Probst v. Di Giovanni

95 So. 2d 321, 232 La. 811, 1957 La. LEXIS 1231
CourtSupreme Court of Louisiana
DecidedApril 1, 1957
Docket42003
StatusPublished
Cited by13 cases

This text of 95 So. 2d 321 (Probst v. Di Giovanni) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Probst v. Di Giovanni, 95 So. 2d 321, 232 La. 811, 1957 La. LEXIS 1231 (La. 1957).

Opinion

SIMON, Justice.

Cliff Probst, a real estate agent, instituted this suit against the prospective purchaser and the owners of certain real property to collect a commission allegedly earned on the transaction of the offer and acceptance to purchase said property negotiated through said realtor.

On May 15, 1952 A. L. Dammerau and Mr. and Mrs. Anthony DiGiovanni executed a written agreement, the tenor of which is that Dammerau offered to buy and the DiGiovannis agreed to sell the Plaza Motel Court, the said property having been previously listed for sale with Probst. The sale price agreed upon was $65,000, cash, conditioned upon the ability of the prospective purchaser to negotiate a loan of $35,000 within thirty days from date of said contract, at a rate of interest riot to exceed six percent per annum, and payable over a period not to exceed ten years. It was provided in said' agreement 'that should the *815 loan be unobtainable within said thirty-day period the agreement would be null and void.

The contract further provided that ten percent of the purchase price, or the sum of $6,500, be deposited with plaintiff by Dammerau, the initial deposit of $1,500 to be made simultaneously with the execution of the contract, which was done, an additional sum of $1,500 to be made on May 30, 1952, and the balance of $3,500 to be made on June 30,1952. It provided that the act of sale was to be executed on or before November 15, 1952 before the notary public designated by the one making the loan aforementioned.

The contract further provided that the seller would pay to plaintiff a commission of five percent on the first $10,000 of the purchase price and four percent on the balance, or a total of $2,700; and that either party who failed to comply with the terms of the agreement would be obligated to pay the said commission and all fees and costs incurred in enforcing collection and damages.

Though having paid part of the total deposit stipulated, Dammerau failed to pay the second deposit of $1,500 due on May 30, 1952.

It appears that Dammerau, being unable to secure a loan of $35,000 on the property, on June 2, 1952, which was within the thirty-day period provided to obtain said loan, obtained a commitment from a loan association for the sum of $32,000 at six percent interest per annum, payable over fifteen years.

On June 2, 1952, Dammerau addressed a letter to plaintiff notifying him that the Guaranty Savings & Homestead Association had agreed to make a loan of $32,000, which loan was acceptable to him, Dammerau. In the left-hand corner of said letter there is a written notation dated June 3, 1952: “We agree to extend payments on $6,500.00 deposit as follows: $1,500.00 on 6/15/52, $3,500.00 on 7/31/52.” This notation is signed by Dammerau and Mrs. A. DiGiovanni. Manifestly, this notation constitutes an extension of the date for payment of the deposits.

However, Dammerau failed to make any deposit as called for therein.

On June 14, 1952 he notified plaintiff that he did not intend to go through with the sale and requested the return of the initial $1,500 deposit made as aforesaid. Plaintiff relayed this information to the DiGiovannis.

On September 18, 1952, under private signature, Dammerau and Mrs. DiGiovanni, without the knowledge of plaintiff, executed a mutual release of all obligations flowing, from the agreement to buy and sell.

The record discloses that the DiGiovannis sold and conveyed the said Plaza Motel *817 Court by authentic act dated October 21, 1952 to third parties not here involved.

On October 29, 1952 Probst thereupon instituted this suit against the DiGiovannis and Dammerau, in solido, for payment of his commission. By first and second supplemental and amended petitions Probst alleged the liability of Dammerau as a result of his noncompliance with the terms of said contract and against the DiGiovannis for their failure to have consummated the sale in accordance with said agreement.

The DiGiovannis filed an answer and reconventional demand wherein they admitted the listing of their motel with the plaintiff as well as the terms and conditions of the agreement executed on May 15, 1952. They denied liability for plaintiff’s commission for alleged failure on their part to consummate the sale. Reconvening against Dammerau and Probst, in solido, they sought recovery of the full deposit called for in the contract, namely $6,500, allegedly forfeited by the purchaser’s noncompliance with the terms of the agreement and attorney fees in the sum of $400, together with interest and cost.

Dammerau filed exceptions of no right of action, want of proper verification, improper filing of supplemental and amended petitions, and oyer. The trial court overruled the first three exceptions and, in response to the demand of oyer, ordered the plaintiff to produce and file in the record a certain letter dated June 27, 1952 addressed to plaintiff and signed by Dammerau’s attorney. This letter demanded the return of Dammerau’s $1,500 deposit and states that due to his failure to have obtained a $35,000 loan that said agreement was null and void and that Dammerau was therefore entitled to be reimbursed the initial deposit of $1,500.

Dammerau also filed an answer and reconventional demand, denying all liability, and in reconvention demanded against Probst and the DiGiovannis the return of the $1,500 deposit.

The district court rendered judgment dismissing plaintiff’s demand and the re-conventional demand of the DiGiovannis. The trial court sustained the reconventional demand of Dammerau and rendered judgment in his favor against Probst alone for the sum of $1,500 and costs.

Probst has appealed and seeks the reversal of the judgment denying him recovery of his commission.

On this appeal Dammerau reurges his exception of no right of action contending that since there was no genuine meeting of the minds of the parties that no enforceable contract was entered into, and further that the validity of said contract, having been suspended and conditioned upon the attention of a $35,000 loan to be used in the payment of the purchase price and said loan not having been negotiated within the period of time fixed therein, became unenforceable.

*819 Alternatively Dammerau contends under said exception that, if the said $32,000 loan obtained by him shall be considered as being a valid substitute in lieu of the-$35,000 loan, the record fails to disclose that said substituted amount was actually approved and accepted by him or his prospective vendors. He urges that any written modifications of the original contract require the written approval and consent of all parties to be effective.

Obviously there is no merit to this contention. True, the legal effect of the entire contract was conditioned upon the purchaser obtaining a $35,000 loan. However, this condition was clearly personal to the prospective purchaser, and operated solely in his favor, who upon failing to obtain said loan had the unquestionable right to declare the contract null and void and to demand the return of his $1,500 deposit.

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Cite This Page — Counsel Stack

Bluebook (online)
95 So. 2d 321, 232 La. 811, 1957 La. LEXIS 1231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/probst-v-di-giovanni-la-1957.