evidence shows that, prior to the time the plaintiff was requested to perform the services for which he sues to recover the value thereof, he had rendered similar service to the defendant in relation to loans made to othér parties through the defendant acting as a loan broker, for which [525]*525services the plaintiff had presented his bill to the defendant and received from it his pay therefor; that in the performance of such services, the plaintiff was acting under a contract made with the defendant acting in its .own behalf, and not as the agent of the borrower.

In each of the two prior transactions had between the plaintiff and the defendant in which the defendant compensated the plaintiff for his services complaint was made to him that his charges were too high. This becomes pertinent in the light of what follows. On March 28 the defendant was advised by telegraph that the insurance company making the loan had accepted the application, and at once obtained from Karbach a written contract authorizing it to secure the loan on terms stated in the contract as to commissions and other expenses to he borne by the borrower in consummating the loan. On the next day, the following conversation occurred between the plaintiff and one of the members of the defendant company, as-testified to by the plaintiff, and which is undisputed :

Q. When did you have your first dealing with the defendant in respect to the matters charged in the petition?

A. In August, 1895 — to matters charged in the petition?

Q. Yes.

A. I beg your pardon — In March, 1896.

Q. Where was your first talk with the defendant, or any one representing the defendant, in that respect? .

A. At the intersection of 16th and Douglas streets was my talk with Mr. Brennan, on the 29th of March, 1896. I think I had not had any talk with him before that.

Q. What relation did Mr. Brennan at that time sustain to the defendant?

A*. I understood him to be its president.

Q. What was said on that occasion at that place?

A. I was on my way to the post-office; it was a little after 12 o’clock on Sunday the 29th day- of March; Mr. Brennan was coming from the direction that I was going, [526]*526and lie stopped me and said that it looked as if he was going to get the loan through with the New York Life for Charles J. Karbach oh the Karbach property, the Karbach building at the corner of 15th and Douglas, and the Karbach hotel. Now, he says, if this goes through, I want to know what you are going to charge us. If you are going to charge us the way you have been doing I am afraid we can’t do business together.

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Bluebook (online)
87 N.W. 327, 62 Neb. 522, 1901 Neb. LEXIS 240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brennan-love-co-v-mcintosh-neb-1901.