Grace Realty Co. v. Noel

100 So. 51, 156 La. 63
CourtSupreme Court of Louisiana
DecidedMarch 31, 1924
DocketNo. 24407
StatusPublished
Cited by2 cases

This text of 100 So. 51 (Grace Realty Co. v. Noel) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grace Realty Co. v. Noel, 100 So. 51, 156 La. 63 (La. 1924).

Opinion

LAND, J.

Plaintiff company, a commercial and real estate partnership, composed of Charles E, Grace and Albert L. Grace, seeks to recover in this suit a commission of $5,000 from the defendant, Robert E. Noel, for the sale of the McManor plantation, owned by .said defendant, and situated in the parish of Ascension.

It is alleged that on or about November-25, 1919, said plantation was placed by defendant in the hands of said partnership, the members of which are real estate agents and brokers, for sale at a price of $135,000, and upon an agreed commission of $5,000; that said firm on January 14, 1920, secured Dr. Isaac D. Benson as purchaser of said plantation at said price; and that the act of salé from defendant to Benson of this property, for a consideration of $135,000, was passed before a notary public January 17, 1920.

Plaintiff company avers that, notwithstanding the fact that its members procured a purchaser for this property, after diligent effort on their part and the expenditure of both time and money, defendant has tendered them only the sum of $2,500 as a commission, instead of the sum tof $5,000- the commission stipulated between the parties.

Defendant admits in his answer that, while on or about November 25, 1919, he entered into a verbal agreement with Albert 'Grace, a member of plaintiff company, to sell this property for the price of $135,000, payable one-half cash and balance on time, upon a commission basis of $5,000, yet defendant alleges that this agreement was limited to a period of 2 weeks, the defendant reserving to himself the right to 'sell the property in the meantime. Defendant avers that said agreement expired by limitation, without any sale having been effected by Grace, and that he then notified Grace that the property was no longer in his hands for sale, and that the same was withdrawn. Defendant alleges that the payment of the cash portion of the purchase price was a vital and important factor in the proposition, and that he was unwilling to dispose of his property, unless at least $60,000 cash was paid to him.

Defendant admits in his answer that some time later, on or about January 14, 1920, he [65]*65agreed that Grace might bring a prospective purchaser to see-the property; but alleges that at the time there was in existence between defendant and Grace no agreement of any kind relative to any commission.

It is admitted by defendant in his answer that the plantation was sold by him to Dr. Benson, the prospective purchaser brought to defendant, for the sum of $135,000; $40,000 being paid in cash, and the balance of the purchase price being secured by mortgage notes. Defendant avers, however, that before closing the deal with Dr. Benson he called up Grace at Plaquemine over the long-distance telephone, and took up the matter of compensation with him, and that Grace expressly agreed to take the sum of $2,500 as a commission for the sale. Defendant has tendered this sum in open court.

It appears, therefore, from the admissions of the defendant himself that there was a verbal agreement between him and Grace to sell this plantation for the sum of $135,000, and that Grace produced the prospective purchaser, Dr, Benson, who purchased the property for said price.

The only question, therefore, remaining for us to decide, is whether the commission of $5,000, originally agreed upon, should be paid to Grace, or the commission of $2,500, tendered to him by defendant, should be accepted by Grace as his compensation for bringing about the said sale.

We are not impressed by the statement made by defendant in his answer that the payment of $60,000 cash was a vital and important factor, and that he was unwilling to sell his place unless at least $60,000 cash was paid to him. As a matter of fact, defendant sold his property to Dr. Benson within 60 days after the agreement, of date November 25, 1919, for $40,000 cash. This is clear proof that defendant had not been able to dispose of his place for one-half, cash, and that the vitality of this factor in the transaction had ebbed to the extent of $20,000 cash, when the act of sale was passed, January 17, 1920.

Such a defense, therefore, necessarily loses its force as a reason for tendering the sum of $2,500, or one-half of the original commission 'agreed upon, or as a circumstance tending to corroborate the testimony of defendant as to any new and independent agreement as to the commission to be paid by him.

If defendant had been really unwilling to sell at less than one-half cash, he would, unquestionably, have refused to sign a deed for a less sum. Defendant; admits that, when Albert Grace came to see him November 24, 1919, they entered into an agreement by which the place was to be sold for $135,000, and $5,000 commission was to be paid.

Although defendant testifies that this agreement expired -after two weeks, which is denied by Albert Grace, defendant admits that Albert Grace rang him up on January 14, 1920, and asked him if it would be all right to bring down a buyer. To this defendant assented.

Defendant testifies that nothing was said at the time by either party as to terms, conditions, or commissions.

Ed. Grace, a member .of plaintiff company, accompanied Dr. Benson, and I-I. M. Hawthorne, who was co-operating on this particular occasion with said company, called on defendant at his home, introduced Dr. Benson to the defendant as the prospective purchaser, and he agreed to pay $135,000 for the property. Defendant testifies that, while Dr. Benson with Hawthorne were in the field and looking at the property, he rang up Albert Grace and told him that the buyer was there, and that he could sell him, provided the cash payment was reduced, and, if the price was reduced, he “could not pay him more than $2,500.”

Defendant would have it appear also from his testimony in the ease that’ there was offering and bargaining about the purchase [67]*67price at the house before it was agreed upon, and before Dr. Benson inspected the property. Albert Grace testifies that on January 13, 1920, he received a telephone message from Hawthorne at Baton Rouge, La., inquiring if the McManor plantation was still on, the market on the same terms and conditions that it had been offered to him, and that witness rang up defendant and asked him if the property was still for sale upon the same terms and conditions, stating that he had a buyer for the place, and that defendant replied that it was, and, requested that the purchaser be brought down to the plantation. This was the day before the sale to Dr. Benson. Hawthorne testifies positively that Ed. Grace, who drove him and Dr. Benson to the place in his automobile, introduced Dr. Benson to the defendant, stating to him:

“I have some other business to attend to, and I am going to leave Mr. Hawthorne here to go over the place with Dr. Benson, and it’s up to you to make the bargain with him. I told him what the bargain was.”

There was no offering or bargaining whatever on this occasion as to the price of the place, $135,000. Defendant stated that he would not take less than $50,000 cash, and Dr. Benson rejoined that he would not pay more than $40,000 cash. Defendant then said that he would reduce the cash payment to $45,000, and Dr. Benson replied:

■“No, I don’t want to look at the place, unless you accept $40,000 cash, and five notes payable annually and the privilege of on or before.”

Mr. Noel (defendant) ordered the horses, and Dr.

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Bluebook (online)
100 So. 51, 156 La. 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grace-realty-co-v-noel-la-1924.