Espalla v. Lyon Co.

146 So. 398, 226 Ala. 235, 1933 Ala. LEXIS 499
CourtSupreme Court of Alabama
DecidedJanuary 19, 1933
Docket1 Div. 728.
StatusPublished
Cited by7 cases

This text of 146 So. 398 (Espalla v. Lyon Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Espalla v. Lyon Co., 146 So. 398, 226 Ala. 235, 1933 Ala. LEXIS 499 (Ala. 1933).

Opinion

*239 GARDNER, Justice.

The cause was tried on plaintiffs’ part upon count 9 as amended (appearing in the report of the case), which was fashioned after the complaint in Charles R. Byrd & Co. v. Age-Herald Pub. Co., 219 Ala. 505, 122 So. 831, and which seeks damages within the contemplation of the parties in the amount of plaintiffs’ commission as a broker arising from the breach of the special contract therein set out.

At the conclusion of the evidence, there was a directed verdict for the defendant, and the action of the court in giving such charge presents the question of first importance on this appeal.

The partnership of Joseph Espalla, Jr., & Co. was composed of Joseph Espalla, Jr., and J. E. Crabtree, Jr., and was engaged in a general real estate business, including selling and renting property for owners.

Joseph Espalla, Jr., conducted all negotiations as to the contract, the subject-matter of this litigation, but we think it clearly inferable from the proof that such transactions were within the course of the firm’s business (47 Corpus Juris, 996), and in fact a partnership affair. The - suggestion to the contrary is without merit.

We also entertain the view' that the authority of R. W, Hamill, president of defendant corporation, to make a binding agreement, was a jury question. The resolution of the directors of May 2,1911, is to be read in connection with the broad language of the corporation’s by-laws, and all of which is to be considered in relation to the evidence tending, to show said Hamill was not only the president and general manager of the corporation, but in fact its alter ego, particularly so far as concerned transactions of this character which were embraced as a part of the primary purpose of its organization. Navco Hardwood Co. v. Bass, 214 Ala. 553, 108 So. 452; Jerome H. Sheip, Inc., v. Baer, 210 Ala. 231, 97 So. 698; Georgia Cotton Oil Co. v. Carlisle Seed Co., 200 Ala. 226, 75 So. 9S4; Ala. City, G. & A. Rwy. Co. v. Kyle, 202 Ala. 552, 81 So. 54.

It is suggested the affirmative charge is to be justified upon the theory of a variance between the pleading and proof as to the title proving satisfactory to the attorneys for the purchasers. But we think the proof discloses no such material variance. In the absence of stipulation to the contrary, the contract would imply the purchasers were to receive a good and marketable title. Messer-Johnson Realty Co. v. Security Savings & Loan Co., 208 Ala. 541, 94 So. 734; Baker v. Howison, 213 Ala. 41, 104 So. 239, 52 A. L. R. 1452.

The parties, however, could validly stipulate that the title prove satisfactory to the purchaser’s attorney, imposing in this respect more strict requirements, but nevertheless leaving no room for capricious rejection, but requiring any dissatisfaction be founded and entertained in good faith. McDennis v. Finch, 197 Ala. 76, 72 So. 352.

True, Espalla testified the cash payment following the earnest money deposit was to be paid when defendant furnished abstract of title, allowing ten days for its examination, and the title found to be good, omitting reference to the opinion of attorneys thereon. Considering the magnitude of the sum involved, it may be the jury, in the light of the testimony of two of the proposed purchasers (Prine and Boykin), would - have been justified in interpreting the language of Espalla to mean the title as thus examined should be found good by the attorneys. But this aside, all doubt as to the true meaning is relieved by the testimony of R. W. Hamill and Matlock, witnesses for defendant, to the effect that Espalla’s proposal as to. sirch payment was conditioned upon the approval of the attorneys that the title was good. Transcript, pp. 109, 123, 127.

Nor is there merit in the suggestion that by reason of the requirement of approval of title by attorneys the proposed contract was for a purchase of an option only, which would permit of no compensation to the broker whose undertaking, as here, was to procure a purchaser. 9 Corpus Juris, 604. Tlie discussion of the question in McDennis v. Pinch, supra, should suffice to demonstrate that such a contract stipulation was valid, and such requirement does not render it a mere option.

The optional feature of the contracts considered in' Weitbrec v. Morris, 62 Colo. 345, 163 P. 1119; Watson v. Odell, 58 Utah, 276, 198 P. 772, 20 A. L. R. 280; Hanscom v. Blanchard, 117 Me. 501, 105 A. 291, 3 A. L. R. 545; and Woolley v. Batchelder, 35 Cal. App. 177, 169 P. 408, cited by appellee, did not relate to the question of attorneys’ approval of title. In the AVeitbrec Case, supra, there are expressions in the opinion of the majority (the case being more exhaustively treated in a vigorous dissent) that appear to lend support to appellee’s insistence, but a careful reading, in the light of the facts, discloses the discussion of the case in that respect not necessary to a decision, and mere dictum. But, if construed otherwise, we would be unwilling to follow.

The complaint alleges that plaintiffs were employed to obtain a purchaser for the property at a price of $525,000, -of which $500,000 was to be net to defendant — plaintiffs’ compensation to be a commission of 5 per cent. *240 on said $500,000 to tie paid out of the total purchase price.

No sale was consummated, and defendant insists that under these circumstances in a contract of this character no recovery could be had unless the broker either produces to the owner a customer who is able, ready, and willing to buy on the terms prescribed by the owner, or takes from the customer a binding contract of purchase. This is the generally accepted rule. 9 Corpus Juris 608; Hayden v. Grillo, 35 Mo. App. 647; Gunn v. Bank of California, 99 Cal. 349, 33 P. 1105; Gerding v. Haskin, 141 N. Y. 514, 36 N. E. 601.

In the statement of the rule it is understood, of course, that these requirements may be the subject of waiver on the owner’s part (9 Corpus Juris, 608; Hayden v. Grillo, supra), for, as stated in the Hayden Case, supra: “The law would not require tlie broker to go to the trouble of obtaining a written contract or of producing the purchaser when the owner refuses to sell for other reasons,” and such is tlie effect of our own decisions. Overton v. Harrison, 207 Ala. 590, 93 So. 564; Morgan v. Whatley & Whatley, 205 Ala. 170, 87 So. 846; Bailey v. Padgett, 195 Ala. 203, 70 So. 637; Hannon v. Espalla, 148 Ala. 313, 42 So. 443.

And, in passing, we may further note that under our authorities plaintiffs’ verbal employment does not run counter to the statute of frauds (Stevens v. Bailey & Howard, 149 Ala. 256, 42 So. 740; Bailey v. Padgett, supra), and the further fact that the purchaser has not become bound in writing is also no defense so long as the purchaser takes no advantage thereof. Sayre v. Wilson, 86 Ala. 151, 5 So. 157; Bailey v. Padgett, supra; Stevens v. Bailey & Howard, supra; Morgan v. Whatley & Whatley, supra.

We are persuaded from a careful study of the record that the evidence makes out a case for the jury’s consideration. A brief review of the tendencies of the proof will suffice. The larger portion of the real' estate, consisting of 6,800 acres, was what is called Hollinger’s Island, though it appears that in reality it was a part of the mainland.

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146 So. 398, 226 Ala. 235, 1933 Ala. LEXIS 499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/espalla-v-lyon-co-ala-1933.