Clarkson v. Wirth

481 P.2d 920, 4 Wash. App. 401, 1971 Wash. App. LEXIS 1360
CourtCourt of Appeals of Washington
DecidedMarch 8, 1971
Docket233-3
StatusPublished
Cited by4 cases

This text of 481 P.2d 920 (Clarkson v. Wirth) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clarkson v. Wirth, 481 P.2d 920, 4 Wash. App. 401, 1971 Wash. App. LEXIS 1360 (Wash. Ct. App. 1971).

Opinion

Evans, J.

Plaintiff, a real estate broker, brought this action to recover a real estate commission, and appeals from a judgment for defendants.

On June 15, 1965 plaintiff R. W. Clarkson obtained from defendants an exclusive listing agreement to sell certain property owned by defendants in Cle Elum, Washington. The agreement gave plaintiff an exclusive right to sell the property for a period of 30 days, and thereafter until with *402 drawn by 10 days written notice. The terms of the sale were to be for a total purchase price of $59,500, with $30,000 downpayment and the balance due at the rate of $300 per month, including interest at 6 per cent. The agreed real estate commission to be paid was $5,950. Defendants testified they did not get a copy of the listing agreement and were unaware that the exclusive listing continued until withdrawn by 10 days written notice. July of 1965, plaintiff requested and defendants orally agreed to a verbal extension of the listing agreement. During that month plaintiff obtained two brothers, Harold and Robert Grimnes, as prospective purchasers of defendants’ property, and on July 20, 1965 the Grimnes brothers and defendants entered into an earnest money agreement, which provided in part:

This offer to purchase is made subject to purchasers disposing of certain properties upon which deals are now pending and said deals to be closed prior to the closing of this deal. Legal description of these properties will be furnished sellers upon request. Sale to be closed not later than October 1st, 1965.

All parties to the contract understood the downpayment of $30,000 would have to come from the proceeds of those properties owned by the purchasers, upon which deals were then pending. The plaintiff agreed to aid the Grimnes brothers in selling their property. He attempted to do so by advertising their property to other brokers but was unable to generate a sale by October 1, 1965. Prior to that date and on September 12, 1965 plaintiff wrote a letter to defendants, in which he stated:

Well here it is almost October 1st and we are no closer to a deal now than we were in the spring. All summer wasted and nothing actually accomplished. Immediately upon my arrival back in Seattle, I put the apartment building and Bob’s acreage in the hands of several realtors, hoping for quick action. Harold spent some money fixing up his place and we sent out about 25 or 30 listings to offices in the neighborhood of the apt bldg. I felt it was going to be a deal when I asked you for the extra time to work it out but I’m not feeling that way now and am truly sorry that it hasn’t worked out for all con *403 cerned. I feel though, that the boys were sincere but you can’t spend sincerity at a store — only $.

I know you wish to sell so if there is any deal pending I’d take it subject to a miraculous event of a sale over here. I talked with Rod Loveless about buying the lower part & Grimnes the upper. He’s coming over.

The trial court found that following this letter the plaintiff made no effort to sell either the Grimnes property or the defendants’ property. Acting upon the assumption that the Grimnes property could not be sold to supply the down-payment on the Grimnes-Wirth agreement, the defendants Wirth listed their property with another real estate broker, who found a prospective purchaser in the spring of 1966. However, this sale did not materialize.

In April, 1966 the Grimnes brothers, learning that the Wirth property had not yet been sold, and still being interested, joined with two other men, Dan and Jack Webb, in an offer to purchase the Wirth property. The parties negotiated the sale without the benefit of plaintiff’s services, and the sale was closed on August 26, 1966. By the terms of this agreement the net proceeds to defendants were the same as provided in the 1965 earnest money agreement between Grimnes and Wirth, but the terms varied widely. The two agreements differed also in that Dan and Jack Tucker were additional parties as purchasers. Upon learning of the sale, plaintiff demanded a commission and, upon defendants’ refusal to pay, commenced this lawsuit.

Plaintiff’s first two assignments of error are directed to certain findings of fact entered by the trial court. We have examined the record and find substantial evidence to support those findings and they will not be disturbed on appeal. Thorndike v. Hesperian Orchards, Inc., 54 Wn.2d 570, 343 P.2d 183 (1959).

Plaintiff next assigns error to the following conclusion of law entered by the trial court:

II.

Plaintiff is not entitled to any commission from defendants in that the earnest money agreement entered *404 into between the plaintiff and Harold G. Grimnes and Robert R. Grimnes is unenforceable for the following two reasons, to-wit:

(a) The offer to purchase was made subject to the purchasers disposing of certain properties on which deals were then pending with said deals to be closed prior to the closing of the transaction contained in the earnest money agreement, said transactions never being closed.

(b) The offer to sell 'and the offer to purchase were clearly made subject to the condition that the sale was to have been closed not later than October 1, 1965.

In Ross v. Harding, 64 Wn.2d 231, 236, 391 P.2d 526 (1964) the court established the following test to determine whether a particular promise to perform is conditional:

Whether a provision in a contract is a condition, the nonfulfillment of which excuses performance, depends upon the intent of the parties, to be ascertained from a fair and reasonable construction of the language used in the light of all the surrounding circumstances. 5 Williston, Contracts (3d ed.) § 663, p. 127.

Any words which express, when properly interpreted, the idea that the performance of a promise is dependent on some other event will create a condition. Phrases and words such as “on condition,” “provided that,” “so that,” “when,” “while,” “after,” or “as soon as” are often used. 12 Am. Jur. § 295, p. 849; 5 Williston, Contracts (3d ed.) § 671, p. 161.

It is clear from the evidence that it was the understanding of the Grimnes brothers as purchasers, and the defendants as sellers, that performance by the purchasers was conditioned upon the sale of the Grimnes property by October 1, 1965. We are unable to give any other construction to the phrase “this offer to purchase is made subject to purchasers disposing of certain properties . . .”

Plaintiff contends, however, that he obtained the Grimnes brothers as purchasers, their offer was accepted by defendants, and even though the Grimnes brothers were unable to obtain adequate financing to purchase before October 1,1965, plaintiff was still entitled to his commission *405 upon execution of the earnest money agreement. Plaintiff bases this contention upon the holding in Dryden v. Vincent D. Miller, Inc.,

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Bluebook (online)
481 P.2d 920, 4 Wash. App. 401, 1971 Wash. App. LEXIS 1360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clarkson-v-wirth-washctapp-1971.