Massachusetts Mut. Life Ins. v. George & Co.

148 F.2d 42, 1945 U.S. App. LEXIS 2397
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 8, 1945
DocketNo. 12917
StatusPublished
Cited by8 cases

This text of 148 F.2d 42 (Massachusetts Mut. Life Ins. v. George & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Massachusetts Mut. Life Ins. v. George & Co., 148 F.2d 42, 1945 U.S. App. LEXIS 2397 (8th Cir. 1945).

Opinion

THOMAS, Circuit Judge.

The appellant life insurance company, defendant in the district court, was at all times material to this controversy, owner of the Lassen Hotel in Wichita, Kansas, title to which had been acquired in a foreclosure proceeding. The company desired [44]*44to sell the hotel to any purchaser able and willing to purchase at a price and on terms satisfactory to the seller. On March 12, 1942, a contract of sale negotiated by the C. C. Kimball Company, real estate brokers of Lincoln, Nebraska, was entered into with A. Q. and Walter. Schimmel. The ■consideration received was $800,000, and a commission of $15,000 was paid to the broker.

Thereafter this action was brought against the defendant by the plaintiff-appellee, George and Company of Omaha, Nebraska, to recover a commission of 2% per cent, of the sale price on the ground that plaintiff had earned the commission because in performance of a written contract George and Company had 'found, interested, and introduced the purchasers to the defendant. The case was tried to a jury and judgment was entered upon a verdict in favor of plaintiff in the amount of $20,000. This appeal followed.

The plaintiff, George and Company, is a partnership organized January 1, 1942, for the purpose of taking over and carrying on the business of George and Company, a Nebraska corporation, which was dissolved on December 31, 1941. The partners were the owners of the corporation, the change in the form of the organization being made for tax and accounting purposes. The plaintiff and its predecessor are and have been engaged in the real estate business on a commission basis in Omaha at all times material here. The plaintiff upon its organization took over by appropriate assignments all the business, good will and assets of the corporation, including the claim sued upon; and it has continued to carry on the same business at the same place with approximately the same personnel.

The petition alleges that the defendant entered into a written contract with George and Company by means of a series of 25 letters passing between the parties from April 21, 1936, to February 6, 1940, copies of which are attached to the petition, whereby it was agreed that in consideration of George and Company’s finding a purchaser for the hotel property the defendant would pay a commission of 2% per cent, of the sale price; that in performance of the contract George and Company contacted the Schimmels, interested them in the purchase of the hotel and were in negotiation with them for its purchase, with the knowledge, consent and approval of the defendant from about April 21, 1936, to December 31, 1941; and that the plaintiff and its predecessor corporation were at all times ready, able and willing to perform whatever services were necessary or advisable to aid in consummating the sale.

The correspondence relied upon by the plaintiff to establish the alleged written contract was carried on between George and Company of Omaha and Dayton F. Glenn of Kansas City, .Missouri, the defendant’s Manager of Real Estate for the territory including Missouri and parts of Nebraska and Kansas where Omaha and Wichita are situated.

Based upon the issues presented by its answer, the instructions to the jury and the exceptions thereto, its motions for a directed verdict'and for judgment notwithstanding the verdict and the alleged errors in the rulings thereon, the defendant presents the following contentions in this court:

1. That the letters attached to the petition do not constitute a written contract;

2. That Glenn did not have authority to make the contract in behalf of defendant; and,

Conceding only for purpose of argument that the letters do constitute a contract, defendant contends further that

3. Neither plaintiff nor its predecessor performed the contract, in that they were not the efficient procuring cause of the sale of the hotel to the Schimmels;

4. The contract was abandoned as a matter of law by George and Company, the corporation, by its letter of September 17, 1937, and by subsequent conduct;

5. The contract was terminated by the defendant by its letter of September 27, 1937, and by subsequent conduct;

6. The contract was terminated by operation of law upon dissolution of George and Company, the corporation, December 31, 1941;

7. This action is barred because, in breach of its fiduciary relations, George and Company failed to communicate to defendant an offer of $800,000 by Schimmels for the hotel in January, 1940;

8. The contract was void and not enforceable under the Statute of Frauds of Nebraska, Section 36-108, C.S.Neb.1929;

9. Neither the plaintiff nor its predecessor could maintain the action because neither of them held a broker’s permit as a [45]*45licensed real estate broker in Nebraska as required by Ch. 171, Laws of Neb., 1943; and

10. There is error in conflicting instructions upon burden of proof.

The issues involved in propositions 3, 4 and 6 only were submitted to the jury. All others were ruled against the contentions of the defendant by the court as matters of law.

It is conceded that a binding agreement in writing may be created by letters between the parties, sufficient to create a contract between principal and agent for the sale of real estate although the same papers are not signed by both narties, Shoff v. Ash, 95 Neb. 255, 145 N.W. 271, and that where the entire contract is found in correspondence between the parties the court should construe it. Zehr v. Wardall, 6 Cir., 134 F.2d 805. The contention of the defendant is that the letters relied upon by the plaintiff do not show that the minds of the parties met at every point, that is, that the alleged acceptance of the defendant is not exactly responsive to the offer of George and Company. Cooper v. Kostick, 112 Neb. 816, 201 N.W. 674.

The correspondence began April 21, 1936, when in a letter addressed to “Mr. M. F. Glenn, Mgr., Real Estate Dept., Massachusetts Mutual Life Ins. Co., Sharp Building, Kansas City, Mo.,” George and Company said, “if * * * the company desires to make a lease [on the hotel] for a term of years to a family of very successful hotel operators, or possibly a sale of same, we would be glad to have full and complete information regarding it.” D. F. Glenn replied April 27, 1936, saying: “The Company is not interested in making a lease and I would say only mildly interested in making a sale.” Again, on June 18, 1937, George and Company inquired “whether they would be interested in making sale of the [hotel] property. * * * If your company would be interested in negotiating for either a lease or sale along the lines mentioned we have people who would be interested in looking the property over at an early date.”

Replying on June 21, 1937, Mr. Glenn said:

“It is not possible to place a price on this property without first identifying the prospective purchaser, and any price quoted would be good for only such a purchaser who had thoroughly qualified. If you have such a prospect in mind and will care to furnish his name and sufficient information to enable us to make a thorough check of his qualifications, the matter will be investigated, and, if satisfactory, a price will be quoted. * * *
“I will be glad to hear from you further in this regard.”

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Bluebook (online)
148 F.2d 42, 1945 U.S. App. LEXIS 2397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-mut-life-ins-v-george-co-ca8-1945.