Leonard v. Fallas

335 P.2d 665, 51 Cal. 2d 649, 1959 Cal. LEXIS 287
CourtCalifornia Supreme Court
DecidedFebruary 20, 1959
DocketL. A. 25227
StatusPublished
Cited by29 cases

This text of 335 P.2d 665 (Leonard v. Fallas) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leonard v. Fallas, 335 P.2d 665, 51 Cal. 2d 649, 1959 Cal. LEXIS 287 (Cal. 1959).

Opinion

McCOMB, J.

Defendant appeals from a judgment in favor of plaintiff in the sum of $8,000 in an action to recover a commission alleged to be due for breach of a contract for the sale of real property.

Chronology

i. On February 29, 1956, plaintiff, a licensed real estate broker, and defendant entered into the following contract:

“February 29, 1956
“Mr. Wayland T Leonard
Wayland T Leonard Co
215 West Sixth St.
Los Angeles 14 California
“Dear Mr. Leonard:
“In consideration of services rendered and to be rendered you are hereby granted the exclusive right to sell my property *651 located at the northeast corner of Wilshire Blvd and Union in Los Angeles and described as Lots 14, 16 and 18 in Block 2 of the Fairview Tract, for a period of three weeks from the date of my signature. I agree to sell my property for $243,-000.00 with 29% down and the balance payable annually within three years plus interest at 5% on the unpaid balance. I agree to pay you through escrow the Realty Board Commission which is 5% upon the first $100,000.00 of the purchase price, and 2%% upon the balance of the purchase price, if said property is sold on the above terms or any other terms acceptable to me while this contract is in force, or if sold within 90 days after its termination to anyone whose name is registered with me in writing as of the termination date.
“Receipt of a copy of this contract, which shall inure to the benefit of and bind the successors, assigns, executors and administrators of the parties respectively, is hereby acknowledged.
Date: 2-29-56
Owner: /s/ Roy B Fallas Roy B Fallas 4618 West 6th Street Los Angeles Calif.
Termination Date:
March 22 1956
at 5 p.m.
I accept the above described employment and agree to use diligence in procuring a purchaser.
Date: 2-29-56
Realtor: /s/ Wayland T Leonard Wayland T Leonard 215 W 6th Street Los Angeles, Calif.”

ii. On March 7, 1956, plaintiff ivrote a letter to defendant giving him a list of the parties contacted by him to that date, which list included the name of Morgan Adams.

iii. On March 8,1956, plaintiff obtained an offer of $200,000 from Gilbert and Rothschild for the property described in the contract, which offer defendant declined.

iv. On March 9,1956, plaintiff, who had previously contacted Mr. Adams relative to the property, again contacted Mr. Adams, who stated that he was not interested in the property at the price asked.

*652 v. On March 22, 1956, plaintiff’s exclusive right to sell defendant’s property expired.

vi. On June 6, 1956, an escrow was opened between Mr. Adams and defendant, whereby Mr. Adams agreed to purchase defendant’s property for the sum of $220,000, and defendant agreed to sell it to him. This sale was arranged through Mr. Jones, a real estate broker associated with Dunn & Co. While the negotiations conducted by Mr. Jones were in progress, plaintiff telephoned Mr. Adams and was informed that he was then engaged in negotiations relating to the property. He told plaintiff, “don’t upset my negotiations. Don’t disturb this deal.” He also informed plaintiff, “Every broker in town has submitted the property to me one time or another. ’ ’

vii. On July 6, 1956, the escrow was closed and the sale consummated.

Questions : First. Did plaintiff comply with the terms of his contract with defendantf

Yes. These rules are here applicable.

1. The parties to a broker’s contract for the sale of real property are at liberty to make the compensation depend upon any lawful conditions they see fit to place therein. (Kimmell v. Skelly, 130 Cal. 555, 559 [62 P. 1067] ; cf. Fleming v. Dolfin, 214 Cal. 269 [4 P.2d 776, 78 A.L.R 585].)

