Murphey, Taylor & Ellis, Inc. v. Williams

153 S.E.2d 542, 223 Ga. 99, 1967 Ga. LEXIS 428
CourtSupreme Court of Georgia
DecidedFebruary 10, 1967
Docket23841, 23842, 23857
StatusPublished
Cited by8 cases

This text of 153 S.E.2d 542 (Murphey, Taylor & Ellis, Inc. v. Williams) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphey, Taylor & Ellis, Inc. v. Williams, 153 S.E.2d 542, 223 Ga. 99, 1967 Ga. LEXIS 428 (Ga. 1967).

Opinions

Cook, Justice.

Murphey, Taylor & Ellis, Inc., a real estate broker, brought a petition in Baldwin Superior Court against Walter B. Williams, Jr., a resident of the county, and Walter B. Williams, Sr., a resident of Jones County. The petition, as amended, was in three counts. The allegations of Count 1 are included in all three counts, and are summarized as follows:

[100]*100Walter B. Williams, Jr., the owner of a shopping center, had made a tentative agreement with Piggly Wiggly Southern, Inc. (hereinafter referred to as Piggly Wiggly) to enter into a lease to occupy a building proposed to, be constructed on a site where a building had burned, and on June 5, 1961, Walter B. Williams, Jr., orally engaged the petitioner to serve as rental agent for the negotiation of a lease between the owner and Piggly Wiggly, and for the subsequent management of the property. Walter B. Williams, Jr., knew that the normal compensation to be paid by the owner to the petitioner was 5% of the gross rentals, since the petitioner had previously served as rental agent for him. The petitioner immediately entered into active and continuing negotiations with Piggly Wiggly, which successfully culminated in a written lease contract between Town & Country Shopping Center, Inc., as lessor, and Piggly Wiggly, as lessee, dated October 7, 1961. A clause was inserted in this lease providing that the petitioner was vested with an interest for its commissions during the term of the lease and any renewals thereof. This lease did not become effective, since Walter B. Williams, Jr., did not place the shopping center in a corporation by the name shown as the lessor in the contract, as he had intended, and the building could not be completed within the time specified in the lease. On February 16, 1962, Walter B. Williams, Jr., by warranty deed, conveyed the property covered by the lease to his father, Walter B. Williams, Sr. The petitioner continued to negotiate with Piggly Wiggly and was the procuring cause of a second lease dated May 11, 1962. This second lease was between Walter B. Williams, Sr., and Walter B. Williams, Jr., as lessors, and Piggly Wiggly, as lessee. It obligated the lessee to pay the same rental as that in the first lease, and leased the same property intended to be included in the first lease. Pursuant to the instructions of Walter B. Williams, Jr., to the attorney for Piggly Wiggly preparing this lease, it contained no agency clause to reflect the petitioner’s interest in the rentals to be paid thereunder, and the lease was executed without the knowledge of the petitioner. While there was no contract between the petitioner and Walter Williams, Sr., he is bound by the contract of listing and is obligated to pay [101]*101the commissions because of his knowledge of the continuing efforts of the petitioner in his behalf, and because he has accepted the products of the petitioner’s efforts as rental agent. Specified services were rendered by the petitioner in negotiating with Piggly Wiggly.

The prayers of the petition were: for an accounting to the petitioner showing all rentals received under the lease; for a judgment against the defendants for 5% of all gross rentals paid by Piggly Wiggly; that the court declare a special lien in favor of the petitioner for the sums to be due and payable to the petitioner in the future on all rental payments to be made under the contract; and for other and further relief.

The second count alleged further that after the conveyance of the property from Walter B. Williams, Jr., to Walter B. Williams, Sr., the latter designated the former as his agent to do all things necessary to negotiate and consummate the proposed lease with Piggly Wiggly. Walter B. Williams, Jr., as agent for his father, continued the employment of the petitioner to continue negotiations with Piggly Wiggly, and Walter B. Williams, Sr., is bound by the terms of the employment of the petitioner by Walter B. Williams, Jr.

In the third count it was alleged that Piggly Wiggly was unwilling to enter into a lease with Walter B. Williams, Sr., without sufficient rights in the parking area of the shopping center owned by Walter B. Williams, Jr. Walter B. Williams, Jr., and Walter B. Williams, Sr., formed a joint enterprise under the terms of which they joined, as lessors, in a single lease to Piggly Wiggly, leasing the building and rights in the parking area. Walter B. Williams, Jr., as a joint venturer and as a joint lessor, continued the employment of the petitioner as rental agent for the joint venturers and both are liable for commissions earned by the petitioner pursuant to the listing contract.

Numerous demurrers were filed by the defendants. A number of these were sustained, which had the effect of dismissing the first and second counts of the petition. The case was tried on the third count, and at the conclusion of the evidence, motions for a directed verdict were made by both parties. The trial judge denied the motion of the petitioner, and directed a verdict for the defendants.

[102]*102In the main appeal the petitioner enumerated as error the sustaining of the demurrers to the first and second counts of its petition, the direction of the verdict for the defendants, and the denial of its motion for a directed verdict. The defendants filed separate cross appeals, and enumerated as error the overruling of certain grounds of their demurrers.

The first and second counts of the petition alleged facts purporting to show that Walter B. Williams, Sr., was obligated to pay commissions to the petitioner for its activities in negotiating the second lease with Piggly Wiggly. Since Walter B. Williams, Sr., is not a resident of the county in which the action was brought, demurrers were properly sustained to these counts, no substantial relief having been sought against the only defendant who is a resident of the county. Grace v. Interstate Bond Co., 193 Ga. 810 (20 SE2d 131).

The third count alleged a cause of action against both defendants as joint venturers, or joint adventurers. This count alleged that each defendant had property rights which were leased to the lessee, and that they were joint venturers in the enterprise of leasing the property to Piggly Wiggly.

“Differing from an ordinary partnership or limited partnership, is a cooperative enterprise pertaining to a single definite transaction. This is usually termed a ‘joint adventure’ or ‘joint enterprise.’ ” Clement A. Evans & Co. v. Waggoner, 197 Ga. 857 (1c) (30 SE2d 915). “Broadly, there is a joint enterprise or adventure when two or more combine their property or labor, or both, in a joint undertaking for profit, with rights of mutual control, provided the arrangement does not establish a partnership.” Atlanta Metallic Casket Co. v. Southeastern Wholesale Furniture Co., 82 Ga. App. 353, 358 (61 SE2d 196); Holland v. Boyett, 212 Ga. 458 (1) (93 SE2d 662); Security Development &c. Co. v. Williamson, 112 Ga. App. 524, 525 (145 SE2d 581).

In 48 GJS 866, Joint Adventures, § 14 it is said: “Members of a joint adventure are liable on a contract entered into by a member pursuant to authority conferred on him by his associates. Substantially the same rules with respect to principal and agent applicable to members of a partnership apply to members of a joint adventure with respect to contracts with [103]

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Murphey, Taylor & Ellis, Inc. v. Williams
153 S.E.2d 542 (Supreme Court of Georgia, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
153 S.E.2d 542, 223 Ga. 99, 1967 Ga. LEXIS 428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphey-taylor-ellis-inc-v-williams-ga-1967.