Kuhn v. Stan A. Plauche Real Estate Company

185 So. 2d 210, 249 La. 85, 1966 La. LEXIS 2461
CourtSupreme Court of Louisiana
DecidedMarch 28, 1966
Docket47948
StatusPublished
Cited by51 cases

This text of 185 So. 2d 210 (Kuhn v. Stan A. Plauche Real Estate Company) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kuhn v. Stan A. Plauche Real Estate Company, 185 So. 2d 210, 249 La. 85, 1966 La. LEXIS 2461 (La. 1966).

Opinions

SUMMERS, Justice.

This is a suit for real estate commission in which the real estate agent, Stan A. Plauche, Inc., obtained judgment in its favor in the trial court against Anthony Matrana, the prospective seller of the land. The judgment was affirmed on appeal to [87]*87the Court of Appeal, Fourth Circuit, 178 So.2d 296.

To properly present the background of the problem presented for adjudication, it is necessary that we recite the facts in more than the usual detail.

On November 6, 1961 Anthony Matrana signed a “Sale Authorization” in which he employed Stan A. Plauche, Inc., a real estate firm of New Orleans, to sell a parcel of land in Faubourg de Montluzin in Orleans Parish, the contract providing that the sale was to be for “$46,000.00 net to owner, all monies above net shall be commission tp agent.” The sale was to be for cash “or for any other price or terms hereafter agreed upon.”

.V The agent then proceeded to advertise the property for sale by placing a sign thereon, preparing and circulating prospectuses of the property and, generally, proinoting'its sale in the ordinary course of business. During this time Mr. Stan A. Plauche, head of the real estate firm, visited -Mr. Matrana to discuss the transaction and to promote his good will.

Then on January 4, 1962, Matrana signed >an offer to sell the property in question for “43,000 net to owner” ■ under credit terms . providing that Matrana was to receive notes for the credit portion of. the sale. .No loan 'needed to be negotiated with others. Under this agreement Matrana-was to pay the Plauche firm a commission equal to the difference between $43,000 and the actual price at which the Plauche firm could sell the property.

Oh the same day, in a' separate instrument, the Plauche firm obtained the signature of Jacob J. Kuhn to an agreement to purchase the property for the sum of $52,-000, on credit terms which were stipulated. A deposit by the purchaser of 10% of the purchase price, or $5,200, was required, which could be declared forfeited in the event the purchaser (Kuhn) failed to comply with the agreement to 'purchase. Thereafter, but still on January 4, 1962, the Plauche firm retyped the “Agreement to Purchase” on an identical printed form as the one signed by Kuhn, omitting the name of Kuhn and typing therein in its stead “Agent for the Purchaser as per written original in my files,” below which Stan A. Plauche, President of the firm, signed his name in that capacity. This agreement was submitted to Matrana who signed an acceptance printed thereon in these words: “I/we accept the above in all its terms and conditions.” With respect to the agent’s commission this document had inserted in the appropriate blank these words: "see agreement to sell,” meaning that reference should be made to one or the other of the following: The agreement of November 6, 1961 providing that the commission should consist of all amounts over $46,000 net to the landowner or seller, or the agreement to [89]*89sell signed by Matrana on January 4, 1962 providing that the commission should consist of all amounts over $43,000 net to the landowner or seller.

Several days later Kuhn deposited the $5,200 required by the “Agreement to Purchase” which he had signed.

It then became known to the Plauche firm that Matrana had only a Bond for Deed whereby he was to purchase the property; and that since executing the Bond for Deed on October 17, 1952, his wife had died, and his two minor daughters became vested with a one-half interest in the Bond for Deed. It was necessary, therefore, in order to tender a merchantable title to the prospective purchaser (Kuhn), that Matrana, as tutor of his minor children, obtain court authorization to sell the property under the terms and conditions of the “Agreement to Purchase” signed by Kuhn and accepted by him. Accordingly a petition was addressed to the appropriate court seeking the necessary authorization. But, due to ex parte declarations of the judge to the effect that the commission was too much, and due also to the fact that the judge felt that the property was worth more than $52,000 (based on an appraisal which he had caused to be made), the petition seeking the authorization was withdrawn.

The time allowed. for tendering a merchantable . title under the “Agreement to Purchase” of January 4, 1962, having expired, Kuhn instituted - suit against the Plauche firm and Matrana for the return of the $5,200 deposit held by Plauche. Plauche then reconvened against Kuhn and filed a cross claim against Matrana, alleging a breach of the contract by one or the other, or, alternatively, that it was entitled to a commission of $9,000, with interest, costs and attorney’s fees. The reconventional demand was dismissed as to Kuhn, and there was judgment in his favor for the amount of the deposit — $5,200. Although he was represented by counsel at the time, Matrana did not appear in person or testify in his own behalf; and judgment was rendered in favor of the Plauche 'firm for the commission of $9,000, plus $1,500 attorneys’ fees and costs. ' 1 '' '• 1

Matrana’s appeal to the . Fourth-, Circuit resulted in an affirmance of the trial, ,co,prt judgment.

We granted certiorari on Matrana*s application, 248 La. 438, 179 So.2d 275.

In his concise' brief to this' court Matrana’s counsel argues simply that no commission was due to be paid until the act of sale took place, and, as there was no sale, no commission was due.

This position is based upon certain language .of. the, agreement dated January 4, 1962, .whereby M.atrana agreed to pay all jnonies of. the. selling price above $43,000 as commission — this agreement having been [91]*91incorporated by reference into the contract which Matrana accepted. The printed portion of the agreement in question, insofar as it affects Matrana’s contention here, provides:

“If this offer is accepted, seller agrees to pay the agent a commission of all monies above $43,000.00 of the selling price, which commission is earned by agent when this agreement is signed by both parties and when the mortgage loan(s) if any, has been secured. Either party hereto who fails to comply with the terms of this offer, if accepted, or who fails to cooperate with Stan A. Plauche Real Estate, Inc., in securing the mortgage loan, is obligated and agrees to pay the agent’s commission and all fees and costs incurred in enforcing collections and damages. (Italicized portion typewritten.)

Appearing in the document as the final stipulation after the entire printed portion is the following typewritten sentence: “Seller agrees to pay the agent at the act of sale the, amount of the commission in cash."

As we understand counsel’s argument on behalf of Matrana this final typed sentence supersedes anything to the contrary in the printed portion of the contract. A fair reading of the sentence, he says, permits the interpretation that the commission, because it was payable “át the act of sale,” was not due until the sale took place. As no sale did take place, the condition upon which the payment of the commission was predicated did not occur;' and, therefore no commission could be collected.

Counsel for the Plauche firm, however, asserts that by the quoted, printed language ' of the contract the commission is earned upon the signing of the agreement by both parties.

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185 So. 2d 210, 249 La. 85, 1966 La. LEXIS 2461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kuhn-v-stan-a-plauche-real-estate-company-la-1966.