Hiniger v. Judy

398 P.2d 305, 194 Kan. 155, 1965 Kan. LEXIS 240
Supreme Court of Kansas·Decided January 23, 1965·No. 43,862·Published·Cited by 44 cases

Opinion

The opinion of the court was delivered by

Schroeder, J.:

This is an action by a real estate broker to recover a broker’s commission for the sale of farm real estate. The case was tried before a jury in the district court of Wyandotte County, Kansas, resulting in a verdict and judgment for the plaintiff, whereupon appeal has been duly perfected.

The appellee in his brief says the only question is: “Were plaintiff-appellee’s efforts the procuring cause of bringing buyer (Mr. Stoneback) and seller (Mr. Judy) together?” To be more technical, the appellate question is whether there is any evidence to sustain a finding that the efforts of the real estate broker were the procuring cause of the sale.

The general rule is that a real estate agent or broker is entitled to a commission if (a) he produces a buyer who is able, ready and willing to purchase upon the proffered terms or upon terms acceptable to the principal; (b) he is the efficient and procuring cause of a consummated deal. (DeYoung v. Reiling, 165 Kan. 721, 199 P. 2d 492, Syl. ¶ 1; and Patee v. Moody, 166 Kan. 198, 199 P. 2d 798.)

In the DeYoung case the court said:

“We need not here discuss at length the conditions under which real estate agents or brokers are entitled to a commission. Various aspects of the pertinent law on that subject are treated extensively by the textbook writers — and the cases from which the applicable rules are deduced are legion. It is well, however, to have in mind at the outset some long-established rules. A broker is entitled to a commission if he produces a buyer who is able, willing and ready to purchase upon the proffered terms or upon terms that are acceptable to the principal. He must be the ‘efficient,’ the ‘procuring’ cause, or as some cases say, the ‘proximate’ cause, of the consummated deal. An owner who has knowledge that a broker with whom he has listed his property has interested a prospective customer with whom he is still conducting negotiations, cannot defeat the broker’s right to a commission by the expedient of closing the deal himself or through another broker. . . . The payment of a commission to one broker is not in itself sufficient to avoid liability to another. . . .” (p. 725.)

It is to be noted the conditions specified in both (a) and (b) above (DeYoung v. Reiling, supra, Syl. ¶2) must be met before the real estate broker is entitled to a commission. Numerous cases have been litigated in which the issue is whether the real estate *157 broker is entitled to a commission upon the sale of real estate, but basically, they do not alter these conditions. Occasionally a case will arise where a departure appears to have been made, but upon careful study the rule was not altered. The factual situation merely necessitated a distinction.

An example is Owen v. Spangler, 111 Kan. 484, 207 Pac. 772. There land had been listed on certain terms for sale with a real estate agent. The agent procured a purchaser on terms slightly different and communicated the fact to the owner who, on April 21, telegraphed in reply: “Will take offer and vacate May fifth, sooner if possible.” The owner was informed by letter that the terms stated in his telegram were satisfactory to the purchaser, and that there was no need of a written agreement. The purchaser was ready, able and willing to complete the sale; the only reason it fell through was because the owner insisted upon the purchaser signing a written contract, dated about April 27, providing for possession to be given within thirty days from that date, or sooner if possible. The court held the agent had earned his commission when he brought the parties together upon terms agreeable to them, and that the seller could not relieve himself from liability to his agent by insisting upon different terms which prevented a sale.

On these facts the court stated the rule to be:

“Where a real-estate agent is employed to find a purchaser ready, able and willing to buy on terms acceptable to the seller, it is not required in order to earn his commission that he bring the parties together personally or introduce them, nor is it the law that in order to earn his commission he must procure a binding contract signed by the purchaser.” Syl. ¶ 1.)

In Dreisback v. Rollins, 39 Kan. 268, 18 Pac. 187, approval was given to an instruction of the trial court which reads:

“‘If the defendant placed certain real estate in the hands of the plaintiff, as a real-estate agent, to find him a purchaser, and thereafter plaintiff brought him and his principal into communication, setting on foot negotiations which resulted in a sale, then, notwithstanding the transfer was concluded by the principal, the agent would be entitled to his commission, even though the said principal had placed said real estate in the hands of other agents for sale, and had reserved the right to sell said lands himself. It would not be essential that the agent should be present and participate in the consummation of the sale to be entitled to his commission, unless the terms of the contract between himself and his principal specially provided therefor; . . ” (p.269.)

In Grimes v. Emery, 92 Kan. 911, 141 Pac. 1002, the court said:

“The appellant contents that under the evidence in this case the appellee did not bring the seller and the purchaser together or institute a contract be *158 tween them and hence did not earn any commission. Numerous authorities are cited, the language of which differs mainly upon what constitutes a bringing of the seller and purchaser together or the producing of a purchaser to the seller who is ready, willing and able to purchase the property upon the terms and at a price designated by the owner, but none of them so inconsistent with the general doctrine that where a broker is employed to sell real estate for a commission and by any means is the procuring cause of bringing the seller and a proposed buyer together and a sale is consummated, either with or without the assistance of the broker, the broker is entitled to his commission.” (pp. 914, 915.)

In Marlatt v. Elliott, 69 Kan. 477, 77 Pac. 104, the court undertook to reconcile apparent variations in the rule by showing that statements relied upon by the defendant were either incomplete quotations from the opinion cited, or that the proposition of law relied upon was a proper pronouncement of the law under the facts of that case.

The primary relation, as between customer and real estate broker, is that of agency, and the general rules of law applicable to principal' and agent govern their rights and liabilities. Furthermore, agency can result only from contract, express or implied, and in determining whether a valid contract has been entered into, the rules which pertain to contracts generally are applicable. There must be consideration, mutuality and a meeting of the minds as to essential matters. Meeting of the minds may be shown by implication, by conduct of the parties. Like other features essential to a cause of action, the burden of establishing agency is upon the party asserting it.

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Hiniger v. Judy, 398 P.2d 305, 194 Kan. 155, 1965 Kan. LEXIS 240 (kan 1965).

398 P.2d 305 (Hiniger v. Judy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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