Hancock Co. v. Stephens

14 S.E.2d 332, 177 Va. 349, 1941 Va. LEXIS 223
CourtSupreme Court of Virginia
DecidedApril 21, 1941
DocketRecord No. 2323
StatusPublished
Cited by20 cases

This text of 14 S.E.2d 332 (Hancock Co. v. Stephens) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hancock Co. v. Stephens, 14 S.E.2d 332, 177 Va. 349, 1941 Va. LEXIS 223 (Va. 1941).

Opinion

Spratley, J.,

delivered the opinion of the court.

Hancock Company, Incorporated, a foreign corporation, instituted this action, on September 22,1938, against Mrs. Belle Stephens to recover fees for services rendered by it in Virginia, under contract as a real estate broker. Its notice of motion for a judgment alleged that the services were performed through its president and agent, A. F. Hancock.

Mrs. Stephens pleaded the general issue and filed two special pleas. One special plea alleged that the plain[352]*352tiff was not a licensed real estate broker, under the laws of Virginia,, at the time it claimed to have performed the services mentioned. The other plea alleged that the plaintiff had no power under its charter to do the.acts which it alleged it performed.

• All questions' of law and fact were submitted to the court without a jury. The court, without passing upon the question raised by the plea of ultra vires, being of the opinion that the plaintiff had not been licensed as a real estate broker iii Virginia, and that its alleged contract was, therefore, null and void, entered judgment for the defendant. To this judgment this writ of error was awarded.

The question is '"whether Hancock Company, Incorporated, was licensed as a real estate broker in Virginia, under-the provisions of Virginia Code, 1936, chapter 175 C, sections 4359 (77)-4359 (91).

The validity of the statute is not questioned. We recently upheld it in Massie v. Dudley, 173 Va. 42, 3 S. E. (2d) 176. The controlling principles enunciated in that case were even more recently approved in Colbert v. Ashland Const. Co., Inc., 176 Va. 500, 11 S. E. (2d) 612, decided November 25, 1940, construing a statute of. similar import.

Code, section 4359. (77), expressly provides that it shall be unlawful for any person, co-partnership, association or corporation to act as a real estate broker in Virginia without a license issued by the Virginia Real Estate Commission. No corporation can be granted a broker’s license unless every officer and employee of the corporation who actively participates in its real estate business shall hold a license as a real, estate broker or salesman.

■ Section 4359 (78) defines real estate brokers and real estate salesmen. Corporations are included within the classification of those who may act as brokers. This section further provides that “one act for compensation * shall constitute.the * * * corporation performing, offering’, or attempting’ to perform any of the acts enunv [353]*353erated herein a real estate broker * * * within the meaning of this act.”

Section 4359 (79) creates a real estate commission.

Section 4359 (81) provides that every applicant for a broker’s license shall apply therefor in writing, and that the application shall be accompanied by supporting recommendations. The application must state the name of the person, firm or corporation with which the applicant will be associated in the real estate business. The applicant must “furnish a sworn statement setting forth his present address, both of business and residence, a complete list of all former places and firms where he may have resided or been engaged in business for a. period of sixty days or more during- the last five years, * * * together with the name and address of at least one real estate owner in each of said counties or cities where he may have resided or have been engaged in business.”

Section 4359 (83) fixes a fee for the broker's license at ten dollars, and for the salesman's license at five dollars, subject to a reduction not applicable here.

Section 4359 (86) permits a non-resident of this State to become a real estate broker by conforming to all of the provisions of the Act, upon the condition “that every non-resident applicant shall file an irrevocable consent that suits and actions may be commenced against such applicant in the proper court of any county or city of this State, in which a cause of action may arise in which the plaintiff may reside,” by the service of process on the secretary of the Real Estate Commission.

The Act as a whole and the cited sections make it manifest that every person or corporation must secure a separate license before engaging in the real estate business. The license of an employee or an officer of the corporation does not confer on the corporation the right to engage in the business. A condition precedent to a real estate corporation securing- a broker’s license is that every officer and salesman of the corporation actively participating in the brokerage business of such [354]*354corporation must also hold a license as a broker or salesman.

The facts relied on to show compliance with the statute are as follows:

On May 16, 1938, Austin F. Hancock executed an application to the Virginia Real Estate Commission for a real estate broker’s license. The name of the applicant is stated as “Austin P. Hancock,’’ legal resident of North Carolina, main place of business, New York City, residence for past five years, North Carolina and New York City. In the place provided for the “Signature of Applicant” appears the name “Austin F. Hancock.” Attached to the application is the certificate of two citizens of North Carolina, stating* that the applicant bears a good reputation. At the same time, Austin P. Hancock executed the irrevocable consent that suits and actions might be commenced and prosecuted against “him,” the subscriber. In one place in the consent, it is stated that “I, or we” the above named Applicant for License privilege, Austin P. Hancock, Trading and/or Operating Individually or for or under the firm name of Hancock Company, Inc., has made application for a license to act as a Real Estate Broker, or Real Estate Salesman, Non-Resident.” Later in the same paper, it is asserted that “the above named Applicant for License privilege, Austin P. Hancock as aforesaid, hereby execute and file” this contract. Thereafter the name “Austin F. Hancock” is signed above the printed words “Signature of Applicant. ’ ’

Hancock Company, Inc., did not execute an application for a license. No recommendations as to its good reputation and honesty, no statement setting forth its business and residence address, no irrevocable consent for it to be sued in Virginia, nor any evidence that every one of its officers actively participating in the real estate business held a license as a broker, all of which are required by the statute, have ever been filed with the Real Estate Commission. Likewise, it failed to show, as [355]*355permitted under Virginia Code, 1936, section 4359 (86), that it was licensed as a real estate broker in another state.

On May 17, 1938, the Real Estate Commission issued its certificate certifying that “Austin F. Hancock of Hancock Company, Inc., is duly Licensed to act as a Real Estate Broker. ’ ’

The services for which this action was brought were alleged to have been performed on and before May 26, 1938. It is not shown that the request of the corporation to the State Corporation Commission to be domesticated in Virginia was granted before July 15, 1938.

The plaintiff contends that the license was issued to the corporation and that it authorized the corporation to act through A. F. Hancock, its officer and agent, as a broker.

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Bluebook (online)
14 S.E.2d 332, 177 Va. 349, 1941 Va. LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hancock-co-v-stephens-va-1941.