Bullis Thomas v. Calvert

110 So. 621, 162 La. 378, 1926 La. LEXIS 2259
CourtSupreme Court of Louisiana
DecidedOctober 5, 1926
DocketNo. 27769.
StatusPublished
Cited by36 cases

This text of 110 So. 621 (Bullis Thomas v. Calvert) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bullis Thomas v. Calvert, 110 So. 621, 162 La. 378, 1926 La. LEXIS 2259 (La. 1926).

Opinion

ST. PAUL, J.

The defendants owned a tract of 7,800 acres of land in Concordia parish, of which 2,000 acres were cleared and under cultivation and 5,800 acres were timbered.

On February 6, 1924, they placed said lands in the hands of plaintiffs for sale for a price of not less than $420,000 net to defendants. The written agreement contained this clause:

“This agreement to remain in effect until April 1, 1924, and if at the end of that time you (plaintiffs) have a good prospective buyer, we (defendants) will extend the time thirty days longer. If we should sell said property, or any part thereof, after the expiration of this agreement, to a buyer with whom you had been negotiating prior to the expiration of this agreement, we will see that you are paid a commission’of five per cent, of, the sale price.”

I.

Plaintiffs immediately began negotiations with the TJtley-Holloway Saw Mill Company, who at once put a “cruiser” on the land for the purpose of estimating the amount of timber thereon. It took some weeks to complete this cruise, but in the end the UtleyI-Iolloway Company declined to buy, and thus pass. out of the case.

II.

Whilst the land was being cruised by the Utley-I-1 olio way Company, plaintiffs got in touch with one Morgan, to whom they intended to offer the lands if their negotiations with the Utley-Holloway Company should fall through.

Morgan informed plaintiffs at once of two things: (1) That the interests with which he was then connected were financially unable to handle the deal and were therefore not interested at all; and (2) that, he himself was not interested at all in the 2,000 acres of cleared and cultivated lands, but that, if he were able to make other financial arrangements (as he thought he could), he might be interested in the timbered lands, arid, upon being asked what he would be willing to give for them, stated that he might be willing to pay $325,000 for the 5,800 acres of timbered lands if his own ijlea of the amount of timber thereon should prove correct. That was all.

III.

Plaintiffs then sought defendants and obtained from them a verbal modification of the contract to the effect that plaintiffs might sell the 5,800 acres of timbered lands alone for a price of $350,000 net to the defendants.

As this net price was $25,000 above the suggestion (or call it tentative offer) made by Morgan, even without taking into consideration the commission which plaintiffs had to get out of the purchaser, it is clear that the proposition could not have been an attractive one to plaintiffs. And accordingly plaintiffs seem to have taken no further interest in that phase of the matter prior to April 1, 1924.

*381 IV.

On April 1, 1924 (the day the contract expired), plaintiffs wrote defendants that they were actively engaged in trying to sell the lands and had several parties interested, to some one of whom they felt sure they could sell the lands. They named, among others, the Baxter Timber Company, the company with which Morgan was then connected, and which he had said was not interested in the lands because of financial inability to handle the proposition. And thereupon plaintiffs asked for more time on the contract.

V.

The preponderance of the testimony is that no further time was given. But, be that as it may, 30 days (even 40 days) elapsed, and defendants heard nothing further from plaintiffs. Accordingly, on May 12, 1924, defendants gave an option on said lands, to wit, on the whole 7,800 acres to the Grant Timber Company, with whom plaintiffs had never had any negotiations whatever, for -the sum of $420,000 (being the same net price originally mentioned to plaintiffs). But this option was never exercised and was abandoned.

VI.

On July 5, 1924, defendants gave to the Mounger Land Company, of Natchez, a 60-day contract to negotiate a sale of the 5,800 acres of timbered lands for $350,000, agreeing to pay them a commission of $10,000 plus one-half of all above $350,000. And on the same day, or shortly afterwards, Mr. Mounger got in touch with Mr. Morgan, aforementioned, and after some negotiations finally sold the lands, in September, to the Baxter Forest Lands Company, a new corporation formed by Mr. Morgan, but having substantially the same stockholders as the Baxter Timber Company aforementioned. The price agreed upon was $350,000; and the Mounger Company received a commission of 5 peícent. thereon.

VII.

Plaintiffs now seek to recover from defendant a commission of 5 per cent, on the amount of that sale (say $17,500) under that clause of the contract first mentioned, which says:

“If we (defendants) should sell said property, or any part thereof, after the'expiration of this agreement, to a buyer with whom you (plaintiffs) have been negotiating prior to the expiration of this agreement, we will see that you are paid a commission of five per cent, of the sale price.”

Now that clause-is susceptible of but two interpretations: (1) Taken alone, it may mean that, if plaintiffs should have, at any time before the expiration of the contract started negotiations with any person by even so much as offering the property to him, then defendants were to be debarred forever thereafter from selling their property to such person without paying over to plaintiffs 5 per cent, of the price received; or (2) taken in connection with the clause which immediately precedes it, it may mean that, if plaintiffs by their efforts had succeeded in so far interesting some person in the property, that at the expiration of the contract he might be considered a likely buyer, then defendants should still pay the commission on any sale made to him, even though not consummated in the thirty days’ extension provided for in the contract.

But the first interpretation is clearly not admissible. For a contract must represent the will of both parties; and it is inconceivable that any sane person would bind himself in that manner. So that defendants clearly had no intention to bind themselves to that extent. And we do not understand that plaintiffs so contend.

On the other hand, the alternative interpretation is a reasonable and fair one, and hence must be considered as the common intent of the parties. The more so as it is in strict accord with law, even independent of *383 contract. For this court has always consistently held that a broker who was the procuring cause of a sale would be protected as to his commission against any fraudulent or unfair attempt on the part of his principal to deprive him thereof. Grace Realty Co. v. Peytavin Planting Co., 156 La. 98, 100 So. 62, 48 A. L. R. 1096; Grand Agency v. Staring, 156 La. 1094, 101 So. 723. In the case before us there is however no question of fraud on the part of defendants; for the evidence shows that when they gave their property for sale to the Mounger Company they had no idea who the purchaser might be and (as the result shows) it was with no intent to defraud some one out of a commission since they at once agreed to pay $10,000 as commission and ultimately did bay $17,500.

YIII.

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Bluebook (online)
110 So. 621, 162 La. 378, 1926 La. LEXIS 2259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bullis-thomas-v-calvert-la-1926.