California Auto Court Association v. Cohn

219 P.2d 511, 98 Cal. App. 2d 145, 1950 Cal. App. LEXIS 1820
CourtCalifornia Court of Appeal
DecidedJune 22, 1950
DocketCiv. 17432
StatusPublished
Cited by29 cases

This text of 219 P.2d 511 (California Auto Court Association v. Cohn) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Auto Court Association v. Cohn, 219 P.2d 511, 98 Cal. App. 2d 145, 1950 Cal. App. LEXIS 1820 (Cal. Ct. App. 1950).

Opinion

WHITE, P. J.

This appeal is from a judgment rendered by the trial court pursuant to an order sustaining a general and special demurrer of defendants Ostroff and Marks to plaintiff’s amended complaint without leave to amend. The complaint is for damages arising out of an alleged conspiracy *147 of defendants to deprive plaintiff corporation of a real estaté broker’s commission.

The complaint charged that plaintiff is a real estate broker and that in January, 1948,'at the resquest of defendant Jack Marks, plaintiff showed said Jack Marks a number of motels that plaintiff had listed for sale. On November 26, 1948, defendant Max Cohn employed plaintiff by written agreement whereby the latter was to sell the- Mohawk Motel, of which defendant Max Cohn was then the owner, for $78,000, plaintiff to receive a 5 per cent commission, or $3,900. Plaintiff immediately commenced advertising the motel for sale. December 4, 1948, plaintiff introduced defendant Marks to defendants Max Cohn and Mary Cohn, husband and wife, who, together with plaintiff’s agents, showed defendant Marks the Mohawk Motel. Defendant Marks stated that he was interested in the motel but before purchasing it, he wished to consult with his relatives and that he would contact plaintiff immediately if he and his relatives decided to buy it. The complaint further alleged that defendant Marks then consulted defendant Naomi Marks, his wife, and defendants Ostroff, his father-in-law and mother-in-law,' and that all of the defendants, knowing that plaintiff was entitled to a commission and in order “to unlawfully cheat, wrong and defraud plaintiff out of a commission of $3900.00,” entered into a conspiracy, and without the knowledge or consent of plaintiff, negotiated together and directly with each other to place the title of the Mohawk Motel in the names of defendants Ostroff at a price of $74,100 ($78,000 less the commission of $3,900 due plaintiff). That the defendants opened an escrow on December 8, 1948, wherein defendant Cohn sold the Mohawk Motel to defendants Marks and Ostroff, title being vested on December 16, 1948, in the names of defendants Ostroff in order to make it appear that they were the bona fide purchasers thereof, but that in reality defendants Ostroff hold it in trust for defendants Marks who are the true purchasers. That plaintiff continued to advertise the motel and to show it to prospective purchasers with the consent of the Cohns until the 16th of December, when plaintiff learned through sources other than the defendants of the alleged fraudulent transaction between them. That on December 16th defendants Marks commenced operating and managing the motel and referred to it as their own. That by reason of their acts, defendants unjusifiably interferred with plaintiff’s right to pursue its lawful business, effected a breach of the contract between plaintiff and defend *148 ant Max Cohn, and deprived plaintiff of its commission of $3,900.

Defendants Ostroff and Marks demurred generally to thé complaint on the ground that it failed to state a cause of action, and specially, on the grounds of ambiguity, uncertainty and unintelligibility, which demurrer was sustained without leave to amend and judgment entered pursuant thereto. The action against defendants Cohn is still pending in the trial court. Plaintiff has appealed from the judgment in favor of defendants Ostroff and Marks.

Appellant contends that a cause of action for loss of commissions exists against third persons in favor of a real estate broker, who is deprived of such commissions as a result of a conspiracy between such persons and the broker’s employer, and in support of such contention appellant points out:

(1) That the right to pursue a lawful occupation is a fundamental right which courts protect ;
(2) That the right to perform a contract and to obtain the benefits and profits therefrom is a property right protected by law; and
(3) -Unjustifiable interference by a third party with contractual obligations is actionable.

Respondents admit that point (1) is a general maxim of law but simply state that “nothing cited and nothing in the complaint indicates any interference with the plaintiff’s right to pursue its occupation of real estate broker.” Assuming the facts alleged in the complaint to be true (and the demurrer admits the verity of the vital allegations of the complaint (Krigbaum v. Sbarbaro, 23 Cal.App. 427 [138 P. 364]), it is too apparent to merit further discussion that respondents did interfere with plaintiff’s pursuit of its occupation as a real estate broker.

As to point (2),- respondents contend that their conduct was privileged as a legitimate exercise of their own right to purchase property directly from the owner, citing Sweeley v. Gordon, 47 Cal.App.2d 385 [118 P.2d 16]. The case of Sweeley v. Gordon involved an-oral contract of employment and the defense of the statute of frauds and is not pertinent to the issue here involved.

Respondents argue that point (3) is applicable only if there was a definite-and settled contract and the means of interference was by an unlawful action. Respondents then state there was no definite and settled contract inasmuch as plaintiff was- not entitled to commissions until it had produced *149 a buyer. While it is true the procurement of a ready, willing, and able purchaser is a condition precedent to the duty of an owner to pay a real estate broker’s commission, the alleged acts of the respondents prevented that condition from happening, and they cannot rely on their own wrongful acts as a basis for immunity from liability. Furthermore, it is clear from the complaint that the only other step necessary to the procurement of a ready, willing, and able purchaser was in concluding the negotiations, which defendants prevented. (Krigbaum v. Sbarbaro, supra.)

As to the necessity of intereference by unlawful action, respondents contend the complaint contains a bare allegation of conspiracy and is therefore insufficient. The elements of an action for civil conspiracy are the formation and operation of the conspiracy and damage resulting to plaintiff from an act or acts done in furtherance of the common design. The cause of action is the damage suffered. Each participant in the .wrongful act is responsible as a joint tort feasor for all damages ensuing from the wrong, regardless of whether or not he was a direct actor and of the degree of his activity. (Mox Incorporated v. Woods, 202 Cal. 675 [262 P. 302].) Furthermore, because of the inherent difficulty in proving a conspiracy, it has been held that a conspiracy may sometimes be inferred from the nature of the acts done, the relations of the parties, the interests of the alleged conspirators, and other circumstances. (Anderson v. Thacker, 76 Cal.App.2d 50, 72 [172 P.2d 533].) The complaint contained allegations, of acts of the respondents in detail and was not confined to a “bare” allegation of conspiracy.

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Bluebook (online)
219 P.2d 511, 98 Cal. App. 2d 145, 1950 Cal. App. LEXIS 1820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-auto-court-association-v-cohn-calctapp-1950.