Perkins v. Brainard Quarry Co.

32 N.Y.S. 230, 11 Misc. 328, 65 N.Y. St. Rep. 410
CourtNew York Court of Common Pleas
DecidedFebruary 4, 1895
StatusPublished
Cited by1 cases

This text of 32 N.Y.S. 230 (Perkins v. Brainard Quarry Co.) is published on Counsel Stack Legal Research, covering New York Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perkins v. Brainard Quarry Co., 32 N.Y.S. 230, 11 Misc. 328, 65 N.Y. St. Rep. 410 (N.Y. Super. Ct. 1895).

Opinion

GIEGERICH, J.

This action was brought by the plaintiff, as assignee of one Luman W. Johnson, for commissions alleged to have been earned by the latter, as a real-estate broker, in procuring a purchaser to make an exchange of certain bonds for defendant’s real estate. The answer, among other things, set’s up that about the time mentioned in the complaint,—i. e. on or about the 1st day of April, 1892,—Johnson was introduced to the president and one of the directors of the defendant corporation as being the agent of cer[231]*231tain parties for the exchange of first mortgage bonds ■ of the New York & Perry Coal & Iron Company for New York improved real estate; that Johnson refused to give the names or reveal the identity of the owners of said bonds; that Johnson stated to said president and director that said bonds bore interest at 6 per cent, gold, that the issue was $600,000, and that the interest was payable on the 1st days of May and November in each year, and that up to that time all interest upon said bonds had been paid when due, and that the accruing interest, due on May 1st, would be paid; that Johnson referred said representatives of defendant to one J. H. Davis, as to the value of the bonds, and also stated that the bonds, which were listed on the stock exchange, were quoted at 9á-¡-; that Davis referred the defendant’s agent to one Mr. Brouwer, who informed the latter that the interest upon the said bonds had always been paid, and that the interest which would become due on May 1,1892, following, would be paid, as the company had the money to pay the same in its treasury; that Brouwer further said that the bonds sold on the exchange for 91, or thereabouts; that the property of the company, consisting of coal mines and blast furnaces, was in fine order, but that work had been stopped to build charcoal furnaces, which had been done at an expense of $250,000, which had been paid; that a Mr. Havemyer and a Mr. Bloodgood had each bought large amounts of said bonds, which they held as an investment; that the works of the company were about to start up, and that they were in a first-class running order; that, in reliance upon the representations so made, the defendant’s president shortly thereafter had an interview with Johnson, to whom he said that defendant would exchange the property mentioned in the complaint, subject to mortgages for $150,000', for 70 of said bonds, and asked Johnson to disclose the name of the person for whom he was acting, which he still declined to do; that thereupon a contract for the exchange was drawn up, and at Johnson’s request the name of Charles T. Galloway was inserted as the party who was to make the contract, Johnson at the same time saying that Galloway was not the real party in interest, but merely a dummy; that Johnson took the contract away to be executed by Galloway, but brought back another copy of the contract, with the name of one Elihu Mitchell substituted for that of Galloway, and again stated that Mitchell was but a dummy, and declined to say who the real party in interest was; that, after the execution of the contract, the defendant learned that said representations as to the payment of interest on the bonds, and the purchase for investment, and the condition of the property, were untrue, and that the sale of said bonds alleged to have been made were fictitious sales, known on the stock exchange as “wash sales”; that Brouwer was the real party in interest in said contract, whose agent Johnson was, and that Mitchell was a clerk in his office; that in an interview with the defendant’s president and Brouwer,upon the discovery of such false representations, it was admitted that the representations of Johnson were untrue in regard to payment of interest upon the bonds, and that thereupon the said contract was canceled; that through its officers it informed Johnson that it relied upon his representations aforesaid about said bonds, and would not, in any [232]*232event, take said bonds in exchange if interest had been defaulted upon them, or if the interest thereafter accruing would not be paid when it became due; that in reliance of the representations of Johnson that said interest had been paid, -and that it would be paid in the future, it made the said contract with Mitchell. The proofs taken upon the trial amply sustain the above allegations of the answer. It was proved, among other things, that the defendant’s president distinctly told Johnson that the defendant would not take any bonds unless they were live bonds,—bonds that could be used, and bonds that were paying their interest,—and Johnson replied that the bonds were listed bonds; that they sold for 94-J; they paid 6 per cent, interest in gold; that the interest for the May coupons was already in the Farmers’ Loan & Trust Company’s office. These representations were denied by J ohnson, but the jury, by their verdict, have credited the defendant’s version of the transaction.

The appellant contends that these proofs should not have been received, because the matters in respect thereto were not set forth in the answer; but no such objection was made at the trial, nor could it be successfully urged. It was also disclosed upon the trial that Mitchell, who signed the contract for the exchange of defendant’s real estate, was not the real party in interest, but that his employers, Brouwer & McGown, stockbrokers, were, and that he signed the contract at their request, without knowing with whom the contract was made.

Johnson, upon cross-examination, testified, without objection, that he was employed by Brouwer & McGown to dispose of the 70 bonds mentioned in the contract, and then this question was put to him by defendant’s counsel: “Q. What pay were you to have from Brouwer & McGown?” This was objected to, on the ground that there is no allegation in the answer that any payment was to be made by the defendant.. The objection was overruled, and plaintiff’s counsel excepted to the ruling. The witness answered that he was to have 2¿ per cent., and that he disclosed this to the defendant’s president before the contract was signed. Counsel for the appellant insists that error is predicable of the admission of the evidence in question. The answer, it will be recalled, sets up that J ohnson was the agent of the real party in interest, Brouwer. It was therefore proper, in view of this and other questions raised by the answer, to show that the agent took upon himself incompatible duties and characters, or acted adversely to the interests of the defendant. Carman v. Beach, 63 N. Y. 97, 100; Murray v. Beard, 102 N. Y. 506, 508, 7 N. E. 553. The doctrine of these cases was recently reiterated by the court of appeals in the case of Knauss v. Brewing Co., 142 N. Y. 70, 74, 36 N. E. 867, cited by appellant’s counsel, in which the court, through Peckham, J., at page 77,142 N. Y., and page 867, 36 N. E., say:

“In regard to the subject of the double employment, if it be of a nature whereby possibly the interests of the parties may be diverse, we agree that it cannot be upheld, if concealed from knowledge.”

The defendant’s president testified that Johnson never told him that Brouwer & McGown had employed him to transfer or sell those bonds, or to get anything in exchange for them, and that he was to [233]*233receive a commission from them. He further testified that he knew nothing about Brouwer & Me Gown until the day that the deed was to be exchanged; and the jury, by their verdict, found that the fact that Johnson was to receive commissions from both parties was not disclosed to the defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
32 N.Y.S. 230, 11 Misc. 328, 65 N.Y. St. Rep. 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkins-v-brainard-quarry-co-nyctcompl-1895.