Dean Vincent, Inc. v. Stearns

555 P.2d 448, 276 Or. 533, 1976 Ore. LEXIS 619
CourtOregon Supreme Court
DecidedOctober 21, 1976
StatusPublished
Cited by5 cases

This text of 555 P.2d 448 (Dean Vincent, Inc. v. Stearns) 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
Dean Vincent, Inc. v. Stearns, 555 P.2d 448, 276 Or. 533, 1976 Ore. LEXIS 619 (Or. 1976).

Opinion

SLOPER, J.,

Pro Tempore.

This is an action at law brought by the plaintiff, Dean Vincent, Inc., for a commission allegedly earned pursuant to a listing agreement and an earnest money receipt. The case was tried to the court without a jury. The defendant, Ruth Stearns, prevailed in the court below, and plaintiff appeals.

On June 14, 1972, plaintiff and defendant entered into a listing agreement for the sale of defendant’s restaurant. The agreement granted the plaintiff an exclusive right for 180 days and a nonexclusive right for a like period thereafter to sell the defendant’s property for $85,000. The plaintiff’s commission was to be 10 per cent, or $8,500. Thereafter, and on August 19,1972, the plaintiff obtained an offer from one John Gengler to purchase the property for $70,000. This offer was submitted to the defendant who was dissatisfied with the terms of the offer, but not the amount, and refused the offer and advised the plaintiff of a cloud against the title. On August 30, 1972, the defendant executed an earnest money agreement containing different terms, but for a price of $70,000. This agreement was presented to Gengler, who refused the offer because of the cloud on the title.

Shortly thereafter, the defendant suggested to Gengler that they enter into an option contract for the purchase of the property. This option contract was executed by the defendant and Gengler on August 31, 1972. The defendant advised Gengler that the option agreement would be a vehicle by which he would be assured of obtaining the property if he were willing to wait until the title matter could be cleared and also would defeat the plaintiff’s claim for a commission if the option was not exercised until after the nonexclusive provisions of the listing agreement had expired. The defendant thereupon reduced the purchase price from $70,000 to $66,500, which reduction represented one-half of the amount of the plaintiff’s commission based upon a selling price of $70,000. On March 7, [536]*5361973, while the listing agreement was in effect, Gengler exercised the option and tendered performance. The defendant refused to perform. Gengler then instituted a suit for specific performance, which resulted in a decree on April 19, 1974, granting that the option agreement be specifically performed. Finally, on June 5, 1974, the defendant and Gengler, by written agreement, mutually rescinded the option agreement, whereupon the court entered a judgment and decree dismissing the specific performance suit.

The plaintiff’s complaint, as originally filed, based its right to a commission on the earnest money agreement executed on August 30, 1972, by the defendant and Gengler. During trial the plaintiff moved to conform to the proof and amend the complaint so as to include the listing agreement executed by the defendant as a further basis for its commission. The court, over the objection of the defendant, allowed such amendment. The allowance of the amendment was not an abuse of the trial court’s discretion. The defendant’s amended answer, in addition to a general denial, contains three affirmative defenses. The first alleges that the buyer failed and refused to enter into a binding contract to purchase; the second, that the plaintiff breached a fiduciary duty by permitting the buyer to rescind and by refunding the earnest money to the buyer; and third, that the plaintiff breached a fiduciary duty to defendant by failure to obtain a sufficient amount of earnest money to pay plaintiff’s commission. Plaintiff’s reply denies defendant’s affirmative defenses. The plaintiff’s sole assignment of error is that the court erred in concluding that consummation of the option agreement was necessary in order for the plaintiff to be entitled to a commission. Although the defendant does not cross appeal, the defendant assigns as error the admission of evidence not within the scope of the pleadings, and the failure to offer the best evidence of the option contract. These alleged errors are, of course, harmless if the judgment is affirmed. A cross-appeal is unnecessary since the [537]*537respondent does not contend that the judgment is erroneous, and the respondent does make the alleged evidentiary error an issue in this appeal. See Artman v. Ray, 263 Or 529, 501 P2d 63, 502 P2d 1376 (1972).

Having determined that the court’s action in amending the pleadings to conform to the proof was proper, we must reject the defendant’s contention that the evidence was not within the scope of the pleadings. We determine from the record that the only evidence concerning the execution and terms of the option agreement in the plaintiff’s case comes from the testimony of Gengler and plaintiff’s Exhibit 3. When this testimony was offered, defendant made the objection that it was not the best evidence. The court overruled the objection. Plaintiff’s Exhibit 3 is a copy of the Decree for Specific Performance entered by the Clackamas County Circuit Court on April 19, 1974, and included in the Findings of Fact is a finding that there was a valid option agreement existing between the defendant and Gengler and describes the terms of said agreement. Defendant’s Exhibit A, being a Notice of Rescission, also acknowledges the option agreement and its terms. We conclude that the "best evidence rule” is not applicable to the case before us, simply because there is no real dispute as to the execution or the terms of the agreement. In State v. White, 4 Or App 151, 477 P2d 917 (1970), the court stated:

"* * * we hold that the purpose of the best evidence rule is to secure the most reliable information as to the contents of documents when those contents are disputed. If, however, there is no good faith dispute, as here, over the accuracy of the document presented, the 'mystical ideal of seeking "the best evidence” or the "original document” ’ will not be pursued.” 4 Or App at 156. (Footnote omitted.)

In this case, there is no real dispute with respect to the contents of the relevant portions of the option contract. The testimony of Gengler is supported by the plaintiff’s and defendant’s exhibits referred to above. This rule is approved by McCormick on Evidence 578, § 243 (2d ed 1972), and, in addition, it is therein stated, [538]*538"* * *• it seems clear that any departure from the regulations in respect to secondary evidence must be classed as harmless error.”

Finding no error was committed by the trial court in admitting the evidence concerning the option agreement, we examine the terms of the listing agreement to ascertain if the facts as recited above entitled the plaintiff to a commission. The agreement provides, in part:

"In the event said property is sold, leased or exchanged during the period of this contract, or Dean Vincent Inc. procures a purchaser ready, able and willing to purchase at the terms above specified, or places the Owner in touch with a purchaser to whom at any time within 180 days from the termination of the exclusive character of this contract the Owner sells or conveys the said property, or if the Owner during the period of this contract withdraws the authority hereby given, the Owner shall pay to Dean Vincent Inc. the same fee as hereinabove specified, and in any such event, the amount of said fee shall be a lien upon said property. In case of suit or action on this contract, Owner agrees to pay in addition to the above specified fee such sum as the Court may adjudge reasonable as attorney’s fees. Owner agrees to furnish Dean Vincent Inc.

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Bluebook (online)
555 P.2d 448, 276 Or. 533, 1976 Ore. LEXIS 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dean-vincent-inc-v-stearns-or-1976.