Reed v. Light

85 N.E. 9, 170 Ind. 550, 1908 Ind. LEXIS 56
CourtIndiana Supreme Court
DecidedJune 12, 1908
DocketNo. 21,015
StatusPublished
Cited by5 cases

This text of 85 N.E. 9 (Reed v. Light) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. Light, 85 N.E. 9, 170 Ind. 550, 1908 Ind. LEXIS 56 (Ind. 1908).

Opinion

Jordan, J.

Appellee sued appellant in the Superior Court of Marion county to recover a certain commission for the sale, as.agent of appellant, of 4,000 shares of the common stock of the Indianapolis & Northwestern Traction Company. The -original complaint was subsequently amended and- the cause finally submitted to the jury upon the complaint as amended. A demurrer for want of facts was overruled to the latter complaint. Answer in two paragraphs — first, the general denial, the second alleged affirmative matter. Appellee’s reply to the second paragraph of the answer was the general denial. Trial by jury and a verdict returned in favor of appellee for the sum of $20,000.- Along with this general verdict the jury returned answers to certain interrogatories. Appellant unsuccessfully moved for. judgment upon the answers to the interrogatories. lie also moved for a new trial. This motion was denied and judgment was rendered upon the verdict.

From this judgment he appeals, and assigns that the court erred: (1) In overruling the demurrer to the amended complaint; (2) in overruling his motion for judgment upon the answers to the interrogatories; (3) in overruling the motion for a new trial.

[553]*553The amended complaint alleges that on June 9, 1905, the defendant, Reed, employed the plaintiff, Light, as agent to sell 4,262 shares of the common stock of the Indianapolis & Northwestern fraction Company; that defendant agreed to pay plaintiff for his services in selling the stock all sums for which the plaintiff would sell the stock over twenty-five cents on the dollar. It is averred that in accordance with the terms of employment plaintiff, on June 12, 1905, sold 4,000 shares of said stock to Medford B. Wilson, of Indianapolis, Indiana, and on June 13, 1905, he (the plaintiff) informed the defendant of said sale, and the defendant agreed with him (the plaintiff) to deliver said stock on July 1, 1905, for the use of said purchaser; that said purchaser was ready, willing and able to accept said stock and pay for the same, in accordance with the terms of sale, on July 1, 1905, the day upon which the stock was to be delivered; that on June 12, 1905, said Medford B. Wilson paid the plaintiff the sum of $100 as a credit upon the purchase price of said stock; that plaintiff sold said stock to said Wilson for the sum of thirty cents on the dollar, making the amount of the sale $120,000; that on said July 1, 1905, the defendant failed and refused to deliver the stock either to plaintiff or to said purchaser, and the defendant has never delivered said stock; that the plaintiff sold said stock for $30 per share, and under his employment as agent he is entitled to $5 for each share so sold, making in the total $20,000; that said sum is now due and unpaid. Wherefore he demands judgment, etc.

1. Appellant’s counsel first insist that the complaint is not sufficient on demurrer, and in support of this insistence they advance the following reasons: (1) That appellee, as a broker, could not sell the stock in controversy in his own name. They assert that the complaint alleges that he was employed by appellant to sell the stock as an agent; but, upon the contrary, they argue that the pleading avers that he sold it in his own name. (2) [554]*554That it is the duty of a broker, who does not have possession of the stock which he is employed to sell, to report the terms of any proposed sale to his principal for his approval. Consequently they argue that the complaint is deficient in this respect because it does not allege that appellee, as agent, ever reported to his principal, appellant herein, the sale of the stock in question. (3) There is no allegation of any memorandum signed by appellant of the alleged sale or of any delivery by appellant of any part of the stock or any part payment to appellant. This, it is argued, was essential in order for the complaint to show that the sale of the stock was not within the statute of frauds (§7469 Bums 1908, §4910 R. S. 1881), which provides that “no contract for the sale of any goods, for the price of $50 or more, shall be valid, unless the purchaser shall receive part of such property, or shall give something in earnest to bind the bargain or in part payment, or unless some note or memorandum in writing of the bargain be made, and signed by the party to be charged thereby, or by some person thereunto by him lawfully authorized.” The complaint in this case is not open to the objections urged by appellant’s counsel. To recapitulate, the pleading shows that appellee, on June 9, 1905, was employed by appellant to sell the stock in controversy. He was to receive as a commission for his services all the money the stock sold for over twenty-five cents on the dollar. On the 12th day of the same month, under the contract of his employment, he sold 4,000 shares thereof to Medford B. Wilson for thirty cents on the dollar. Said purchaser paid to appellee on June 12, $100 as a credit upon the purchase price of the stock. On the day following the sale appellee reported the sale to appellant, and the latter agreed to deliver the stock on July 1, 1905, for the use of said purchaser, who, on July 1, 1905, the day of delivery, “was ready, willing and able to accept the stock and pay for same.” The failure and refusal of appellant to deliver it on July 1, 1905, or at any other time, is disclosed by the [555]*555averments in the complaint. Appellee, under his • employment, by reason of the sale so made, was entitled to the sum of $20,000, which is due and unpaid.

In regard to the first objection urged against the complaint it may be said that it is true ordinarily that a broker has no implied authority to buy or sell in his own name. But certainly there is nothing in the complaint to show that appellee in any manner violated this rule of the law. It is not averred that he sold the stock in his own name; but, on the contrary, the pleading alleges that he sold the stock to Wilson for thirty cents on the dollar, and on the day following he reported his transaction to appellant, and that the latter agreed to deliver the stock for the use of said purchaser on July 1, 1905. Under his employment, as alleged in the complaint, appellee, it appears, was authorized as the agent of appellant to make the sale of the stock for a price not less than twenty-five cents on the dollar. Or, in other words, under the employment he undertook to find a purchaser who would be ready, willing and able to buy the stock of appellant at the price stiprilated. It appears that, in pursuance of his employment, he found a purchaser who agreed to buy 4,000 shares of stock at a price of thirty cents on the dollar. This agreement upon the part of Wilson appellee reported to appellant, and the latter appears to have approved the sale; at least, he agreed to deliver the stock on July 1, 1905, for the use of said purchaser. Reducing the question raised upon the demurrer to the complaint to a simple proposition, it máy be said that appellee, under his employment as the agent of appellant, found a purchaser who agreed to buy the stock in controversy at a price over and above that prescribed by appellant. Upon being informed by appellee of this sale, appellant appears to have approved it by agreeing to deliver the stock, on the date alleged, for the use of said purchaser. It further shows that such purchaser was ready, willing and able to accept and pay for the stock on the day upon which it was [556]*556to be delivered, but, through the' default and refusal of appellant to deliver the stock, the sale was not actually effected.

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Cite This Page — Counsel Stack

Bluebook (online)
85 N.E. 9, 170 Ind. 550, 1908 Ind. LEXIS 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-light-ind-1908.