Morgan v. Kraft

285 F. 906, 52 App. D.C. 172, 1922 U.S. App. LEXIS 2025
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 4, 1922
DocketNo. 3804
StatusPublished
Cited by7 cases

This text of 285 F. 906 (Morgan v. Kraft) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Kraft, 285 F. 906, 52 App. D.C. 172, 1922 U.S. App. LEXIS 2025 (D.C. Cir. 1922).

Opinion

MARTIN, Acting Associate Justice.

This case was begun in the municipal court, with W. B. Kraft as plaintiff, and James R. Morgan and Florence M. Morgan as defendants. The plaintiff alleged that he was a real estate agent doing business in the District of Columbia, and that in December, 1921, the defendants employed him to sell certain real estate, agreeing to pay him a commission of $250 in case he made sale thereof; that he succeeded in procuring an acceptable purchaser for the property in the person of one John A. Hammer; and that defendants thereupon sold and conveyed the premises to Hammer, at the same time agreeing in writing to pay plaintiff the commission of $250 for his services in the transaction. He prayed judgment for that sum, alleging a- default of payment by the defendants.

Thereupon the defendants filed affidavits praying for an order of interpleader under section 1531 of the District Code, averring therein that, prior to the transactions described by the plaintiff, they had authorized one Henry Johnson as an agent to seek a buyer for the said premises; that Johnson was associated in the business of selling real estate with one Martin Webb, and that Webb thereupon advertised the property for sale; that the advertisement came to the attention of said Hammer, the ultimate purchaser, who then came to Webb’s office, and in his absence secured information from Johnson concerning the property, and thereupon visited and inspected it; but that afterwards Hammer was brought by the plaintiff, Kraft, to the defendants as a pur[908]*908chaser secured by him for the property, and the defendants then agreed to pay the stipulated commission to Kraft, not knowing that it was Webb who had in fact induced Hammer to become interested in the property. The defendants further alleged that, withoui collusion, Webb now claimed to have actually produced the purchaser by means of the advertisement and information aforesaid and to be entitled to the commission, and had demanded payment of the same, and that defendants were advised by counsel that they could not safely pay the commission to either claimant without a decision of the court' upon their conflicting claims, the defendants being ready and willing to pay the commission as the court might direct. They therefore prayed that Webb be made a party in the case, and required to inter-plead with Kraft' for said commission.

Acting upon this application the court ordered that Webb appear and maintain or relinquish his claim against the defendants. Thereupon Webb filed an affidavit in the case, setting up his claim consistently with the foregoing statements of the defendants, but alleging furthermore that, when Hammer went to look at the property in question, after receiving information concerning it from Johnson, he met there with an agent of Kraft, who had been, attempting to sell another piece of property to Hammer, and that Hammer then told the agent concerning his interest in the present premises, and of the fact that he had become interested in them through the efforts of Webb; that at that time Kraft did not have this property listed with him for sale, but nevertheless he went with Hammer to the defendants, and persuaded defendants to sell the property to Hammer, and to agree to pay him,' Kraft, the commission of $250, although at the time defendants were fully informed by Hammer of the fact that his attention had been called to the property and he had become interested in it through the efforts of Webb.

But afterwards, on motion of the plaintiff, the court vacated its former order requiring Webb to appear and plead in the case, and judgment was entered for the plaintiff, Kraft, as demanded in his declaration. Before the judgment was entered, however, the defendants by leave filed an Affidavit of Defense, which was substantially identical with their affidavits already on file in the case. However, they were not granted a trial thereon; the judgment being entered against them, notwithstanding the affidavit. The plaintiffs in error now complain that it was error for the lower court to refuse to require an interpleader as prayed for by them, and furthermore that it was error to render judgment against them without a trial upon their affidavit of defense.

The first question, therefore, is whether the municipal court erred in refusing to require an interpleader between Kraft and Webb, as demanded by defendants below. Upon a consideration of this question we conclude that this was not error. In Pomeroy’s Equity, § 1322, four conditions are named as essential prerequisites to an order for interpleader. They are as follows: (1) The same thing, debt, or duty must be claimed by both or all the parties against whom the relief is demanded. (2) All their adverse titles or claims must be de[909]*909pendent, or be derived from a common source. (3) The person asking the relief — the plaintiff — must not have or claim any interest in the subject-matter. (4) He must have incurred no independent liability to either of the claimants; that is, he must stand periectly indifferent between them, in the position merely of a stakeholder.

It seems to us that the demand of the defendants below for an interpleader did not respond to any one these four requirements. The claims set up, respectively, by Kraft and Webb, were not for the same thing, debt, or duty, for they arose from separate and individual contracts, which had created separate and individual rights and obligations. Nor were the claims dependent or derived from a comm'on source, for, although both claims were asserted against the same persons, there was nevertheless no privity between either the claims or the claimants. Nor can it be said that the defendants below had not incurred any independent liability to either of the two claimants, or that they stood in a position of mere stakeholder between them, for the defendants in fact were bound by separate contracts with the respective claimants, and under the circumstances they may have become indebted to each of them. And certainly the full extent of their liability at law to the claimants could not be litigated by means of an application for an order of interpleader. Such a procedure in this case would necessarily have implied that the several claimants were relegated to a contest inter sese against an assumed fund of $250, and were to be denied personal actions at law against the defendants below upon their several contracts with them. It would also have implied that the allowance of one claim would necessarily forbid an allowance of the other. Such a result, however, could not be justified, for the claimants had a right to litigate their several claims in a court of law, and to insist upon a trial at law in each instance.

A multitude of authorities might be cited in support of the foregoing statements, but we will content ourselves with some which relate, like the present case, to commissions for the sale of real estate. In Maxwell v. Frazier, 52 Or. 183, 96 Pac. 548, 18 L. R. A. (N. S.) 102, the plaintiff filed a suit for an interpleader, alleging that he had sold certain real estate, and was indebted to one or the other of two real estate agents, in the sum of $50 as commission in the transaction ;■ that both agents claimed the commission and threatened to bring action therefor; that he was unable to determine, without hazard to himself, to which it belonged. The court denied the prayer for an order of interpleader, on grounds stated as follows in the syllabus:

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Bluebook (online)
285 F. 906, 52 App. D.C. 172, 1922 U.S. App. LEXIS 2025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-kraft-cadc-1922.