Prouty v. Perry

142 Iowa 294
Supreme Court of Iowa·Decided April 10, 1909·Published·Cited by 2 cases

Opinion

Evans, C. J.

On and prior to May, 1899, the plaintiff was a partnership engaged in the practice of law and in the land business at Humboldt, Iowa. The defendants were the owners of about two thousand acres of land, situated mostly in Humboldt County; a small part thereof, however, being in Pocahontas County. The most, if not all, of these lands, were at that time in the possession of tenants, and had been so occupied and farmed for some years. In May, 1898, the defendants wrote to the plaintiff, proposing to transfer these lands “to your agency.” The substance of the proposal was that they desired the plaintiff to take charge of the renting of these lands. To this proposal the plaintiff assented by letter, and immediately made certain investigations, and furnished certain information requested by the defendants. The information furnished was contained in two or three successive letters written in June and July, and mailed to the defendants, who were then sojourning- in Italy. On August 22d the defendants wrote to the plaintiff as follows: “You have not mentioned anything in. your letters what your terms would be for taking charge of these lands during our absence, which was a matter- we took for granted you would consider in your first writing. Will you please be kind enough to inform us in your next letter ?” To this request the plaintiff wrote under date of September 7th, as ^follows: “Our charges for renting and looking after farms is ten percent of rental collected, and for selling land one dollar per acre.” In pursuance of this correspondence, the plaintiff exercised a general oversight over the defendants’ lands, and leased some of them to renters, and collected rents amounting to $2,710.70 during the period of their service, which ended in the spring of’ 1901. Of the rents collected from time to time the plaintiff retained ten percent as its compensation, and remitted the balance to the defendants. The plaintiff also sold one hundred and sixty acres of the land, for which it received a commission of [296] $160. Its total compensation received during the entire period of its service was $431.07. At the time of plaintiff’s employment, the defendants owned a large number of outstanding rent notes, previously executed in pursuance of existing leases, all of which were in the hands of their banker at Washington. These notes did not for the most part pass into the hands of the plaintiff for collection, but were paid directly by the makers to the bank. The amount received by the defendants upon such notes during the period covered by plaintiff’s employment amounted to $6,375. The claim of plaintiff is that it is entitled to recover $637.50, being ten percent of such amount. The petition is in two counts. In count 1 the plaintiff claims to recover under the contract, and avers “that, under and by virtue of the contract of employment, the plaintiff took charge of the lands aforesaid on or about Hay 9, 1898, and leased and managed them until on or about the 3d day of June, 1901, at which time the employment was terminated by the defendants; that by the terms of the written agreement, to which reference is hereinbefore made, the defendants promised and agreed to pay the plaintiff for their services the sum of $1 per acre for all land sold and ten percent of all rentals received for the leasing and managing of lands; that the plaintiff sold one tract of land consisting of one hundred and sixty acres; that the rentals received and collected during the time of the employment of the plaintiff as aforesaid were the sum of $10,000; that the plaintiff has received from the defendants in part payment of compensation the sum of $431.-07.” In count 2 plaintiff alleges that the services rendered were reasonably worth $1,137.07. The answer was a general denial and a plea of full settlement.

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Prouty v. Perry, 142 Iowa 294 (iowa 1909).

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