Malmstedt v. Stillwell

294 P. 41, 110 Cal. App. 393
CourtCalifornia Court of Appeal
DecidedDecember 13, 1930
DocketDocket No. 7657.
StatusPublished
Cited by25 cases

This text of 294 P. 41 (Malmstedt v. Stillwell) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malmstedt v. Stillwell, 294 P. 41, 110 Cal. App. 393 (Cal. Ct. App. 1930).

Opinion

THE COURT.

This action was brought by plaintiff, as assignor of W. I. Hollingsworth and B. O. Miller, copartners doing business under the firm name of W. I. Hollingsworth & Co., to recover a broker’s commission. The assignors were at all the times herein mentioned duly licensed real estate brokers. The case was tried by the court; which found for the plaintiff, and judgment was entered accordingly.

Defendant, who has appealed, claims that certain of the findings are unsupported and that the court erred in its conclusions of law therefrom.

The facts established by the evidence were as follows: In September of 1921, J. P. Simonsen and J. A. Fleming, who owned the Fountain Cafeteria in Los Angeles, wished to purchase another cafeteria. This fact was known to the brokers, who were endeavoring to procure one for the prospective buyers. Defendant and A. L. Plotner, his part *395 ner, owned and operated the Poinsettia Cafeteria, which was for sale. Knowing this, the brokers commenced negotiations with defendant for the purchase of the business, but refused to disclose the names of the prospective buyers until - defendant promised to pay a commission in case of sale. This he agreed to do, and on September 28, 1921, signed and delivered to the brokers the following letter, referred to in the record as “plaintiff’s exhibit 1”:

‘ ‘ Gentlemen:—
“In the event a sale is consummated with your prospective tenant we hereby agree to pay you $2,000.00, a commission on the sale price of same.
“Yours very truly,
“F. A. Stillwell.”
At the same time defendant executed to the brokers a document referred to as “plaintiff’s exhibit 2”, which read as follows:
‘1 Gentlemen:—
“For and in consideration of your service we hereby give you an exclusive option for forty-eight (48) hours to sell the Poinsettia Cafeteria and lease, including everything in use in it, and all broken packages, for $50,000, ■—$30,000 cash, and balance on or before six months from date of sale at the rate of 7% interest.
“Yours very truly,.
“F. A. Stillwell.”
On September 30, 1921, defendant and his partner wrote thereon the following:
“9/30 this contract is to be nole and voide after 3:30 p. m. on 9/30.
“F. A. Stillwell, .
“A. L. Plotneb.”
“Contract to be drawn for the sale of the above.”
The testimony shows that the figures 9/30 were intended to mean September 30th. On the date last mentioned, according to the testimony, the following—which will be hereinafter considered—was also written thereon by Simon-sen, one of the owners of the Fountain Cafeteria:
“Accepted 9/30.21, 3 p. m.
“Fountain Cafeteeia,
“By J. P. Simonsen, Prop.”

*396 On September 28th the brokers called on the owners of the Fountain Cafeteria and showed them the above exhibit No. 2. They thereupon offered in writing to purchase the Poinsettia Cafeteria for $45,000, of which $25,000, including a deposit of $1,000 made at the time, was to be paid in cash and the balance on or before six months from the date the buyers should obtain 'possession. The writing— which was referred to as. “plaintiff’s exhibit No. 3”—was as follows:

“Received of Fountain Cafeteria cheek for $1,000, being a deposit and part payment of the purchase price of the Poinsettia Cafeteria, located at 441 South Hill street. The purchase price of said cafeteria as is, including all broken packages, to be $45,000.00 payable $25,000.00 cash, upon delivery of possession, including the above deposit, on or before October- 15th, and balance on or before six months from date of possession, at the rate of six per cent (6%) interest.
“Seller agrees to deliver said premises free and clear of all encumbrances, rents and insurance to be prorated. This deposit is taken subject to the approval of the owner, and if not accepted said check shall be returned to the purchaser. It is also given subject to the purchaser inspecting the said premises and lease.
“W. L. Hollingsworth & Company, “Per F. W. Kadletz.”
“We hereby agree to purchase the above described premises on the terms stated in this receipt.
“Fountain Cafetería,
“By J. P. Simonsen, Prop.
“J. A. Fleming.”

The offer was submitted to defendant either on the above date or the following day. He disapproved the terms, changed the purchase price stated therein to $50,000, the cash payment to $30,000, the rate of interest from six to seven per cent per annum, and also inserted therein the following: “All unbroken packages to be cash on invoice and dishes not in use.” He then wrote thereon the following: “Approved by owner. F. A. Stillwell,” and redelivered the writing to the broker’s agent. According to the latter the writing was then returned to Simonsen and Fleming, who agreed to the changes made by defendant, at *397 3 o’clock P. M. of September 30th, wrote their acceptance upon exhibit No. 2 in the words and figures shown above.

It was testified that following this on the same day the document last mentioned was presented- to defendant at his office.

It appears that the lease under which defendant held the premises provided that the same should not be assigned or the premises sublet without the consent of the lessor. It was testified by the agent for the brokers that defendant was unable to obtain consent to the transfer of the lease or the subletting of the premises, and so admitted, and that thereafter on October 17, 1921, the deposit made by Simonsen and Fleming was returned to them. It was shown, however, that the latter and defendant continued negotiations, and on November 20, 1921, a contract for the sale of the cafeteria was made between them. This contract recited that the lease mentioned could not - be assigned without the consent of the lessor, and that the latter’s consent could only be obtained upon the payment of an increased rental. As part of this transaction a new lease at an increased rent was executed by the owner of the premises to Simonsen and Fleming, and defendant by the contract agreed to sell the cafeteria to them for $45,000, $6,000 to be paid in cash and the balance in installments. The brokers’ agent further testified that he was not consulted during these negotiations, and while he sought on several occasions to communicate with defendant the latter avoided him.

The findings which defendant contends are unsupported are as follows: The court found with respect to plaintiff’s exhibits No. 1 and No.

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Bluebook (online)
294 P. 41, 110 Cal. App. 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malmstedt-v-stillwell-calctapp-1930.