Cohn v. James McCreery Realty Corp.

92 N.Y.S. 143, 102 A.D. 611

This text of 92 N.Y.S. 143 (Cohn v. James McCreery Realty Corp.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cohn v. James McCreery Realty Corp., 92 N.Y.S. 143, 102 A.D. 611 (N.Y. Ct. App. 1905).

Opinions

INGRAHAM, J.

The plaintiffs sought to recover in this action the sum of $3,000, which they alleged the defendant agreed to pay as commissions for obtaining a tenant for a part of a building that was being erected by the defendant in the city of New York. The case was submitted to the jury, who found a verdict for the defendant, and from the judgment entered thereon the plaintiffs appeal.

The plaintiffs were real estate brokers, and the defendant was a corporation, and the owner of a building on the south side of Forty-Second street in the city of New York, extending through to Forty-First street. One of the plaintiffs testified that in June, 1901, he requested an interview with the defendant’s officers; that an interview with Mr. Robert McCreery, who was a director and treasurer of the company, followed ; that the witness at this interview told McCreery that the plaintiffs had an opportunity of renting his building on Forty-Second street for the purpose of a theater, and asked if he would entertain a proposition of that character; that McCreery said he would let the plaintiffs know if the defendant would entertain such proposition; that the witness, not hearing from McCreery, again called on him, and stated that he was desirous of' knowing what McCreery’s ideas were, and that the plaintiffs were prepared to make an offer of $25,000 a year for a 21-year lease, provided the defendant would alter the building so as to make it suitable for a theater, stating the names of his clients; that again McCreery stated that he was not prepared to give a definite answer, but would take the matter under consideration; that subsequently the plaintiff took with him to see Mr. McCreery an architect for the purpose of suggesting plans for the alteration of the building, and that McCreery and the architect had some discussion about the details of the alterations; that subsequently the plaintiff met McCreery at the office of the proposed tenants, when the question was discussed, and the architect made a general sketch of the alterations. On October 3d there seems to have been another interview in the office of the proposed tenants. At that time there was dictated to a stenographer what was in form a letter to McCreery, and which purported [145]*145to be an agreement to construct a theater on the general plans se'c out in the previous typewritten documents, and stating that the only change was the matter of rents and time of payment, and the amount of rent was then stated. Mr. McCreery refused to sign this document, but wrote in pencil, “Rent O. K., R. S. Me.” There had been estimates as to the expense necessary to alter the building so as to make it suitable for a theater, which it was stated would be in the neighborhood of $80,000. At this interview the plaintiffs suggested to the tenants that it would be advisable for them to give McCreery $500 in order to show good faith; that the tenants started to do it, when McCreery turned around and said, “That is not necessary, gentlemen, my word is my bond,” and that he would have the papers drawn up and sent to him for signature. The witness further testified that there had been discussions about the plaintiffs’ commissions, and McCreery had refused to pay full commissions, but it was finally agreed that the commissions were not to exceed $3,000 and not to be less than $2,500, depending upon the terms and conditions that were made with the proposed tenants.

One of the proposed tenants testified that he conferred with the plaintiff having charge of the negotiations and met McCreery; that the proposal was to get this building altered so that it could be used as a theater, and that there were several meetings at which this subject was discussed; that one day, at his office, the amount of rentals was practically agreed upon; that the tenants’ attorney and McCreery’s attorney were trying to arrange the terms of a lease, and while those negotiations were pending McCreery wrote a letter to the tenants, stating that they had decided not to build; that there were some leases submitted, but the witness did not examine their contents. There is evidence that there were considerable negotiations as to the space that was to be occupied by the proposed theater, and that the architect was employed to prepare plans to show the changes that would be required to construct the theater according to the building laws, regulations, and ordinances of the city of New York. The proposed tenant testified that he was ready to sign an agreement that the defendant was to build a theater for him, and that at that interview with Mr. McCreery at his office the amount of rent which was to be paid if the theater was constructed was agreed to. The architect testified that he was consulted about the construction of this theater® that he prepared an estimate of the cost of changing the building into a theater, aggregating $80,300; that the first proposition that was made was to use 75 feet of the building on Forty-First street, with a 20-foot entrance on Forty-Second street; that it was subsequently determined that that would not give sufficient space, and the tenants wished to take an additional space on Forty-Second street; that other plans were drawn with more space, making an entrance on Forty-Second street of 25 feet, instead of 20 feet. On behalf of the defendant the draftsman of the architect testified that he made this sketch of the proposed theater; that he did not regard this as a complete plan; that he commenced work on these plans on September 23, 1901,_ and did the last work on them on October 18th of the same year; that on October 18th he stopped work, and did not do anything further. Mr. McCreery? tes[146]*146tified that they had several meetings with the proposed tenants, and several papers were drawn up tentatively as forming a basis on which a lease could be made; that he met the tenants at the architect’s office, and that all the negotiations were simply tentative; that they continued working on a general plan for a lease to see if some conclusion could be arrived at, but that none was, and in the end the defendant concluded not to alter the building so as to make it suitable for a theater owing to the large decrease in the space which would be left in the building; that on October 3d the position was that the tenants had been brought to a position where they were satisfied, so that he then knew exactly what the tenants wanted; that when McCreery found out what the tenants wanted the question was whether or not they would go ahead and make the alterations, and they finally decided that they would not. It was further proved that there was no resolution of the directors of the company or the executive committee authorizing any lease or agreement for a lease.

It is quite evident that there never was a definite agreement, verbal or otherwise, between the defendant and the proposed tenants for a lease of this property. The original negotiations were started at the instance of the brokers, and the proposition was submitted by them to the defendant to alter this building into a theater. The defendant never did any more than consider this offer. It involved an expenditure by the defendant of a sum exceeding $80,000, and necessarily, before there could be a definite agreement, plans of the proposed alternations had to be made. The evidence is undisputed that these plans were never completed.

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Bluebook (online)
92 N.Y.S. 143, 102 A.D. 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cohn-v-james-mccreery-realty-corp-nyappdiv-1905.