Marks v. Walter G. McCarty Corp.

205 P.2d 1025, 33 Cal. 2d 814, 1949 Cal. LEXIS 244
CourtCalifornia Supreme Court
DecidedMay 10, 1949
DocketL. A. 20770
StatusPublished
Cited by49 cases

This text of 205 P.2d 1025 (Marks v. Walter G. McCarty Corp.) 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
Marks v. Walter G. McCarty Corp., 205 P.2d 1025, 33 Cal. 2d 814, 1949 Cal. LEXIS 244 (Cal. 1949).

Opinions

SHENK, J.

The plaintiff sued to recover broker’s commissions for procuring the sale of the Beverly-Wilshire Hotel, its furniture and equipment. Judgment for the plaintiff'was entered in the sum of $57,500 as commissions on the sale of both the real and personal property. The defendant appealed.

The defendant corporation was the owner of the hotel property until it was sold in 1944. The corporate stock was owned by Walter G. McCarty and his wife. McCarty, the president, had authority to negotiate the sale of the property. In October, 1943, a meeting was arranged by 0 ’Neill, the manager of the Beverly-Wilshire, between the plaintiff, a licensed real estate broker, and McCarty. At that meeting McCarty said that the hotel and furnishings were for sale at a price of $2,000,000, and that a commission of 5 per cent would be paid. The plaintiff said he was very much interested in the deal and had in mind a prospective purchaser or syndicate of pur[817]*817chasers. McCarty gave the plaintiff an unsigned typewritten document headed: “Re Beverly Wilshire Hotel—October 14, 1943,” which set forth a description of the property and the sale price and terms. McCarty had listed the property in this manner with at least 20 brokers, but'had not given an exclusive agency to any of them. McCarty also instructed 0 ’Neill to show the plaintiff the hotel and to furnish him with financial statements of its operations.

. The plaintiff began to work on the deal immediately by contacting a number of prospects. Through his attorneys the plaintiff contacted Arnold Kirkeby, a Chicago hotel operator, in the month of October, shortly after his first meeting with McCarty. Kirkeby, the ultimate purchaser, manifested interest in participating in the purchase and operation of the hotel. Numerous telephone calls and correspondence between the plaintiff or his agents and Kirkeby ensued. It was proposed by the plaintiff that Kirkeby participate with a syndicate in the purchase, and there was discussion as to the percentage of interest he would take. During these negotiations the plaintiff met with McCarty two or three times a week. The plaintiff testified that in November, 1943, he told McCarty that Kirkeby was to be a member of the purchasing syndicate.

In February of 1944, McCarty informed the plaintiff that the sale price was being raised from $2,000,000 to $2,250,000. At that time McCarty gave the plaintiff a carbon copy of a typewritten document on letterhead stationery with a picture of the hotel at the top underneath which was printed: The Beverly-Wilshire Hotel, Walter G. McCarty Corporation.” This document contained the price of the hotel ($2,250,000), the terms of sale, and a provision for a broker’s commission fixed at $57,500 (5 per cent on the first $50,000 and'2% per cent on $2,200,000). In reading the agreement the plaintiff, noted that the broker’s commission had been reduced, from the sum previously indicated. According to his testimony, the. plaintiff protested that it seemed unfair for McCarty to raise the price of the hotel and thus make the deal harder to consummate and at the same time reduce the commission. When McCarty told him other brokers were willing to receive a-commission of $57,500, the plaintiff agreed to work for that figure.

Thereafter the plaintiff renewed his efforts to form a syndicate, which was to include Kirkeby, for the purpose of buying the hotel. The plaintiff testified that on April 17, 1944, he [818]*818told McCarty that he had hopes that the deal could be closed but that he wanted something in writing so that the terms would be confirmed. McCarty wrote the terms in longhand on a sheet of yellow paper which he handed to the plaintiff. The sheet was dated April 17, 1944, and headed: “Kirkeby deal—Walter Marks, Broker.” The heading was followed by the sale terms and at the bottom was written: ‘ ‘ Commission to Broker $57,500 payable at close of escrow. ’ ’ A few corrections were made by the plaintiff which McCarty approved.

From April through July the plaintiff and Kirkeby frequently discussed the possible purchase but no definite agreement was reached, principally because of Kirkeby’s dissatisfaction with the mortgage payments required by McCarty’s proposal. The plaintiff sought to bring others into the deal to assist in the financing. One arrangement seemed promising to Kirkeby, and at the plaintiff’s urging, he came to Los Angeles about August 1, 1944. The plaintiff had told McCarty in the latter part of July that he was bringing Kirkeby to Los Angeles.

The plaintiff met Kirkeby when he arrived and arranged a meeting between Kirkeby and a prospective member of the purchasing syndicate. At this stage discussions centered around a syndicate in which Kirkeby would acquire a half-interest. However these negotiations collapsed and in a private conversation the plaintiff suggested that Kirkeby purchase the property alone. Kirkeby said that perhaps he would. He stated he wanted to see McCarty alone. The plaintiff made an appointment with McCarty for Kirkeby and loaned the latter his ear to drive to McCarty’s ranch. Afterward Kirkeby told the plaintiff that he was pleased with the meeting and he thought that he and McCarty had reached an agreement as to price and terms. About that time, however, Kirkeby received word that a New York hotel in which he was interested had been offered to him at a favorable price and he • decided to leave Los Angeles without proceeding further on the Beverly-Wilshire deal. The plaintiff said he “would continue to watch the deal” for Kirkeby and the latter stated “he would continue to keep his interest in the Beverly-Wilshire Hotel, and any information 1 [the plaintiff] could give him he would be glad to get. ’ ’ In November, 1944, Kirkeby, dealing directly with McCarty, purchased the hotel and furnishings on price and terms substantially the same as those agreed upon in August.

[819]*819From these facts it may readily be seen that there was evidence to support the finding of the trial court that the plaintiff was employed as a broker on commission in the sale of the real and personal property known as the Beverly-Wilshire Hotel. There was also evidence from which the court could properly find that the plaintiff was the procuring cause of the sale. The defendant challenges this finding by reference to evidence that negotiations between Kirkeby and McCarty took place before the plaintiff became involved in the transaction. It appears that McCarty had intermittently spoken to and corresponded with Kirkeby between 1939 and 1942 about a possible sale of the hotel. But these negotiations were terminated on November 13, 1942, a year before the plaintiff began to work on the deal, when Kirkeby wrote McCarty: “Our views are so far apart both as to price and terms, I do not believe it would be worth while for us to continue the negotiation.” Although the plaintiff did not introduce Kirkeby and McCarty and was not the first to call Kirkeby’s attention to the fact that the hotel was for sale, the finding that the plaintiff was the efficient cause of the sale can be supported by the evidence which shows that only through his efforts over a period of many months were the parties brought together in August, 1944, when terms and price were settled. (Webster v. Parra, 72 Cal.App. 639, 648 (237 P. 804]; 12 C.J.S. § 91, p. 210.) It has been shown that negotiations did not come to an end in August, for Kirkeby, although then short of capital, stated he would continue his interest in the hotel. ■ Less than three months later the sale was closed at the August price.

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Bluebook (online)
205 P.2d 1025, 33 Cal. 2d 814, 1949 Cal. LEXIS 244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-v-walter-g-mccarty-corp-cal-1949.