Nutter v. Bechtel

433 P.2d 993, 6 Ariz. App. 501, 1967 Ariz. App. LEXIS 616
CourtCourt of Appeals of Arizona
DecidedNovember 28, 1967
Docket2 CA-CIV 314
StatusPublished
Cited by17 cases

This text of 433 P.2d 993 (Nutter v. Bechtel) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nutter v. Bechtel, 433 P.2d 993, 6 Ariz. App. 501, 1967 Ariz. App. LEXIS 616 (Ark. Ct. App. 1967).

Opinion

MOLLOY, Judge.

This litigation arises out of an alleged’, oral contract to divide a real estate commission between three real estate brokers-operating in Pinal county, Arizona.

The three real estate brokers are Harry Bechtel, the plaintiff, Jack Nutter, a defendant, and George Wake, a defendant. The case is differentiated from the usual' sharing of commission case by the fact that the sale upon which Bechtel claims the right to share in the commission is one in which Nutter, a sharing broker, was the-buyer.

In the trial court, judgment was rendered in favor of Bechtel, and against Wake and Nutter in the amount of $5,000 each. The evidence discloses without question that the total commission received or to be received by Wake as a result of the sale in question was $30,000. Most of the-other facts are in dispute, and on appeal' this court is obligated to view the evidence in the light favorable to supporting the result reached in the trial court. Daru v. Martin, 89 Ariz. 373, 363 P.2d 61 (1961). We state the facts in accordance with this-requirement, including, however, some of' the discrepancies in the evidence, both for the reason that it is unclear in some instances which version of the evidence is-most favorable to the plaintiff’s position and also because one of the contentions-raised on appeal is that the testimony of the-plaintiff Bechtel is so inconsistent that it. was not worthy of belief by the trial court..

The story to be told commences in the-early part of 1963, at which time Bechtel was working on the sale of a large farm-belonging to a certain Carl Mumme and. wife. Part of the time Bechtel worked under an oral listing from the owners and’, part of the time under a written listing. There was to be a 5 per cent commission-, paid.

Nutter, in addition to being a real estate-broker, was in the business of “farm land. *503 developing,” and from time to time bought land for development purposes. From the .evidence, one may gather that it was Nutter’s practice to insist that any real estate broker involved in a purchase made by him would “pool” or share the commission with him. According to Nutter, this was in the form of a “professional courtesy” to be extended by a fellow real estate broker and was a common practice to the extent that: “It’s done every day.” 1

According to Nutter, in the case of the Mumme farm, he was proposing to form a syndicate to buy and develop the land. Nutter’s testimony as to the nature of the “pooling” agreement was that the commission would be shared “50-50.” According to Nutter, this agreement was made in May of 1963, was never changed, and lapsed by reason of the expiration of time, the purchase of the Mumme farm not taking place until June 1, 1964.

According to Bechtel, the original agreement with Nutter occurred in either April or July of 1963 (his testimony was not consistent), and originally was an agreement under which Bechtel was to receive the first $20,000 of any commission and Nutter was to receive all commission over this amount. Bechtel testified that in late 1963, or early 1964 (again his testimony is not consistent), the verbal agreement to share a commission was modified by the inclusion of another broker, the defendant Wake, in the “pooling” arrangement. Bechtel stated that Wake was to receive one half of the $20,000 which was to be Bechtel’s share of the hoped-for commission and also that the commission was to be divided “1/3, i/$” amongst Nutter, Wake and himself. Inasmuch as the Mum-me-Nutter sale resulted in a total commission of $30,000, either version of Bechtel’s testimony results in the same mathematical computation.

According to Bechtel, Wake was brought into the arrangement at the suggestion of Nutter, because Bechtel had been unsuccessful in persuading the owners to accept any of Nutter’s offers, a number of which Bechtel presented to the Mummes during ■the calendar year 1963. The offers submitted were from “Jack Nutter or nominee” and ranged from an offer of $450,000 to an offer of $620,000. The submitted offers were unacceptable to the owners of the farm for various reasons involving release clauses and the payment of the expenses of a crop planted upon the farm. In addition, the Mummes informed Bechtel in approximately July, 1963, that they did not wish to sell to Nutter because of his “reputation.” According to Bechtel, Nutter was of the opinion that Wake might better be able to approach the Mummes with his offers.

At the time Wake was brought into the “pooling” agreement, it was agreed that Bechtel would stay out of the negotiations entirely in order to leave a clear field for the presentation of Nutter’s offer or offers to the owners. Bechtel accordingly ceased his efforts to sell the farm and from time to time asked both Wake and Nutter, separately, how the “deal” was progressing. On these occasions, Bechtel was informed in general terms that negotiations were still being conducted and that some progress was being made. In June, 1964, Bechtel learned of the sale from the Mummes to a “Blackstoné Investment Company,” a corporation owned and controlled by Nutter. At this time, Bechtel insisted upon a meeting with Nutter and Wake. At the meeting (a disinterested fourth real estate broker was present), Bechtel demanded that the commission be divided “a third, a third and a third,” according to “the agreement.” Neither Wake or Nutter denied there was such an agreement but contended that it had elapsed by expiration of time.

The actual sale made of the Mumme farm was in pursuance of an “exclusive right and authority to sell or purchase” given by the Mummes to “George Wake, Land Broker, or his Assignees,” dated May 31, *504 1964, and expiring midnight June 10, 1964. This exclusive listing provided for a real estate commission of $30,000. The escrow-instructions providing for the details of the sale showed “George Wake and/or his nominees” as the buyer, and, in escrow, Wake designated Blackstone Investment Company as his nominee-purchaser. For the purposes of closing the sale, Wake, who had no real interest in this corporation, was made the president of Blackstone Investment Company, in order to execute the necessary documents to close the sale. At the trial, Wake admitted that he was a “front and a figurehead and nothing more” in this capacity.

All of the money necessary to close the sale was furnished by Nutter, and, in escrow, Wake assigned one half of his commission earned on this sale to Nutter. Blackstone was a defunct corporation “reactivated” solely for the purpose of buying this property. The Mummes first learned that they were in effect selling their farm to Nutter, whom they considered to be an undesirable buyer, through Bechtel, but proceeded with the sale despite this fact. By the time of the trial, Blackstone had sold a part of the land purchased to a “trust” in which Nutter was one of the beneficiaries.

That we are close to an agreement void for illegality is indicated by decisions such as Peaden v. Marler, 78 Okl. 200, 189 P. 741 (1920); see 12 Am.Jur.2d Brokers § 175, at 916-17.

However, there is no evidence in this record that Bechtel in any way joined in or approved of the arrangement to conceal the identity of the buyer from the owners.

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Bluebook (online)
433 P.2d 993, 6 Ariz. App. 501, 1967 Ariz. App. LEXIS 616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nutter-v-bechtel-arizctapp-1967.