Garvey v. Lagattuta

132 So. 267, 15 La. App. 414, 1931 La. App. LEXIS 6
CourtLouisiana Court of Appeal
DecidedFebruary 2, 1931
DocketNo. 13,484
StatusPublished
Cited by3 cases

This text of 132 So. 267 (Garvey v. Lagattuta) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garvey v. Lagattuta, 132 So. 267, 15 La. App. 414, 1931 La. App. LEXIS 6 (La. Ct. App. 1931).

Opinion

HIGGINS, J.

Plaintiff sued the defendant on a written contract of employment dated June 7, 1929, to recover the sum of $260, as commission alleged to have been earned in connection with the purchase of certain real estate for the defendant’s account. Defendant filed an exception of no cause of action on the ground that, as plaintiff was a real estate salesman, he was without authority and capacity to enter into the contract and to bring suit, under the express provisions of Act 236 of 1920, and particularly section 15 thereof. The exception was referred to the merits, and defendant answered admitting the written contract, denying the other allegations of the petition, and specially pleading that plaintiff was without capacity, authority, or right, under the provisions of Act 236 of 1920, to enter into the contract, and to claim the alleged commission and to sue therefor. On the trial of the case on the merits there was judgment in favor of the defendant, dismissing the plaintiff’s suit. Plaintiff has appealed.

The record shows that on the trial of the case it was established by the plaintiff’s testimony, under cross-examination, that he had been in the real estate business as a licensed real estate salesman for a number of years, connected with the firm of Matthews Bros., real estate brokers, and that his real estate salesman’s license for the year 1929 was still in force and effect, not having been surrendered by him. He further testified that, although the real estate license was still extant, he had given up the real estate business during the early part of the year 1929.

The records of the Louisiana real estate board, a body created by Act 236 of 1920, were introduced in evidence by the defendant. These records showed that plaintiff had been licensed as a real estate salesman on March 19, 1925, and continuously acted as such in the employment of Matthews Bros., until May 20, 1927, from which date to June 1, 1928, he was licensed as a bro[415]*415ker, with Sierra Realty Company, Inc.; that on August 17, 1928, he made application for a salesman’s license, which was granted, and renewed on January 1, 1929, during which period he was again employed as a salesman by Matthews Bros., real estate brokers, and that plaintiff Had not given up his license as a real estate salesman during the year of 1929.

The written contract of employment, dated June 7, 1929, whereby the defendant employed the plaintiff, shows that he undertook to purchase for the account of the defendant a certain lot of ground for the price and sum of $5,500 cash, and, in consideration of his services to be rendered in effecting the sale, the plaintiff was to be paid 4 per cent commission on the sale price. The contract was to remain good and irrevocable from June 7, 1929, to June 10, 1929. Defendant testified that the contract of employment was continued in effect by a verbal agreement between them.

When all of this evidence was before the court, counsel for the defendant renewed the exception of no cause of action and tlie trial court again referred it to the merits. After the case was submitted judgment was rendered dismissing plaintiff's suit.

Counsel for defendant has renewed his exception of no cause of action in this court, contending that the evidence shows that the plaintiff was engaged in business, as a real estate salesman, and, under the express provisions of Act 236 of 1920, was prohibited from entering into the alleged contract sued upon and was without any right, authority, or capacity, to bring this suit.

Counsel for plaintiff contends that, as plaintiff testified he had given up the real estate business in the early part of the year 1929, the contract sued upon was one of special employment, and therefore did not come within the provisions of Act 236 of 1920.

We shall discuss, first, the question of whether or not the evidence shows that the plaintiff was a licensed real estate salesman at the time the alleged agreement was made and suit was filed. The only evidence before us that he had given up his calling and employment as a real estate salesman is his own statement, unsupported by any member of the firm of Matthews Bros., his employers. On the contrary, the defendant admits that he had been engaged in the real estate business as a licensed salesman until the early part of 1929, and the records of the Louisiana real estate board conclusively show that his license was still outstanding and had never been surrendered, or canceled. In fact, counsel for plaintiff frankly states that the license had never been surrendered, or canceled, but claims that, as plaintiff had terminated his employment with the real estate broker, Matthews Bros., it was the duty of that firm, under section 13 of Act 236 of 1920, to return the salesman’s license of the plaintiff to the real estate board, and that the plaintiff cannot be penalized for the neglect of Matthews Bros, to return the license.

We observe that under this section of Act 236 of 1920, the real estate broker is required to send a copy of the letter returning the license to the real estate board to the salesman at his last known address. Plaintiff, therefore, knew that his employer, Matthews Bros., had not returned his license to the real estate board, because he does not even contend that he received any such communication from his employers. We believe it was the duty of the plaintiff, if his employers, the real estate brokers, did not take the necessary steps to return his license, to have required and forced Matthews Bros, to do so. Until such action was taken to properly surrender the license [416]*416in accordance with the provisions of the act, we are of the opinion that plaintiff continued to occupy the status of a real estate salesman within the meaning and provisions of the act.

What, if any, effect would the fact that plaintiff was a real estate salesman have upon him to enter into the contract suqd upon and his capacity or right to bring the present suit? The title of Act 236 of 1920 states that it is an act “to regulate the mode and manner of conducting the affairs and business of Real Estate. * * *” Section 1 thereof provides that “it shall be unlawful for any person * * * to engage in the business or capacity, either directly or indirectly, of a real estate broker, a real estate salesman, * * * * without first obtaining a license under the provisions of this Act.” Section 2 of the act defines a real estate broker as “any person * * * who for a compensation or valuable consideration sells or offers for sale, buys or offers to buy, or negotiates the purchase or sale or exchange of real estate * * * for others, as a whole or partial vocation.” Section 2 also defines a salesman as “any person who for a compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell- or offer to sell, or buy or offer to buy, or to nego tiate the purchase or sale or exchange of real estate * * * for others as a whole or partial vocation.” Then follows language which specifically provides for certain exceptions or. exemptions from the operation of the act. But, even with reference to the first exception, where an owner or lessor either individually or through an employee or representative performs any of the acts with reference to his own property, the statute provides that this service shall be performed “through an employee or representative not otherwise engaged in the real estate business.” Section 15 of the act reads as follows:

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Bluebook (online)
132 So. 267, 15 La. App. 414, 1931 La. App. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garvey-v-lagattuta-lactapp-1931.