Kraemer v. Smith

179 Cal. App. 2d 52, 179 Cal. App. 52, 3 Cal. Rptr. 471, 1960 Cal. App. LEXIS 2197
CourtCalifornia Court of Appeal
DecidedMarch 21, 1960
DocketCiv. 18890
StatusPublished
Cited by6 cases

This text of 179 Cal. App. 2d 52 (Kraemer v. Smith) 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
Kraemer v. Smith, 179 Cal. App. 2d 52, 179 Cal. App. 52, 3 Cal. Rptr. 471, 1960 Cal. App. LEXIS 2197 (Cal. Ct. App. 1960).

Opinion

TAYLOR, J. pro tem. *

This is an appeal from a judgment on a jury verdict rendered in favor of plaintiff real estate broker for a commission in the amount of $14,155.80 for the sale of ranch property in Santa Clara County. The sole issue is whether there is any substantial evidence to establish an oral waiver or extension of time by the seller for the performance by the plaintiff broker of an exclusive written authorization to sell.

Having in mind the familiar rule that on appeal all conflicts must be resolved in favor of the respondent and all legitimate and reasonable inferences indulged in favor of the *54 verdict, the court will summarize the facts most favorable to the plaintiff’s case.

On November 23, 1954, defendant landowners entered into a written contract with the plaintiff real estate broker granting her a six months’ exclusive to sell their ranch. The six months’ period terminated on May 23, 1955. On February Í8, 1955, defendants agreed to sell to one Matthew Kelly. This deal had been negotiated through the efforts of two other brokers with plaintiff’s consent. Under the terms of the Kelly contract, Kelly was given until August 1, 1955, to get subdivision plans approved and complete the sales transaction, but the deal collapsed and was abandoned on that date. A short time after August 1, 1955, the plaintiff presented the defendants another written exclusive agency contract. Defendant Earle Smith referred her to his brother defendant Everett Smith who refused to sign any new exclusive stating that “the lawyer had told him not to sign anything.” However, he told her she could work on the property. The defendants at this time increased the sales price from $5,500 an acre net to $6,000 an acre net. After August 1 plaintiff never advertised the property by mail, newspaper or radio.

Later in August the plaintiff called on Ira Higgins, the ultimate purchaser, concerning the purchase of the property. Since Higgins resided near the property and was familiar with it, plaintiff did not show him the property but did show him some illustrative maps. Higgins told plaintiff he was interested in buying defendants’ land, subject only to the freeway not passing through it. The plaintiff transmitted this message to the defendant sellers. Defendant Everett Smith told her to “ ‘bring me an offer without any conditions and we’ll accept it.’ ” After the Kelly deal collapsed on August 1, 1955, the defendants told plaintiff on three or four occasions to try to find them a buyer, and both defendants Earle and Everett Smith'told her that because of the work she had done they felt she was entitled to a commission regardless of who sold it. .The plaintiff proceeded to show the property to prospective ■buyers “probably” a dozen times.

About February 19, 1956, the plaintiff learned that the freeway was not going through the defendants’ property and . that Ira Higgins was again interested. She contacted Higgins, who informed her he had been to see the defendants about the property, had' looked it over, and that he was interested. On February 23, 1956, the defendants sold the property direct to Higgins. Just before this sale was consummated plaintiff *55 called on the defendant Earle Smith and his wife and told them she had presented the property to Higgins, and asked them to sign a paper to that effect which they refused to do.

The defendants contend that viewing the facts in a light most favorable to the plaintiff, the original exclusive agency contract had terminated on May 23, 1955, that there was no valid oral extension or waiver of time for its performance beyond August 1, 1955, and any authorization in existence between the parties after that date was oral and unenforceable under the statute of frauds.

Code of Civil Procedure, section 1973, subdivision 5, provides that an agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation or a commission is invalid unless it is in writing and signed by the party charged. The courts of this state have consistently refused to permit recovery under oral agency contracts or in quantum meruit even in cases where much effort, time and money has been expended by the realtor in the sale of property. (Ford v. Palisades Corp., 101 Cal.App.2d 491 [225 P.2d 545]; Jamison v. Hyde, 141 Cal. 109 [74 P. 695]; Mc- Phail v. Buell, 87 Cal. 115 [25 P. 266]; White v. Hirschman, 54 Cal.App.2d 573 [129 P.2d 430]; Gould v. Otto, 81 Cal.App. 409 [254 P. 272].) A real estate broker as a professional man, is presumed to know that contracts for real estate commissions are unenforceable unless in writing. He assumes the risk of relying on oral promises and has no reason to complain if his efforts are unrewarded. (King v. Tilden Park Estates, 156 Cal.App.2d 824, 830 [320 P.2d 109].) Without the protection of the Statute of Frauds, the seller is called upon to meet the bald assertion of a promise to which he can interpose nothing but his simple denial. (Kroger v. Baur, 46 Cal.App.2d 801, 803 [117 P.2d 50].)

However, in Baker v. Curtis, 105 Cal.App.2d 663, 669-670 [234 P.2d 153], the court held “where, as here, the owner, after the time limit provided in the contract had expired, urged and encouraged the broker to continue his efforts to find a purchaser for the property, and the broker did so continue with the knowledge, approval and encouragement of the owner, and, as a result of the broker’s efforts, a purchaser to whom the owner sold the property was produced, under such circumstances the time limit in the written contract must be considered as having been waived and the broker is entitled to his commission. To hold otherwise would in our opinion *56 permit the use of the statute of frauds to perpetrate a fraud. ’ ’ (Emphasis added.) The courts have further enunciated this principle in Lewis v. Foppiano, 150 Cal.App.2d 752 [310 P.2d 658], and Filante v. Kikondall, 134 Cal.App.2d 695 [286 P.2d 448],

Whether there is a waiver or extension of time of a written exclusive is a question of fact for determination in the trial court (Genung v. Nelson, 138 Cal.App.2d 575 [292 P.2d 297

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Bluebook (online)
179 Cal. App. 2d 52, 179 Cal. App. 52, 3 Cal. Rptr. 471, 1960 Cal. App. LEXIS 2197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kraemer-v-smith-calctapp-1960.