Egner v. States Realty Co.

26 N.W.2d 464, 223 Minn. 305, 170 A.L.R. 500, 1947 Minn. LEXIS 472
CourtSupreme Court of Minnesota
DecidedMarch 7, 1947
DocketNo. 34,335.
StatusPublished
Cited by23 cases

This text of 26 N.W.2d 464 (Egner v. States Realty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Egner v. States Realty Co., 26 N.W.2d 464, 223 Minn. 305, 170 A.L.R. 500, 1947 Minn. LEXIS 472 (Mich. 1947).

Opinion

Peterson, Justice.

Plaintiff sues to enjoin defendants from breaking a sales agency contract entered into between him and Arthur C. Lesch, as copart-ners, as one party, and the defendant States Realty Company, as the other, and for accounting of amounts due for services rendered thereunder. While there are two other defendants, there is no occasion to refer to them, and, because that is true, we shall refer to the realty company as the defendant.

The case was tried upon a written stipulation of facts. Under the stipulation, decision was to be without prejudice to either party’s right to an accounting and damages for breach of contract. Two questions were submitted for decision: (1) Whether the dissolution of the partnership by the withdrawal of Lesch as one of the partners terminated the agency contract; and (2) whether the services to be rendered in performance of the contract by the partnership were of *307 such a character that the contract was not specifically enforceable. The facts giving rise to these questions are set forth in the stipulation of facts.

The parties entered into two contracts: One for an exclusive agency for the sale of cemetery lots owned by Minnesota-Acacia Park Cemetery Association, of which the defendant had the sales agency, and the other for employment of solicitors of purchasers of the lots.

The agency contract was entered into on January 21, 1944. It recites that the contract was between defendant, as the first party, and the partners, as the second party; that the partners “are experienced cemetery lot salesmen”; and that they desired to enter into a contract with defendant for the purpose of finding purchasers and bringing about sales of cemetery lots, which defendant was agent to sell for Minnesota-Acacia Park Cemetery Association. So far as here material, the contract provides that defendant did “hire, employ and engage the services” of the partnership “as exclusive agents” to have general charge of procuring purchasers for the cemetery lots and in connection therewith to carry on necessary promotional sales-work and activities; that for the duration of the contract the partners would not engage in the sale of cemetery lots for others in Hennepin and Eamsey counties; that it was contemplated that the partnership would employ solicitors to procure purchasers of the cemetery lots; that defendant would pay the partnership a stipulated compensation for “services” rendered under the contract; that defendant would pay the solicitors the commissions earned by them; that the contract should be in force until December 31, 1944, and from year to year thereafter, provided the partnership produced a stipulated amount of business; “that one or the other” of the partners “shall devote sufficient of his time and effort to properly supervise and manage the performance of this agreement, or in lieu thereof will employ some person who meets with the approval” of defendant “to do such work”; that if the partnership failed to comply with the last-mentioned provision defendant should have the right forthwith to cancel and terminate the contract; that the contract, not *308 withstanding any other provision thereof, might he terminated by either party for legal canse without notice; and in the event that either of the partners should die before the completion of the contract the surviving partner should have the right to continue the performance thereof, subject to all the terms and provisions thereof, except that the compensation to be paid should be one-half of what it would be if performance was by both partners.

The contract for the employment of solicitors was a separate one regulating, as between defendant and solicitors procured by the partners, the powers and duties of solicitors. It provided that the solicitors were authorized to procure purchasers of cemetery lots, but that they should have no authority to bind defendant in any manner whatsoever; that solicitors should be paid by defendant for their services in the manner therein stipulated; and that a solicitor was an “independent contractor” operating on his “own.” Defendant undertook also to counsel and assist the solicitors in their work. The partners, and apparently all solicitors, signed such contracts.

The parties performed the contracts until February 19, 1915, on which date Lesch withdrew from the partnership. Upon being informed of that fact, defendant elected to treat the agency contract as terminated and so notified the members of the partnership in writing. During the year 1911, the partnership produced business in excess of the amount required to entitle it to continue the contract for another year. While subsequent to February 19, 1915, there was no performance of the contract by any party, plaintiff was ready, willing, and able to perform and offered to do so.

The only importance of the contract for the employment of solicitors here is the contention of plaintiff that, because defendant authorized the employment of solicitors to procure purchasers of cemetery lots, agreed to pay the solicitors their compensation, declared them to be independent contractors and undertook to counsel and assist the solicitors in their work, it shows, when considered with provisions of the agency contract, that the services to be rendered by the partnership were not of a personal nature and could be performed by one as well as by both partners.

*309 Plaintiff contends that, notwithstanding the dissolution of the partnership by Lesch’s withdrawal, he had the right to continue the performance of the agency contract for the reasons that (1) the contract was a joint and several one between defendant and both partners; and (2) the contract was not one for the performance of personal services by the partners, because it called for the production of sales of cemetery lots and not the rendition of services and because, regardless of what otherwise might be the rule, the parties manifested an intention that the services, if they were such, were not of a personal character, since the provisions of the contract were to the effect that the partners should engage solicitors to procure purchasers of the lots; that the solicitors were to be independent contractors; that defendant should pay them directly the commissions for sales produced; that one or the other of the partners should devote sufficient of his time and effort to supervise and manage the performance of the contract; and that in the event one partner died the survivor should have the right to continue the performance of the contract.

Defendant contends (1) that plaintiff has no contract to enforce, for the reason that the agency contract was terminated by operation of law by Lesch’s withdrawal from the partnership; and (2) that, even if the contract was in force, specific performance should not be compelled by enjoining its breach, for the reason that the contract is one for the rendition of personal services not of a unique character.

An agency conferred upon several persons by a single act of authorization is joint and must be exercised jointly by all the designated agents. An act done by a less number is void as against the principal. Trustees of German Ev. Luth. St. John’s Cong. v. Merchants Nat. Bank, 139 Minn. 80, 165 N. W. 491; Rollins v. Phelps, 5 Minn. 373 (463).

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Bluebook (online)
26 N.W.2d 464, 223 Minn. 305, 170 A.L.R. 500, 1947 Minn. LEXIS 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/egner-v-states-realty-co-minn-1947.