Nance v. Eiland

214 S.W.2d 217, 213 Ark. 1019, 1948 Ark. LEXIS 574
CourtSupreme Court of Arkansas
DecidedOctober 25, 1948
Docket4-8620
StatusPublished
Cited by6 cases

This text of 214 S.W.2d 217 (Nance v. Eiland) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nance v. Eiland, 214 S.W.2d 217, 213 Ark. 1019, 1948 Ark. LEXIS 574 (Ark. 1948).

Opinion

Minor W. Millwee, Justice.

Appellants, R. Gr. Nance and Lonnie Dallas, were engaged as partners in the brokerage and agency business in the City of Little Rock in 1946 under the trade name of “Arkansas Business Brokers.” In February, 1946, they hired appellee, Gr. C. Eiland, as a salesman under an oral contract of employment on a commission basis.' Under the employment agreement appellee was to furnish his car, time and efforts in the promotion of the business for which he was to receive 50% of the commission which appellants charged a customer, if appellee obtained the listing of the property for sale from the customer and then sold the property; 40% of said commission, if appellee sold property which had been listed by another agent or member of the firm; and 10% of said commission, if he obtained a listing of property which was sold by another agent.

According to the testimony of appellee, appellants further agreed, as a part of the original contract of employment, that they would not “cancel- out” on him; that is, they would not release the customer from his contract with appellants prior to its expiration date. Appellants, in their testimony, stoutly denied this part of the agreement.

On March 5, 1946, W. A. Kail came to appellants’ office and listed his automobile supply business for sale. Appellee obtained the written contract from Kail giving appellants the exclusive right, for a period of sixty days, to sell Kail’s business for a commission of 10% of the gross amount for which the property sold. Appellee began work on the contract and interviewed several prospects. He brought some of them to Kail’s place of business for inspection of the property and conferences with the seller.

Appellee testified that Kail called him on April 16, 1946, about a modification, or release, of the contract; that at appellee’s suggestion Kail came to the office and after a discussion with appellant Dallas and appellee, it was agreed that Kail, who had himself found a buyer, should have the right to make a direct sale and pay a reduced commission of 5%; that Dallas then and there also agreed with appellee that, if the latter would consent to the proposed modification of the contract with Kail, he would be paid one-half of the 5% commission to be paid by Kail; and that appellant Nance, who later learned of the transaction, at first objected but subsequently agreed to the payment of 50% of the commission to appellee.

This testimony was disputed by appellants who testified that the agreement permitting Kail to make a direct sale was made in the absence of appellee and without any agreement to pay him one-half the commission; and that they subsequently agreed to pay appellee the listing fee of 10% of the commission.

Kail sold the property on April 16, 1946, and paid appellants $833.30, the amount of the 5% commission. On May 9, 1946, appellants tendered their check in the amount of $83.30 to appellee by mail in full settlement of his commission. The tender was refused and on May 23, 1946, appellee instituted this action to recover one-half of the 5% commission amounting to $416.65.

In. their answer, appellants denied all allegations of the complaint except the tender of $83.30 in full payment of appellee’s services, which they admitted. In an amendment to the answer they asserted that the alleged agreement to pay appellee one-half of the commission was without consideration and unenforceable.

The cause was submitted to a jury resulting in a verdict and judgment for appellee for $416.65.

Appellants’ first contention for reversal is that the complaint should have been dismissed because it does not state facts sufficient to constitute a cause of action. It is insisted that the complaint failed to allege any promise on the part of appellee as a consideration for the alleged promise of appellants to pay him 50% of the commission. The complaint is defective in this respect, but this deficiency in pleading was cured by proof on the part of appellee, which was admitted without objection from appellants. In Barnes v. Hope Basket Company, 186 Ark. 942, 56 S. W. 2d 1014, Justice Butler, speaking for the court, said: “It is always within the sound discretion of the court to permit a complaint to be amended to conform to the proof; and where the allegations in the complaint are insufficient, it is proper at the conclusion of the evidence to treat the complaint as amended to conform to the proof, where there are no objections to the introduction of the evidence and no claim of surprise is made. K. C. Sou. Ry. Co. v. Rogers, 146 Ark. 232, 225 S. W. 640; L. & C. Co. v. Sanders, 173 Ark. 362, 292 S. W. 657; Thomas v. Spires, 180 Ark. 671, 22 S. W. 2d 553.” Appellants did not question the sufficiency of the complaint by demurrer or motion to dismiss. They did not claim surprise when appellee testified that they agreed that he would have the full “listing-time” to work on his prospects and that they would not release the customer from his contract during this period. The trial court had the right, therefore, to treat the complaint as amended to conform to this proof.

The second contention of appellants, closely related to the first, is that the trial court erred in refusing- to direct a verdict in their favor because no consideration was shown for the alleged agreement of appellants to pay appellee one-half of the 5% commission. Among the cases cited in support of this contention is Feldman v. Fox, 112 Ark. 223, 164 S. W. 766, where the court said: “If no benefit is received by the obligee except what he was entitled to under the original contract, and the other party to the contract parts with nothing except what he was already bound for, there is no consideration for the additional contract concerning the subject matter of the original one. ’ ’ Appellants insist that they received no new benefit by making a promise to pay appellee one-lialf the commission and that appellee suffered no detriment and parted with nothing except what he was already bound for under the original contract.

The jury was warranted in finding that appellants agreed, as a part of their original contract with appellee, that they would not release a customer from the listing contract until its expiration date. At the time Kail sought permission to make a direct sale and pay a reduced commission, his contract with appellants had 18 days yet to run. Appellee testified that he had at least one “live prospect” for sale of the property at that time. If so, he still had 18 days in which to effect a sale of the property at a commission in twice the amount for which he obtained judgment. If appellee agreed that Kail might be released from the original contract on the condition that he be given one-half the reduced commission, as he testified, then he surrendered a valuable right in that he was thereby deprived of an opportunity of making a sale within the 18-day period at a .higher commission. Thus, the new promise to appellee that appellants would pay him one-half the commission is based upon the agreement on his part to release them from their original promise not to allow the customer to cancel out prior to the expiration date of the listing contract. We hold that the agreement on appellee’s part to release appellants from their prior obligation afforded sufficient consideration for the new promise, and that the court correctly denied appellants’ request for a directed verdict.

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Bluebook (online)
214 S.W.2d 217, 213 Ark. 1019, 1948 Ark. LEXIS 574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nance-v-eiland-ark-1948.