Lawson v. Black Diamond Coal Mining Co.

102 P. 759, 53 Wash. 614, 1909 Wash. LEXIS 1378
CourtWashington Supreme Court
DecidedJune 22, 1909
DocketNo. 7572
StatusPublished
Cited by12 cases

This text of 102 P. 759 (Lawson v. Black Diamond Coal Mining Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lawson v. Black Diamond Coal Mining Co., 102 P. 759, 53 Wash. 614, 1909 Wash. LEXIS 1378 (Wash. 1909).

Opinion

Cbow, J.

This action, which has heretofore been in this court, was commenced by Eugene F. Lawson against Black [615]*615Diamond Coal Mining Company, a corporation, to recover a broker’s commission for the services of himself and of Bruce Cornwall and Maurice McMicken, his assignors. A statement of the issues may be found in our former opinion. 4¡é Wash. 26, 86 Pac. 1120. From a judgment entered in favor of the plaintiff for $66,936, the full amount of his claim and interest, the defendant has appealed.

The records and briefs are voluminous. Forty-six elaborate findings of fact were made by the trial judge, to which the appellant has filed exceptions. The controlling assignments of error are that these findings are not sustained by the evidence. Many of the findings cover points not essential to a determination of the issues, and it would serve no good purpose for us to enter upon a detailed discussion of all the attacks made upon them. As a result of our examination of the record, we conclude that the findings do show each and every fact necessary to sustain the judgment, and that such facts have been proven by competent evidence, which, in substance, shows: That the respondent, Eugene F. Lawson, and his assignors, to whom we will hereafter refer as respondents, were employed to sell appellant’s coal mine; that as brokers they rendered valuable services to appellant, with the result that the Pacific Coast Company, afterwards the purchaser, became interested in the property and authorized J. D. Farrell, its representative, to buy the mine for $1,-600,000, the price at which appellant had then authorized its sale by respondents; that about this time one D. O. Mills, a heavy stockholder in the appellant corporation, without respondents’ knowledge or consent, took up negotiations in New York city with certain persons and interests with whom J. D. Farrell was in close association, with the result that before respondents could complete a sale, Farrell concluded the mine could be purchased for less than $1,600,000, which fact he communicated to them;'that H. H. Taylor, then president and manager of appellant corporation, after considerable correspondence with D. O. Mills, entered into ne[616]*616gotiations with Farrell, which finally resulted in a sale to the Pacific Coast Company, the respondents’ customer, for $1,100,000; that on April 2, 1904, about the time the terms of this sale were agreed upon, Taylor wrote letters to the respondents advising them that they would have no further interest directly or indirectly in any new negotiations; that the sale was then practically consummated; that at no previous time had Taylor or the appellant given any such notice to respondents or any of them, and that Taylor, as president and manager of the appellant, had theretofore urged them to continue their negotiations with the Pacific Coast Company.

Respondents predicate their first claim to employment upon a letter written on April 10, 1908, by P. B. Cornwall, then appellant’s president. Appellant strenuously insists that no competent evidence sufficient to show Cornwall’s authority to employ respondents appears in the record. We think his authority was proven. Assuming, however, that it was not, respondents predicate a further claim of employment upon a formal resolution adopted by appellant’s board of directors on August 26, 1908. The minute book for that date shows the record of two resolutions. The first one, which authorized a sale without limit of time for $1,500,000 at five per cent commission, is stricken by red ink lines drawn through it. Immediately following it is a second resolution substantially the same, except that it expressly provides that • upon the expiration of sixty (60) days after its date it shall be null and void and without effect. Respondents contended, and the trial court found, that the first resolution was the one actually adopted, but that it was afterwards wrongfully erased, and the second one was substituted therefor without respondents’ knowledge or consent, and without action of the board. This finding, which we think is sustained by the evidence, is vigorously assailed by the appellant, its contention being that the only resolution which was actually adopted [617]*617by the board was the second one containing the sixty-day limitation.

Assuming the appellant’s contention in this regard to be supported by the preponderance of the evidence, still the record convinces us that the appellant afterwards waived such sixty-day limitation, for the reason that Taylor, its authorized agent, urged respondents to continue their negotiations for a sale of the mine, and induced them to do so. In Ice v. Maxwell, 61 W. Va. 9, 55 S. E. 899, the first and second syllabi, which state the substance of the opinion on this point, read as follows:

“Where an agent is empowered to procure a purchaser for real estate within a stipulated time, and is to receive a certain compensation for his services, he will not be entitled to recover such compensation unless he furnishes a purchaser within that time.
“But where the owner or principal has waived the performance of the contract within the time agreed upon, and accepts the services of the agent and recognizes and treats the contract as still in force, the agent will be entitled to compensation.”

At the meeting of August 26, 1903, appellant’s board of directors, by another resolution without limitation as to time, appointed Taylor and one Drum, another director, a committee to conduct any and all negotiations with brokers as to the sale of the coal mine, subject to the board’s approval. Drum does not appear to have done anything in the premises, but Taylor did. He repeatedly urged the respondents to continue their services, after the expiration of the sixty-day period. He at the time knew that D. O. Mills was engaged in negotiations with eastern parties, being in correspondence with him. He also acted himself by conducting personal negotiations with Farrell. The indisputable fact is that in some manner a sale was effected to the respondents’ customer, the Pacific Coast Company, and later ratified by the appellant’s board of directors. Taylor had unlimited authority to deal with the brokers, subject only to [618]*618the control of appellant’s board. He knew the condition of the minutes, and could have avoided any misunderstanding by formally ordering respondents to cease their efforts. When he reported the sale to the board, he must be presumed to have reported all his acts, including his dealings with the respondents. If he failed to do so, respondents should not be losers by reason thereof. Under the circumstances shown, his knowledge must be considered the knowledge of the board, and when it closed the deal, having such knowledge, it ratified his acts. It could not accept the benefits of the sale for the consummation of which respondents had labored at Taylor’s request, and at the same time refuse to compensate them for their services. After the sale had been practically agreed upon, it was too late for Taylor to relieve appellant from liability to respondents by writing his letter of April 2, 1904. Conceding that the respondents’ time for making the sale had then expired, under the alleged sixty-day resolution, yet under the facts and circumstances shown by the records, they are entitled to recover.

In Chilton v. Butler, 1 E. D. Smith (N. Y.) 150, the court said:

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Bluebook (online)
102 P. 759, 53 Wash. 614, 1909 Wash. LEXIS 1378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawson-v-black-diamond-coal-mining-co-wash-1909.