Hartman v. Speck

256 P. 137, 123 Kan. 436, 1927 Kan. LEXIS 265
Supreme Court of Kansas·Decided May 7, 1927·No. No. 27,197·Published·Cited by 1 cases

Opinion

[437] The opinion of the court was delivered by

Dawson, J.:

This was an action to recover a share of certain real-estate dealers’ commissions alleged to have been earned by plaintiffs in the service of defendant.

It appears that in 1920 the defendant, J. J. Speck, had certain tracts of land for sale in the Rio Grande valley in Texas. The plaintiffs, L. A. Hartman and Homer B. Jenkins, were a partnership firm of real-estate dealers.in Topeka. Through an agreement between Speck and Jenkins the services of plaintiffs were secured by Speck to assist him in finding buyers for his Texas lands. Plaintiffs set about that undertaking and did produce certain prospective buyers who went to Texas, partly at their own expense and partly at the expense of Speck, to look over Speck’s lands, and sales of some of these lands were thereby effected.

Eventually, after a few months’ experience in this selling campaign, Hartman decided to sever his partnership connection with Jenkins and advised Speck to that effect and requested or notified him not to pay Jenkins Hartman’s share of the commissions earned by the partners. Speck expressed his assent to this request or demand of Hartman.

Some months later, no share of commissions being forthcoming to Hartman, he commenced this action, alleging the engagement of the partners to sell defendant’s Texas lands at an agreed commission of 15 per cent of the sales price less certain expenses borne by. Speck; and that plaintiffs had effected sales, viz.:

To Beecher Hawk............60 acres at $325.00 per acre......:. $16,500.00
To O. Neil.................. 20 acres at $325.00 per acre........ 6,500.00
To O. McCaffery............ 20 acres at $350.00 per acre........ 7,000.00
To J. Kennedy........'...... 80 acres at $337.50 per acre........ 27,000.00
To T. F. Rickenbacker....... 80 acres at $500.00 per acre........ 40,000.00
Total sales ................................................... $96,750.00

Plaintiffs alleged that defendant’s expenses incurred in effecting such sales were $4,678.32, after the deduction of which from the sales price plaintiffs were entitled to 15 per cent of the net remainder, to wit, $9,834.18, and that the plaintiff Hartman was entitled to one-half of that amount, $4,917.09, for which sum with interest plaintiff Hartman prayed judgment.

Defendant’s answer contained a general denial, and alleged that [438] the commissions which he was to pay were agreed to by defendant and Jenkins, and that such commissions were not to be due and payable until half the purchase price of the lands sold by plaintiffs should be paid in cash by the purchasers. The answer also alleged that the contract of employment provided that when lands, notes, mortgages and the like had to be accepted as part payment of the purchase price of Speck’s lands, the plaintiffs had to stand a discount of 33% per cent of all losses sustained in turning into cash the property thus accepted. Other conditions of the employment of plaintiffs as Speck’s agents were also pleaded.

Defendant’s answer further alleged that to effect the sale to Hawk as pleaded in plaintiffs’ petition, he necessarily incurred an expense of $1,500 in clearing the land of brush, and that he had to abate the price because 13 acres of the tract were nonirrigable, and that the total refund defendant had to make to Hawk was $10,490.

Touching the other sales alleged to have been effected by plaintiffs, defendant pleaded that the sale to Neil was canceled; the sale to McCaffrey had to be scaled down to 10 acres; that the cost of clearing the land sold to Kennedy was $3,000; that the price had to be abated $1,500 because part of the land was nonirrigable; and that Kennedy had sued defendant for damages incidental to the sale which cost defendant $2,700; and that he had received a nominal $16,000 mortgage on Nemaha county land as part payment of the price of the land sold to Kennedy, but that this mortgage was worth no more than $12,000. Touching the sale to Rickenbacker, there had been a special agreement that the agents’ commission was to be 10 per cent, and that Rickenbacker only bought $25,000 worth of land, not $40,000 worth as alleged by plaintiffs, and that defendant had received as part payment certain Shawnee county land at a nominal value of $10,000, but the actual value of which was $4,000.

Defendant further answered that the gross commissions on the sales alleged amounted to $7,568.50, and by reason of abatements, losses and necessary discounts to realize cash on lands received as part payments and miscellaneous items of expense and payments to Jenkins, aggregating $8,513.32, that plaintiffs were indebted to defendant in the sum of $944.82. Defendant further alleged that after he was notified by plaintiff not to pay his share of the earned commissions to Jenkins, the latter continued to work for defendant [439] and that Jenkins had gotten into debt to defendant in the sum of $2,637.98. Wherefore defendant prayed that if the Hartman-Jenkins partnership was dissolved he should have judgment against Hartman for $944.82, and if it had not been dissolved that he be given judgment against both plaintiffs in the sum of $3,672.80.

Plaintiffs’ reply was a general denial. The case was tried by the court without a jury. Judgment was entered for plaintiff Hartman for $4,460.55.

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Hartman v. Speck, 256 P. 137, 123 Kan. 436, 1927 Kan. LEXIS 265 (kan 1927).

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