Lederer v. McElroy

112 A.D. 205, 98 N.Y.S. 247, 1906 N.Y. App. Div. LEXIS 636

This text of 112 A.D. 205 (Lederer v. McElroy) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lederer v. McElroy, 112 A.D. 205, 98 N.Y.S. 247, 1906 N.Y. App. Div. LEXIS 636 (N.Y. Ct. App. 1906).

Opinion

Laughlin, J.:

The plaintiff has recovered a commission of $5,000 on the'theory' that as broker for defendant he procured a purchaser for premises 1489 Broadway and the adjacent premises Eos. 202 to 214 inclusive •West Forty-third street, Eew York, at the defendant’s selling price of $500,000 and That defendant then failed and refused to sign a contract for the sale thereof. The employment of plaintiff as broker 'at first to procure a tenant for the premises, and thereafter to sell the same, is not disputed; but the defendant contends that it. was conditioned upon his ability to procure options for a lease or, sale of some of the'lots, as to which, he claims, it was understood that lie was without authority. Messrs. Flaw & Erlanger are the purchasers claimed to have been procured. It was adinitted that they were financially responsible and satisfactory. It is claimed by appellant that the minds of the parties met and that he is not responsible for the failure to consummate the sale. It is alleged in the complaint that plaintiff, as a broker, rendered services to" defendant with respect to leasing or selling said premises, for which defendant promised and agreed to pay $5,000; that defendant employed plaintiff “ to find a tenant for a theatre to be erected upon said plot, or a purchaser of the said plot; ” that plaintiffsecured such tenant or purchaser in the person of Messrs. Flaw & Erlanger,” who agreed to lease or purchase the premises; that plaintiff -brought the parties together, and the price of the property which defendant agreed to accept and Messrs. Flaw & Erlanger agreed to and were ready and willing to pay and to execute a contract for, was $500,000 ; that defendant failed or refused to enter into a contract for the saledf the property to Messrs. Flaw & Erlanger, and that plaintiff, by thus procuring a purchaser, heady, willing -and able to perform, became entitled to Commissions.

Plaintiff first proved that he was employed to rent ‘the premises and a theatre to be erected thereon for a period of twenty years or longer, at an annual rental not to exceed $40,000, the term to commence when the theatre should be completed,, and that through the agency of one Lawrence, who was business manager for the Lyceum [207]*207and for Daly’s Theatre, he sought out and procured Messrs. Klaw & Erlanger, who accepted the proposition and. were ready and willing to take a lease in accordance with those terms. According to the testimony of Lawrence, who by an arrangement with plaintiff was to receive one-lialf of the commissions, the-defendant, after Erlanger had agreed to take a lease, suggested that Messrs. Klaw & Erlanger might desire to purchase the premises which he said he owned and controlled — witness also testifies that after plaintiff first came to him concerning procuring a tenant for the premises, defendant told him that “ he owned and controlled ” these premises and was ready to deliver a lease, and that plaintiff represented him — and could sell them for $550,000; and that thereupon plaintiff opened negotiations with them concerning a purchase. Lawrence further testified that subsequently defendant admitted to him over the telephone that he had closed the deal,” but that the contract was not yet ready, and consented, at the suggestion of Lawrence, that Erlanger retain “ out of the $25,000 which was to be paid upon the signing of the contract,” Lawrence’s share of the commissions; that defendant subsequently informed and wrote him, in ansxyer to inquiries about the delay in signing the contract for the sale of the premises, that difficulty was encountered concerning one option and in obtaining authority from one of the owners', who was in Europe; and he further testified that the contract was never signed.

The positive testimony of Lawrence to the effect that defendant twice represented that he owned and controlled all of the premises is naturally weakened by the fact that it does not appear that lie-ever so claimed, in conversation or correspondence with defendant, when the latter repeatedly assigned as the reason for the delay in executing the contract difficulty with an option or in obtaining the consent of am absent owner; but, on the contrary, as appears by his letter of July 22, 1901, to defendant, gracefully acquiesced in the delay and accepted the obstacle as if he had been fully and truly apprised of the facts from the outset, as' claimed‘by defendant. The letter, omitting the formal parts, is as follows: “ I am just in receipt of your letter and note all yon say. Mr. Erlanger' sent for me this morning and tells me some one else has had the property offered them and wanted to know how matters stood. I fortunately was able to show him your letter, which reassured him. I trust you [208]*208will be able to acquire the parcel you want, so tjiat matters can be' closed up in the near future.”

The'defendant testified that he only owned 1489 Broadway, which, is. twenty feet front by sixty feet in depth, find 204 Wpst Forty-third street, which is twenty feet front by sixty feet in depth; that plaintiff' called at' his office, 1489 Broadway, and inquired, in substance, if he knew of a theatre plot in that neighborhood that could be leased; that he made a diagram covering his own premises and more in the real*, which he told plaintiff he thought might be acquired, and at the same time informed plaintiff that he Only owned 1489 Broadway and 204 West Forty-third street, but. that he had an understanding with the owner of 202,4106 and 208 West Forty-third street that they were to act together in offering their property for rent or sale, and ■ that the adjoining property all the way down the street was for sale and probably could be purchased; that he also said to plaintiff that he would undertake to get prices and options on it, and gave a selling' price on his own property and an estimate of what he thought the adjoining property Would cost, and expressed the opinion that if a lease were negotiated ón the basis of the. lessees’ constructing a theatre, the rental would be about six per-cent on the cosh of the building and the value of the land; that later plaintiff said, in substance, that he' had interested Lawrence, who wanted to see the proposition in writing, and, he, therefore, gave plaintiff a letter, saying, in substance, that he believed he could safely say that his clients would erect a theatre on Broadway and Forty-third street, and lease it to Mr. Frohman for twenty to thirty years at an annual net rental of six per cent; that the ground was valued at $370,000, but that they might have to purchase Nos. 210 and 212 West Forty-third street, and, therefore, desired the matter kept quiet, and requested plaintiff to “get a written proposition, as that will enable me to get a formal acceptance from my clients.”; Defendant signed another agent’s name — with the latter’s consent — to this letter, and explains it upon the ground of being a property owner himself, and not desiring to have it known'to other property owners that he was interested in the purchase. He further testified that he had previously given plain-. tiff a diagram of his Own premises and those along Forty-third street, to and including No. 212, and that those were the premises [209]*209to which his letter related; that Lawrence introduced Erlanger, to whom defendant showed a diagram with another lot, ISTo. 214 added, and Erlanger said he would need more, and líos.

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Bluebook (online)
112 A.D. 205, 98 N.Y.S. 247, 1906 N.Y. App. Div. LEXIS 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lederer-v-mcelroy-nyappdiv-1906.