Louis Steinbaum Real Estate Co. v. Maltz

247 S.W.2d 652, 31 A.L.R. 2d 1052
CourtSupreme Court of Missouri
DecidedMarch 10, 1952
Docket42882
StatusPublished
Cited by38 cases

This text of 247 S.W.2d 652 (Louis Steinbaum Real Estate Co. v. Maltz) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louis Steinbaum Real Estate Co. v. Maltz, 247 S.W.2d 652, 31 A.L.R. 2d 1052 (Mo. 1952).

Opinion

247 S.W.2d 652 (1952)

LOUIS STEINBAUM REAL ESTATE CO. et al.
v.
MALTZ et al.

No. 42882.

Supreme Court of Missouri, Division No. 1.

March 10, 1952.
Rehearing Denied April 14, 1952.

*654 Joseph Boxerman, St. Louis, for appellants. Joseph Nessenfeld, St. Louis, of counsel.

Alvin A. Wolff, St. Louis, for respondents.

COIL, Commissioner.

This is an appeal from a judgment entered upon a verdict of a jury in favor of defendants in plaintiffs' suit for $1,260 actual and $10,000 punitive damages, averred to have accrued because of alleged fraudulent representations by defendants in connection with the sale of real estate.

Defendants owned jointly a six-story building at 912 North Sixth Street, St. Louis. Plaintiffs, two corporations engaged in the real estate business, were prospective purchasers for this property which defendants had listed for sale with the Edward L. Bakewell Real Estate Company through its salesman, Mr. Boenig. It was represented to plaintiffs by defendants through their agent on information supplied by defendants that the 6th floor was occupied by a certain company at $90 per month rent under a lease which would expire November 14, 1949. It is not disputed that on September 10, 1948, when the sale was consummated, the 6th floor was unoccupied and had been unoccupied since approximately September 1, 1948; that there was no valid existing lease of the 6th floor; and that there had not been such a lease in existence since November 14, 1947, although the former lessee had occupied the 6th floor from the expiration of its lease on November 14, 1947, until approximately September 1, 1948, as a month to month tenant.

We shall discuss the evidence further as necessary in connection with a consideration of plaintiffs' contentions.

Because of our conclusion that the judgment must be affirmed, it is unnecessary to discuss defendants' contention that plaintiffs failed to make a submissible case; although our examination of the record convinces us that this contention is without merit.

Plaintiffs contend that the court erred in permitting cross-examination as to immaterial and prejudicial matters, in permitting improper argument to the jury, and that the cumulative effect of allegedly prejudicial incidents prevented plaintiffs from receiving a fair trial.

Of these in order. Theodore Gitt, a real estate broker whose firm was one of the plaintiffs, testified on direct examination that after this property was purchased by plaintiffs he, on their behalf, discovered that the 6th floor was vacant; that there was no valid existing lease pertaining to it; that it had been vacant since the former occupant had moved; and that "It is vacant as of right now." The following then occurred:

"Q. Will you state whether or not you made any effort to secure a tenant for that particular floor? A. The Wiesels Company, who specialize in that type of rental, management, commercial and industrial, managed the property and tried and negotiated and did everything they could to get a tenant.

"Q. And will you state whether or not they were unable to obtain a tenant? A. They were unable to get a tenant."

On cross-examination Mr. Gitt was asked: "Q. As a matter of fact, you never attempted to, from in September of 1948, attempted to get a tenant for the sixth floor, did you?" Objection, by the same counsel who had just examined the witness on direct examination, that the question did not call for evidence bearing upon the issues in the case was overruled and the witness answered that the Wiesels *655 Company managed the property. The witness was then asked if he personally attempted to get a tenant for the 6th floor and he said he hadn't until after the lease was supposed to have expired, that is, after November 14, 1949, and again said that prior thereto the Wiesels Company had attempted to find a tenant.

Plaintiffs say that the court erred in permitting this cross-examination. The record above demonstrates that this contention is not tenable. We need not further discuss it other than to say that certainly defendants' counsel had the right to cross-examine Mr. Gitt as to the exact matters to which he testified on direct examination. 70 C.J., Witnesses, § 810, p. 642.

On cross-examination, Mr. Gitt testified that the plaintiffs' purpose in buying this property was to resell it at a profit. He first testified that plaintiffs still owned the building and then said they had sold it. When Mr. Gitt was asked when the property was sold, counsel for plaintiffs objected on the ground that the testimony called for was irrelevant to any issue. The court ruled that the evidence was admissible for whatever light it might throw on the question of the value of the property at the time of sale to plaintiffs. Then, over the objection of plaintiffs' counsel, it was developed that in not more than two weeks after plaintiffs purchased, they sold the building for $31,000 in the same condition in which it was at the time they bought it. The resale was for $6,000 cash and, apparently, a first deed of trust for $25,000. The court specifically admonished the jury that this testimony was admissible only in so far as it might tend to show the value of the property at the time of sale to plaintiffs.

Plaintiffs contend that this evidence was wholly immaterial to any issue in the case and was highly prejudicial because it eliminated from the jury's consideration the "benefit of the bargain" rule. The gist of plaintiffs' argument is that the measure of damages is the difference between the value of the property as represented and the actual value of the property at the time of sale; that evidence of a subsequent advantageous disposition of property is not admissible to disprove damages under the "benefit of the bargain" rule. We agree with these principles of law, but do not agree that the application of these principles made inadmissible the testimony in question.

It is true that in an action for damages for fraud and deceit the purchaser, having elected to retain the property, may recover damages measured by the difference between the value of the property as represented and the actual value of the property at the time of sale; and it is also true that this rule enables the purchaser to recover the so-called "benefit of his bargain". McFarland v. Cobb, Mo.Sup., 64 S.W.2d 931, 935[15] [16]; Menke v. Rovin, 352 Mo. 826, 835[6], 180 S.W.2d 24, 27[13]; Wolfersberger v. Miller, 327 Mo. 1150, 1165, 1166, 39 S.W.2d 758, 765[15]. It follows that a resale by the purchaser, even at a price which enables him to realize an overall profit on the transaction, does not affect the measure of damages, i. e., damages are not decreased because of a subsequent advantageous disposition.

This does not mean, however, that evidence which is competent and relevant on the question of value at the time of sale is not admissible because such evidence may also disclose that the purchaser sold for a greater price than he paid. There was evidence in this case from which the jury could find that plaintiffs resold this property on the same day they purchased it and that the resale was made to another real estate company. Certainly, the price which another real estate company paid for the identical property on the very same day plaintiffs bought it is persuasive evidence, or at the very least some evidence, which tends to throw light upon the value of the property at the time of sale to plaintiffs.

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Bluebook (online)
247 S.W.2d 652, 31 A.L.R. 2d 1052, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louis-steinbaum-real-estate-co-v-maltz-mo-1952.