P. J. Spitz Co. v. Warner & Swasey Co.

52 N.E.2d 758, 39 Ohio Law. Abs. 281, 1943 Ohio App. LEXIS 894
CourtOhio Court of Appeals
DecidedMay 17, 1943
DocketNo. 19085
StatusPublished
Cited by1 cases

This text of 52 N.E.2d 758 (P. J. Spitz Co. v. Warner & Swasey Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P. J. Spitz Co. v. Warner & Swasey Co., 52 N.E.2d 758, 39 Ohio Law. Abs. 281, 1943 Ohio App. LEXIS 894 (Ohio Ct. App. 1943).

Opinions

[282]*282OPINION

By SKEEL, J.

The plaintiff herein, a real estate brokerage company, brought this action seeking to recover a commission from the defendant, claiming to have been employed as its agent to procure for it, as purchased, a certain piece of property. The property concerned was adjacent to that of the defendant’s manufacturing plant on Carnegie Avenue in Cleveland, Ohio. The property which the plaintiff desired the defendant to buy was under 99 year lease to the Cleveland Builders Supply Company.

The plaintiff first talked to the owner of the fee and was referred to the Cleveland Builders Supply Company. Plaintiff’s purpose at that time was to secure the right to act as the agent of the owner of the fee and lessee for the purpose of selling the property. The asking price was given to Mr. Spitz by Mr. Barkwell of the Cleveland Builders Supply Company as $225,000.00. Mr. Spitz suggested that the price was too high and that he felt that $150,000.00 would be a reasonable figure. To this suggestion Mr. Barkwell told Mr. Spitz, the president pf the plaintiff company, that they would not sell it for that “but if I have an offer with.a check for more than $150,000.00 I should bring it in and they would have a meeting and decide whether to accept it or reject it.” Mr. Spitz testified at this point that it was his belief that the property could' be bought for about $175,000.00.

After these negotiations with the owner and lessee of the property, Mr. Spitz contacted the defendant company, by having his office girl call the president of the company and after she disclosed the nature of the business which Mr. Spitz desired to take up with the defendant company, she was told by Mr. Stilwell’s secretary to see Mr. McDonald, one of the defendant’s vice-presidents.

The foundation of plaintiffs claim against the defendant begins with what was said on this occasion which was late in November, 1939. Mr. Spitz told Mr. McDonald that he would like to interest defendant company in the Cleveland Builders Supply Company property but McDonald expressed some doubt as to whether his company would be interested in expanding in that neighborhood, Mr. Spitz told McDonald that he thought the property could be bought for between $165,000.00 and $175,000.00 but that the asking price was $225,000.00: He further stated that if the Cleveland Builders Supply Company knew that The Warner & Swasey Company was interested in the property they would “stick up their price” and so he suggested what he termed a “three-cornered deal” by which he thought he could deliver the property to the defendant for about $175,000.00 but in that event “they (referring to the defendant) would have to pay me a commission as the deal would have to be a net deal.” To which suggestion the plaintiff claims McDonald replied. [283]*283“Well, if we agree to buy this property, we certainly will buy it through you and gladly pay you your Real Estate Board commission.”

Mr. Spitz further testified that McDonald asked to keep the tracing of the property so he could have blue-prints made. This was done, and the next day the tracing was returned to the plaintiff with two extra blue-prints. At that time McDonald told Mr. Spitz that lie did not think his company would do anything about the property until after the first of the year.

Mr. Spitz further testified that on January 2, 1940, McDonald phoned him asking that plaintiff get a thirty day option on the property. Mr. Spitz replied to that request by saying that no one •else would want the property and to get an option would disclose the identity of the Warner & Swasey Company as a prospective purchaser. McDonald, it is also claimed, asked for the tracing again .so he could make more blueprints for the use of his engineers by way of making up a lay-out of the property. At this point McDonald said it would be at least thirty days before the lay-out could be finished and that the plaintiff should call him about the last of January. Mr. Spitz did call at that time and was informed that an .additional thirty days would be necessary.

In March when Mr. Spitz called McDonald he was told to see Mr. Warren Morris, a real estate broker, and upon contacting him, Spitz was asked what made him think he could get the property for $175,000.00; to which he replied that he had a way to get it. Morris then told him to go ahead and if he could get it for $175,000.00 to do so and Warner & Swasey would “pay full commissions” but when Morris told Spitz that The Cleveland Builders Supply Company had been approached on behalf of Warner & Swasey Company, he said “in that case it would be futile for me to negotiate for any such figure. * * *”

The record discloses that the property was bought by Warner & Swasey Company through Mr. Morris who had been hired by Mr. Stilwell, the president of the defendant company, for that purpose, for the sum of $180,000.00. What commission was paid and by* whom is not disclosed in the record.

The plaintiff, as a part of its case, introduced the Cleveland Real Estate Board rules on commissions and referred specifically to Section 3 of Article A which the court rejected for the reason that said Article referred to cases where the seller employed the services ■of a real estate broker and not, as is claimed in this case, the buyer employs the real estate broker’s services. There can be no doubt, referring to plaintiff’s Exhibits A and B. that Article A, Section 3, when read in connection with the rest of the exhibit, does refer to cases where the seller employs the broker’s services.. The plaintiff seeks to overcome this deficiency by attempting to establish a custom in this community among real estate dealers to use the Real Estate Board formula for determining the commission to be paid bv the seller as a means of determining the amount that a buyer should [284]*284pay when he employs the services of a broker to purchase property in his behalf.

The court refused to receive the Rule Book (plaintiff’s exhibit B) into evidence on the ground that it was no relevant. There was no other evidence of damages offered or received into evidence.

The court offered to permit the plaintiff to amend its petition to found its action on quantum meruit but the plaintiff refused to do so, desiring to stand upon the terms of the contract as pleaded.

At the conclusion of the plaintiff’s case the court granted defendant’s motion for judgment.

The plaintiff presents two claims of error:

1. That by the evidence taken in its most favorable light a contract is made out between the plaintiff and the defendant whereby the plaintiff was employed to procure'for the defendant the property leased by the Cleveland Builders Supply Company.

2. That the rules of the Real Estate Board providing for the amount of commission to be paid by a 'Seller, together with the general understanding of real estate brokers that said rules are applicable to cases where the purchaser employed the services of the broker to purchase property for him, were properly admissible under the plaintiff’s theory of the case.

In considering the first of these two questions, that is, whether or not a contract is made out between the parties by giving the evidence the most favorable interpretation toward the plaintiff’s contention, we are met at the very beginning with the authority of McDonald to bind the defendant with regard to the subject matter under consideration.

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Bluebook (online)
52 N.E.2d 758, 39 Ohio Law. Abs. 281, 1943 Ohio App. LEXIS 894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/p-j-spitz-co-v-warner-swasey-co-ohioctapp-1943.