Paulsen v. Rourke

26 Colo. App. 488
CourtColorado Court of Appeals
DecidedSeptember 15, 1914
DocketNo. 4107
StatusPublished

This text of 26 Colo. App. 488 (Paulsen v. Rourke) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paulsen v. Rourke, 26 Colo. App. 488 (Colo. Ct. App. 1914).

Opinion

Cunningham, P. J.,

delivered the opinion of the court.

Plaintiff in error, a real estate agent, as plaintiff below, 'commenced: his action in the District Court to recover from the defendant in error a commission, which plaintiff alleged was. due him by virtue of a listing contract, or agreement, whereby plaintiff was- to find a buyer for certain farming land belonging to the defendant. At the close of plaintiff’s testi[489]*489mony the trial court directerd a verdict for the defendant. The pleadings are in the usual form in such cases, and the essential facts will be stated as we proceed. There is no- contention as to the amount due plaintiff, if there be anything due him. The defendant bases his defense principally upon three grounds, which we shall now proceed to consider.

1. Defendant contends that he had revoked the plaintiffs’ authority to find a purchaser before the latter had produced one. This contention can be summarily disposed of under the rule that the burden of proving revocation rests upon him who alleges it — the defendant in this case, and, not having introduced any evidence whatever, defendant’s contention of revocation cannot be allowed.

Defendant’s revocation, so> far as we can gather from his answer and the testimony given by defendant, is based upon the contention that, through another agent, he had sold the land before plaintiff had produced a purchaser. The plaintiff testified that this was the excuse which the defendant made for not carrying out his arrangement with him. But, it is clear, the mere fact that defendant so stated to plaintiff constitutes no proof from which we may consider that he had in fact sold the land. We shall later on further consider the question of revocation raised in this case.

2. Defendant insists in his brief that plaintiff had arranged with the purchaser which he produced to pay one-half of the purchase price in cash, whereas by the agreement which he, the defendant, had with plaintiff, the purchaser was to pay but $7,000 cash — a far less sum of money than one-half of the selling price. This defendant contends was not a performance of the contract. There are two sufficient answers to this contention: (a) Plaintiff testifies on the stand unequivocally that although $7,000 was named in a certain memorandum evidencing the agreement between plaintiff and defendant, yet the defendant 'had authorized and instructed the plaintiff to take all the cash he could get; (b) the defendant at the time plaintiff advised him that he had found a buyer [490]*490did not refuse to close the deal on the ground the terms were unsatisfactory; defendant’s only excuse made for not carrying out the contract which he had made with the plaintiff being that he had already sold the land. Bourke v. Van Keuren, 20 Colo. 95, 36 Pac. 882.

Defendant further contends that there was no sufficient showing made by the plaintiff of the ability of the customer which plaintiff produced toi make the purchase on the terms agreed upon. The proposed purchaser produced by the plaintiff testified on this point as follows:

“Q. Now at the time that you wrote that letter (meaning a letter which he wrote to> the plaintiff, the pertinent portion of which reads as follows: ‘Wayland, Mo., August 29, 1912. Mr. Claus Paulsen, Lamar, Colorado. Dear Sir: The proposition in regard to the Rourke land will be accepted as we agreed upon, one-half to be paid down and balance to> be as you stated), you say you were willing to- buy the property on the terms, you have stated, what was your ability to buy the property? A. I had collateral, I suppose I had the money to' pay for it.
“Q. You had the money at that time to' make this deal? A. Equivalent there, yes sir.
“Q. Cas'h payment? A. Yes, sir.”

While this testimony is in some respects similar to that given in Fox v. Denargo Land Co., 37 Colo. 203, 86 Pac. 344, upon which defendant relies, we have examined the record in that case and find the testimony before the court in the Fox case was substantially different on the point here under consideration from the testimony quoted above. The proposed buyer in the Fox case made no¡ attempt to> show that he was able to purchase the land. The purchase of the land in that case required the payment of a very large sum of money at an early date, but the contract which the purchaser testified that he was willing to carry out required the payment of very Tittle cash except as he disposed of portions of the land, which was a large tract platted into town lots. In other words, [491]*491Poiter, the proposed purchaser in the Fox case, agreed to' do nothing except to accept the privilege of buying, if he should see fit to do- so. The defendant in the case before us made no attempt to- rebut the testimony offered by the plaintiff as to the ability of Schmid, the proposed buyer, to take the land upon the conditions specified. Indeed, the witness was not even cross-examined upon this point. It is not necessary, in order to show the ability of a proposed purchaser to- make a purchase, to prove that he had the amount necessary to' close the deal in actual cash at the moment he agrees to purchase. If it is shown that the purchaser has sufficient collateral, or the' equivalent to cash which he could readily convert into cash, that is sufficient. Plaintiff offered sxifficient evidence on this point to take the case to the jury.

4. In view of another trial, we deem it our duty to consider certain other contentions which have been urged in the briefs. The evidence tends to establish that the defendant gave plaintiff ninety days in which to produce a purchaser. Plaintiff produced a purchaser within the prescribed time, indeed, within a very few days after this agreement had been made. Defendant insists.that notwithstanding he gave the plaintiff a definite length of time within which to produce a purchaser, this does not give plaintiff exclusive authority to sell the land; that under such circumstances, by implication, the defendant retained the right to make a sale at any time, and that such sale so made by the defendant constitutes a revocation of plaintiff’s agency. The trial court appears to have taken this view,' and from the remarks made in passing upon plaintiff’s motion to dismiss the case' it is dear that the trial court granted the same solely upon'this theory. In so doing the trial court committed manifest error, for two reasons: First, because, as we have already pointed out, there was no proof that the defendant had sold the land at all; Second, by the allegations of his verified answer the defendant did not sell the land, .that is, did riot find a- buyer for it, for therein he alleges,' “that on the;2nd day-of Septehiber, ;I'9I2; [492]*492the said A. A. Gorham (another agent with whom defendant alleges he had listed the land) procured a purchaser for the property satisfactory to defendant and that defendant sold said property to * * * the said purchaser procured by the said A. A. Gorham.”

Some authorities distinguish between exclusive agency and exclusive authority, and hold that while a specific time given a real estate agent in which to procure a purchaser may constitute an exclusive agency which prevents the owner from selling the land within the prescribed time through another agent, it does not prevent the owner from himself finding a buyer, and where the owner himself does find a buyer before the agent has produced one the latter is remediless.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cloe v. Rogers
1912 OK 19 (Supreme Court of Oklahoma, 1912)
Levy v. Rothe
17 Misc. 402 (Appellate Terms of the Supreme Court of New York, 1896)
Blumenthal v. Bridges
120 S.W. 974 (Supreme Court of Arkansas, 1909)
Hardwick v. Marsh
130 S.W. 524 (Supreme Court of Arkansas, 1910)
Bourke v. Van Keuren
20 Colo. 95 (Supreme Court of Colorado, 1894)
Fox v. Denargo Land Co.
37 Colo. 203 (Supreme Court of Colorado, 1906)
Lane v. Albright
49 Ind. 275 (Indiana Supreme Court, 1874)
Glover v. Henderson
25 S.W. 175 (Supreme Court of Missouri, 1894)
Green v. Cole
30 S.W. 135 (Supreme Court of Missouri, 1895)

Cite This Page — Counsel Stack

Bluebook (online)
26 Colo. App. 488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paulsen-v-rourke-coloctapp-1914.