Fyan v. McNutt

254 N.W. 146, 266 Mich. 406, 1934 Mich. LEXIS 694
CourtMichigan Supreme Court
DecidedApril 3, 1934
DocketDocket No. 44, Calendar No. 37,082.
StatusPublished
Cited by6 cases

This text of 254 N.W. 146 (Fyan v. McNutt) 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
Fyan v. McNutt, 254 N.W. 146, 266 Mich. 406, 1934 Mich. LEXIS 694 (Mich. 1934).

Opinions

*407 Bushnell, J.

This case involves plaintiff’s right to a commission of 5 per cent, on the amount paid defendant by the county of Wayne in satisfaction of a condemnation award. The circuit judge concluded that, although plaintiff, a real estate broker, was instrumental in bringing about the appropriation of defendant’s land by Wayne county, the agreement upon which the suit was based was obtained under such circumstances that the proofs revealed actionable fraud. Accordingly, a judgment of no cause of action was entered.

Defendant was the owner of a 50-acre tract, one of 16 parcels included in a 631-acre site assembled and offered to Wayne county by plaintiff for use as an airport. On April 26, 1928, she gave plaintiff an option to purchase her land for $56,250 at any time prior to September 1, 1928. The option contained the following language:

“It is contemplated that the above premises are to be a part of a tract of land to be submitted to a city, county or State organization or governmental agency to be used for the purpose of an airport and it is therefore agreed and understood that these premises shall not be assigned by the purchaser for any other purpose, and that the purchaser’s profit on such contemplated sale of these premises shall be such sums as he may obtain for the premises in excess of the undersigned’s selling price.”

Other locations were also under consideration by the county board of supervisors and considerable interest was aroused in the project. On about July 25, 1928, the press announced that the county would probably institute condemnation proceedings rather than obtain a site by purchase. This determination on the part of the board of supervisors was later expressed by formal resolution on August 14, *408 1928. On the evening that the newspapers published their predictions of condemnation, plaintiff visited the home of William Bower, a brother of defendant. Present at the ensuing interview were William and his wife, Henry, another brother, and Ada Belle Plarvey, all owners of parcels in the tract plaintiff had assembled for sale. Their signatures were secured to what appellant describes as a “commission agreement.” This is the instrument sued upon and is as follows:

“Detroit, Michigan, July 26, 1928.
“Mr. Clarence E. Fyan,
“Detroit, Mich.
11 Bear Sir:
“In consideration of services rendered by you and to be rendered by you we agree to compensate you for such service to the extent of five per cent, of such sums as may be paid us by the county of Wayne, Michigan, in the event of purchase or condemnation of our pieces and parcels of land located in section 14 of Romulus township, Wayne county, Michigan.
“The above commission to be paid upon completion sale or condemnation above referred to.
“Signed and sealed this 26th day of July, 1928.
Wm. Bower
Olive Bower
“Signed in the presence of: Ada Belle Harvey
Alfred L. Bower Henry Bower
Nelson L. Bower. Edna McNutt
Edward Ott
Ella Ott. ’ ’

Plaintiff then drove to see the defendant, accompanied by William and Henry Bower,- on the way they were joined by Alfred Bower, a cousin, and Nelson, his son, the entire party arriving at the defendant’s home in the neighborhood of one o’clock *409 in the morning. Mrs. McNutt had been asleep for several hours, but was awakened and forced to engage in a discussion of the project in spite of her protests. Some of the group met in her living room, the others “stood outside an open screen door and observed the conference from there.”

Plaintiff admitted on the witness stand that the defendant protested getting up; that she did not want to sign the paper, and that he told her he had to have the paper in Detroit the next morning. Defendant testified that plaintiff informed her that the new agreement was only “a slight change from the option paper” and that “it would be no additional expense, ’ ’ and also that he led her to believe the whole airport proposition would fall through if it was not signed then and there. Plaintiff urged upon her the necessity for haste when she requested that she be allowed to keep the paper until morning so that she “could take it away and have somebody look it over to tell me if it was all right to sign it or not.” No copy was left with her. Her testimony leaves the impression that she was “high pressured’ ’ into signing, after a conversation lasting some 45 minutes and consisting largely of argument and dispute.

It is apparent from the remainder of the testimony that the court was correct in its conclusion that plaintiff made a number of false representations to defendant. His statements to the effect that the agreement had to be signed and in Detroit by morning and that her failure to sign would mean a collapse of the project are not borne out by the record, nor is it true that the commission and option agreements were practically the same in legal effect.

. Plaintiff may have been in doubt as to the protection his option agreement would give him in the event of condemnation of the property, and it was *410 only natural that he should try to strengthen his position after all the work he had done on the project. His labors resulted in a definite financial betterment of the defendant’s position. However, the methods he adopted in securing defendant’s signature to the commission agreement are open to question and may forfeit his right to compensation. We must determine whether his statements, taken together with all the circumstances, sustain the findings of the trial judge.

Fraud is not easily defined, and perhaps it is well that it should not be strictly defined. It varies in its form; what may be perfectly proper under one set of circumstances becomes fraudulent under another. The parties, their capacities and relation to each other, are all determining factors in this type of case.

We are not unimpressed by the able argument on the facts presented by the plaintiff and do not hesitate to say that an extremely close question has been presented to us. We are not in as advantageous'a'position to determine ■ the true facts as the trial judge, who saw and heard the witnesses. The circumstances attending the after-midnight conference undoubtedly had much to do with his determination. A part of the opinion he filed reads:

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Bluebook (online)
254 N.W. 146, 266 Mich. 406, 1934 Mich. LEXIS 694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fyan-v-mcnutt-mich-1934.