Craib v. Committee on National Missions of the Presbytery of Detroit of the United Presbyterian Church, U.S.A.

233 N.W.2d 674, 62 Mich. App. 617, 1975 Mich. App. LEXIS 1099
CourtMichigan Court of Appeals
DecidedJuly 22, 1975
DocketDocket 20703
StatusPublished
Cited by12 cases

This text of 233 N.W.2d 674 (Craib v. Committee on National Missions of the Presbytery of Detroit of the United Presbyterian Church, U.S.A.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Craib v. Committee on National Missions of the Presbytery of Detroit of the United Presbyterian Church, U.S.A., 233 N.W.2d 674, 62 Mich. App. 617, 1975 Mich. App. LEXIS 1099 (Mich. Ct. App. 1975).

Opinion

M. F. Cavanagh, J.

On July 8, 1969, plaintiff broker produced a written offer by Vogue Management Company to purchase a certain parcel of property adjacent to Peace Presbyterian Church. The property was owned by the defendants, two ecclesiastical corporations. The offer was conditional upon the property being rezoned for multiple family use and upon a closing within 30 days of the rezoning but not later than nine months *619 after the seller’s acceptance. Also included in the contract proposed by Vogue Management Company was a provision for the seller’s payment of a broker’s commission to the plaintiff upon consummation of a sale.

On November 7, 1969, the offer was accepted contingent upon approval by the congregation and corporation of Peace Church and upon the approval of the Presbytery of Detroit. These two approvals were given shortly after the acceptance. It is undisputed, however, that the rezoning condition was not accomplished until January of 1971.

Subsequent to July 7, 1970, when the nine month time limitation of the agreement expired without a closing, Vogue Management Company and the defendants continued to negotiate. Vogue . extended a number of offers to the defendants with varying terms. A dispute between the two resulted in a litigation which was finally settled on January 28, 1972. In the settlement, the defendants sold the property to Vogue under considerably different terms than the 1969 agreement. The final agreement contained no provision for the payment of a broker’s commission. When the defendants refused to pay plaintiff a commission, plaintiff instituted this action.

Defendants-appellants argue on appeal that the trial court erred in permitting the jury to evaluate whether the 1969 agreement was extended in a manner satisfying the statute of frauds.

Much of the present controversy revolves around the effect of a "Certified Copy of Action by the Presbytery of Detroit” signed by the Stated Clerk of the Presbytery on January 25, 1972. The defendants were required to gain permission for the sale from this parent judicatory entity. The Presbytery first granted permission to sell the property *620 under the 1969 agreement terms on January 27, 1970. The certificate of action recites that permission was given and further certifies "that said action has not been set aside or rescinded and remains in full force and effect”. A certificate in this form dated February 18, 1970, was given to Vogue Management Company. Later on January 25, 1972, just prior to consummation of the sale, another such certificate utilizing the same language was presented to the purchaser.

At trial the plaintiff argued that, although the 1969 agreement was terminated by operation of its own conditions, this agreement was extended by the January 25, 1972, certificate. Further, he argued that the certificate, along with the 1969 offer and acceptance, satisfied the statute of frauds. Apparently concluding that the language of the certificate was ambiguous, the trial court submitted the matter to the jury for resolution.

Where the language of a writing is not ambiguous, its construction is a question of law for the court. Dykema v Muskegon Piston Ring Co, 348 Mich 129; 82 NW2d 467 (1957). It is the duty of the court, not the jury, to define what is and what is not within the terms of a written contract. Curbelo v Macomb County Community College Trustees, 38 Mich App 432, 435; 196 NW2d 843 (1972).

We conclude that the meaning of the certificate of action is unambiguous and that the document cannot constitute an extension of either the 1969 buy and sell agreement or the broker’s contract. The signatory of the certificate was not the purchaser, the seller or the broker. Moreover, by the plain language of the document the Presbytery merely stated that it had not rescinded its grant of permission to the defendants to sell the property. *621 Not only was it erroneous to submit this matter to the jury, but the conclusion reached — that the certificate constituted a written extension — was also in error.

The Michigan statute of frauds, MCLA 566.132; MSA 26.922, requires that every contract to pay a commission for or upon the sale of any interest in real estate must be in writing and signed by the party to be charged or by a lawfully authorized agent. Although there has been considerable judicial debate as to exactly what must be contained in the writing of a broker’s contract, it is clear that the memorandum must sufficiently disclose the terms of the agreement. Benedek v Mechanical Products, Inc, 314 Mich 494, 502, 514; 22 NW2d 901 (1946). See also Paul v Graham, 193 Mich 447; 160 NW 616 (1916), Cochran v Staman, 201 Mich 630; 167 NW 1015 (1918), and Farah v Nickola, 352 Mich 513; 90 NW2d 464 (1958).

Under these principles, it must be concluded that only the provisions of the July 8, 1969, offer by Vogue Management Company, regarding a broker’s commission, can satisfy the statute of frauds. This buy and sell agreement was conditional upon a rezoning and closing within nine months of the seller’s acceptance. These conditions did not occur. Thus, the crucial question in this appeal is whether a broker should be entitled to a commission based on an agreement which expired before the terms of the broker’s contract were satisfied.

Plaintiff argues that a broker’s right to a commission does not depend upon consummation of a sale, but upon procuring a buyer ready, willing and able to buy on terms acceptable to the seller. He relies primarily upon West v Newton, 229 Mich 68; 201 NW 196 (1924). West involved an exclusive listing agreement, the terms of which *622 stated that the broker was to be paid a commission upon sale of property "for $300 an acre or any other sum” defendants might accept. After the agency expired, the purchaser and owner contracted to sell the property for $285 an acre. The Court held that the broker had fulfilled the contract’s terms by producing a purchaser willing to pay a sum which the defendants were willing to accept.

In West, the plaintiff contended that the owner waited until the exclusive listing agency had expired before concluding a sale in order to avoid the payment of a commission. West, supra, 229 Mich 68, 70. The Court concluded that the defendants could not refrain from paying the commission by canceling the agency and making the sale themselves. Id. at 72. In contrast, there was no allegation that the owners in the present case sought in bad faith to avoid payment of a commission. 1 The consummation occurred more than two years after the original buy and sell agreement and after considerable negotiations. Additionally, the relationship between the broker and owner was not, in this case, an exclusive listing agreement.

The plaintiffs position that a broker, in all cases, need only produce a ready, willing, and able prospect is not borne out by the cases.

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Bluebook (online)
233 N.W.2d 674, 62 Mich. App. 617, 1975 Mich. App. LEXIS 1099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/craib-v-committee-on-national-missions-of-the-presbytery-of-detroit-of-the-michctapp-1975.