Glass v. Burkett

381 N.E.2d 821, 64 Ill. App. 3d 676, 21 Ill. Dec. 494, 1978 Ill. App. LEXIS 3331
CourtAppellate Court of Illinois
DecidedOctober 11, 1978
Docket78-45
StatusPublished
Cited by52 cases

This text of 381 N.E.2d 821 (Glass v. Burkett) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glass v. Burkett, 381 N.E.2d 821, 64 Ill. App. 3d 676, 21 Ill. Dec. 494, 1978 Ill. App. LEXIS 3331 (Ill. Ct. App. 1978).

Opinion

Mr. JUSTICE KUNCE

delivered the opinion of the court:

The defendant, M. D. Burkett, appeals from a judgment of the Circuit Court of Jefferson County rendered against him, after a bench trial, in the amount of *33,340.90 which included actual damages of *22,680.72 and punitive damages of *10,660.18, the latter including attorney fees of *5,000.

This action was brought to recover damages for violation of defendant’s fiduciary duties to the co-executors of the estate of Walter Glass in the sale of a 30-acre tract of land improved with a residence and owned by the decedent at the time of his death on April 12, 1975. The plaintiffs’ evidence showed that Walter Glass died on April 12,1975, and that his will named George Glass, a cousin of deceased, and Alice Glass, wife of deceased, co-executors. At the time of his death, Walter Glass owned a 30-acre tract of land which was appraised, for estate tax purposes, at *40,000. Walter Glass’ home was situated on this tract of land.

On June 3, 1975, the co-executors entered into a 30-day listing agreement with the defendant for the sale of the 30-acre tract for *50,000 and instructed the defendant to sell the property in one tract. Until June 24, 1975, the co-executors had no further contact with defendant except for one telephone call to Mrs. Glass in which he asked only for Mr. Glass’ telephone number. On June 24, 1975, when the co-executors went to defendant’s office, defendant stated that he thought he could sell the property for *45,000; however, the property would have to be surveyed and subdivided into a subdivision. The procedure was to involve more than simply selling one piece of land to one person and another piece to a second person. Defendant did not inform the co-executors that he had an opportunity to sell part of the land to Mr. and Mrs. Robert Stewart. Defendant then offered to purchase the property for *43,000 with a proposed contract of sale dated June 18, 1975. After the co-executors conferred with George Howard, Jr., attorney for the estate, they contracted to sell the land to defendant for *40,420.

Between June 3, 1975, and June 24, 1975, Agnes Artis, daughter of the deceased, expressed an interest in the property to the defendant, but she thought that *50,000 was too high. Defendant never recontacted her in order to inform her that the property could be purchased for less than *50,000. Prior to June 18, 1975, Ms. Feme Bee, a real estate broker, informed defendant that Mr. and Mrs. Robert Stewart were interested in purchasing Bz acres including the house. Defendant stated that he had a prospect who was interested in the whole tract and that he wanted to try to sell it before Ms. Bee showed the property to the Stewarts. On June 19, 1975, Ms. Bee communicated to the defendant the Stewarts’ offer to buy thejlz-acre tract for *25,000. Earnest money was tendered with the offer. On either the 24th or 25th of June, 1975, defendant accepted the Stewarts’ offer. The Stewarts’ offer was made to the defendant rather than to the co-executors because Ms. Bee had some indication that the defendant was buying the property from the co-executors. Subsequently, defendant sold the remaining 28M acres to a Jim Walker for *35,000.

At the time of the transaction between the parties, one of the Rules of the Illinois Department of Registration and Education promulgated for the administration of the Real Estate Brokers and Salesmen License Act (Ill. Rev. Stat. 1975, ch. 114/2, par. 1 et seq.) provided that a real estate broker shall disclose to any and all sellers, or prospective sellers, any and all material knowledge he may have as soon as it may be practical for him to do so. It also provided that a broker shall disclose to all parties in any transaction, in writing, any interest he has or may have as purchaser, seller, or otherwise in the real estate constituting the subject matter thereof or in such transaction, directiy or indirectly.

Mr. George Howard, Jr., testified that the co-executors of the estate were diligent in discussing matters of the estate with him and that he had no discussion with the co-executors concerning the 30-acre tract between June 3, 1975, and June 24, 1975.

During the period of the listing agreement, defendant received inquiries from people who either wanted to purchase the house and five acres or from people who wanted the entire tract but thought that the asking price was too high. These offers were not communicated to the co-executors because defendant did not consider them feasible. The only offer defendant received in writing was from the Stewarts which was for the house and Bz acres for *25,000. This offer was communicated to Alice Glass by telephone. Defendant was unable to contact Mr. Glass and left the offer on his desk until the following Tuesday, June 24, as the co-executors usually came to defendant’s office on a Tuesday. Each time the co-executors came to his office, they were advised that they could obtain more money by having the land surveyed and subdivided, but they rejected this advice.

On June 24, 1975, when the co-executors came to defendant’s office, defendant attempted to show them the Stewarts’ offer, but they did not want to see the offer and restated their desire to sell the property as one tract. Defendant then offered to buy the property for *43,000 as he had been interested in the property for over 15 years as a potential retirement home site for himself. On June 24, 1975, after the co-executors had sold the property to the defendant, he contacted Ms. Bee and accepted the Stewarts’ offer for the líí-acre parcel. On August 5,1975, the Glass’ sale to the defendant and the defendant’s sale to the Stewarts were closed. After the co-executors had listed the property with the defendant, he advertised the property for sale in 5- to 30-acre tracts as the co-executors did not care how the property was sold as long as it was completely sold within 30 days.

The court found that a fiduciary relationship existed between defendant and the co-executors and that defendant violated the fiduciary relationship by failing to disclose either orally or in writing, to the co-executors or either of them, the preoffer negotiations with Feme Bee and the Stewarts’ valid written offer for Bz acres for *25,000. The court also found that defendant failed to obtain a refusal from Agnes Artis, a prospective purchaser of the whole tract, for the sum of *43,000 or for any sum in excess of defendant’s purchase price. Further, the court found persuasive the testimony of Ms. Bee in which she stated that defendant advised her to wait a few days before showing the property to the Stewarts as he had a prospective purchaser of the whole tract. Then on June 19,1975, Ms. Bee submitted an offer, as agent for the Stewarts, to the defendant, who she learned was buying the property, for the purchase of the acre and a half without defendant ever informing the co-executors of the potential transaction. The court concluded that “[t]he actions, conduct and concealment by said Defendant, M. D. Burkett, were intentional, and not in good faith, knowing and intending that the loss of the Co-Executors would be his gain.” The court ruled that the plaintiffs had been damaged in the sum of *22,680.72.

The defendant does not contest that a fiduciary relationship existed between himself and plaintiffs.

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Cite This Page — Counsel Stack

Bluebook (online)
381 N.E.2d 821, 64 Ill. App. 3d 676, 21 Ill. Dec. 494, 1978 Ill. App. LEXIS 3331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glass-v-burkett-illappct-1978.