Phy v. Selby

207 P. 1077, 35 Idaho 409, 1922 Ida. LEXIS 88
CourtIdaho Supreme Court
DecidedApril 28, 1922
StatusPublished
Cited by8 cases

This text of 207 P. 1077 (Phy v. Selby) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phy v. Selby, 207 P. 1077, 35 Idaho 409, 1922 Ida. LEXIS 88 (Idaho 1922).

Opinions

MCCARTHY, J.

This action was brought to recover a commission for a sale of real estate. The fourth amended complaint sets out that E. M. Selby (made defendant in the original complaint but later dropped) owned certain land in Idaho; that respondent Edgerton was a real estate broker and agent for Selby for the purpose of selling the land; that respondent represented to the appellants, who were real estate brokers at La Grande, Oregon, that if they would furnish a purchaser for said lands he would be personally bound to them for their commission prior to the time when he should procure a binding contract with Selby [411]*411for such payment; that acting upon such request, appéllants procured a purchaser who bought the land upon the terms stipulated, paying therefor $65,000. Appellants incorporate into the complaint a letter written by them to respondent in which they stated that they had had a talk with the prospective purchaser, Mr. Williams, who had decided to take the place on Mr. Selby’s own terms, and in which they made arrangements for him to meet respondent and complete the deal. They also stated: “Now getting down to the part that is most interesting to me, which is the commission, I would like a written agreement about that stating that the amount of commission shall be $3,250. A wire from Mr. Selby will be sufficient upon this point, or a letter authorizing you or Mr. Williams to pay me the said amount. I am not doubting but that this will be attended to, but it is business on my part to have it in writing.”

Treating this letter as an offer from them, they allege that respondent accepted the offer on behalf of his principal Selby and himself and communicated the acceptance in the following telegram, to wit:

“Fairfield, Idaho, Oct. 10, 1917.
“Henry T. Hill, La Grande, Ore.
“Selby confirms Williams acceptance and deeds will be forwarded on wire from me that contract which I am authorized to draw is signed deal however must be closed by November first and fifteen thousand in escrow when contract signed wire when Williams wants possession will be away next week and Williams should come not later than Friday.
“EDGERTON.”

They further allege that respondent caused said Selby to close the contract with said Williams and sell the land to him on the terms and conditions contained in the said letter, that respondent failed and neglected to procure any binding contract for a commission between appellants'and Selby, but, on the contrary, induced said Selby to pay respondent said commission of $3,250 which he received to and [412]*412for the use of appellants. They pray for judgment in the sum of $3,250.

A demurrer was interposed on the ground that the complaint did not state facts sufficient to constitute a cause of action (1) on the theory of contract, quantum meruit, or for money had and received, (2) in that it did not allege a contract in writing between Selby and Edgerton for the payment of a commission; (3) in that the letter and telegram set forth therein did not constitute a contract for the payment of a commission for the sale of real property as required by section 6012 of the Compiled Laws of Idaho (now C. S., sec. 7979). This demurrer assigns the reasons why it is claimed that the complaint does not state facts sufficient to state a cause of action, but it is in essence a general demurrer. A special demurrer was also interposed on the ground that the fourth amended complaint is ambiguous, unintelligible and uncertain in that it cannot be determined whether the action is based upon contract, quantum meruit, or is for money had and received, also on the ground that several causes of action have been improperly united. The demurrer was sustained and, appellant refusing to plead further, judgment was entered for respondent dismissing the action. From that judgment this appeal is taken. The principal specification of error is that the court erred in sustaining the demurrer.- The order and judgment do not show upon what ground the court sustained the demurrer and, if any of the grounds mentioned are well taken, the judgment should be sustained.

Respondent contends that any contract set out in the complaint was void under the provisions of Compiled Statutes, sec. 7979, which reads as follows: “Sec. 7979. No contract for the payment of any sum of money or thing of value, as and for a commission or reward for the finding or procuring by one person of a purchaser of real estate of another shall be valid unless the same shall be in writing, signed by the owner of such real estate, or his legal, appointed and duly qualified representative.”

[413]*413California has a similar statute which has been construed by the courts of that state. The California cases are cited and relied upon by both parties. In Gorham v. Heiman, 90 Cal. 346, 27 Pac. 289, the supreme court of California held: “Civil Code Cal., see. 1624, subd. 6, requiring agreements employing an agent or broker to buy or sell real estate for compensation or commission to be in writing, does not apply to contracts between brokers to co-operate in making sales for a share of the commissions.”

In Aldis v. Schleicher, 9 Cal. App. 372, 99 Pac. 526, the court of appeal for the second district of California held: “While it is true, as said in Gorham v. Heiman, 90 Cal. 346, 27 Pac. 289, that said provision was ‘designed to protect owners of real estate against unfounded claims of brokers,’ it is nevertheless equally applicable to any contract whereby one, whether owner or not, employs another to effect a sale of real estate, and agrees- unconditionally to pay a stipulated sum for the performance of such services. Conceding that the compensation recoverable by a broker for selling real estate is the subject of an oral contract between him and another, under which agreement the latter is to recover the commission for effecting the sale, nevertheless a complaint, in order to state a cause of action upon such oral contract, must allege that the one from whom it is sought to recover was by his principál authorized in writing to effect a sale.”

In Casey v. Richards, 10 Cal. App. 57, 101 Pac. 36, the court of appeal for the second district of California held that where the first broker has no written contract with the owner, a second broker employed by the first can recover from the latter only in case the owner has paid the commission to the first broker, saying, by way of interpreting Aldis v. Schleicher, supra: “In other words, that until it was shown either that the defendant had received a commission, or was legally entitled to recover one from the owner, there was no commission in which the plaintiff could share.”

[414]*414In Johnston v. Porter, 21 Cal. App. 97, 131 Pac. 69, the district court of appeal for the first district of California held that, even though the first 'broker did not have a written contract with the owner, yet, where the former had hired a second broker to help him, and the owner had paid the first broker the commission, the second broker could recover from the first broker where the agreement was to pay part of the commission. In Hageman v. O’Brien, 24 Cal. 270, 141 Pac. 33, the district court of appeal of the second district of California followed Gorham v. Heiman, supra, outright, holding: “Civ. Code, sec. 1624, subd.

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Bluebook (online)
207 P. 1077, 35 Idaho 409, 1922 Ida. LEXIS 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phy-v-selby-idaho-1922.