O'Meara v. Lawrence

141 N.W. 312, 159 Iowa 448
CourtSupreme Court of Iowa
DecidedMay 6, 1913
StatusPublished
Cited by5 cases

This text of 141 N.W. 312 (O'Meara v. Lawrence) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Meara v. Lawrence, 141 N.W. 312, 159 Iowa 448 (iowa 1913).

Opinion

Ladd, J.

The plaintiffs, who reside in Oklahoma City, Okla., own one hundred and twenty acres of land in Jones county subject to a railroad right of way. Mrs. O’Meara has been looking after this land in her own interest and that of [449]*449her children, the other plaintiffs, and in 1911 proposed to defendant Lawrence, who had attended to the renting of the land for her, that he find a purchaser. On May 12, 1911, she wrote that: ‘ ‘ If you make a sale I want $8,400 clear of everything. You work to get your commission over that amount and let me hear from you.” On June 24th following, she wrote: “If you can get the commission out of them get it and I will give them half of the rent money. The rest will do to pay the debt that has been made for repairs on the place.” On July 31, 1911, Lawrence, as agent for Mrs. O’Meara, entered into a written contract with defendant Faragher by the terms of which she was to convey the land, describing it, except the right of way, “the part hereby conveyed containing 117 acres,” for the consideration of $70 per acre, $100 in cash, the receipt thereof being acknowledged, and the remainder March 1, 1912. Other conditions need not be stated. Lawrence signed Mrs. O’Meara’s name by himself as agent, and it was signed by Faragher. This contract was acknowledged by the signers and recorded August 12,1911, after Mrs. O’Meara had repudiated it, and in this suit plaintiffs ask that the same be canceled as void and be expunged from the record, for that the sale was not at the price authorized and was actually by Lawrence to himself ; the contract being made in Faragher’s name to conceal that fact.

The answer put in issue the allegations of the petition, and by way of cross-petition Faragher prayed that the contract be reformed by making the sale subject to the railroad right of way, instead of excepting it, and for specific performance. There was error in granting this relief. The evidence leaves no doubt but that Lawrence was the agent of Mrs. O’Meara to sell the land at $8,400, and that he was to get a commission as payment for his service out of the price obtained above that amount. But this did not authorize him to sell the land to himself at that price or any other, or to himself and another. An agent is not permitted to serve another than his principal in transacting the latter’s busi[450]*450ness without the principal’s consent thereto. This is for the reason that the law will not permit the agent to place himself in a situation in which he may be tempted by his own private interest to disregard that of his principal. Human experience has demonstrated this is the only safe rule, founded, as it is, in that profound knowledge of the human heart which dictated that hallowed petition, “Lead me not into temptation but deliver me from evil, ’ ’ and that occasioned the announcement of the infallible truth that “ a man cannot serve two masters.” Casady v. Carraher, 119 Iowa, 500. A man cannot, in one and the same transaction, act for himself and as agent for another, without the latter’s consent, for the interests of the two conflict. First National Bank v. Gunhus, 133 Iowa, 409.

It is enough in such a situation if the agent is interested adversely to his principal to invalidate that which is done. German Savings Bank v. Des Moines National Bank, 122 Iowa, 737.

Viewing the evidence in the light of these principles, little difficulty is experienced in reaching the conclusion that the alleged sale was a mere subterfuge on the part of Lawrence to acquire not merely a commission for services rendered, but a portion of the purchase price in addition thereto. On the very day the above agreement was signed, Lawrence entered into a contract with John M. Dailey to sell one hundred and twelve acres of the land — omitting five or six acres across the railroad — at $85 per acre, $300 in cash, $1,000 March 1,1912, and the remainder in five years. Both contracts were executed in the same afternoon.

Neither Faragher nor Lawrence were able to remember which was signed first, but both did remember that $100 of the payment by Dailey was to be used as a payment to Mrs. O’Meara. Faragher had talked with Dailey through the telephone in the afternoon before, and the latter came to town that morning, and Faragher showed him the land. Before going out to see it, however, Faragher had called at the [451]*451office of Lawrence and talked the matter over. Faragher testified that:

"We knew Dailey did not have much to pay down and supposed, as we had in other deals I had, Lawrence was to take the deed and take a contract, what we call the Schoonover contract. I told Lawrence that I thought I could sell the farm for probably $80 or $85 and it was good money. He could borrow the money and have one-half the profits. Q. Then you and Lawrence were buying it together, and you and Lawrence were selling it to Dailey? -A. Lawrence made the sale contract. Q. You were to have an interest? A. I was to have an interest in the profits, yes. Q. You and Lawrence were to share the profits equally? A. Yes. Nothing was said about his commission; only he was to have one-half the profits. . . . Lawrence was to have one-half the profits between $8,400 and $85 per acre. He was to have one-half the profits in the sale to Dailey. (On the cross-examination the witness was asked) : Q. You submitted to Lawrence the proposition of Dailey to pay $1,300' and borrow the balance. A. Yes. Q. To help you out? A. Yes. Q. What was the deal made with Dailey, $85 per acre? A. Yes, fin consideration of Lawrence furnishing the money and helping me through with the deal, I offered to give him one-half the profits on the price he had made to me, $8,400, and the sale to Dailey at $85 per acre. (On redirect examination, the witness continued). Dailey gave me a check for $300 when he bought the farm, and I told Lawrence to use $100 of that to pay on the contract. Q. You did not pay Lawrence the $300 on the contract? A. He only took $100 of the $300. . . . Q. The verbal arrangement between you and Lawrence had been made how long prior to going down to show the land to Dailey? A. That morning. Q. You talked it over with Lawrence that morning? A. Yes, after I talked with Dailey over the phone. Q. That is, made an arrangement with Lawrence? A. Yes; that is, made an .arrangement about furnishing the money. Notified him of the amount of money Dailey could raise. ... I made the arrangement with Lawrence about the sale of this farm and me get one-half the profits for selling it that morning. Q. At the time you signed this contract with Lawrence, Dailey and Lawrence had already signed the contract? A. I [452]*452couldn’t say which wras signed first. Q. It was understood you were to make it? A. Both made the same time. Q. The whole thing understood between you and Lawrence that whole day? A. Yes. Q. He was to sell it to you, and you was to turn around and sell it to Dailey and both share the profits equally? A. Yes, Lawrence and I had that arranged at the time, and Lawrence was to take the deed. Q. Take the deed to secure him for the advancement of money and both share equally in the profits? A. Yes. ... I told him I would take the farm at $8,400. I left it to him to make the contract and I went away. ■. . . I had arrangements already made with Lawrence about the money. . . . I told Dailey that Lawrence had money in the farm and told him I thought he would make the contract with him. I ain’t sure I told him I was. showing him the farm for Lawrence. . . . When I took Dailey down to look at the farm, I knew he could pay only $1,000. Lawrence agreed to furnish the money.

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Cite This Page — Counsel Stack

Bluebook (online)
141 N.W. 312, 159 Iowa 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omeara-v-lawrence-iowa-1913.