McCULLOCH INVESTMENT COMPANY v. Spencer

67 N.W.2d 924, 246 Iowa 433, 1955 Iowa Sup. LEXIS 335
CourtSupreme Court of Iowa
DecidedJanuary 12, 1955
Docket48647
StatusPublished
Cited by12 cases

This text of 67 N.W.2d 924 (McCULLOCH INVESTMENT COMPANY v. Spencer) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCULLOCH INVESTMENT COMPANY v. Spencer, 67 N.W.2d 924, 246 Iowa 433, 1955 Iowa Sup. LEXIS 335 (iowa 1955).

Opinion

Thompson, J.

The plaintiff was at all times material a copartnership in the real-estate business in Polk County, with its principal place of business in Des Moines. The partnership and its members and agents concerned in this litigation were licensed real-estate brokers or salesmen. During the month of November 1952 plaintiff’s agent Harry O. Huddleston contacted *435 the defendants in regard to the sale of their residence property at 3406 Bollins Street, Des Moines, and was given permission to show it to prospective purchasers, but was refused an exclusive listing. Whatever agency contract there was between plaintiff and defendants was entirely oral.

On December 7 Huddleston took Lee B. Carlson and Pearl C. Carlson, who were husband and wife, to look at defendants’ property. A few days later the Carlsons submitted through Huddleston a written offer to purchase. This offer was promptly declined by defendants, and they at the same time refused to submit a counterproposition. It appears that no further attention was given to the matter by plaintiff or its agents. About January 4, 1953, a neighbor of the defendants who had a residence property in Des Moines which he wished to sell called the Carlsons, apparently at the suggestion of the defendants, to discover whether they would be interested in purchasing it. The location and perhaps other features of this property did not meet the Carlsons’ requirements. Upon being advised of this, the neighbor told them' that the defendants’ property was still for sale. This led to a further call upon defendants by the Carlsons. At this time one Trickey, another Des Moines realtor with whom defendants had listed their property for sale, was at their home. Trickey took charge of the negotiations and shortly procured an offer satisfactory to defendants, and the sale was completed. The terms of the second Carlson offer were substantially different from those proposed through plaintiff’s agency, although the principal amount was the same. Defendants paid Trickey .a commission for making the sale. Plaintiff learned of this sale when it contacted the Carlsons with a view to selling them another property. Further facts will be set out later.

I. It is apparent the only question before us upon this appeal is whether plaintiff, through its agent Huddleston, was the efficient procuring or moving cause of the sale. At this point plaintiff says: “ * * * since the court exercised ,the functions of the jury in deciding the questions of fact which were involved, the decision of the court is entitled to the weight of a jury verdict.” It is true there was nothing involved in the case as it was tried but a demand for .a money judgment; and ordi *436 narily under such circumstances the court would have exercised the functions of the jury and we could interfere with its determination of fact questions only if there was no substantial evidence to support it. This is elementary.

But this rule does not prevail in the case at bar. The plaintiff brought its action in equity, and it was so tried. The petition is labeled “Petition in Equity.” There was an attempt to plead equitable issues. These were removed from the case before the trial; but there was no motion to transfer to law, and it is clear the trial court considered the action as being still in equity. When objections to questions were interposed, the court took the answers subject to the objections, in accordance with general equity practice; and in its findings at the close of the case it said: “This action, although for a simple money judgment, was brought and tried in Equity by the parties.” No exception to this finding was taken and no objection made to the procedure. We know of no rule which prohibits a law action being tried in equity if the parties so agree, and the court concurs, or which permits a litigant who has brought his action in equity and tried it throughout in that forum to urge upon appeal that it was in fact a law action and should be so considered. This court has held that upon appeal it will consider the case as being in the same forum in which it was tried below. Hess v. Hess, 191 Iowa 52, 54, 181 N.W. 760; In re Estate of Heaver, 168 Iowa 563, 567, 150 N.W. 698, 700; Steltzer v. Chicago, M. & St. P. R. Co., 167 Iowa 464, 466, 149 N.W. 501, 502; Wait v. Mystic Workers of the World, 140 Iowa 648, 650, 119 N.W. 72, 73. We consider the action as being in equity and so triable de novo in this court. This means that, while under some circumstances, particularly where the question of credibility of witnesses is concerned, we give some weight to the findings of the trial court on fact questions, we are not bound by them. In the case at bar there is little contradiction of the essential facts. The disputed matters arise chiefly through the inferences to be drawn from th^ various happenings; and here the determination of the trial court is entitled to much less weight.

Our numerous cases involving claims for real-estate commissions lay down certain rules of law. But since almost without exception our former holdings were concerned only with *437 the question of proper submission to juries, they aid us only as they establish rules of law which we should apply to the facts before us. We are here the triers of the facts and must determine where the weight of the evidence lies, and then apply the proper rules of law. The legal situation is not complex, and we regard the facts as controlling.

The broker who attempts to collect his claim for a commission by legal process must show, in order to make a primafacie case, these things: (1) the contract between himself and his alleged principal which evidences an agreement, express or implied, to pay him a commission for his services; (2) that he produced a purchaser who was ready, willing and able to buy on terms satisfactory to the vendor; and (3) that the purchaser was induced to enter into the negotiations and to make the purchase through the efforts of the broker as agent. Moore v. Griffith, 234 Iowa 1024, 1027, 14 N.W.2d 644, 645. The second and third requirements above set forth are to some extent similar and may be considered together for the purposes of the case at bar. One who produces a purchaser ready, willing and able to buy on terms satisfactory to the seller will generally be'held to be the efficient moving cause of the sale, if one is made to the purchaser so produced.

In the instant case there is no question but that the plaintiff, through its agent Huddleston, first brought the defendants into contact with the eventual purchasers, the Carlsons. This occurred, however, through no original design on the part of Huddleston. When the defendants, after telling him he might show their property, refused to give him an exclusive listing, so far as the record shows he abandoned the project and gave it no further thought. The plaintiff advertised certain properties for sale, but defendants’ was not among them. The broker Trickey was at the same time advertising defendants’ property. The Carlsons saw both advertisements. They contacted the plaintiff-firm, .and Huddleston took them out to show them certain properties. He did not show them defendants’ property or mention it until, Carlsons having seen nothing that interested them, they asked him about the house at 3406 Rollins Street, of which they had learned through the Trickey advertisement.

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Bluebook (online)
67 N.W.2d 924, 246 Iowa 433, 1955 Iowa Sup. LEXIS 335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcculloch-investment-company-v-spencer-iowa-1955.