Hageman v. O'Brien

141 P. 33, 24 Cal. App. 270, 1914 Cal. App. LEXIS 99
CourtCalifornia Court of Appeal
DecidedApril 3, 1914
DocketCiv. No. 1480.
StatusPublished
Cited by5 cases

This text of 141 P. 33 (Hageman v. O'Brien) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hageman v. O'Brien, 141 P. 33, 24 Cal. App. 270, 1914 Cal. App. LEXIS 99 (Cal. Ct. App. 1914).

Opinion

CONREY, P. J.

This action is prosecuted by the plaintiff, a real estáte agent, to recover commissions from the defendants, who also are real estate agents. The claim is based upon an alleged contract for services rendered by the plaintiff in connection with sales of land belonging to a cer *272 tain corporation. Judgment was rendered in favor of the plaintiff, and defendants appeal from an order denying their motion for a new trial.

The lands that were sold are in Mexico. The defendants had their principal place of business in San Fransciso, and the plaintiff was located in the county of Santa Clara. The defendants being the authorized agents for the sale of said lands, delivered to plaintiff a letter dated October 22, 1908, in which they agreed to pay plaintiff “a commission of 5% on all the land we sell through your assistance, whether they are closed directly or indirectly by you.” Defendants also delivered to plaintiff a letter, dated November 5, 1908, in which they said: “If you desire to operate in San Luis Obispo and Monterey counties, in the sale of the Yaqui Valley lands controlled by us, we will pay you a commission of $6 per hectare on all land sold by you, commission payable to you as and when received by us. All sales to be made through this office and subject to our approval. We will furnish you printed matter, such as we have, and will assist you in every way possible. It is understood, however, that you are to pay your own expenses such as office, advertising, commissions to sub-agents, etc.” Of the sums included in the judgment in this action, one hundred and sixty dollars was allowed as a commission to plaintiff under the five per cent agreement for land sold to G. B. Seely of Santa Clara County. The remainder of the judgment is on account of lands sold to James Martin, D. McFadden, W. H. Martin, and H. Bardin, severally, who were residents of Monterey County.

Among the grounds asserted in support of the motion for a new trial, appellants specify that the evidence is insufficient to support the court’s findings wherein it was determined that the defendants employed plaintiff and agreed with him for commissions as alleged in the complaint, and was further determined that pursuant to said agreement plaintiff procured purchasers for portions of said lands, as alleged in the complaint and set forth in the findings of fact. Appellants’ first point in the argument is that the writings offered in evidence are insufficient to constitute a contract within the meaning of subdivision 6 of section 1624 of the Civil Code, which appellants claim is applicable to this case. The transactions between plaintiff and defendants here and their *273 relations to each other and to the property, were not such as to bring the case "within the terms of that statute. The defendants were not owners employing plaintiff to sell their land. They were merely agents arranging with another agent to assist in the business of their agency. An agreement to pay for such services does not require a writing to establish its validity. The above mentioned provision of the Civil Code is to the effect that an agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation or a commission, is invalid unless the same or some note or memorandum thereof is in writing and subscribed by the party to be charged, or by his agent. “That provision was only designed to protect owners of real estate against unfounded claims of brokers. It does not extend to agreements between brokers to co-operate in making sales for a share of the commissions.” (Gorham v. Heiman, 90 Cal. 346, 358, [27 Pac. 289, 292] ; Baker v. Thompson, 14 Cal. App. 175, [111 Pac. 373].) While in form the letters of defendants to plaintiff were agreements to pay a commission, yet in substance they were to share the commissions received by paying the specified sums to plaintiff as and when the commissions were received by the defendants from the owner of the land.

It is next contended that plaintiff did not render the services necessary to entitle him to commissions under the agreement as made. Various decisions are cited to show that before plaintiff could recover herein, he must prove that he alone was the efficient or procuring cause of the sales. Appellants rely upon Armstrong v. Wann, 29 Minn. 126, [12 N. W. 345]; Waterman v. Boltinghouse, 82 Cal. 659; [23 Pac. 195] ; Dolan v. Scanlan, 57 Cal. 261. It is further contended that where several brokers contribute something toward the consummation of a sale under brokerage agreements which aremot exclusive, the owner is not liable to all of the brokers but only to that one who is the predominating efficient cause of the sale, citing Glascock v. Van Fleet, 100 Tenn. 603, [46 S. W. 449]. Under this and other decisions it is claimed that under the circumstances of this ease the defendants had the right to make the sales themselves without becoming liable to plaintiff for commissions. Assuming that the decisions *274 above noted and others referred to in the brief of appellants’ counsel are sufficient authority for the rule as stated, and that such rule is enforceable as between a real estate agent or broker and a landowner who has employed him to make sales, it does not necessarily follow that this rule is applicable as between brokers acting together for the sale of land and where the agreement between the brokers is in terms like those between the parties to this action. The first agreement applies specifically to lands sold by the defendants through the assistance of the plaintiff. The second agreement- also provides that the sales shall be made through the office of the defendants and that the defendants would assist the plaintiff in every way possible in the efforts made by him to sell those lands. It is only necessary for the plaintiff to show that he rendered services in connection with the sales made and that those services were substantial in character, even though the actual transaction with the purchasers was concluded by or through the defendants. There is in this record evidence which substantially supports the findings of the court in favor of the plaintiff with respect to the rendering of these services. This being so, the. findings must be sustained. As to the sale to Seely, a resident of Santa Clara County, it is shown that the plaintiff called upon Seely and talked about those lands to him, and that subsequently the sale to Seely was closed up through the defendants. With respect to the other purchasers, residing in Monterey County, the facts in general outline are as follows: The plaintiff had advertised these Yaqui Valley lands in Monterey County and had directly interested Henry Bardin as a prospective purchaser. William Martin had become interested in the subject of these Yaqui Valley lands and had talked with several people about them. He was acquainted with the plaintiff before he went to Mexico, having been introduced to plaintiff by a sub-agent of plaintiff, and he received from them some of plaintiff’s pamphlets. His testimony is that plaintiff did not influence him to go to Mexico and that one Wellbank, with whom he had business in San Francisco, suggested to him that if he would go directly to the owners and buy from them he might be able to make a better bargain than by dealing with the agents.

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Cite This Page — Counsel Stack

Bluebook (online)
141 P. 33, 24 Cal. App. 270, 1914 Cal. App. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hageman-v-obrien-calctapp-1914.