Flint v. Trahey

259 N.W. 146, 270 Mich. 534, 1935 Mich. LEXIS 726
CourtMichigan Supreme Court
DecidedMarch 5, 1935
DocketDocket No. 15, Calendar No. 37,794.
StatusPublished

This text of 259 N.W. 146 (Flint v. Trahey) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flint v. Trahey, 259 N.W. 146, 270 Mich. 534, 1935 Mich. LEXIS 726 (Mich. 1935).

Opinion

North, J.

Plaintiffs held a promissory note executed by defendants Trahey and Horning for $964.61, due July 7, 1930. This note was originally *536 payable to the order of "W. J. Grant Realty Company and Henry Flint. Payment was secured by chattel mortgage on farming tools and stock belonging to the makers of the note. After the note fell due the Grant Realty Company assigned all of its interest therein to plaintiffs. Thereafter plaintiffs, first having demanded and been refused possession of the mortgaged property, brought this suit in replevin. By giving a bond the mortgagors retained possession of the property. This bond was signed by William C. Beach as surety, who, upon his petition, was later permitted to intervene as a party defendant. Upon trial by jury plaintiffs had verdict and judgment for -$1,127.84, the face of the note and accrued interest,. Defendants have appealed.

Except as otherwise indicated we will herein refer to defendants Trahey and Horning as ¡appellants. While the record does not disclose a formal waiver of the return of the property covered by the chattel mortgage, it does clearly ■ appear that all parties understood there was such a waiver and that plaintiffs elected to recover a money judgment to the extent of their lien upon the property as evidenced by their note and chattel mortgage. 3 Comp. Laws 1929, § 14839. In effect recovery was sought upon the chattel mortgage note and decision herein is controlled by such right of recovery. Appellants deny plaintiffs’ right to recover for reasons hereinafter considered.

Appellants exchanged real estate in the city of Jackson for a farm, stock and tools which bélonged to a Mr. Joseph LaRue. Mr. Flint acted as agent for LaRue, and the W. J. Grant Realty Company for appellants. The agents seem to have pooled their commissions. Mr. LaRue paid the commission *537 due from him, and this was divided between the two agents. Appellants gave the note and chattel mortgage for the commission due from them in the amount of $750 and also for $214.61 for money borrowed from the Grant Realty Company. Appellants, having given notice under their plea of general issue, offered testimony to prove that the exchange of properties and the note and chattel mortgage were procured, through false and fraudulent representations made by Flint and LaRue. The notice detailed the alleged fraud. Plaintiffs answered the affirmative allegations contained in the notice under defendants’ plea of general issue, and therein denied the alleged fraud and further set forth:

“And in support of such denial (plaintiffs) will rely upon the fact that the said defendants- are now estopped to claim fraud and misrepresentation as a defense to this action * * * for the reason that in a case tried and determined in this court by a jury on or about the 25th day of September, A. D. 1931, wherein Julia E. Horning Trahey and William Horning were plaintiffs and Henry J. Flint, Joseph A. LaRue and Alice LaRue were defendants and wherein the said * * * plaintiffs claimed fraud, misrepresentation (the same as now set forth under defendants’ plea) * * * the said jury returned a verdict of not guilty * * * and that a judgment in accordance therewith was entered upon the records of this court and to which reference is hereby prayed and which said judgment has not been set aside nor appealed from.”

The trial judge refused to permit defendants to make proof of the alleged fraud and refused to submit this issue to the jury on the ground that appellants were bound by decisiop of the case prosecuted by them against Flint and LaRue, holding that judgment, therein was res judicata of the de *538 fense of fraud and misrepresentation herein urged by appellants. The latter on this appeal assert that in so holding the circuit judge committed error.

By so holding the circuit judge did not commit prejudicial error, notwithstanding the records and files of the former case were not introduced in evidence in the instant case. During this trial the question of whether the former suit constituted res judicata on the issue of fraud and misrepresentation was discussed somewhat at length between the court and counsel. The record discloses that some of the discussion was not taken by the reporter and is not embodied in this record. But it does conclusively appear that each of the parties litigant thoroughly understood the contention made by the other; and upon being questioned by the court, appellants’ counsel -in effect admitted that the facts involved in the case first adjudicated were the same as those which appellants offered to prove herein in support of their defense of fraud and misrepresentation. This question was up both at the close of plaintiffs ’ proofs and at the close of all the proofs in this case. On the latter occasion the trial judge, addressing appellants’ counsel, said:

“Are those the same facts that were brought out in the case of Julia and "William Horning v. Henry Flint and Joseph LaRue? * * * I thought at the time I made the ruling (at the close of plaintiffs’ proofs) that you made the statement they were the same, but the parties were different.”

In reply appellants’ counsel said:

“I don’t know. I would like to have that read to see. I said something to that effect. In my opinion, they were. I do not believe I could go beyond that.”

*539 If the pleadings in the former, case had been introduced in evidence herein, there is no room for doubt they would have disclosed exactly the same issue in that case between appellants herein and Mr. Flint as are now offered as a defense to the latter’s right to recover in this case. Under such a record the question of. res judicata would have been one of law for the court to determine. Bishop v. Dodge, 196 Mich. 231. The court’s ruling would necessarily have been the same as that made. It was not prejudicial error.

Another question raised by these appellants is that at the time the exchange of properties was consummated Mr. Flint was acting illegally in that he was not then possessed of a real estate broker’s license. 2 Comp. Laws 1929, § 9806. In consequence thereof appellants assert there can be no recovery for commission in the instant case.' Mr. Flint was a licensed real estate broker for the calendar year ending December 31, 1929. He did not receive his license for 1930 until January 14th. It is his contention that so far as he had anything to do with the transaction resulting in the final agreement to exchange these properties and in earning his commission, the matter was consummated December 31, 1929. On the other hand appellants contend that the written agreement entered into by the parties for the exchange of these properties was not -executed until some time during the first week of 1930, and they point out that the deeds were -executed January 7, 1931. The trial judge took the position that if the transaction was wholly consummated by a written agreement signed by the parties on December 31, 1929, and that Mr. Flint, as he claimed, took no part in the transaction thereafter, he would be entitled to recover the commis *540 sion earned.

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Related

Walrath v. Campbell
28 Mich. 111 (Michigan Supreme Court, 1873)
Lindner v. Brock
40 Mich. 618 (Michigan Supreme Court, 1879)
Mueller v. Provo
45 N.W. 498 (Michigan Supreme Court, 1890)
Bishop v. Dodge
162 N.W. 1002 (Michigan Supreme Court, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
259 N.W. 146, 270 Mich. 534, 1935 Mich. LEXIS 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flint-v-trahey-mich-1935.