Callaghan v. Scandling

167 P.2d 119, 178 Or. 449, 1946 Ore. LEXIS 128
CourtOregon Supreme Court
DecidedFebruary 14, 1946
StatusPublished
Cited by4 cases

This text of 167 P.2d 119 (Callaghan v. Scandling) 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
Callaghan v. Scandling, 167 P.2d 119, 178 Or. 449, 1946 Ore. LEXIS 128 (Or. 1946).

Opinion

BAILEY, J.

This suit was brought by J. H. Callaghan against Helen Laidlaw Scandling, trustee, hereinafter referred to as the defendant, and others for an accounting. The other defendants’ demurrer to the complaint was sustained, and upon the plaim tiff’s refusal to plead further the suit was dismissed as to them. After a trial on the merits between plaintiff and defendant, a decree was entered in which it was provided “that plaintiff do have and recover of and from Helen Laidlaw Scandling, Trustee, property, at the rate of $160.00 per section, in the platted portion of Belcrest Memorial Park to the value of $1,280.00, comprising eight sections and three lots of said property and that the sum of $2.73 be paid by said defendant in cash”. From that decree plaintiff has appealed.

On July 14,1928, W. A. Laidlaw and J. H. Laidlaw, owners, as “trustees in joint tenancy,” of a tract of land south of Salem, Oregon, known as Belcrest Memorial Park, entered into a contract with the plaintiff, referred to therein as the broker, by which the plaintiff was given the right to sell, at a price fixed bv the owners, certain cemetery lots in Belcrest Memorial Park. That contract further provided:

“II. The owners agree to pay to the broker eighteen per cent of the total amount of all sales consummated by the broker or his salesmen or agents. Fifteen per cent of this amount shall be paid within seven davs of the date of each sale, and the balance at such time as the purchaser shall have paid in thirty-five per cent of the entire amount of the sale. This commission shall be payable to the broker or his order.
*451 . “III. The owners agree to pay to the broker or his nominee or nominees one section of property (10' x 18') in Belcrest Memorial Park for each ten thousand dollars worth of completed sales consummated by him, his salesmen, or agents. This property to be paid when money paid in on said sales shall complete a certain trust agreement entered into between said owners, the First National Bank in Salem, and Belcrest Memorial Association, and dated the 30th day of June, 1928.”

Shortly after the execution of this contract, paragraph III thereof was modified, according to the allegations of the amended complaint and admitted b\ defendant, “by agreement of the parties, increasing the bonus that should be paid to plaintiff or his nominees, from one section of property (10 feet by 18 feet) in Belcrest Memorial Park for each $10,000 worth of completed sales, to five per cent of the amount of the completed sales, to be paid for in property of the Bel ■ crest Memorial Park at wholesale price.”

Both W. A. Laidlaw and J. H. Laidlaw died prior to the filing of the amended complaint and the defendant succeeded to all their rights, title and interest, as trustees, in and to the tract of land hereinbefore mentioned.

There is no controversy in this ease concerning tb° cash commissions provided for in the second paragraph of the contract. The language used in that paragraph, however, does aid in the construction to be placed on the next paragraph, the provisions of which are relict upon by the plaintiff for the recovery of additional compensation.

Two questions are presented for decision, towit: (1) Was it necessary that the entire purchase price of a parcel of land be paid before plaintiff would be entitled *452 to a bonus on the sale, and, (2) was the amount which the owners were required to pay, under the third paragraph of the contract as modified, in any way affected by the number of salesmen participating in the consummation of a sale?

The solution of the first question depends to a large extent upon what the parties to the contract intended by the use of the phrase “completed sales”. Plaintiff contends “that a completed sale meant a sale where 30 per cent of the purchase price had been paid and a written contract entered into and accepted by the trustee, First National Bank.” Gn the other hand, the defendant argues that there was not a completed sale within the meaning of the contract until the full purchase price had been paid.

It was decided by the circuit court that the term “completed sales”, as used in the third paragraph of the contract, “means, and was intended by the parties hereto to mean, a sale or a contract of sale, where the purchase price therein specified had been fully paid by the purchaser; that plaintiff, by and through his salesmen and agents, made and consummated completed sales of property in Belcrest Memorial Park to the amount and value of $274,337.71, and that plaintiff’s gross bonus on said completed sales amounted to $13,716.89 and that there has been paid by said defendant Helen Laidlaw Scandling, Trustee, and by her predecessors in trust, $12,434.16 by conveyances of property to, and on the order of, plaintiff * * *."

The contract here under consideration provided that the plaintiff would receive a cash commission of 18%, later changed to 19%, on all “sales consummated” by him or his salesmen, 15% to be paid “within seven *453 days of the date of each sale”, and the balance when the purchaser had paid 35% of the purchase price.

The compensation stipulated in the third paragraph, referred to by the litigants as a bonus, is in addition to the cash commission specified in the preceding paragraph. In setting forth the conditions under which the bonus was to be given, the contracting parties did not provide that it would be paid within a specified time after the date of the sale, or after a designated percentage of the purchase price had been paid, as was done in reference to the cash commission. Plaintiff was entitled to a cash commission on all “sales consummated” by him, but he was entitled to a bonus only on “completed sales consummated” by him.

Plaintiff testified that all the bonuses which had been paid were received by his salesmen, and that no bonus was given on any sale until the full purchase price had been paid. One of the exhibits is a receipt signed by ft. W. Mathis, a salesman, dated September 2, 1932, in which he acknowledges receiving from W. A. Laidlaw, J. H. Laidlaw, J. H. Callaghan, Mavwood Investment Company, First National Bank in-Salem, Trustee, and Belcrest Memorial Association, conveyances of certain described real property. Then follows this statement:

“It is claimed by the said W. A. Laidlaw, J. H. Laidlaw, J. H. Callaghan and Maywood Investment Company, a corporation, that said property represents the full amount that is unpaid from said persons, and any and all of them, to the undersigned because of commissions, salary, bonus and otherwise except as follows: (Here follows a list of sales with the dates, numbers, buyers’ names, and the amount of each contract.)
*454 “As to said incompleted sales last above listed it is claimed by the above named W. A. Laidlaw, J. H. Laidlaw, J. H. Callaghan, Maywood Investment Company, First National Bank in Salem, Trustee, and Belcrest Memorial Association, bonus shall become due and payable on each of the items above listed at the rate of five per cent of the entire amount of each thereof only when each contract is paid in full in cash, and which bonus shall be paid in property as specified in ‘Bulletin to Salesmen No.

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Bluebook (online)
167 P.2d 119, 178 Or. 449, 1946 Ore. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/callaghan-v-scandling-or-1946.