Mitchell v. Philippi

223 S.W.2d 441, 359 Mo. 754, 1949 Mo. LEXIS 666
CourtSupreme Court of Missouri
DecidedSeptember 12, 1949
DocketNo. 41184.
StatusPublished
Cited by11 cases

This text of 223 S.W.2d 441 (Mitchell v. Philippi) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. Philippi, 223 S.W.2d 441, 359 Mo. 754, 1949 Mo. LEXIS 666 (Mo. 1949).

Opinion

*757 TIPTON, P. J.

This is an action by respondent to recover compensation for his services in procuring a purchaser of all the capital stock of the Excelsior Tool & Machine Company, owned by appellant. In the trial court the respondent obtained a verdict for $10,000 and $4,080 interest, a total of $14,080, and a judgment was entered for that sum against the appellant. From that judgment the appellant has duly appealed to this court.

Appellant’s first assignment of error is that the trial court erred, in overruling his motion for a directed verdict at the close of all the evidence in the case. To decide this assignment it will be necessary for us to state the evidence that is most favorable to respondent.

In the fall of 1940 the respondent met an old acquaintance by the name of McCausland and learned that he and Schein, a real estate broker, were endeavoring to sell the Excelsior Tool & Machine Company which was owned by appellant and that they had an option on this property for $142,500. These men desired the respondent to assist them in the sale of the property. On that day Schein went with respondent to the office of the Excelsior Tool & Machine Company *758 and met appellant. Appellant told him that he would be glad if he would help Sehein and McCausland sell the plant. Respondent made various efforts to bring about a sale of the business but was unsuccessful. On May 9, 1941, a contract was entered into between respondent and appellant giving respondent, Labert St. Clair and William H. Ludington an option to sell the plant for $75,000. The appellant came down in his price because he found that it was impossible to sell at the former figure. It was agreed if respondent and his associates realized more than $75,000, they should have any amount over that figure. This option expired on June 9, 1941, without a sale having been made although a great many prospective purchasers had been contacted by respondent. On June 14, 1941, a new contract was executed by the appellant. It read:

“In consideration of time and money heretofore expended and • hereafter to be expended by E. Y. Mitchell of Springfield, Missouri, Labert St. Clair of College Park, Maryland, and William H. Ludington of Rosemont, Pennsylvania, in an effort to sell all of the capital stock of the Excelsior Tool & Machine Company, a corporation, of East St. Louis, Illinois, owned by me, I hereby grant to said E. Y. Mitchell, Labert St. Clair and William PI. Ludington an exclusive option to buy all of said capital stock until the 10th day of July, 1941, at 2 o’clock P. M., for the cash price of Fifty Thousand Dollars ($50,000.00).

“It is understood that this option does not cover cash on hand, bills receivable, bonds and indenture bonds owned by the company at the time of the purchase under this option.

“It is-further understood that this option covers all patents standing in my name, that all the property and the company are to be free from all debt at the time of the purchase under this option, and that the title to the real estate is good.

“Witness my hand and seal this 14th day of June, 1941.

T. F. Philippi (Seal)

“Witness to signature of T. F. Philippi.

Frank T. Schilling.”

Respondent testified that he was to receive for his services in selling this property all over the amount stated in these options. In the May 9, 1941, option he was to get all over $75,000 and in the June option set out above he was to get all over $50,000. In this he was corroborated by appellant who testified as follows:

“Q. You don’t know how many people came over to look about buying your plant? A. I gave Mr. Mitchell the right to bring anybody.

Q. Do you know how many ? A. The only .people I saw.

Q. How many did you see ? A. I guess about eight or nine. -

Q. You didn’t get those people to come over there? A. No, no. Q. And he did, didn’t he? A. Yes, sure he did.

*759 Q. Pie did that because you asked him to do it, didn’t you? A. I told him, ‘You know what I want, now go ahead, get the people.’

Q. What was he to get for his services in bringing a buyer to you ? A. Mr. Mitchell wanted to get everything he could out of it.

Q. You gave him a price and anything he could get from a customer over that was to be his, wasn’t that right? A. Yes.

Q. That was true of all these papers you signed; this one that has been marked Exhibit 2, that has the seventy-five thousand dollar price on it, if he would get anything over seventy-five that was to be his? A. Yes. That was all right.

Q. This one marked in the file, this last one you signed, for fifty thousand dollars, anything he would get over fifty was to be his ? A. Yes, he was entitled to it.”

On July 2, 1941, the respondent was in Chicago and called on the firm of Winternitz & Company in an effort to interest them in appellant’s property. They showed considerable interest and decided to send Lester Winternitz and Elliott Blumberg to look it over. They met respondent on July 3, 1941, at the Jefferson Hotel in St. Louis. He explained to them that the property would have to be sold for cash and made them the price of $60,000. He told them the terms of the contract of June 14, 1941, except for the $50,000 figure. They, with respondent, went to the plant, met appellant and looked over the property. After their return to St. Louis respondent told Winternitz and Blumberg that while he was selling the property for $(60,000, that $50,000 would go to appellant and $10,000 would go to him as his commission.

These parties then went to see Earl B. Rosenbloom, an attorney, and after discussing the matter fully Rosenbloom wrote up a personal contract of purchase. Respondent telephoned appellant and asked him if he could get his papers that would show that the title to the real estate upon which the plant was located was good so that the deal could be closed Saturday morning, July 5th, but appellant stated that the next day was July 4th and his plant would be closed on that day, also on Saturday, and would not be open until Monday, July 7th. On Monday Winternitz, Blumberg, Rosenbloom and respondent went to appellant’s plant in East St. Louis for the purpose of closing the deal with appellant. In the course of the conversation respondent said: “Here is our contract, Mr. Philippi. I am ready to exercise this option and pay you this $50,000 for your property as soon as you endorse the stock in the corporation and give us a certificate of title to your property; or if you don’t want to transfer the certificates of stock, if you will make these orders to sell the assets direct to Mr. Winternitz. Here’s the paper.”

In the discussion that ensued respondent stated that the following conversation took place: “Mr. Philippi said, ‘I won’t do anything about it.’ He said, ‘I haven’t had a board meeting for fifteen years. *760 I got to get my papers put in shape.’ Then I asked him, as I had on Sunday night, how long it would take. He said he didn’t know.

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Bluebook (online)
223 S.W.2d 441, 359 Mo. 754, 1949 Mo. LEXIS 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-philippi-mo-1949.