Ducummon v. Johnson

47 N.W.2d 231, 242 Iowa 488, 1951 Iowa Sup. LEXIS 346
CourtSupreme Court of Iowa
DecidedApril 4, 1951
Docket47842
StatusPublished
Cited by7 cases

This text of 47 N.W.2d 231 (Ducummon v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ducummon v. Johnson, 47 N.W.2d 231, 242 Iowa 488, 1951 Iowa Sup. LEXIS 346 (iowa 1951).

Opinion

Thompson, J.

Plaintiff’s petition alleges that in October 1946 he was a licensed real estate broker, and at that time he was orally employed by defendant to sell 320 acres of land in Palo Alto' County, Iowa, for $225 per acre, and that upon procuring a buyer ready, willing and able to purchase on terms specified by defendant plaintiff was to receive a commission of two per cent of the purchase price.

It is further alleged that plaintiff showed the land to one M. S. Grossnickle on August 22, 1947, and immediately thereafter Grossnickle purchased it from defendant at a price believed to be $72,600. Refusal to pay plaintiff a commission is further pleaded.

Defendant’s answer denies that plaintiff was a licensed real estate broker, admits the oral listing agreement as claimed by plaintiff, but denies an exclusive agency in plaintiff. Defendant admits the sale to Grossnickle, but denies that the price was $72,600; denies that plaintiff was the procuring cause of the sale; alleges that he had no knowledge plaintiff had showed the land to Grossnickle, and admits that he paid no commission to plaintiff. There was a trial to a jury and verdict and judgment for plaintiff in the sum of $1440, as prayed.

Upon oral argument and submission of the cause in this court defendant, through his counsel, announced that he relied upon three grounds for reversal. With one omission, which will be noted later, they are, in substance, the same as those set out in the “Statement of Errors” or errors relied upon for reversal in defendant’s written brief and argument. They will be considered in the order presented.

I. The first error claimed arises from plaintiff’s fáilure to show that at the time he sold to Grossnickle defendant had notice or knowledge that plaintiff had ever shown the land to Grossnickle. This, defendant thinks, is in itself sufficient to prevent a recovery by plaintiff.

Certainly the evidence here shows that plaintiff had not notified defendant that he had contacted Grossnickle as a pro *491 spective purchaser prior to the time the contract for the sale was made. And, just as certainly; we have held that under certain circumstances such failure to notify, in the absence of knowledge obtained by the seller in some other way, bars a finding for the plaintiff. Fawley v. Sheldon, 180 Iowa 795, 163 N.W. 585; Gilbert v. McCullough, 146 Iowa 333, 125 N.W. 173; Blodgett v. Sioux City & St. Paul Ry. Co., 63 Iowa 606, 19 N.W. 799. Other cases might be cited.

However, some examination of the evidence in the case becomes important at this point. Plaintiff testified that on August 22, 1947, at Grossnickle’s request, he took him out to show him farms which plaintiff had listed for sale. Grossnickle was a long-tiiñe neighbor of defendant, living about three miles distant. Plaintiff’s testimony is that he drove to and along the Johnson farm, telling Grossnickle it was for sale at $225 per acre, and that plaintiff considered it about the best buy he had. Gross-nickle said he was not interested; that the farm was weedy and the fences and buildings not good. Plaintiff testified to some further conversation; that he took Grossnickle to look at other farms; that on the way back in the late afternoon he attempted to take Grossnickle to talk to defendant but Gross-nickle again said: “I am not interested. Take me home.” Gross-nickle did, however, ask plaintiff to take him along the west side of the Johnson farm, saying he had not seen that quarter for quite a while.

Further testimony by plaintiff shows that on the next morning, August 23, he went to the defendant’s home but was unable to see him. Beturning in the afternoon of the same day he was told by defendant that he had sold the farm to Gross-nickle.

Some of the matters set forth above as part of plaintiff’s testimony are denied by Grossnickle and by defendant. But since defendant raised the question of notice and knowledge only by motion for directed verdict, we must take the evidence in its aspect most favorable to plaintiff. The question is, assuming that those things are true which the jury could have found to be true, was the defendant entitled to a verdict direction notwithstanding ?

It will be observed that, upon his own version, plaintiff *492 had almost no opportunity to. advise the defendant that Gross-nickle was his customer. The 'sale was made overnight. Gross-nickle refused to go with plaintiff to. talk with the defendant on the late afternoon of August 22. Plaintiff was unable to see the defendant on the morning of August 23 although he called at his farm. Finding him in the early afternoon of the same (lay he was told (which .apparently he had learned some hours earlier) that the sale was made. If plaintiff had a duty to tell his principal, the defendant, that he had produced Gross-nickle as a customer it is difficult to see how he could have performed it more promptly than he attempted to do; or, in another view, how he could have performed it before Grossnickle had contacted the defendant and they had made the contract of sale. We should be reluctant, in any event, to approve a rule of law which would place such an almost impossible burden upon the broker. Reasonable promptness, under all existing circumstances, seems all that should be required. However, it is not necessary to analyze that feature of the situation further. There are two other points appearing in the record which take all force and merit from defendant’s contention concerning lack of notice or knowledge.

First, there is the plaintiff’s testimony as to the brokerage contract. He says:

“We made the deal on the commission and then I said, ‘Now, Mr. Johnson, if I find a buyer for this farm before I sign a contract with him I will bring the buyer to you so we will know where we are at, and I will expect the same thing of you,’ and he said, ‘All right, and if I get someone interested I will let you know too.’ ”

The jury could have found that the defendant had agreed to notify plaintiff if he, the defendant, had a prospect. It is sure that if he had done so in this case he would have learned promptly, and before closing the contract, of plaintiff’s claim. The defendant’s want of notice or knowledge, in this viewpoint, stems from his own failure to do as he had agreed.

Nor, upon analysis, is there any authority in Iowa which requires a broker to give notice to his principal when the sale is made by the latter at the price fixed in the listing agreement. *493 This case is ruled by Rounds v. Alee, 116 Iowa 345, 348, 89 N.W. 1098, and Kelly v. Stone, 94 Iowa 316, 62 N.W. 842. In the Bounds case we said:

“The fact that defendant did not know Gravesen had been sent to him by plaintiff is not controlling. It was no part of the contract. All he was to do was to find a purchaser who was ready, able, and willing to buy, or would in fact buy; and if he did, the contract was fulfilled, regardless of defendant’s information of what he had done.”

The distinction between Bounds v. Alee, supra, and the authorities, supra, relied upon by defendant is shown thus in Gilbert v. McCullough, supra, at page 334 of 146 Iowa:

“In Rounds v.

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Bluebook (online)
47 N.W.2d 231, 242 Iowa 488, 1951 Iowa Sup. LEXIS 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ducummon-v-johnson-iowa-1951.