Rasmussen v. Hansen

176 Iowa 26
Supreme Court of Iowa·Decided April 10, 1916·Published·Cited by 5 cases

Opinion

Gaynor, J.

1. brokers : compensation: double employment: burden aenceof: evidence. This is an action by an agent to recover commission of his principal for effecting a sale of real estate. The claim of the plaintiff is that, on the 1st day of October, 1914, defendant listed with him for sale certain real estate owned by the defendant; that at the time of the listing the defendant fixed the 0 price at which plaintiff was authorized to sell at $115 per acre; that thereupon plaintiff , took parties to view the premises, and on the 12th day of October found a purchaser in the person of one Hans Gregersen; that, through plaintiff’s efforts, Gregersen purchased the real estate from the plaintiff, and a contract of sale was entered into between the defendant and said Gregersen; that there were 121 acres of land involved in the deal, and, under an agreement with the defendant, plaintiff was to receive a dollar an acre for bringing about the sale. The answer of the defendant admits that he employed the plaintiff, and that the sale was effected as alleged, but charges the fact to be that there was double employment; that plaintiff was, at the time, in the employ of the purchaser, and was employed to negotiate a purchase; that the purchaser agreed with the plaintiff, at the time of negotiating the sale and purchase, to pay plaintiff 25 cents an' acre, or $30.25, provided plaintiff would procure the defendant’s consent to the sale of the land to him at $112 per acre; that, in pursuance of such employment, the plaintiff telephoned the defendant that $112 was the best offer that he could get, and advised the sale at that price; that, relying upon the statements and representations of the plaintiff, and without any knowledge on his part that the plaintiff was employed by the purchaser, he agreed to sell and did sell the land to the purchaser at $112 an acre; that he had no knowledge or intimation that the plaintiff was acting in this double capacity, and denies plaintiff’s right to recover. The issues thus tendered were tried to a jury. At the conclusion of all the evidence, plaintiff moved for a directed verdict. This was overruled. The court on its own motion directed a verdict [28]*28for the defendant. Judgment being entered on the verdict, plaintiff appeals.

The court, in directing a verdict, said:

“It appears without controversy, and the undisputed evidence shows, that the plaintiff, before the completion of the transaction herein, was employed by the purchaser of the real estate in controversy, and, by such employment, was to receive 25 cents an acre from the purchasers, without the knowledge of the defendant.”

This appeal presents but one question: Does the evidence show without dispute that the plaintiff was acting, at the time of the sale, as agent for both parties, without the knowledge of the defendant?

It does not involve any question of actual fraud, nor is it necessary that an actual fraudulent purpose should have existed in the mind of the plaintiff at the time. Nor is it material whether the defendant was defrauded in fact by what happened. If it be true that plaintiff was employed by the defendant to make a sale of defendant’s land, and while so employed he agreed with the purchasers to receive a commission from them to effectuate the purchase in his interest, he cannot recover, although no fraud in fact was perpetrated on either. The law is that one who assumes to act as agent for both the vendor and vendee in the sale of property cannot recover from either when such double employment is shown, without proof that both of them knew of the dual capacity in which he acted, and consented thereto. This is elementary.

If one assumes to act as agent for the seller of property, it is his duty to consider only the interest of his employer; to sell the property intrusted to him for sale at the highest and best price, and upon the best terms obtainable. This is a part of his employment. This is the duty that he assumes under his employment. This is what he is paid for. If he assumes to act for the purchaser, good faith and his duty require him to use his best efforts and talents in the interest of the buyer for whom he acts, and, to this end, it is his duty to obtain the [29]*29property from the seller at the least figure at which he can, in good faith and good conscience, obtain it from the seller, and on the best terms. This is the duty that he owes to the purchaser, when he assumes to act as his agent. It is evident, therefore, that he cannot act in the dual capacity of agent for both and discharge to each the duty which the law imposed upon him.

In the ease at bar, it is practically conceded by the defendant that he employed the plaintiff to procure a purchaser for the land in controversy; that he fixed his price at $115 an acre; that, in pursuance of such employment, the plaintiff took Jepson and Gregersen to look at this land; that, after they had examined it, they proposed to the plaintiff to purchase it at $110 an acre; that, after such proposition was made, plaintiff communicated with the defendant over the telephone and informed him of the offer; that the defendant repudiated this offer; that the plaintiff communicated that fact to his buyers; that the buyers, Jepson and Gregersen, then offered $112 an acre; that plaintiff again communicated with the defendant over the telephone and informed him that the purchasers had offered $112 an acre, and asked defendant what he wanted to do; that the defendant said he would sell it at $112, and directed the plaintiff to secure a payment on the deal so that it would bind the bargain. As to this last proposition, that the defendant accepted, without any question, the $112, or fixed the purchase price at that amount definitely,there is some controversy in the evidence. Defendant says that he told the plaintiff that he could sell it for $112.50 or $113, but he is not certain; but there is positive evidence that he said $112, and we must assume that to be the fact, in view of the action of the court in directing a verdict for the defendant. Plaintiff thereupon closed the deal with these purchasers and received from them a cheek for $10 to bind the bargain. Subsequently, these purchasers, in pursuance of such arrangement, met with the defendant, and the deal was consummated at $112 an acre, to the satisfaction of the defendant.

[30]*30Plaintiff denies positively that the purchasers ever talked with him or requested him to act in their behalf, or that he ever told the defendant that that was the best offer he could get, or that he advised the defendant to take it. He says that they made that offer on their own motion, and simply asked him to submit it to the defendant; that he did submit it to the defendant and the defendant accepted it, and denies that he ever .acted for these purchasers in any way in negotiating the sale. The best that can be said for the evidence that tends to support defendant’s contention is that, after the proposition of $110 an acre had been made and turned down, these purchasers offered $112 an acre; that plaintiff communicated this fact to the defendant; that the defendant accepted it, and that the deal was closed at $112 an acre; that, thereafter, these purchasers proposed to pay plaintiff 25 cents an acre for his trouble in hauling them over the roads; that he said, “All right, boys;” but that nothing was accepted by, and nothing was ever received by, the plaintiff from these purchasers.

Defendant entered into a binding contract with these purchasers for the sale of the land.

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Rasmussen v. Hansen, 176 Iowa 26 (iowa 1916).

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