Browning v. Fox

183 A.D. 778, 171 N.Y.S. 648, 1918 N.Y. App. Div. LEXIS 6096
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 11, 1918
StatusPublished
Cited by3 cases

This text of 183 A.D. 778 (Browning v. Fox) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Browning v. Fox, 183 A.D. 778, 171 N.Y.S. 648, 1918 N.Y. App. Div. LEXIS 6096 (N.Y. Ct. App. 1918).

Opinion

Shearn', J.:

-This is an action in conversion brought by the plaintiff, the owner of two business buildings in the city of New York, against the defendant real estate agents who managed the buildings for him, to recover the sum of $1,907.63, which plaintiff claims the defendants retained and converted to their own use out of rents collected. The dispute arose out of [780]*780defendants’ claim to the sums retained and additional sums claimed, some of which were allowed and some of which were disallowed by the referee before whom the action was tried. The result was a judgment in favor of the defendants and against the plaintiff in the sum of $438.12, from which both parties appeal. There was a written agreement with respect to the management of each building. Both contracts were substantially the same except that in the earlier one covering the Thirty-sixth street building the defendants’ compensation was to be two and one-half per cent of the rent collected, and in the Fortieth street contract it was three per cent. Both contracts required the defendants to pay brokers their commissions for renting space in the buildings. Neither agreement was for a definite period, but both agreements gave either party the right to cancel and contained a provision that, if the plaintiff cancelled within a year after collections began, plaintiff would p,ay defendants any amount which they had paid for leasing, in the case of the Fortieth street contract not to exceed $3,500, and in the case of the Thirty-sixth street contract not to exceed $2,500. The only dispute in connection with the Thirty-sixth street building arises out of a claim made by the defendants for $805 paid to one Alfred McKown for his services as superintendent of said building, which claim the referee disallowed.

With respect to the Fortieth street building, the contract for which was made on March 20, 1912, the defendants proceeded to rent and manage same until about March 2, 1914, when the' contract was cancelled by the plaintiff. During their management of the Fortieth street building, defendants had earned and retained as commissions $1,441.85 and had paid out to brokers for leasing $2,345.75, or $903.90 in excess of what they had received. In addition, defendants claimed to have become obligated to McKown as superintendent of the Fortieth street building in the sum of $420, which sum, however, they had in their reports never charged to the plaintiff. When the defendants rendered their statement on account of the Fortieth street building on March 1, 1914, which was after an altercation which made it evident that their agency was about to be ended, but which was one day before actual cancellation, they retained out of the rents [781]*781then in their hands a sum sufficient to reimburse them for all outlays up to that time.

The defendants make a two-fold claim in support of their right to charge against plaintiff the sums paid to brokers for leasing — one being that there was an oral modification of the Fortieth street contract in December, 1912, on which occasion, as all three deféndants testified, but which the plaintiff denied, they told plaintiff of their desire to terminate the contract because of the way it was working out and plaintiff requested them to go on and agreed, in consideration of their not exercising their option and continuing with the contract, to hold the defendants harmless against any loss. The other claim is that the contract was canceled within a year after collections began and that, accordingly, defendants were entitled to charge for leasing up to $3,500. The referee has found in favor of the defendants -on both these issues. On the second issue, the decision is claimed to be contrary to the evidence, and on the first issue, that of modification, it is claimed, first, that the modification, if made, was without consideration, and second, that the finding that it was made is against the weight of the evidence.

The burden of proof to establish the modification was upon the defendants.' If the modification was made, there was in my judgment legal consideration for it. It is clear that there would be consideration, if, as the referee found, the defendants surrendered then* right to cancel the contract, for thereby they would have given up a valuable legal right to then* detriment. But I can find no evidence justifying the finding of the referee that the defendants agreed to continue to run and manage the Fortieth street building until the formal cancellation of the contract by the plaintiff.” Frederick P. Fox’s testimony on this head simply shows that the plaintiff urged the defendants not to cancel and said that if they would continue he would hold them harmless. “ We discussed the matter together and we decided to continue.” James C. Fox’s testimony is to the same effect, concluding, Well, all right, Mr. Browning, under those conditions we will proceed as agents of that building.” Friedmann’s testimony is to the same effect. Therefore, it does not-appear that the defendants gave up their right to exercise their option but merely [782]*782consented to go ahead with the contract if they were held harmless. To hold that the defendants gave up their right to cancel would be tantamount to holding that they had to continue in perpetuity, unless plaintiff chose to cancel. But it seems to me, nevertheless, that there was a consideration. The defendants were not obliged to go on with this losing business for a day. They were entitled to exercise an immediate right of cancellation. If, in consideration of plaintiff’s promise to hold them harmless, they withdrew their announced intention of quitting and continued on indefinitely, thus altering their position for-the worse, there was a sufficient consideration for plaintiff’s promise to hold them harmless.

As to whether the agreement was actually made, the question involves the weight of the evidence. The defendants had three witnesses to plaintiff’s one. All were interested. The referee, as will be seen from his opinion, considered all the witnesses reputable and equally entitled to credence so far as the worth of their word was concerned. He reached his conclusion, as he says, guided by the probabilities of the case, but as he did not state them, we do not know what he regarded as the probabilities pointing in favor of the defendants. On the part of the plaintiff, it is to be noted that he appears to be a very close, careful and particular man who required the smallest matters to be reduced to writing. Further, at the date of the alleged oral modification, the building was not even finished and as there had been no important leases negotiated defendants did not know how the contract was going to turn out. It thus seems very unlikely that they would at that time have demanded any oral modification. Defendants’ only answer to this is “ that while in December, 1912, defendants had not made any payments to other brokers, they had already become obligated on account of leases that had already been made and they saw the possibilities of having to pay other commissions for deals pending.” As to what possibilities defendants saw, we cannot say, but this statement about having become obligated on account of leases already made appears to me to be wholly unfounded. According to the bill of particulars, the earliest lease negotiated by any other broker was on January 23, 1913, and the only leases negotiated by defendants themselves were two small ones, one on September 24, [783]*7831912, the monthly rent being $66.67, and the other on November 30, 1912, the monthly rent being $208.33.

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Bluebook (online)
183 A.D. 778, 171 N.Y.S. 648, 1918 N.Y. App. Div. LEXIS 6096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/browning-v-fox-nyappdiv-1918.