Dardis v. Eddy Brothers

223 N.W.2d 674
CourtNorth Dakota Supreme Court
DecidedAugust 29, 1974
DocketCiv. 8982
StatusPublished
Cited by12 cases

This text of 223 N.W.2d 674 (Dardis v. Eddy Brothers) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dardis v. Eddy Brothers, 223 N.W.2d 674 (N.D. 1974).

Opinions

ERICKSTAD, Chief Justice.

This is an appeal by a licensed real estate broker, Henry Dardis, doing business as [677]*677Dardis Realty, appellant, from a judgment entered July 6, 1973, by the District Court of Stutsman County, as a result of a jury verdict denying him recovery in his action against the heirs of Frank R. Eddy, appel-lees, for payment of a real estate commission, and from a judgment of the same court entered on September 4, 1973, denying his motion for an order for judgment notwithstanding the verdict or in the alternative for a new trial.

Mr. Dardis alleges that on or about March 27, 1970, the Eddys employed him as a broker to find a buyer for approximately 2,500 acres of farmland in the Frank R. Eddy estate; that they agreed to pay him for his services at the rate of 5⅛% on the sale price of the property; that he produced a buyer, John Hollarn, who executed an earnest money contract on April 14, 1970, agreeing to purchase the property for $320,-000; that Hollarn paid $5,000 at the time as earnest money; that Mr. Hollarn was ready, willing, and able to consummate the purchase of the property on the terms submitted by the Eddys, but that the Eddys then refused to sell the property and returned the $5,000 earnest money. Mr. Dar-dis contends he was damaged in the amount of the commission, $17,600, by the refusal to sell.

The Eddys answered and counterclaimed. Their answer asserts that in March and April of 1970, one Vern Hoggarth was a tenant in possession of the land in question under a lease agreement with them; that the sale to John Hollarn was agreeable only if the lease with Hoggarth was properly terminated, and that Mr. Dardis assured them there would be no problem with Hog-garth; that on or about May 4, 1970, Hog-garth commenced a lawsuit against Hollarn seeking to enjoin Hollarn from entering the premises and asking that his lease with the appellees be declared in full force and effect; and that they were prevented from completing the sale with Hollarn because of the action taken by the district court sustaining Hoggarth’s claim.

The Eddys in their counterclaim also allege that Dardis was negligent in attempting to sell the land in question, because he knew about the existing Hoggarth lease and because he led the appellees into making commitments to Hollarn by assuring them that the Hoggarth lease was rescinded.

At the close of all evidence the trial court, over Dardis⅛ objection, granted the Eddys’ motion to amend the answer to assert that because of a mistake of fact or law the listing agreement did not exist.

Upon trial of the action, the jury returned a verdict dismissing the claim of Dardis and the counterclaim of the Eddys.

Mr. Dardis has set forth ten separate specifications of error in his brief, which will be discussed in an appropriate manner later in this opinion. In summary, error is alleged in a denial of Mr. Dardis’s motion in limine, in a denial of several motions to strike, in a ruling on an estoppel question regarding the validity of the listing agreement, in rulings on questions relating to “mistake”, in failing to give a requested jury instruction, in allowing an amendment to the pleadings after submission of all the evidence, and in denying the motion for judgment notwithstanding the verdict or in the alternative a new trial.

The record reveals that this action was commenced in April of 1971, with final pleading served May 20, 1971. Service of the trial briefs was completed October 18, 1972, and a pretrial hearing was held November 30, 1972. The matter was set for trial January 30, 1973, but was later changed by mutual agreement. On December 15, 1972, a motion in limine and supporting documents were forwarded to the district court. On April 4, 1973, after the Eddy reply was submitted, the district court denied the motion. The motion in limine was to the effect that under Section 31-11— 06, N.D.C.C., the Eddys were estopped from denying the existence of a listing agreement for the sale of their property. By it Dardis sought to preclude the Eddys from [678]*678“using any pleading, testimony, remarks, questions, or argument which might inform the jury of this denial”. The trial court denied the motion. The denial of this motion is asserted to be in error.

Dardis asserts that in denying his motion in limine the court permitted the Eddys to take a position at the trial completely contrary to the position they took in breaking their contract originally. He says that our law of estoppel was enacted to prevent that type of unfair treatment. He argues that when the Eddys attempted to rescind the listing agreement, they did so by a notice which merely stated that “the property we have listed with you is as of this date withdrawn”, and that during the trial of the Hoggarth v. Hollarn action involving the legality of the lease, Mr. Hendry K. MacKenzie, the law partner of counsel for the Eddys in the instant case, stated that the reason for returning the $5000 down payment was that the purchaser would not be able to farm the land nor would he be able to purchase it, because of the outstanding lease.

In making his motion in limine, Dardis anticipated that the basic Eddy defense in the trial of this action would be the nonexistence of a listing agreement between Dar-dis and the Eddys, resulting from a mistake of fact or law.

Dardis relies on a 1904 Kansas decision, Redinger v. Jones. In that case the court said:

“ ‘Where a party gives a reason for his conduct and decision touching anything involved in a controversy, he cannot, after litigation has begun, change his ground, and put his conduct upon another and a different consideration. He is not permitted thus to mend his hold. He is estopped from doing it by a settled principle of law.’ ” Redinger v. Jones, 68 Kan. 627, 75 P. 997 at 1001 (1904).

This court has often delineated the essential elements of estoppel. In a recent case we stated that:

“Estoppel is based upon misleading words or conduct of one who is to be estopped, relied upon by the party claiming the benefit of the estoppel, which words or conduct induced the party claiming an estoppel to act or to refrain from acting, to his prejudice.” Frederick v. Frederick, 178 N.W.2d 834 at 839 (N.D.1970).

For sake of argument only, if we were to assume that the Eddys, by their conduct, misled Dardis and that he relied upon their conduct, Dardis still has not shown that he was induced thereby to act to his prejudice.

Considering these circumstances, and being mindful of the fact that the doctrine of equitable estoppel should always be so applied as to promote the ends of justice, this court is compelled to refuse to apply the doctrine of equitable estoppel in this instance.

We accordingly find no error in the trial court’s denial of Dardis’s motion in limine.

Since the same issue is involved in Dar-dis’s motion to strike certain parts of the defendant’s answer, we shall not discuss that motion in detail. It is our view that that issue is determined by what we have thus far said in this opinion.

In appellant’s Issue 3, Dardis contends that the trial court erred in denying plaintiff’s motion to strike from defendants’ answer and counterclaim paragraphs III, IV, and VI, on the grounds that they constitute an insufficient defense.

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Dardis v. Eddy Brothers
223 N.W.2d 674 (North Dakota Supreme Court, 1974)

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Bluebook (online)
223 N.W.2d 674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dardis-v-eddy-brothers-nd-1974.