Pape v. Wright

19 N.E. 459, 116 Ind. 502, 1889 Ind. LEXIS 99
CourtIndiana Supreme Court
DecidedJanuary 11, 1889
DocketNo. 13,219
StatusPublished
Cited by27 cases

This text of 19 N.E. 459 (Pape v. Wright) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pape v. Wright, 19 N.E. 459, 116 Ind. 502, 1889 Ind. LEXIS 99 (Ind. 1889).

Opinion

Elliott, C. J.

The complaint upon which this cause was tried alleges that the appellant employed the appellee to procure purchasers for patented rights of which he was the owner, and promised to pay the appellee a commission as compensation for his services; that the appellee did procure purchasers, [503]*503and that the appellant sold the rights to the purchasers procured by the appellee.

The answer of the appellant is in three paragraphs; the first is a general denial, and the second a plea of payment.

The third contains these facts: At the time the contract was entered into, the purchasers procured, and the rights sold, neither the defendant nor the plaintiff, nor any other person, had filed with the clerk of the court of Allen county copies of letters patent, nor had they, or any one, made an affidavit that the letters patent were genuine. To this answer a demurrer was sustained.

The validity of our statute regulating the sale of patented rignts has been repeatedly affirmed by this court. It is with us no longer an open question. Fry v. State, 63 Ind. 552; Toledo Agricultural Works v. Work, 70 Ind. 253; Brechbill v. Randall, 102 Ind. 528; New v. Walker, 108 Ind. 365 ; Hankey v. Downey, ante, p. 118.

We collected and examined the authorities in New v. Walker, supra, and we shall'not again discuss them further than to refer to a very recent case decided by the Court of Appeals of New York, where the doctrine of New v. Walker, supra, was approved. Herdic v. Roessler, 109 N. Y. 127. It was said in the course of the opinion in that case: But the law of Congress and the State law are not in conflict. The object of one is to secure to the inventor an exclusive right to use or sell his invention, and the object of the other is to protect against fraud in sales.”

If the question of the sufficiency of the answers depended solely upon the validity of our statute, we should have no hesitation in adjudging the answer good; but affirming the validity of the statute does not lead to an affirmance of the sufficiency of the answer.

The case is a peculiar one. The plaintiff was employed to procure purchasers for patented rights. He was not employed to sell, but to furnish purchasers. He was acting as a broker, and as such was entitled to his commission when he [504]*504furnished a purchaser, whether a sale was consummated or not. Brokers who undertake to find purchasers earn their commissions when they bring to their principal a person willing and ready to buy. Love v. Miller, 53 Ind. 294; Vinton v. Baldwin, 88 Ind. 104, and cases cited; Fischer v. Bell, 91 Ind. 243; McClave v. Paine, 49 N. Y. 561 (10 Am. R. 431).

The question is, not whether it was illegal to sell, or offer to sell, patented rights, but whether it was illegal for the broker to attempt to find a purchaser, for, as the pleadings present the facts, the broker was not authorized to make a sale, nor was he requested to sell. All that he was engaged to do was to procure some one to buy. He was not, therefore, an agent authorized to sell, but was what the authorities denominate a middleman. Alexander v. North-Western Christian University, 57 Ind. 466; Vinton v. Baldwin, supra; Redfield v. Tegg, 38 N. Y. 212; Rowe v. Stevens, 53 N. Y. 621; Rupp v. Sampson, 16 Gray, 398; Barry v. Schmidt, 27 Alb. L. J. 297.

The office of a middleman is to bring the parties together, leaving to them the consummation of the sale, and he does not sell, or offer to sell, but simply sets in train preliminary negotiations. If a middleman is entitled to compensation when he procures a purchaser, then he can enforce his contract, notwithstanding the fact that his employer violates the law, for its enforcement does not require that he shall bring to his assistance the illegal contract of selling, or offering to sell, patented articles. The rule upon the general subject is that a recovery may be adjudged whenever it can be reached without the aid of an illegal contract. Louisville, etc., R. W. Co. v. Buck, post, p. 566 ; Sondheim v. Gilbert, 117 Ind. 71.

In the case of Planters' Bank v. Union Bank, 16 Wall. 483, the rule was declared to be substantially that stated by us, the court saying: “The plaintiffs do not require the aid of any illegal transaction to establish their case. It is enough that the defendants have in hand a thing of value that belongs to them.” Other decisions approve this doctrine. [505]*505Brooks v. Martin, 2 Wall. 70; Cook v. Sherman, 20 Fed. Rep. 570; Burke v. Flood, 6 Saw. 220; Lehman v. Strassberger, 2 Woods, 554.

Closely analyzing the pleadings, and recapitulating somewhat, we shall find these elements present: That the undertaking was to find a purchaser; that the appellee had no knowledge of any intention on the part of his employer to vio- . late the law; that the employer has had the benefit of the appellee’s services, and that a recovery may be enforced without validating the illegal acts of the appellant. These elements are important, for they discriminate the case from that of an agent joining with his principal in a known illegal act; they mark it as a case where the principal is seeking to use his own wrong to escape payment for services rendered at his request, and they prove it to be a contract not blended with the illegal conduct and purpose of the wrongdoer. The question is not what are the rights of the public as against the appellee, but the question is as to the rights of a principal upon whom chiefly and primarily rested the duty of performing the acts required by the law as against a middieman who has done what the principal employed him to do. Proceeding upon the general principles we have stated, and guided by the authorities we have cited, pur course, if we kept in the straight path marked out by them, would lead us, even without decisions more directly in point, to the conclusion that the answer is bad. But our search for direct decisions has not been unrewarded, for we have found cases strongly in point. In the case of Crane v. Whittemore, 4 Mo. App. 510, it was held that “A broker may recover his commissions for services rendered in finding a purchaser for certain goods, even though the contract of sale between the buyer and seller, made after the broker’s services were performed, was immoral and against public policy as a wager contract; nor is the question affected by the broker’s knowledge of the character of the contract, he not being a party thereto.” The case which we cite is a much stronger case than the one [506]*506before us, especially in the particular that the broker had knowledge of the illegal character of the transaction. Here, we can not assume knowledge, for the presumption is in favor of obedience to law and in favor of fair dealing. Curtis v. Gokey, 68 N. Y. 300. In another particulár the case cited is stronger than the present, for there, both parties to the illegal contract were wrongdoers, while here, the purchaser procured by the broker was guilty of no wrong, although the seller was.

In the case of Ormes v. Dauchy, 13 Jones & S.

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Bluebook (online)
19 N.E. 459, 116 Ind. 502, 1889 Ind. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pape-v-wright-ind-1889.