Donlon v. Babin

44 So. 2d 134, 1950 La. App. LEXIS 451
CourtLouisiana Court of Appeal
DecidedJanuary 31, 1950
Docket3184
StatusPublished
Cited by10 cases

This text of 44 So. 2d 134 (Donlon v. Babin) 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
Donlon v. Babin, 44 So. 2d 134, 1950 La. App. LEXIS 451 (La. Ct. App. 1950).

Opinion

44 So.2d 134 (1950)

DONLON
v.
BABIN.

No. 3184.

Court of Appeal of Louisiana, First Circuit.

January 31, 1950.

Nicholls Pugh, Jr., Lafayette, for appellant.

Dugas & Bean, Lafayette, for appellee.

ELLIS, Judge.

This is a suit by a real estate agent for a commission alleged to be due him as the *135 result of the sale of property by the defendant.

From a judgment in favor of the defendant the plaintiff has appealed.

It is shown that the defendant, Haywood Babin, together with his two sisters, Hazel and Louisiana Babin, owned in indivision (an undivided one-third interest to each) a lot of ground with improvements in the City of Lafayette and, being desirous of selling the property, the defendant, individually and as the admitted agent of his two sisters and co-owners, on February 9th, 1948 went to the plaintiff, who was a licensed real estate broker who had been doing business in the City of Layfayette for thirty years, which resulted in the employment of the plaintiff by a written contract which is known as "exclusive listing." The contract, among other stipulations, contained the following:

"I/we employ you or your successors, exclusively, with the sold exclusive right, to sell the same for $4200.00 cash * * * or for any other price, or terms as may hereafter be agreed upon and I/we agree to pay you or your successors a commission of 5% on the gross amount of any deal (agreement to sell or exchange) bearing on said property (minimum commission of $25.00) that may be negotiated during the existence of this contract * * *. In case of employment of counsel to enforce this contract, I/we will pay all costs and attorney's fees."

"I/we agree to refer all applicants to you and not to interfere in the sale of the property during the term of this contract."

"* * * As you are to act upon the faith of this employment and contract, it is to remain in full force and effect for a period of six months from date."

The above contract was signed by Haywood Babin, individually, and the names of his two sisters and co-owners, Hazel Babin and Louisiana Babin, appear on the contract above the signature of "Haywood Babin, Agent," which authority was admitted.

On July 19th, 1948, prior to the expiration date of the contract which would have been August 9th, 1948, the defendant, together with his co-owners, Hazel and Louisiana Babin, sold the property by warranty deed to the Home Building and Loan Association for a consideration of $3,000.00. On the same day, July 19, 1948, the Home Building and Loan Association sold or retransferred the property to the previous co-owner, Hazel Babin, also for a consideration of $3,000.00, represented by a mortgage note in that amount with the usual vendor's lien and privilege retained by the homestead association.

It is shown that prior to this sale, the defendant attempted to contract the plaintiff with regard to the homestead transaction but was unable to do so, and as the defendant was in need of money, he and his sisters agreed that they would negotiate the homestead transaction whereby all three would sell the property to the homestead for $3,000.00 and the homestead would retransfer the property to Hazel Babin, and with the money received from the homestead for which it retained a mortgage, Hazel Babin paid to the defendant $1,000.00 for his undivided one-third interest, and the same amount of money to Louisiana Babin for her like interest.

There is testimony to the effect that should Hazel Babin subsequently sell the property for more than $3,000.00 she agreed to divide all over that amount equally with her brother and sister. However, she had never sold the property to the date of the trial and had, as a matter of fact, made improvements with all or a portion of the $1,000.00 which she received from the Homestead Association.

It is not disputed that the defendant understood the contract and that the plaintiff had fulfilled his part of the contract insofar as attempting to sell or exchange the property but had not produced a purchaser before the sale to the homestead by the defendant and his two sisters and co-owners and the transfer or resale by the homestead to Hazel Babin.

It is the contention of the plaintiff that the sale of the property during the life of and under the terms of the contract constituted a breach thereof, which entitled him to his commission and attorney's fees, *136 which counsel requests be fixed at $75.00, and all costs of court.

Counsel for defendant, in his brief, contends that there are two questions before this Court for determination, viz.:

"I. Was the transaction entered into between Haywood Babin, defendant herein, and his two sisters a `deal' such as was contemplated by the parties at the time of the listing, and is said `contract of listing' enforceable by the courts?"

"II. Assuming the Court finds that there is liability on the part of defendant, what is the amount of liability—is there liability in solido as to defendant."

In answer to the first question, counsel argues that the word "deal" in the listing contract is defined in Winston's Dictionary, College Ed. Copyright 1940, and Roget's Thesaurus as having a variety of meanings which would include agreements to purchase, agreements to sell, contracts of listing, acts of mortgage, donations, pledges, money collected and "what have you." Counsel for defendant follows this in his brief with a statement as follows: "Could it be seriously contended that plaintiff would be entitled to his 5% commission on the total amount if the defendant and his sisters would have mortgaged the property for the sum of $5,000.00? Actually, that is what Haywood Babin and his sisters did and intended to do at the time the arrangement between them was made. Is the provision of the Donlon listing contract such that to enforce it would lead to absurd consequences?"

In answer to the above, the contract itself is clear as to the meaning intended in the contract by the word "deal", for immediately thereafter in parenthesis is "agreement to sell or exchange" which refers to and defines this word and, therefore, it clearly would not cover an act of mortgage. There was no intention on the part of the defendant or his sister, Louisiana Babin, to mortgage their interest in the property, else they would have actually done so, or, along with their co-owner, Hazel Babin, would have repurchased or caused to be re-transferred to them the property in question. They did not do this but sold their interest to the homestead for a valid consideration which each received. It might be said that the transactions were, in effect, a sale to their sister and co-owner Hazel Babin. Under any interpretation, the defendant and Louisiana Babin sold their interest. The purchase of property by Building and Loan Associations and a resale of the property at the same time is a sale of said property with the vendor's right and privilege. See Holloman v. Alexandria & Pineville Building & Loan Association, 137 La. 970, 69 So. 764, and Capillon v. Chambliss, 211 La. 1, 29 So.2d 171.

It is the contention of the defendant that the transfer to the association was not such a sale as would render him liable for the commission and that to hold to the contrary would lead to an "absurd consequence," in violation of Article 1945 of the Civil Code as the defendant did not intend to bind himself and his co-owners to do nothing with the property insofar as exchanging or selling to each other was concerned. Counsel for defendant adopts the reasoning of the Trial Judge on this point to the effect that "clearly they did not need a broker to sell to each other.

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Bluebook (online)
44 So. 2d 134, 1950 La. App. LEXIS 451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donlon-v-babin-lactapp-1950.