Justy v. Erro

117 P. 575, 16 Cal. App. 519, 1911 Cal. App. LEXIS 366
CourtCalifornia Court of Appeal
DecidedJune 27, 1911
DocketCiv. No. 831.
StatusPublished
Cited by28 cases

This text of 117 P. 575 (Justy v. Erro) 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
Justy v. Erro, 117 P. 575, 16 Cal. App. 519, 1911 Cal. App. LEXIS 366 (Cal. Ct. App. 1911).

Opinion

HART, J.

The plaintiffs, doing a real estate brokerage business in the city of Fresno, brought this action for the purpose of recovering certain commissions alleged to be due and owing them from defendant for services, rendered under a written contract, in procuring a purchaser and consequently effecting the sale of certain land belonging to the defendant and situated in Madera county.

The cause was tried by the court, a jury having been waived by both parties.

*521 Plaintiffs were given judgment, from which and the order denying him a new trial the defendant prosecutes this appeal to this court.

The complaint is in two counts, viz.: The one declaring upon the contract and the other upon the debt alleged to be due plaintiffs, for the services stated, in indebitatus assumpsit.

The answer specifically denies the averments of each count of the complaint.

The points urged against the judgment and order are, generally, that the evidence is insufficient to support certain of the vital findings and that the court committed errors, prejudicial to the defendant, in certain of its rulings allowing and excluding certain testimony.

As to the facts of the transactions giving rise to this action, the controversy seems to have been pivoted by both parties upon the sole question whether the sale of the land described in the agreement between the parties was brought about through the plaintiffs or entirely through one Charles de Roulet, the claim of defendant being that the latter, acting solely for himself and independently, and not as an agent of or connected in any way with the plaintiffs in the transaction, effected a sale of the property, upon which proposition it is contended that the plaintiffs are not entitled, at the most, under their agreement with defendant, to more than the aggregate commissions computed at the rate of two and one-half per cent on the “purchase price,” as to which price there is also some dispute.

In the outset we may as well announce it to be our opinion that, according to the terms of the agreement between plaintiffs and defendant, the former are entitled to the maximum commissions provided for by said agreement even under the theory of the defense. In other words, even if it be true, as is the claim of the defendant, that de Roulet, through whom admittedly the land was sold during the term within which the plaintiffs had been given by the agreement the exclusive right (with a single exception of which we shall give special consideration hereafter) to sell the land was not acting for or connected in any manner or sense with plaintiffs in their agreement with defendant, the former would, nevertheless, be entitled to commissions of five per cent on the purchase price.

*522 It is, however, deemed the more orderly, under the circumstances presented by the record, to postpone further consideration of this proposition until we have examined the facts as revealed by the record and some other questions which are raised by the appellant against the validity of the judgment and order.

But it is conceived not to be improper to state, in the beginning, some of the well-settled general rules of law relating to Contracts by which real estate brokers are authorized to sell property for others on commission.

“If, within the time limited, the broker has produced a purchaser who is ready, willing and able to purchase upon the terms prescribed, the principal cannot evade the payment of the broker’s commission by then refusing of neglecting to consummate the sale, or by changing the terms, or by selling the property to another, or by so negligently dealing with the proposed purchaser as to lose the benefit of the sale.” (Mechem on Agency, sec. 967.) And, in consonance with the rule as thus stated, it has been held that if the broker has fulfilled upon his part, “he will be entitled to his commissions, although the sale is not consummated because the principal’s title proves defective (Hamlin v. Schulte, 34 Minn. 534, [27 N. W. 301] ; Goodrich v. Holliday, 18 Ill. App. 363; Gonzales v. Broad, 57 Cal. 224; Knapp v. Wallace, 41 N. Y. 477; Doty v. Miller, 43 Barb. (N. Y.) 529; Sibbald v. Bethlehem Iron Works, 83 N. Y. 378, [38 Am. Rep. 441]), or because the principal’s wife refuses to join in the conveyance (Clapp v. Hughes, 1 Phila. 382), or because the purchaser refuses to complete the sale on account of false representations made by the principal.” (Glentworth v. Luther, 21 Barb. (N. Y.) 145.)

Nor is it necessary that the broker should personally have conducted the negotiations between his principal and the purchaser leading to the sale, nor that he should have been present when the bargain was completed, “or even that the principal should, at the time, have known that the purchaser was one found by the broker.” (Mechem on Agency, see. 966, and cases cited in the footnote thereof.) And, while it is indispensable, yet it is sufficient that his efforts were the procuring cause of the sale; that, “through his agency, the *523 purchaser was brought into communication with the seller, although the parties negotiated in person.” (Id.)

With the foregoing statement of some of the principles governing contracts of the character of the one here, we will now proceed to review the facts, which, as disclosed by the evidence from which the court made its findings, may thus be summarized:

On and prior to the third day of August, 1908, and until he sold the same, the defendant was the owner of a tract of land situated in the county of Madera and known as the “Borden and Freeland Ranch.” On said third day of August, 1908, said de Roulet met defendant and asked the latter if he (defendant) would “sign a contract for his property for $36,000 and he said he would, and he came to Mr. Justy for that purpose,” having been accompanied to Justy’s office by de Roulet. After reaching Justy’s office, the defendant executed, in the presence of Justy, the latter’s son and Vise, Justy’s partner, the following agreement:

“I hereby appoint N. P. Justy Company, W. R. Vise, my agents with exclusive right to sell the following property and receive deposit in my name. To-wit: I sell the ranch known as the Borden and Freeland ranch located in the county of Madera, State of California, as follows: for the sum of $36,000.00; $5,000.00 cash, balance of $31,000.00 in 5 — years as follows: $5,000.00 thirty days or more and $10,000.00' in ninety days after, balance to be paid in four years at amount arranged, with interest at 7 per cent per annum, payable annually. And I agree to furnish deed, abstract and clear title, and pay five per cent commission on purchase price out of said sale.
“Reasonable time allowed for making papers.

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Bluebook (online)
117 P. 575, 16 Cal. App. 519, 1911 Cal. App. LEXIS 366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/justy-v-erro-calctapp-1911.