Dahl v. National Bank of Commerce in New Orleans

196 So. 2d 578, 1967 La. App. LEXIS 5565
CourtLouisiana Court of Appeal
DecidedMarch 6, 1967
DocketNo. 2455
StatusPublished
Cited by2 cases

This text of 196 So. 2d 578 (Dahl v. National Bank of Commerce in New Orleans) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dahl v. National Bank of Commerce in New Orleans, 196 So. 2d 578, 1967 La. App. LEXIS 5565 (La. Ct. App. 1967).

Opinion

SAMUEL, Judge.

Donald E. Dahl, a real estate broker, instituted this suit against the defendant bank for the sum of $7,232.69, representing $6,280 allegedly due him as a real estate commission under a written agreement to purchase real estate and $952.69 as a result of overpayment of an indebtedness. The bank answered denying liability and avert[580]*580ing- that, insofar as the lesser amount was concerned, there had been no overpayment and that the larger amount had been delivered by the bank to plaintiff’s agent, James J. Morrison. The bank also filed a third-party demand against Morrison for indemnification in the event it was cast for all or any part of the $6,280 claimed as a real estate commission. Morrison’s answer to the third-party petition denies liability on his part.

The trial court rendered j udgment on the main demand in favor of defendant, dismissing plaintiff’s suit, and in favor of the third-party defendant, dismissing the bank’s third-party action. As shown in his reasons for judgment, the trial judge found Dahl had constituted Morrison his agent in a pledge transaction in connection with the agreement to purchase, had not revoked that agency, and thus had given Morrison authority to receive the funds at the termination of the pledge.

Dahl has appealed from that part of the judgment which dismisses his suit and the bank has appealed from that part which dismisses its third-party demand in order to protect its rights against Morrison in the event the judgment on the main demand should be reversed on appeal.

From our examination of the record, we find the following facts: At one time Dahl owned a tract of land in Merlie Manor Subdivision in the City of New Orleans upon which his real estate corporation had constructed eight homes. He had mortgaged the property to the bank to secure a $147,-400 loan and was additionally indebted to the bank on two notes in the total amount of $5,000. A part of the note indebtedness was later paid as a result of the sale of stock pledged as collateral security therefor. Chiefly because,of a decline in the market, Dahl was unable to make payments on his real estate loan as they became due and the bank seized and purchased the property at a sheriff’s sale on June 29, 1961. Dahl had various conferences with the bank in an effort to realize some money from the property and subsequently the bank agreed to sell the same, and to pay him a real estate commission, if he could find a purchaser for the entire tract whose credit standing would be acceptable to the bank, provided the purchase price would be sufficiently large as to “make the bank whole”, i. e., sufficient to reimburse the bank for all expenses and loss it had incurred in connection with Dahl’s real estate loan and his two notes. Dahl secured a purchaser in the person of James J. Morrison, who had been his attorney in some matters arising out of the former’s $147,400 loan from the bank.

On July 10, 1961, after the vice-president of the bank who handled the transaction had discussed the matter with Dahl and Morrison on several occasions, with various proposals being made and accepted or rejected in those discussions, Morrison offered to buy the property for $172,000 in a written agreement to purchase signed by him and, as selling agent, by Dahl. The bank accepted this offer and signed the same through its vice-president. Pertinent portions of the agreement state that $5,000 of the purchase price was to be paid in cash and “Balance represented by note secured by mortgage due one year from date at 514% interest and vendor’s lien, agent’s commission of $8,880 to be paid by vendor and remain as collateral security for loan, except $2,600 to be used to liquidate Dahl note.” Three printed sentences relating to the payment of the agent’s commission were stricken out of the agreement which was on a standard printed real estate form.

On October 21, 1961, the act of sale transferring ownership from the bank to Morrison was consummated. At that time cashier’s checks for $2,600 and $6,280 were issued by the bank to the order of Morrison. Dahl was not present at the passage of the act of sale, nor does his signature appear on any instrument other than the agreement to purchase. Morrison endorsed the $2,600 check and returned it to the bank which applied it to the liquidation of the Dahl note in accordance with the agreement. Morrison also endorsed and pledged the $6,280 [581]*581check as collateral security for his $167,-000 loan. Later the bank agreed to permit substitution of a certificate of deposit for the check so the same might earn interest. When the mortgage note for $167,000 was finally paid on December 23, 1964, the bank paid Morrison the $6,280 which had been pledged as collateral security. Although the question of whether Dahl constituted Morrison his agent in the pledge transaction is disputed, and denied by Dahl in his testimony, it is clear that, if such an agency did exist, it was never revoked by Dahl prior to the time the $6,280 was paid by the bank to Morrison more than three years after the signing of the agreement.

The record contains the testimony of only three witnesses, Dahl, Morrison and the vice-president of the bank who handled the transaction. The latter testified: During his discussion with Dahl and Morrison he was informed by them that they had agreed to operate the property as a joint venture with Morrison handling all of the money involved; the bank required that the $6,280 portion of Dahl’s commission be pledged as collateral to secure the loan to Morrison and Dahl expressly authorized payment of the $6,280 by the bank to Morrison so that he, Morrison, could so pledge those funds. Morrison testified: He and Dahl were engaged in a joint venture, not reduced to writing, in which Dahl was to manage the property and attempt to obtain purchasers therefor while Morrison was to receive and handle all funds concerning the property, including the commission in question, and account to Dahl for 50% of the profits ultimately realized; these facts were orally communicated to the bank by himself and Dahl; and the latter expressly authorized the bank to pay the commission to Morrison who would use the $2,600 to liquidate Dahl’s note and pledge the $6,280 as collateral security for the loan to Morrison. Dahl testified there was no joint venture relationship between Morrison and himself and he did not instruct the bank to pay the commission to Morrison for the purpose of the pledge. Counsel for Dahl made timely objection, and reservation of rights under that objection, to all of this testimony.

Counsel for appellant contends the bank was without authority to pay the $6,280 portion of Dahl’s commission to Morrison at the termination of the pledge; that, to the contrary, it was obligated to pay the same to Dahl. He also contends the court erred in admitting, over his timely objection, testimony adding to or changing the terms of the written agreement, citing LSA-C.C. Art. 2276, Bank of Napoleonville v. Knobloch & Rainold, 144 La. 100, 80 So. 214, Clasen v. Excel Finance Causeway, Inc., La.App., 170 So.2d 924, Terrell v. Wright, La.App., 161 So.2d 103 and National Company v. Harper Aviation, Inc., La.App., 146 So.2d 13 and in permitting, also over timely objection, testimonial proof of an oral joint venture relating to the transfer of immovable property, citing LSA-C.C. Arts. 2275, 2276 and Hayes v. Muller, 245 La. 356, 158 So.2d 191.

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Related

Dahl v. National Bank of Commerce
199 So. 2d 914 (Supreme Court of Louisiana, 1967)

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Bluebook (online)
196 So. 2d 578, 1967 La. App. LEXIS 5565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dahl-v-national-bank-of-commerce-in-new-orleans-lactapp-1967.