Dowds v. Armstrong

62 P.2d 411, 17 Cal. App. 2d 485, 1936 Cal. App. LEXIS 600
CourtCalifornia Court of Appeal
DecidedNovember 13, 1936
DocketCiv. No. 1619
StatusPublished
Cited by5 cases

This text of 62 P.2d 411 (Dowds v. Armstrong) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dowds v. Armstrong, 62 P.2d 411, 17 Cal. App. 2d 485, 1936 Cal. App. LEXIS 600 (Cal. Ct. App. 1936).

Opinion

BARNARD, P. J.

The plaintiff brought this action to recover for his services as a real estate broker in procuring an agreement for exchange of properties between the defendants Armstrong and the defendants Adams, although the prayer is for $13,000 “as actual damages, and for the sum of $15,000 as exemplary damages”. Demurrers filed by all defendants were sustained without leave to amend, and from the ensuing judgment the plaintiff has appealed.

This action is based upon three written instruments all dated May 13, 1933, copies of which are attached to the complaint as exhibits. In exhibit “A” it is provided that the Armstrongs, in consideration of one dollar paid them by the appellant, “do hereby give and grant unto the said C. G. Dowds, his heirs or assigns, the option at any time within thirty-three days from date hereof, to purchase the hereinafter described property for the amount and upon the [487]*487terms herein stated”. After describing the property the option provided that the property should include the crop of fruit then growing thereon; that the purchase price should be $65,000; that a trust deed for $29,000 should be assumed by the appellant or his “nominee”; that a contract between the respondent Adams and certain other parties should be assigned to the respondents Armstrong and taken as a payment of $34,000 on the purchase price; that the balance of $2,000 was to be paid in cash in escrow; that the purchase price named was to be net and no commission out of the same was to be paid; and that the agreement was to be void if the $2,000 was not paid or deposited in escrow within thirty-three days.

Exhibit “B” purports to be an agreement between the respondents Adams as first party and the respondents Armstrong as second party, although it was signed only by the first party. It provides for the conveyance by the second party to the first party of the real property described in exhibit “A” on terms considerably different from those set forth in exhibit “A”. Among other things, it is provided that the purchase price is $78,000; that the second party is also to receive from the. first party another piece of real property located in Newport Beach, taking the same at a value of $10,000; that the first party is to pay a cash difference of $5,000; that the Newport Beach property is to be deeded to one Mary L. Stream; that neither party is to pay any commission for procuring this exchange; and that the agreement is to constitute escrow instructions to a named title company when signed by both parties. Exhibit “C” purports to be an agreement between the respondents Adams as first party and the respondents Armstrong as second party, and was signed by the Armstrongs only. With certain exceptions it follows the language of exhibit “B”. However, it contains a paragraph stating that neither party assumes any personal liability for the payment of encumbrances on the properties received. The place for the name of the party to whom the Newport Beach property was to be deeded is left blank. In one paragraph the first party “agrees to pay nothing as a commission for procuring this exchange” and in another the second party “agrees to pay $3,000 and the” Newport Beach property, there being no statement as to whom these are to be paid or for what purpose. It [488]*488also contains the provision that it is to constitute escrow instructions when signed by both parties thereto.

The complaint contains five causes of action. In the first it is alleged that the respondents Armstrong gave the appellant, a licensed real estate broker, or his nominee, an option to purchase certain property as set forth in exhibit “A”; that the appellant through his nominees, the respondents Adams, accepted the offer contained in the option and agreed to pay the amount therein specified and further agreed to pay an additional $13,000 for the property; that the appellant informed the respondents Armstrong of the acceptance of the offer; that all of the respondents thereupon executed an agreement of sale of the property mentioned in the opinion upon the terms therein stated; that thereafter the respondents Armstrong encumbered the property with a crop mortgage and failed to remove it upon demand; that on August 2, 1933, the respondents Adams served notice of their rescission of the exchange agreement; that on August 3, 1933, the respondents Armstrong served notice of their “acceptance of rescission”; that upon the acceptance of the offer contained in the option by the respondents Adams the appellant became entitled to the sum of $13,000; and that the respondents conspired to cheat and- defraud the appellant by agreeing upon a rescission of the exchange agreement. The second cause of action is similar to the first with the exception that, it refers to exhibit “A” as a commission agreement or agency agreement given to the appellant as a real estate broker in order to secure a sale of the property, and alleges the procuring of a purchaser upon the terms of the offer to sell and the purported rescission in order to defraud the appellant out of the $13,000 to which he was entitled. The third cause of action seeks to hold the respondents Armstrong alone upon the ground that they had breached the terms of exhibit “A” to the appellant’s damage in the sum of $13,000 by refusing to comply with the terms of the option after the appellant had informed them that he had procured a purchaser at a price of $13,000 above the price named in the option, and after executing a written acceptance of the purchaser’s offer. The fourth cause of action alleges that the respondents Armstrong gave the appellant a written agency agreement to sell the property in question, that the appellant procured a purchaser and [489]*489earned a commission of $13,000, and that these respondents wilfully and without cause failed and refused to consummate the transaction. The fifth cause of action alleges that the appellant procured a purchaser for the property at the request of the respondents Armstrong, that the reasonable value of the appellant’s services is $13,000, and that these respondents have wilfully and without cause refused to pay for the services. It is further alleged in the complaint that after the execution of the agreements the appellant wrote his name between the word “pay” and the figures ‘1 $3,000’’ in that part of exhibit “C” which is above quoted.

The appellant argues that he is entitled to the amount which the respondents Adams agreed to give for the property described in exhibit “A” in excess of the amount named therein since exhibit “A” was both an option to buy and an agency agreement. He relies particularly on Ruess v. Baron, 217 Cal. 83 [17 Pac. (2d) 119]; Hiss v. Sutton, 203 Cal. 459 [264 Pac. 748]; Sill v. Ceschi, 167 Cal. 698 [140 Pac. 949], None of these cases is of any assistance to the appellant. Exhibit “A” is purely an option to purchase certain property on certain terms, there is no agreement to pay a commission or to turn over all received over a named price, and it contains no agency agreement or authorization to sell the property. Moreover, it runs to the appellant or his nominee and it is alleged that the acceptance of the offer contained in the option was made by the respondents Adams as the nominees of the appellant. No reason appears why these nominees did not succeed to every right which the appellant might have had under the option. It would further appear that the terms of the option were not complied with in that the cash payment was not made or deposited in escrow within the time named in the option.

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Bluebook (online)
62 P.2d 411, 17 Cal. App. 2d 485, 1936 Cal. App. LEXIS 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dowds-v-armstrong-calctapp-1936.