Brown v. Haverfield

557 P.2d 233, 276 Or. 911, 1976 Ore. LEXIS 712
CourtOregon Supreme Court
DecidedDecember 9, 1976
DocketNo. 5455, SC P-2479
StatusPublished
Cited by4 cases

This text of 557 P.2d 233 (Brown v. Haverfield) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Haverfield, 557 P.2d 233, 276 Or. 911, 1976 Ore. LEXIS 712 (Or. 1976).

Opinion

O’CONNELL, J.

This is an appeal by plaintiff from a judgment of the trial court dismissing his action brought to recover compensation for brokerage services performed for defendant. The trial court concluded that plaintiff was barred from recovering because he did not have a broker’s license as required by ORS 696.710.1 Plaintiff contends that under the exemption provisions of ORS 696.030(1) he was not required to obtain a broker’s license.2

Defendant engaged in extensive livestock and ranching operations in Oregon and Idaho. One of the ranches owned by defendant was the Big Muddy Ranch near Madras, Oregon. Plaintiff had previously been employed in the livestock trucking business and had managed a ranch in Idaho.

The parties met by chance toward the end of November, 1972 and over breakfast, defendant explained that he was in need of help in his various operations. Plaintiff agreed tentatively to locate cattle for defendant’s ranches. Later, in December, plaintiff agreed that in addition to locating cattle for defendant he would also assist defendant in his other activities.

By January 1, 1973, plaintiff had begun to locate [914]*914cattle pursuant to his agreement with defendant and the parties met to discuss the details for completing the purchase of the cattle. The conversation turned to defendant’s previous offer to employ plaintiff in defendant’s other activities. Plaintiff testified that defendant offered to hire him to "do things, run errands or do what [he] needed done.” Compensation was set at fifty dollars per day and defendant anticipated that he could use plaintiff ten to fifteen days each month. Defendant offered the use of his car for these purposes but plaintiff declined, stating that he preferred to use his own car if defendant would pay him a certain amount per mile for its use. In this conversation, defendant recalled that he had previously paid an employee a bonus for assistance in obtaining a buyer for one of defendant’s ranches. He suggested that if plaintiff found a buyer for the Big Muddy Ranch, he would pay him "a darn good bonus.” After further discussion, plaintiff agreed to attempt to find a buyer. Defendant offered to pay $100,000 if the selling price for the ranch was $42.50 per acre or more, and $50,000 if the price was $40.00 per acre or less.

On January 12, 1973, the parties met again to discuss the cattle transactions. At this time plaintiff requested that their previous agreement relating to the sale of the Big Muddy Ranch be formalized. Plaintiff, in longhand, wrote the substance of the agreement, describing the compensation as a "finders fee.” Both parties signed the contract and had it notarized.3 Plaintiff testified that he wished to reduce [915]*915the agreement to writing in order to assure its enforceability in the event that one of the parties died.

At the end of January, plaintiff showed the ranch to Harold Doan, an employee of J. R. Simplot and a personal friend of plaintiff. Doan testified that plaintiff approached him saying that he, plaintiff, was working for defendant and that the ranch would be a good purchase for Simplot.

At this point activities subsided and on March 19, 1973 defendant instructed plaintiff to "get after that Doan,” and "see if you can’t get something going on this thing.” Upon plaintiff’s urging, Doan spoke with Simplot. Shortly afterwards, Simplot viewed the ranch and began negotiations with defendant for its purchase. Plaintiff testified that on April 30, 1973, defendant informed plaintiff that one-half of the ranch was sold to Simplot and that plaintiff would receive a commission. The sale was made to Inland Terminal Warehouse Company, a corporation controlled by Simplot. In 1974, the remainder of the ranch was acquired by Inland.

Throughout 1973 plaintiff performed diverse services for defendant. In addition to his cattle-buying activities, plaintiff assisted defendant in organizing a work crew; in locating the boundaries of one of defendant’s ranches; in interviewing employees; in purchasing equipment for ranching operations; in preparing and presenting to the Bureau of Land Management a grazing plan for government lands controlled by defendant; in recording deeds; in moving supplies and furniture for defendant; in working on a land development plan for property owned by the defendant in Idaho, and in representing defendant on various matters which required plaintiff to travel to California, Oregon and Idaho. All of the foregoing services, other than cattle buying, were performed after plaintiff showed the Big Muddy Ranch property to Doan.

Plaintiff contends that because of his agreement on [916]*916January 1, 1973, to assist defendant in various operations and because of the many services rendered for defendant pursuant to the agreement, plaintiff was a "regular employee” and fell within the exception provided in ORS 696.030(1).4

The trial judge, in holding that plaintiff was not within this exception, said:

"* * * I do not believe the plaintiff to be a 'regular’ employee within the definitions of the statute. 'Regular’ employee means one who would be used in the ordinary course of business of the employer and whose acts with reference to the property are incidental to his ordinary duties. The trip to The Muddy Ranch with Doan was not to buy or sell cattle or to solve a problem in the ranch administration. It was for the specific purpose of showing property pursuant to a specific contract which unfortunately for the plaintiff is unenforceable despite plaintiff’s acting in good faith.”

The foregoing excerpt from the trial judge’s opinion reveals that he misconstrued ORS 696.030(1).

In order to qualify under this statutory exception to the general requirement of licensing, a person must be an owner or lessor of property or a "regular employee” of such a person. If an employee asserts that he comes within the statutory exception, the selling or leasing of land must be incidental to the non-real estate activities of his employer and cannot be the primary business of his employer. Although the statute requires the sale of the land to be incidental to the non-real estate activities of the employer, the statute does not say, as the trial court interpreted it, that the employee’s activity in selling the property be incidental to his other non-real estate duties. In fact, an employee could qualify even if he had no duties at all in connection with employer’s principal business.5

[917]*917The evidence would support the conclusion that the sale of the Big Muddy Ranch was only an incident to defendant’s primary business of ranching. The sole inquiry, then, is whether plaintiff was a "regular employee” of defendant at the time he solicited the sale of the ranch.

We construe "regular employee” as used in ORS 696.030

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Cite This Page — Counsel Stack

Bluebook (online)
557 P.2d 233, 276 Or. 911, 1976 Ore. LEXIS 712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-haverfield-or-1976.