Brown v. Mason

99 P. 867, 155 Cal. 155, 1909 Cal. LEXIS 408
CourtCalifornia Supreme Court
DecidedJanuary 19, 1909
DocketL.A. No. 2225.
StatusPublished
Cited by30 cases

This text of 99 P. 867 (Brown v. Mason) is published on Counsel Stack Legal Research, covering California 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. Mason, 99 P. 867, 155 Cal. 155, 1909 Cal. LEXIS 408 (Cal. 1909).

Opinion

MELVIN, J.

This was an action for the recovery of fifteen thousand dollars, as commissions which plaintiff asserted were due him for services as a broker in selling for defendant a note and mortgage for one hundred and fifty thousand dollars, and all of the stock of the Pokegama Sugar Pine Lumber Company, a corporation, owning a large tract of timber land in the state of Oregon. Judgment was given for defendant, and from it plaintiff appeals.

The complaint contained three counts, the first pleading an employment of plaintiff by defendant to make a sale of the stock, note, and mortgage, and a performance of services under such employment “reasonably worth the sum of $15,000”; the second is an ordinary count on a quantum, meruit; and the third is a common count in indebitatus assumpsit.

It appears that in 1904 the defendant Mason owned the stock of the Pokegama Sugar Pine Lumber Company, and a mortgage for one hundred and fifty thousand dollars upon the Klamath Lake Railroad. This railroad was owned principally by one Hervey Lindley, who was very anxious to make a sale of the road in conjunction with defendant’s land. Lindley sent Brown to Mason in November, 1904. An agreement *157 was obtained whereby defendant promised to sell his stock and mortgage for three hundred and ninety thousand dollars, of which ninety thousand dollars was to he paid at once and the balance in three yearly payments of one hundred thousand dollars each. This option was to remain in force until January 1, 1905. Mason also signed a promise to pay Brown fifteen thousand dollars if the latter should succeed in closing the sale in accordance with the terms of the option. At the request of Brown the option was afterwards extended to the tenth day of January, 1905. On the last-mentioned date the appellant took one George L. Long, a representative of the Weyerhaeuser Timber Company, to Los Angeles, and introduced him to respondent. Mason refused to give an extension of tbe option, but gave Long a new option on the same property for four hundred thousand dollars, good until February 11, 1905. He also agreed to pay Brown fifteen thousand dollars if this sale should be made. At the expiration of this second option an unsuccessful attempt was made by Long to secure an extension. Negotiations between Long and Mason had apparently terminated. On March 9, 1905, the respondent wrote to appellant, telling him that the transaction was at an end. On April 11, 1905, appellant Brown, wrote to Mason and spoke of the matter of his compensation. He received a reply, dated April 12th, in which the writer used the following language: “We have now taken the matter up directly with the Cooks and made a compromise deal at a greatly reduced price, which is to be net to us. I utterly fail to see how you are connected with this deal at all, certainly you were not for us.” The Cooks mentioned were two brothers who had a judgment against the Pokegama company and Hervey Bindley. They secured a contract of sale from Mason for this property at three hundred and twenty-five thousand dollars, but the negotiations failed and Mason rescinded this agreement in May, 1905. The court below found that this contract was secured at the instigation of Long, but that Mason was ignorant of that fact. During the summer of 1905 Long made an unsuccessful endeavor to secure the property and then dropped negotiations until November, when he went to Los Angeles, secured an option on the property and purchased it finally in December, 1905, for the sum of three hundred thousand dollars.

*158 That plaintiffs legitimate interest in the matter of the sale of this property was limited to his contract of employment there can be no doubt. When an agent procures such an agreement in which time is of the essence of the transaction, he is bound by its terms. There is no implied promise arising of necessity from the relation existing between a prospective vendor and his agent that the former will pay a commission if, at a time subsequent to the life of the written contract, the property is sold to the person introduced by the agent. The two essentials to the broker’s success under a written appointment such as Brown obtained from Mason are, 1. That he should produce and introduce to the seller a customer ready, able, and willing to take the property upon the terms stipulated ; and, 2. That this should be done within the time limit of the option. If the purchaser is willing to take the property on different terms and the variance is waived by the vendor, the broker may still obtain his commission; or if, having produced a suitable purchaser but not within the time limit, owing to a delay caused by his principal, the broker is entitled to his commission. Wanting any of these exceptions, however, a broker is strictly held to the terms of his contract. (See Mechem on Agency, secs. 965, 966.) The rule is well expressed in Zeimer v. Antisell, 75 Cal. 509, [17 Pac. 642].

"And before a broker can be said to have earned his commission, it must also be shown that he produced a purchaser, who was ready and willing to make the purchase on terms satisfactory to his employer and that he was the efficient agent or procuring cause of the sale. (McGavock v. Woodlief, 20 How. 221; Wylie v. Marine National Bank, 61 N. Y. 415.)

“The duty assumed by the broker is to bring the minds of the buyer and seller to an agreement for a sale, and the price and terms on which it is to be made, and until this is done his right to commissions does not accrue. (Sibbald v. Bethlehem Iron Co., 83 N. Y. 382, [38 Am. Rep. 441].)

“It must further appear that the broker performed the duty assumed by him within the time limited in his contract, or within such extension of time as may have been granted by his employer. If he fail to do that he is not entitled to the commission, even though he made efforts to sell the property, and first called to it the attention of the party who subsequently made the purchase, unless the delay was caused by *159 the negligence, fault or fraud of the owner. (Fultz v. Wimer, 34 Kan. 576, [9 Pac. 316]; Wilson v. Sturgis, 71 Cal. 226, [16 Pac. 772].)”

The case of Zeimer v. Antisell, 75 Cal. 509, [17 Pac. 642], was cited with approval in Ropes v. Rosenfeld’s Sons, 145 Cal. 679, [79 Pac. 354], where this language is used:

“The rule laid down in Zeimer v. Antisell, 75 Cal. 509, [17 Pac. 642], has never been questioned or overruled by this court, so far as we know, and must control this question.”

This case which we are now considering is quite similar to that of Fultz v. Wimer, 34 Kan. 576, [9 Pac. 316], In that case a prospective purchaser introduced by the plaintiff to his principal within the two months mentioned in their agreement of agency, promised to take the property on the terms offered, but did not do so.

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Bluebook (online)
99 P. 867, 155 Cal. 155, 1909 Cal. LEXIS 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-mason-cal-1909.