Illinois Bankers Life Assurance Co. v. Potes

1944 OK 255, 152 P.2d 925, 194 Okla. 474, 1944 Okla. LEXIS 504
CourtSupreme Court of Oklahoma
DecidedSeptember 26, 1944
DocketNo. 31484.
StatusPublished

This text of 1944 OK 255 (Illinois Bankers Life Assurance Co. v. Potes) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Bankers Life Assurance Co. v. Potes, 1944 OK 255, 152 P.2d 925, 194 Okla. 474, 1944 Okla. LEXIS 504 (Okla. 1944).

Opinion

RILEY J.,

Defendant in error, herein referred to as plaintiff, commenced this action in the district court of Murray county against plaintiff in error, herein referred to as defendant, to recover an agent’s or broker’s commission on the sale of a tract of about 352 acres of land in Marshall county.

The petition of plaintiff, after certain formal allegations, alleges, in substance, that on or about November 4, 1940, defendant employed and authorized plaintiff to sell the tract of land described, for the sum of $7,500 or more, and agreed to pay as his commission or compensation five per cent of the selling price, said contract being partly oral and partly written, the written part consisting of a letter, a copy of which was attached to the petition and made a part thereof; that plaintiff performed all the conditions of the contract on his part; that he solicited prospective purchasers and submitted an offer in writing from Abe Ross to purchase said land and pay therefor the sum of $7,500 and that said Abe Ross was able, ready, and willing to buy and pay for said land on the terms stated by defendant; that on the 6th day of November, 1940, defendant, with the aid of plaintiff, induced the said Abe Ross to increase his offer to *475 the sum of $8,151, and that Ross was able, ready, and willing to buy said land and pay said sum therefor, but the defendant disregarded said offer and sold said land to Henry Kemnitz and Eva Lena Kemitz for $7,995, being $176 less than the offer of plaintiff’s client, Abe Ross. Prayer was for the judgment for $407.55, with interest at 6% from November 6, 1940.

The letter relied upon and made a part of the petition reads:

“November 4, 1940.
“Mr. Ira Potes,
“Box 12,
“Sulphur, Oklahoma.
“Re: Elmer L. Cooper, RE No. 75 “Marshall County, Oklahoma
“Dear Sir:
“Confirming my telephone conversation with you this morning, I shall be pleased to submit an offer on the above as per my letter of November 2d changed so that the earnest money will be $250.00 instead of $750.00 and that means that the cash payment at time of delivery of deed will be $500.00 greater than as set out in my former communication.
“This is also to confirm that we are not negotiating with Mr. Ira Ross and, in the event you close a deal at this time with him that is satisfactory to us, you will be allowed a commission of five per cent.
“Yours truly,
“E. J. Bodman”
“EJB-McC

Defendant’s general demurrer to the petition was overruled.

Answer was by denial that defendant employed and authorized plaintiff to sell the land, and allegation of the fact that plaintiff was only to solicit purchasers for the real estate; that defendant was under no obligation to accept any offer made; that the company is not authorized to convey real property except where the offer is submitted to its board of directors and by said board accepted; that the offer submitted, as alleged in plaintiff’s petition, was rejected by the board of directors; that no contrary agreement was made by any officers or agents of the corporation. The answer denies any oral contract between plaintiff and defendant, but alleges that if there were any oral negotiations these were merged in the written offer of purchase; that any alleged agreements, either oral or written, for sale of lands owned by defendant, not authorized by it in writing, would be invalid, and if in fact made, was invalid as within the statute of frauds.

It is contended that the petition alleges that. defendant employed and authorized plaintiff to sell the land, but does not plead authority in writing, and for that reason the petition does not state facts sufficient to constitute a cause of action.

Defendant cites Woodworth et al. v. Franklin, 85 Okla. 26, 204 P. 452; Franco Am. Securities et al. v. Guillott, 186 Okla. 302, 97 P. 2d 756, and other similar decisions of this court, to the effect that a sale of land or an interest therein, by an agent, is invalid in the absence of written authority from the owner specifically and with certainty empowering the agent to effect the sale.

These were cases in action to establish title. This is not such an action. Defendant also cites Morrill v. Barneson, 30 Cal. App. 598, 86 P. 2d 924. That case holds that a broker’s contract to sell land on commission is within the statute of frauds and invalid unless in writing.

Such is not the law in this jurisdiction.

In Pliler v. Thompson, 84 Okla. 200, 202 P. 1016, it is held:

“The usual provisions of the statute of frauds requiring contracts for the sale or purchase of real property to be evidenced by a written memorandum thereof are intended to apply only to *476 agreements which contemplate effecting a change of some kind in the title of the property involved, and have no application to a mere contract of employment of a real estate broker in securing a purchaser for the property so as to defeat the rights of such a broker acting under parol authority to recover the agreed commission.”

There was no error in overruling the demurrer to the petition.

It is contended that the trial court erred in overruling defendant’s demurred to plaintiff’s evidence, and in rendering judgment for plaintiff; that the judgment is not sustained by any evidence and is contrary to law.

The evidence shows that defendant was the owner of the land; W. Lock-hart was its general agent with office in Oklahoma City. E. J. Bodman was its special representative in charge of leasing defendant’s lands, collecting rents, and authorized to procure offers to purchase land and transmit these to the home office of defendant at Monmouth, Ill.

Pláintiff was a real estate broker engaged in buying and selling real estate on commission. His office was in Sul-phur, Okla. The land involved was known as the “E. L. Cooper, R. E. No. 75.” On July 8, 1940, plaintiff wrote Mr. Lockhart that he had a client who would be interested in buying 80 acres of the land, but if the company would not sell without selling all, the client might take it all. Asked for a price on the 80 acres and also on all the land, the letter then stated: “I would expect the agent’s usual 5% commission for handling in case of sale.”

October 23, 1940, Bodman wrote plaintiff as follows:

“Mr. Ira Potes,
“823 West 11th,
“Sulphur, Oklahoma.
“Re: Elmer L. Cooper RE No. 75 “Marshall County, Oklahoma
“Dear Sir:
“We are not in position to sell this other than in block of the whole.
“I will be willing to submit an offer of $7500.00 on terms of 25% cash, balance over a long period of time with interest at 5% reserving fifty per cent of the oil and mineral rights.

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Related

Morrill v. Barneson
86 P.2d 924 (California Court of Appeal, 1939)
Porterfield v. City of Modesto
159 P. 205 (California Court of Appeal, 1916)
Woodworth v. Franklin
1921 OK 333 (Supreme Court of Oklahoma, 1921)
Franco-American Securities, Ltd. v. Guillot
1939 OK 531 (Supreme Court of Oklahoma, 1939)
Pliler v. Thompson
1921 OK 423 (Supreme Court of Oklahoma, 1921)

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Bluebook (online)
1944 OK 255, 152 P.2d 925, 194 Okla. 474, 1944 Okla. LEXIS 504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-bankers-life-assurance-co-v-potes-okla-1944.