Mallette v. Taylor & Martin, Inc.

406 N.W.2d 107, 225 Neb. 385, 1987 Neb. LEXIS 894
CourtNebraska Supreme Court
DecidedMay 15, 1987
Docket85-645
StatusPublished
Cited by10 cases

This text of 406 N.W.2d 107 (Mallette v. Taylor & Martin, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mallette v. Taylor & Martin, Inc., 406 N.W.2d 107, 225 Neb. 385, 1987 Neb. LEXIS 894 (Neb. 1987).

Opinions

Per Curiam.

The appellant, Taylor & Martin, Inc., Real Estate, a Nebraska corporation, appeals from a jury verdict in the amount of $32,053.50. For reasons more particularly set out hereinafter, we believe that the verdict cannot be sustained, and the judgment entered on the verdict must be set aside and the action dismissed.

The appellees, Tim C. Mallette and Donna Jean Mallette (Mallettes), filed a petition in the district court for Douglas County, Nebraska, consisting of four causes of action. The first cause of action alleged that Taylor & Martin “was party to a real estate listing agreement with Clifford Dean Vanderlinde and Cathy Vanderlinde by the terms of which [Taylor & Martin] agreed to use its efforts to sell the Vanderlinde property located in Cherry County, Nebraska.” The petition then alleged that Taylor & Martin solicited an offer from Mallettes to purchase the property. Mallettes alleged that in an effort to induce them to make the offer, Taylor & Martin made certain representations which were untrue and which were made with the intent to deceive Mallettes and induce them to make ah offer to purchase the real estate. Among other matters, Mallettes further alleged that a downpayment in the sum of $80,000 was paid to Taylor & Martin as agents. Mallettes then alleged that they later learned of the fraudulent misrepresentations and proceeded to have a prior decree of specific performance obtained by Mallettes against Vanderlindes set aside.

The petition then alleged: “By agreement of Vanderlindes and Mallettes the contract was rescinded. A copy of said assignment and release is attached hereto and made a part hereof.” Mallettes further alleged: “The defendant has failed to make payment to plaintiffs in the amount of $27,737.50 which constitutes a portion of the initial $80,000 payment made by the plaintiffs to Vanderlindes.” As a result thereof, Mallettes prayed for judgment against Taylor & Martin in the amount of [387]*387$27,737.50.

The remaining three causes of action seek to recover further sums allegedly expended by Mallettes for legal fees, travel expenses, and overpayment of rental for pastureland rented by Mallettes from Vanderlindes. The expenditure of these sums was allegedly caused by the statements made by Taylor & Martin to Mallettes.

The agreement, which was attached to the petition and made a part of the petition, alleged that Taylor & Martin “was acting as an agent of Vanderlinde at the time [when the material misrepresentations of fact were made].” The agreement then further provides that:

4. In order to accomplish such restoration the parties agree as follows:
a. The entire amount of $52,262.50 which has been held by the Clerk of the District Court together with accrued interest shall be paid to Mallette;
b. Vanderlinde shall lease a portion of their real estate to Mallette on the terms set forth on a lease to be signed simultaneously with this agreement.
c. Vanderlinde releases any claim to any portion of the payment made by Mallette through Taylor & Martin by reason of the land contract.
6. Vanderlinde releases Mallette and Mallette releases Vanderlinde severally and jointly of any and all claims known or unknown, liquidated or unliquidated, and whether arising in tort or contract other than obligations as set forth herein.
7. Each party shall pay their own costs and legal fees.

The $52,262.50 appears to be the difference between the $80,000 initially paid by Mallettes to Taylor & Martin as agent of Vanderlindes and the amount paid by Vanderlindes to Taylor & Martin.

Taylor & Martin has assigned a number of errors as to why the judgment should be set aside. Among those assignments of error is one which we believe to be the threshold question which, if answered in favor of Taylor & Martin, makes all of the other assignments of error moot. That question is whether the [388]*388trial court erred in failing to find that the release executed by Mallettes to Vanderlindes likewise released Taylor & Martin from any liability to Mallettes by reason of the sale of the real estate. The district court apparently found that it did not operate to release Taylor & Martin. We believe that the district court was in error and, for that reason, the judgment must be reversed.

There can be no question, nor do the parties contend otherwise, but that the agreement and release executed by and between Mallettes and Vanderlindes was intended to be a complete settlement and release of any dispute between the buyers and the sellers with regard to this property. Moreover, by reason of the agreement and release, the parties acknowledge that Taylor & Martin was acting as agent of the sellers, Vanderlindes, and that therefore there existed a principal-agent relationship between Vanderlindes and Taylor & Martin.

In Ericksen v. Pearson, 211 Neb. 466, 319 N.W.2d 76 (1982), we made a careful analysis concerning the question as to whether the release of either the principal or the agent thereby released the other, and concluded that it did. Specifically, we observed at 475, 319 N.W.2d at 81:

The general rule is stated in 76 C.J.S. Release § 50 at 689 (1952) as follows: “In a situation where several persons are not actively joint tort-feasors, but one person commits the tort and is primarily liable while the liability of the other person is derivative or secondary, as where it arises under the doctrine of respondeat superior, the releasor’s acceptance of satisfaction from one, discharges the other as well, as in the case of master and servant or principal and agent; and it has been held that this is true despite an attempted reservation of rights against the person secondarily hable, since if the rule were otherwise, such person would be liable without having recourse against the person primarily liable, the latter having been released____”

After then referring to an extensive annotation titled “ ‘Release of (or covenant not to sue) master or principal as affecting liability of servant or agent for tort, or vice versa,’ appearing in 92 A.L.R.2d 533 et seq. (1963),” 211 Neb. at 475, [389]*389319 N.W.2d at 81, we said:

“What is the rule in Nebraska? ” It appears that Nebraska has already passed upon the question of whether the release of an agent by a third party also releases the principal, and has decided that in the affirmative; but so far as we have been able to ascertain, this court has not directly passed upon the question of the reverse situation, that is to say, whether the release of the principal also releases the agent where the action is predicated upon negligence and the liability of the principal arises under the respondeat superior doctrine.

Ericksen v. Pearson, supra at 476, 319 N.W.2d at 81.

We then cited the case of Dickey v. Meier, 188 Neb. 420, 197 N.W.2d 385 (1972), in which the court referred to the cases of Max v. Spaeth, 349 S.W.2d 1 (Mo. 1961), and Bacon v. United States,

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Mallette v. Taylor & Martin, Inc.
406 N.W.2d 107 (Nebraska Supreme Court, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
406 N.W.2d 107, 225 Neb. 385, 1987 Neb. LEXIS 894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mallette-v-taylor-martin-inc-neb-1987.