Columbia Realty Investment Co. v. Alameda Land Co.

168 P. 64, 87 Or. 277, 1917 Ore. LEXIS 177
CourtOregon Supreme Court
DecidedOctober 23, 1917
StatusPublished
Cited by25 cases

This text of 168 P. 64 (Columbia Realty Investment Co. v. Alameda Land Co.) 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
Columbia Realty Investment Co. v. Alameda Land Co., 168 P. 64, 87 Or. 277, 1917 Ore. LEXIS 177 (Or. 1917).

Opinions

Me. Justice McCamant

delivered the opinion of the court.

1. Plaintiff contends that when it produced a purchaser with whom defendant made a binding contract of sale, it earned its commission of 20 per cent of the purchase price and its right to this commission was not lost by the default of the purchaser or the cancellation of his contract. This is the general rule: Stewart v. Will, 65 Or. 138, 140, 141 (131 Pac. 1027). But it is subject to modification by the contract of the parties. The material question here is whether the contract on which plaintiff relies contains a promise to pay commissions at all events or only out of a specified fund, to wit, the amounts paid by the purchasers. It is provided in paragraph 1 that in default of the extension tentatively provided for the agency should terminate “except that they (the selling agents) shall be entitled to their commission theretofore earned by them * # , the same to be paid when collected by said company.”

In the second paragraph the contract specifies the commissions of the agents and provides:

“Said commissions shall be paid as follows: said agents shall be entitled to take and receive a sum equal to twenty per cent of the selling price aforesaid, out of the first moneys collected from the sale of each and every lot sold under this agreement.”

The foregoing language plainly suggests an intent of the parties to pay commissions out of the' moneys collected from the purchasers of the property. This intent is emphasized by the absence from the contract of an express promise of defendant to pay the commissions. Further light is thrown on the intent of the parties by the following language, found in paragraph 3:

[287]*287“Said Agents may retain ont of each payment collected by them such amount, as herein provided, as may be then due and payable to them as commission aforesaid, but not otherwise.”

The language means that the agents are entitled to retain out of the moneys collected on each sale, such sum as shall suffice to pay the commission earned on that sale. They are not entitled to charge to defendant all commissions earned by all sales effected and retain out of their collections all moneys standing to their credit in such account. It affirmatively appears from the form of agreement attached to the sales contract that the parties contemplated that some of the purchasers would fail to make the monthly payments called for and that some of these agreements of purchase would have to be canceled. The sales contract makes provision for the apportionment between the parties of the expense incident to such cancellations.

In paragraph 8 there is provision for raising the prices of the lots and it is provided that:

“The amount over and above the present selling price # * shall, on all property sold, be divided equally, share and share alike, between said Agents and said Company as a further commission to said Agents, provided that said additional commission shall not be paid until said Company has received fifty per cent (50%) of the purchase price of the lot or lots so sold, when it shall be paid upon demand to said Agents. ’ ’

2, 3. It may be conceded that the language of this contract is not well chosen to effect the purpose in view, but we think the intent of the parties sufficiently appears that plaihtiff was to be paid commissions not at all events, but only out of a specific fund. Such a promise to pay is enforceable only on allegations and [288]*288proof that the fund named is adequate for the payment demanded: Owen v. Lavine, 14 Ark. 389, 396; Waters v. Carleton, 4 Port. (Ala.), 205; National Sav. Bank v. Cable, 73 Conn. 568, 572 (48 Atl. 428); Fulton v. Varney, 117 N. Y. App. Div. 572, 576 (102 N. Y. Supp. 608); Morrison v. Austin State Bank, 213 Ill. 472, 487 (72 N. E. 1109, 104 Am. St. Rep. 225, 233); Kelly v. Bronson, 26 Minn. 359, 360 (4 N. W. 607); Welch v. Mayer, 4 Colo. App. 440, 443 (36 Pac. 613, 614.)

It is held specifically that a real estate broker cannot recover commissions payable out of the purchase price without proof that enough of the purchase price has been paid to cover the commissions claimed: McPhail v. Buell, 87 Cal. 115 (25 Pac. 266); Lindley v. Fay, 119 Cal. 239, 243 (51 Pac. 333); Boysen v. Frink, 80 Ark. 254, 258 (96 S. W. 1056). Plaintiff cites Hugill v. Weekley, 64 W. Va. 210 (61 S. E. 360, 15 L. R. A. (N. S.) 1262), and Cheatham v. Yarbrough, 90 Term. 77, 80 (15 S. W. 1076). These were cases in which the brokers had produced purchasers able, ready and willing to buy and the sales were defeated through the fault of the owners. In the West Virginia case the purchaser refused to buy because the representations of the owner were not borne out by an examination of the property, and in the Tennessee case there was a substantial defect in the title. The question involved in the case at.bar was not determinative of either of these controversies.

4. Plaintiff claims that as the assignment to it of a part of the sales contract left the collections wholly in the hands of Ferguson and Ilamblet, plaintiff’s rights are unaffected by the failure to collect the installments due from purchasers. A stream cannot rise higher than its source. We have seen that the contract pro[289]*289vides only for a conditional payment of these commissions. Such being its effect as between the original parties, the stipulation for payment could not become absolute by the assignment to plaintiff.

5. Plaintiff’s complaint contains no allegation that the fund to which plaintiff was to look for payment of the commissions claimed was adequate for such purpose and the finding of the lower court was that there was no fund applicable to such payment except $65.16. The testimony has not been attached to the bill of exceptions and we are therefore bound to assume that this finding is supported by competent proofs.

6. Plaintiff complains that the lower court refused to receive a number of specifications of evidence offered in plaintiff’s case in chief. This testimony all went to support the plea of estoppel set up in the reply. The complaint failed to state facts sufficient to constitute a cause of action for the reasons above stated. The affirmative matter in the reply was material, therefore, only as tending to rebut the counterclaim pleaded in the answer. The testimony in support of these allegations of the reply could be received only in rebuttal and the court did not err in rejecting the proof as a part of plaintiff’s case in chief.

7. In rebuttal plaintiff made the following offer:

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Cite This Page — Counsel Stack

Bluebook (online)
168 P. 64, 87 Or. 277, 1917 Ore. LEXIS 177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-realty-investment-co-v-alameda-land-co-or-1917.