2. Where an agreement provides that a real estate broker’s commission is to be paid if the property is sold within a specified period to a person whose name is furnished to the owner by the broker, and the property is sold by the owner to such a party during the prescribed period, it is immaterial that the agent was not the procuring cause of the sale. (Fleming v. Dolfin, supra; Gregory v. Bonney, 135 Cal. 589, 592 [67 P. 1038] ; Walter v. Libby, 72 Cal.App.2d 138,141 [3] et seq. [164 P.2d 21]; Mills v. Hunter, 103 Cal.App.2d 352, 357 [3] et seq. [229 P.2d 456] ; Delbon v. Brazil, 134 Cal. App.2d 461, 464 [1] [285 P.2d 710].) *

3. Where a landowner has agreed to pay a real estate broker a commission in the event of a sale, “a sale” means the making of an executory binding agreement by which the property is to be sold to a purchaser obtained by the broker. (Twogood v. Monnette, 191 Cal. 103, 107 [2] [215 P. 542] ; Coulter v. Howard, 203 Cal. 17, 25 [6] [262 P. 751]; Wood *653 bridge Realty v. Plymouth Dev. Corp., 130 Cal.App.2d 270, 279 [6] [278 P.2d 713] ; Freeman v. Van Wagenen, 90 N.J. Law 358 [101 A. 55, 56 [3, 4] ] ; Felleman v. Von Luckner, 253 N.Y.S. 567 [234 App.Div. 787] ; Klipper v. Schlossberg, 96 N.J. Law 397 [115 A. 345, 346].)

Applying the foregoing rules to the facts of the present case, it is evident that the property was sold “within 90 days after” the termination of the contract between plaintiff and defendant to a person “whose name” was registered with defendant by plaintiff in writing before the termination of the contract. Therefore, pursuant to the terms of the contract, plaintiff was entitled to his broker’s commission from defendant.

Wright & Kimbrough v. Dewees, 52 Cal.App. 42 [197 P. 957], and Hobson v. Hunt, 59 Cal.App. 679 [211 P. 242], relied on by defendant, are not applicable to the facts in the present case. In

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Business Consulting Services, Inc. v. Wicks
703 N.W.2d 427 (Supreme Court of Iowa, 2005)
Sullivan v. Dorsa
27 Cal. Rptr. 3d 547 (California Court of Appeal, 2005)
Alpine Insurance v. Planchon
72 Cal. App. 4th 1316 (California Court of Appeal, 1999)
Planned Parenthood Assn. v. Operation Rescue
50 Cal. App. 4th 290 (California Court of Appeal, 1996)
Leadership Real Estate v. Harper
638 A.2d 173 (New Jersey Superior Court App Division, 1993)
R. J. Kuhl Corp. v. Sullivan
13 Cal. App. 4th 1589 (California Court of Appeal, 1993)
Julius Tofias & Co. v. John B. Stetson Co.
474 N.E.2d 1162 (Massachusetts Appeals Court, 1985)
Webb v. West Side District Hospital
144 Cal. App. 3d 946 (California Court of Appeal, 1983)
Chapman Co. v. Western Nebraska Broadcasting Co.
329 N.W.2d 107 (Nebraska Supreme Court, 1983)
Childs v. Ragonese
443 A.2d 665 (Court of Special Appeals of Maryland, 1982)
PACIFIC WATER CONDITIONING ASSN. v. City Council
73 Cal. App. 3d 546 (California Court of Appeal, 1977)
Danville Fire Protection District v. Duffel Financial & Construction Co.
58 Cal. App. 3d 241 (California Court of Appeal, 1976)
Blank v. Borden
524 P.2d 127 (California Supreme Court, 1974)
Realty West, Inc. v. Thomas
506 P.2d 830 (Idaho Supreme Court, 1973)
Santoro v. Carbone
22 Cal. App. 3d 721 (California Court of Appeal, 1972)
Simank Realty, Inc. v. DeMarco
6 Cal. App. 3d 610 (California Court of Appeal, 1970)
Never v. King
276 Cal. App. 2d 461 (California Court of Appeal, 1969)
Berzon v. U.L.C. Corp.
274 Cal. App. 2d 690 (California Court of Appeal, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
335 P.2d 665, 51 Cal. 2d 649, 1959 Cal. LEXIS 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-v-fallas-cal-1959.