Hellings v. Wright

156 P. 365, 29 Cal. App. 649, 1916 Cal. App. LEXIS 165
CourtCalifornia Court of Appeal
DecidedFebruary 11, 1916
DocketCiv. No. 1473.
StatusPublished
Cited by23 cases

This text of 156 P. 365 (Hellings v. Wright) 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
Hellings v. Wright, 156 P. 365, 29 Cal. App. 649, 1916 Cal. App. LEXIS 165 (Cal. Ct. App. 1916).

Opinion

BURNETT, J.

The action was brought to recover commissions due under an oral agreement between plaintiff and defendant, both being real estate brokers. The agreement was that plaintiff, on behalf of defendant, should procure purchasers for lots in Richmond Tract No. 2, Contra Costa County, plaintiff to sell for cash, if possible, and if not, then on the installment plan, so much to be paid monthly by the purchaser and plaintiff’s commissions to be paid by defendant *651 at the rate of one-half of the monthly payments paid in on sales made by plaintiff individually, and one-third of the monthly payments on sales made by plaintiff jointly with any other salesman; settlement to be made between the parties on the first of every month until the whole of plaintiff’s commission should be paid.

The defendant had a contract in writing, duly subscribed by the owner of the lots, for the sale thereof on a commission of twenty-five per cent'of the sale price, and plaintiff’s commissions were to be fifteen per cent on sales made by him alone and seven and one-half per cent on sales made by him and any other salesman acting together. The plaintiff thereafter sold a certain number of lots and also a certain number in conjunction with one M. E. Dunn. Settlement between the parties was regularly had each month until about January 1, 1911, at which time plaintiff ceased selling said lots. Such settlement was made on statements rendered by defendant. One of these statements appears in full in the transcript, and it shows the names of the purchasers, a description of the lots sold, plaintiff’s commissions, the amount theretofore paid plaintiff, and the amount due January 3, 1911. Said statement corresponds with that set out in the complaint herein, except in a few unimportant particulars. The testimony shows that from and after January 1, 1911, monthly payments were made by the purchasers of lots sold as aforesaid by plaintiff, and that the defendant received his commissions therefor in accordance with his written contract with the Central Richmond Land Company, but that he failed to pay plaintiff his commissions thereon. No evidence was offered by defendant, but it is insisted that the judgment is erroneous for several reasons, which we proceed to notice.

1. The first contention is that the contract being oral could not be enforced by reason of the statute of frauds. A sufficient answer to this claim is found in the following decisions: Gorham, v. Heiman, 90 Cal. 346, [27 Pac. 289]; Aldis v. Schleicher, 9 Cal. App. 372, [99 Pac. 526]; Casey v. Richards, 10 Cal. App. 57, [101 Pac. 36]; Saunders v. Yoakum, 12 Cal. App. 543, [107 Pac. 1007]; Baker v. Thompson, 14 Cal. App. 175, [111 Pac. 373]; Johnston v. Porter, 21 Cal. App. 97, [131 Pac. 69]; Hageman v. O’Brien, 24 Cal. App. 270, [141 Pac. 33].

*652 In the Gorham case, supra, it is said, in reference to the complaint, that “It shows an agreement to co-operate in obtaining authority to sell, and in selling, a mine for an equal share of the commissions. It shows that the agreement was acted upon. It shows performance on the part of plaintiffs, collection of the commissions by appellants, and refusal to divide. Certainly this establishes a cause of action if the agreement was valid, and we know of no ground upon which it can be held invalid. Counsel seem-to rely on section 1624 of the Civil Code, subdivision 6. But, clearly, 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. ’ ’

In the Aldis case it is said: “Conceding that the compensation recoverable by a broker for selling real estate is the subject of an oral contract between him and another, under which agreement the latter is to recover the commission for effecting the sale, nevertheless, a complaint, in order to state a cause of action upon such oral contract, must allege that the one from whom it is sought to recover was by his principal authorized in writing to effect a sale.”

So in the Casey decision it is said: “The contract of employment by an authorized broker of the plaintiff as an assistant under an agreement to share commission is not required to be in writing under the statute of frauds.”

In the Hageman case it was held that, while the agreement between the brokers was to pay a definite commission, it was in effect an agreement to share commissions and hence was enforceable.

Some of the foregoing cases probably attach conditions to the enforcement of such claim that a just view of the law does not exact, but there can be no question that the facts here meet every requirement of the rule. It clearly appears, in the first place, that defendant had a written contract with the owner for the sale of said property and for the payment of a specific commission, and that he employed plaintiff to assist in the sale of said property. Furthermore, that he agreed to pay him a certain commission for every lot that he sold. This amounted, of course, to an agreement to share the commissions, since defendant was to obtain twenty-five per cent from the owners and of this the former was to pay to plaintiff *653 fifteen- per cent. In other words, it was to be divided in the ratio of fifteen to ten between plaintiff and defendant. To share does not demand necessarily an equal division. - Defendant was to share with plaintiff because he was to receive from the owner the whole of the commission, and he was to divide it in a certain proportion with plaintiff. It further appears that the lots were sold by plaintiff, that defendant received the commission from the owner and failed to divide as he agreed. We know of nothing more required to entitle plaintiff to recover, and we do not hesitate to say that the statute of frauds, as interpreted by the courts, has no appliea-. tion to this case.

2. Appellant contends that the complaint fails to state a cause of action in consequence of the omission of an allegation that plaintiff “obtained agreements from purchasers to pay the balance in monthly installments,” etc. The contention is based upon the familiar principle of practice that the complaint must aver a performance of the acts required of plaintiff to entitle him to relief.

While the complaint could have been more explicit in the respect indicated, w„e are emphatically of the opinion that it is sufficient as against a general demurrer. There is an allegation that “Thereafter and prior to January 1, 1911, plaintiff, under and by virtue of said agreement between himself and said defendant, sold by himself sixty-one of said lots on the said monthly payment plan, ’ ’ etc. It simply amounts to this: Plaintiff alleges that he had a certain agreement with defendant to sell land upon a certain plan, and that he did sell it on the said plan. This necessarily implies that he complied with the terms contained in the plan.

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Bluebook (online)
156 P. 365, 29 Cal. App. 649, 1916 Cal. App. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hellings-v-wright-calctapp-1916.