Levold v. Pederson

227 P. 510, 130 Wash. 380, 1924 Wash. LEXIS 657
CourtWashington Supreme Court
DecidedJuly 17, 1924
DocketNo. 18079
StatusPublished
Cited by9 cases

This text of 227 P. 510 (Levold v. Pederson) 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
Levold v. Pederson, 227 P. 510, 130 Wash. 380, 1924 Wash. LEXIS 657 (Wash. 1924).

Opinions

Parker, J.

The plaintiff, Levold, commenced this action in the superior court for King county, seeking recovery upon an alleged commission contract, which he claims is a contract in writing, entered into by him with defendant, Pederson, in November, 1917. The cause comes to this court upon the appeal of Levold from a final judgment rendered against him by the superior court, after the sustaining of Pederson’s demurrer to Levold’s second amended complaint, upon the ground that the action has not been commenced within the time limited by law; Levold having failed to plead further. Our problem is as to whether or not the writing relied upon constitutes a contract in writing; it being conceded that, viewed as an oral contract, this action thereon is barred by our three-year statute of limitations; while viewed as an enforcible contract in writing, this action has been commenced within the six-year period, as prescribed by our statute of limitations relating to the commencement of actions upon contracts in writing.

The allegations of Levold’s second amended complaint may be summarized as follows: Prior to November 5,1917, Levold and Pederson had conversations looking to Levold securing for Pederson a shipbuilding contract from one Pichot, who is also referred to as the French Syndicate. They orally arrived at an understanding that Levold was to secure for Pederson a contract from the French Syndicate for the building by Pederson of eight wooden ships for a compensation of $305,000 each, Pederson to pay to Levold, as a commission for the securing of such contract, five per cent [382]*382of the total contract price. Levold stated to Pederson that he would not proceed with the negotiations until he had a promise from Pederson in writing that he would pay such commission, and also agree in writing to furnish a financial guarantee in the sum of $250,000 in the event the contract was secured. Pederson then wrote and caused to he delivered to Levold a letter as follows:

“Mr. J. C. Levold, Seattle, Nov. 5th, 1917.
“Dear Sir: In regard to your statement that you will award me a contract to build eight vessels for the French Syndicate at a price of $305,000 each, less 5% com., will say that I can furnish a financial guarantee to do this work, providing I am assured that I will get the work in question upon showing you such a guarantee in the amount of $250,000. Yours truly,
(Signed) “Hans Pederson.”

Levold then proceeded with negotiations for the securing of the shipbuilding contract from the French Syndicate. "While such negotiations were proceeding, Pederson wrote and caused to be delivered to Levold a second letter as follows:

‘ ‘ Mr. J. C. Levold: Seattle, Nov. 12 -17.
“I hereby authorize you to state that I have secured my bond to guarantee that I will build the ships for the interests represented by Mr. Robert Pichot. Yours truly, (Signed) Hans Pederson.”

Thereafter, on February 27, 1918, as the result of the efforts of Levold, a formal contract was entered into between Pederson and the French Syndicate, by which Pederson agreed to build eight wooden vessels for the French Syndicate for an agreed compensation therefpr of $305,000 each. Following allegations of facts, the substance of which are above summarized, Levold concluded his second amended complaint by alleging that there was due from Pederson to him the [383]*383sum of $122,000, being five per cent commission on the total shipbuilding construction price of $2,440,000, with interest from February 27, 1918, tbe date of the shipbuilding construction contract, claimed as the date of the accrual of Levold’s cause of action against Pederson, and prayed for recovery accordingly.

Counsel for Levold have ingeniously drawn to his aid facts surrounding the making of this alleged contract and have presented what would be a persuasive argument in support of a contention that there was in fact a commission contract entered into between Levold and Pederson; but that falls far short of being our problem. The question here is, do the allegations of the second amended complaint show the making of a contract in writing 1 If not, then Levold’s cause of action is barred by the three-year statute of limitations, however conclusively the allegations of the complaint may show the making of an oral contract between Levold and Pederson. Now we have no writing of any nature whatever made or signed by either Levold or Pederson other than the two letters of November 5th and 12th, 1917, which are above quoted in full. The first letter may be divided into two parts, connected with the words “will say that”; first, the statement by Pederson referring to a previous purported statement made by Levold, to wit:

“In regard to your statement that you will award me a contract to build eight vessels for the French Syndicate at a price of $305,000 each less 5% com.”;

and second, a statement by Pederson with reference to the first statement in the letter, to wit:

“I can furnish a financial guarantee to do this work providing I am assured that I will get the work in question upon showing you such a guarantee in the amount of $250,000.”

[384]*384We look in vain in this letter for the making by its terms of any promise by Pederson to do anything. This letter might be some evidence to aid in showing an oral commission contract to have been made of the nature claimed by Levold, but does not constitute any such contract. It merely refers to a previous purported statement of Levold preliminary to saying to him, “I can furnish a financial guarantee, etc.”

The second letter is equally devoid of any promise from Pederson to Levold to do anything. It merely informs Levold that Pederson has “secured my bond to guarantee that I will build the ships.” This second letter has to do only with the prospective consummation of a construction contract between Pederson and the French Syndicate. Like the first letter, it might be some evidence to aid in showing an oral commission contract of the nature claimed by Levold, but it does not constitute any part of such a contract. In other words, it at most may be some evidence of what had been done by Pederson in pursuance of some previous contract entered into. It seems to us that, since these letters are wholly devoid of any promise on the part of Pederson to do anything, the most essential element of contract is absent therefrom, and that they do not therefore constitute a contract in writing.

It seems to us that the law, as announced by this court in Cushing v. Monarch Timber Co., 75 Wash. 678, 135 Pac. 660, Ann. Cas. 1914C 1239, in harmony with our previous decisions, is conclusive as against the contentions here made in behalf of Levold that the contract sued upon by him is a contract in writing. In that case, there was involved an alleged contract of -employment of an agent to sell real estate upon which he was seeking compensation by way of a commission. Such a contract, by § 5825, Bern. Comp. Stat. [P. C. [385]*385§ 7745], is required to be iu writing to be enforcible, so the question was as to whether or not the alleged contract was a contract in writing. Holding that the contract sued' upon was not one in writing, Judge Ellis, speaking for the court, made the following very pertinent observations:

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Bluebook (online)
227 P. 510, 130 Wash. 380, 1924 Wash. LEXIS 657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levold-v-pederson-wash-1924.