Clay v. Butler

112 S.E. 697, 132 Va. 464, 1922 Va. LEXIS 40
CourtSupreme Court of Virginia
DecidedJune 15, 1922
StatusPublished
Cited by29 cases

This text of 112 S.E. 697 (Clay v. Butler) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clay v. Butler, 112 S.E. 697, 132 Va. 464, 1922 Va. LEXIS 40 (Va. 1922).

Opinion

West, J.,

delivered the opinion of the court.

On February 3, 1919, A. L. Butler, executor of Gertrude L. Clay, entered into a written contract with John Coles Clay, employing him to sell certain real estate and personal property in Campbell county, Va., known as the John W. Clay estate. A. L. Butler was also guardian of Alice E. and Susan I. Clay, who, under the wills of their father and mother, John W. Clay and Gertrude L. Clay, were the owners of this estate. The contract provided that Clay should have as remuneration for his services ten per cent of the selling price, and that the sale price and commissions should be subject to the confirmation of the court.

Clay found a purchaser at $86,000, and on May 14, 1919, informed N. C. Manson, 'Jr., attorney for the guardian, that he had agreed to divide his commissions with the guardian.

Butler, as guardian for his ‘ said wards, instituted the proper proceeding in Campbell Circuit Court to have the sale confirmed. The bill, filed by him on the first Monday in June, 1919, alleged that, while the contract called for a commission of ten per cent of the selling price, Clay had agreed to accept a commission of five per cent thereon, which the complainant asked to be paid.

On June 4, 1919, a decree was entered confirming the sale and directing the commissioner, N. C. Manson, Jr., to pay John Coles Clay five per centum upon the amount of the sales for his services in making the sale.

[468]*468At the November term, 1919, Commissioner N. C. Manson, Jr., who had collected the cash payment for the property, submitted a report to the court setting out all the facts with reference to the agreement between Clay and Butler to divide the commissions, and filed with his report a certificate of deposit for $2,159.00, the one-half of the commissions that were to go to Butler, and ásked the direction of the court as to its disposition, and that a rule be awarded against Clay and Butler, requiring them to have their respective claims to the fund determined in the cause. Butler and Clay filed answers to the rule so issued, setting up their respective claims, and each took depositions to support his claim. On November 20, 1920, a decree was entered adjudging that the contract and agreement, by which A. L. Butler was to receive one-half of the commissions on the sale, was illegal and that his said wards were entitled to receive the one-half of the commissions contracted for by their said guardian, as a condition of his consent to the sale of their property. From this decree, John Coles Clay was granted an appeal.

The appellant contends that the decree of November 20, 1920, is erroneous for the following reasons:

(1) Because there had been a locus poenitentiae, and the unlawful design had not been consummated, but, on the contrary, had been abandoned and repudiated by the said Clay.

(2) Because the defendant, Clay, did not stand in pari delicto with Butler, the guardian, who imposed upon Clay the unlawful and burdensome agreement to split the commission under circumstances which occluded Clay’s freedom of will.

(3) Because the defendant, Clay, is entitled to a trial by jury, and the court had no power to deny him this constitutional privilege and adjudicate his rights under an informal proceeding instituted merely by a rule of the court.

[469]*469(4) Because the decree complained of undertakes in part to reverse and set aside a former decree of the court which could only be disturbed by regular and proper proceedings on a bill of review, or petition for rehearing, filed for that purpose.

Assignments of error one and two will be considered together, and the proper disposition of them will depend largely, upon the facts shown in evidence.

Did Clay agree to divide his commissions with Butler in the event that only five per cent was allowed him for making the sale?

The written contract called for a commission of ten per cent of the selling price, subject to the confirmation of the court.

Both parties admit that they did enter into an agreement, before the suit was filed, whereby Butler was to receive one-half of the commissions which Clay collected for making the sale. Clay says he had secured a purchaser and that Butler told him if he did not get something out of it, he would not let the sale go through, and that he, Clay, made the agreement because it would be saving the work he had done, and that his agreement did not apply to the five per cent finally allowed by the court. Butler claims that he was to have orie-half of whatever commission the court allowed and that the agreement applied to the five per cent just as it would have applied to the ten per cent had the court allowed ten per cent.

The entire matter of commissions, under the terms of the written contract, being left to the determination of the circuit court, and the parties not knowing whether the court would allow ten per cent, five per cent, or two and one-half per cent, it cannot be said that the admitted agreement to divide the commissions was effective only in the event that the court allowed ten per cent. It is true that Clay testified that he told Butler, after Attorney Manson [470]*470informed them that he would recommend to the court to allow only five per cent, that he would not divide with Butler the commission of five per cent, and that Butler agreed to it. But Butler contradicts this, and says that he was to receive one-half of the commissions allowed by the court, regardless of the per cent allowed. W. E. Hazlewood testified that he heard Clay and Butler say there was to be an equal division of the commissions between them, and that Butler would recommend a ten per cent commission, but of course that would be subject to the confirmation of the court.

Clay informed Attorney Manson of the agreement to divide the commissions with Butler, before the suit was filed, but asked him to treat the matter as confidential. Manson expressed astonishment, and informed him that the contract was illegal and improper. A few weeks later, June 4, 1919, Clay and Butler appeared before Judge Barksdale and urged him to allow Clay a commission of ten per cent for making the sale. It further appears from the statement of Judge Barksdale, which is read as evidence by consent of parties, that when he informed Clay and Butler that he would gnter a, decree with a provision allowing a commission of five pér cent, or not enter it at all, they made no mention of a division of commissions, and the decree seemed satisfactory to both. 1ST. C. Manson, Jr., testified that “the statement of Mr. Clay was that the commissions on the sale were to be divided. He did not enter into any details further than this. He made no distinction between, the ten per cent and the five per cent commission; nothing was said on the subject.” If, as he contends, Clay was to receive one-half of a ten per cent commission or all of the five per cent commissions, it is difficult to explain his conduct in urging Judge Barksdale to allow ten per cent instead of five per cent.

[1] It appearing from the terms of the admitted contract [471]*471for a division of the commission that Clay agreed to pay Butler one-half of whatever commissions the court allowed, the burden was on Clay to show that subsequently that contract was canceled, or so modified as not to apply to a commission of five per cent.

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Cite This Page — Counsel Stack

Bluebook (online)
112 S.E. 697, 132 Va. 464, 1922 Va. LEXIS 40, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clay-v-butler-va-1922.