G. B. Stone Realty Co. v. Perrine

1936 OK 401, 57 P.2d 1195, 177 Okla. 119, 1936 Okla. LEXIS 613
CourtSupreme Court of Oklahoma
DecidedMay 19, 1936
DocketNo. 23507.
StatusPublished
Cited by3 cases

This text of 1936 OK 401 (G. B. Stone Realty Co. v. Perrine) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
G. B. Stone Realty Co. v. Perrine, 1936 OK 401, 57 P.2d 1195, 177 Okla. 119, 1936 Okla. LEXIS 613 (Okla. 1936).

Opinion

RILEY, J.

This is an action by plaintiff in error for the recovery of a broker’s commission claimed by plaintiff for the procurement of a lessee for defendant.

Defendant listed her property with plaintiff for lease, and plaintiff procured from the Midwest Enterprise Company, a corporation, an offer in writing to lease the property, which offer was accepted in writing by defendant. The offer of the Midwest Company offered: “To lease from you or owner the following described property (describing same) together with all building and improvements for a period of five years, seven and one-half (7%) months from May 15, 1927, to and including December 31, 1933.” The conditions of the proposal for that period of time are not in controversy. The commission agreed upon for plaintiff's services as to that term was paid.

The accepted offer contained the following additional provisions:

“It is understood, however, that you are to give the undersigned an option to lease the above-described real estate and improvements for an additional period of ninety-four (94) years from and after January 1, 1933, at a fixed rental of nine thousand ($9,000.00) dollars per year, the undersigned to pay all ad valorem taxes that may be levied and assessed against said real estate and improvements then on said premises, or that may be erected at any time thereafter, and to pay in .addition thereto the cost of keeping said property adequately insured against loss from fire, tornado or other destruction by the elements; and it is to be understood further that in the event the undersigned exercises its option to take a ninety-four year lease on said real estate and improvements,, you will join iii a mortgage, if requested to do so, covering said property for an amount not to exceed fifty per cent. (50%) of the actual cost of any building or improvements to be erected thereon.
“If this offer is satisfactory to you, a written lease is to be prepared and executed by both parties embodying the terms and provisions herein contained, and at the time of the execution and delivery of said lease the form of a ninety-four year lease covering said property is to be prepared and agreed upon mutually between the parties.”

There was a written agreement between plaintiff herein and defendant concerning the commission to be paid as follows:

“Referring to the agreement to lease, this day entered into with the Midwest Enterprise Company, for a period of five years, covering Lots 24, 25, and 26, in Block 22, Original Plat, Oklahoma City, Oklahoma, we will charge a commission of $850.00.
“In the event they exercise their option and take the additional lease for 94 years, we will accept a commission of $3,875.00, *120 less $850.00, which is to be paid as commission on the five-year lease.
“Tours very truly,
“G-. B. Stone Realty Co.,
“By S. B. Prewitt.
“April 14, 1927.
“Accepted:
“Ruby Perrine.”

Plaintiff’s claim is that the Midwest Company exercised their option to take the lease for the period of 94 years in accordance with the agreement between it and defendant, and that on account thereof plaintiff is entitled to the $3,025 additional commission agreed upon.

Defendant answered, admitting that the Midwest Company, in September, 1928, served upon her a notice of their election to take the property for the extended term of 94 years, and in connection therewith asked for a conference to negotiate for a lease to cover said extended term and to agree upon form and stipulation for said extended lease; that several conferences were had and proposals and counterproposals were made, but that the parties never could and never did agree upon the terms and execute a lease, and that negotiations were finally abandoned, and that defendant afterwards sold her property, and that the Midwest Company quitclaimed its interest to the purchaser, so that the lease was never entered into, and therefore plaintiff’s services were ineffective so far as procuring a lessee for the 94-year period was concerned.

The cause was by agreement tried to the court without a jury, and at the close of plaintiff’s evidence a demurrer thereto was presented by counsel for defendant, and sustained by the court, and judgment was entered for defendant, and plaintiff appeals.

The contention of plaintiff is that, although no extended lease was entered into, the Midwest Company in effect unconditionally exercised its option, and was, at the time and thereafter until defendant sold the property, ready, willing, and able to' lease the property and carry out its agreement in accord with the terms thereof.

The record discloses that no written lease was ever prepared and executed by the parties, for the primary term of five years seven and one-half months before the Midwest Company exercised or attempted to exercise its option for the extended time. For some reason, not clearly appearing from the record, the Midwest Company went into possession of the premises under the proposal and acceptance, without any written lease. This ax>pears to have been satisfactory to the defendant, Ruby Perrine, as she accepted the rental agreed upon down to the time she sold the property, and paid plaintiff herein the $850 agreed upon as commission on the five-year primary term.

Plaintiff contends that it was wholly the fault of defendant that the 94-year lease ■was not consummated, in that she insisted that a number of conditions be embraced in the long-term lease not covered by or within the terms of the option.

If this be true, plaintiff was entitled to its commission notwithstanding the fact that the lease was never consummated.

On the other hand, defendant contends that the Midwest Company insisted upon including within the terms of the long-time lease, matters and things to her detriment and not within the option agreement.

The évidence shows that sometime after the Midwest Company went into possession of the premises, it prepared, signed, and presented to defendant a lease contract covering the five year and seven and one-half month period, and other matters concerning the 94-year lease and a five-foot alleyway.

This instrument contained additional provisions to the effect that in the event of the partial or total destruction of the improvements on said premises by fire or other casualty, the lessee might elect to repair or rebuild during the term or extended term of the lease, using the proceeds of any insurance for such purpose, and providing for suspension of the rentals during such time as the improvements were not available and suitable for occupation, and further providing that in the event that the lessee elected not to repair or rebuild, then the proceeds of insurance policies should be paid to the lessor, but that the lease should not be considered as canceled except at the option of the lessee. Other matters were included providing for the removal by lessee of all its furniture, fixtures, equipment, or other personal property at the termination of the lease, provided it had complied with all the terms of the lease.

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Bluebook (online)
1936 OK 401, 57 P.2d 1195, 177 Okla. 119, 1936 Okla. LEXIS 613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/g-b-stone-realty-co-v-perrine-okla-1936.