Reed v. Taylor

322 P.2d 147, 78 Wyo. 216, 1958 Wyo. LEXIS 12
CourtWyoming Supreme Court
DecidedFebruary 25, 1958
Docket2788
StatusPublished
Cited by6 cases

This text of 322 P.2d 147 (Reed v. Taylor) is published on Counsel Stack Legal Research, covering Wyoming 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. Taylor, 322 P.2d 147, 78 Wyo. 216, 1958 Wyo. LEXIS 12 (Wyo. 1958).

Opinion

*220 OPINION

Mr. Justice HARNSBERGER

delivered the opinion of this court.

Plaintiffs in four causes of action sought recovery of a §4,200 real estate broker’s sales commission claimed to be due them from defendant Taylor on account of a sale made by Taylor of his ranch property.

The evidence is undisputed that about June 21, 1954, Mr. Taylor asked Mr. Reed to try and find a purchaser for his land and livestock and machinery at a total price of |164,455. Taylor then verbally made an exclusive listing with plaintiffs, who were licensed real estate brokers, to sell approximately 11,000 acres of *221 his lands at a per-acre price of $12, the brokers to receive as commission on such a sale five percent of the selling price of the land only. About January 18, 1955, plaintiffs produced a prospect who met with Taylor and plaintiffs and at that meeting a sale of Taylor’s other ranch holdings was discussed, as well as the sale of his lands. Taylor then reduced the per-acre price of his lands to $11 per acre. A tentative evaluation of Taylor’s cattle was arrived at, the amount being $38,-000, but Taylor’s offer to sell his lands at the reduced price of $11 per acre was not accepted by the prospect. The prospect then made a counteroffer of $7.50 per acre for the lands, but this was refused by Taylor and the parties did not come to any agreement and no sale of the Taylor properties resulted. Taylor then advised the plaintiffs that the listing of his lands with them would no longer be exclusive and that he was also listing his lands with other real estate agents. This he later did, making such listing at the same price of $11 per acre with defendant Loucks. No further negotiation between Taylor and the prospect was developed by the plaintiffs although plaintiffs once told

Taylor the prospect was looking for him. Later on, the original prospect and Taylor had an accidental meeting during which the prospect offered Taylor $9 per acre for his lands, but stated he was not interested in buying Taylor’s cattle. This offer Taylor refused. Thereafter, one of Loucks’ salesmen told the prospect he could buy the whole Taylor outfit in a package deal for $130,000. The prospect responded that this was a “brand new deal” and that he was interested. That same evening Loucks’ salesman succeeded in obtaining the prospect’s agreement to purchase the entire Taylor holdings for $130,000, and thereupon a contract for such a sale was immediately successfully negotiated and the same was consummated in September of 1955.

*222 The trial was to the court which made findings substantially paralleling this evidence and concluded that defendant Loucks, through his agent the salesman, was the sole and only efficient procuring cause of the sale of Taylor’s entire ranching outfit to the customer; that plaintiffs were in no way connected with that sale and did not in any way assist in making it; that Taylor did not in any manner circumvent plaintiffs in making the sale and did not in any manner act in bad faith or defraud plaintiffs or prevent them from making sale of the Taylor real estate to plaintiffs’ original prospect or to anyone else; that Taylor was not under duty to give plaintiffs opportunity to make a package sale of his entire outfit and plaintiffs were not entitled tó the claimed commission in the sum of $4,200. Thereupon the court rendered its judgment that plaintiffs take nothing and dismissed their action awarding costs against them. From these findings and judgment the plaintiffs have appealed.

The position of defendant Loucks is of no importance as it cannot affect the issues raised upon this appeal.

It seems clear to us that the evidence is sufficient to support the court’s determination of the facts, and this leaves for our decision the bare question whether under such circumstances plaintiffs are entitled as a matter of law to a broker’s commission.

Appellants have not suggested fraud or bad faith on the part of defendant Taylor. Consequently, these questions are eliminated from consideration and decisions which hinge upon fraud or bad faith will not be discussed.

In Annotation, 43 A.L.R. 1104, is is said:

*223 “The general proposition is well established that if property is placed in the hands of a broker for sale at a certain price, and a sale is brought about through the broker as a procuring cause, he is entitled to commissions on the sale even though the final negotiations are conducted through the owner, who in order to make a sale accepts a price less than that stipulated to the broker. * * *”

Cases from thirty-three jurisdictions in the United States, as well as others from England and Canada, are cited and lend authority to this statement.

We do not dispute the soundness of this general rule, but its application under the facts found in this case is questioned. The evidence shows the negotiations which resulted in sale were not participated in by the plaintiffs nor conducted by the owner, but were arranged, commenced, and consummated as a package deal entirely by and through the efforts of plaintiffs’ competitor, the salesman of Loucks. Under this evidence the court was entitled to find as it did that the defendant Loucks was the efficient procuring cause of the sale. The rule applicable in such a case is:

“Although the broker may be the means of first bringing the parties together and of opening negotiations with them, yet if the negotiations are unproductive and the parties in good faith withdraw therefrom and abandon the proposed purchase and sale, a subsequent renewal of negotiations followed by a sale at a less price does not entitle the broker to the commissions, as he cannot be said to be the procuring cause of the sale.” 43 A.L.R. 1116, citing decisions from ten states. Another statement in the Annotation of 43 A.L.R. 1120, which is well supported by authorities, bolsters this principle :
“ * * * where a broker brings a prospective customer to an owner, but no sale results, and, after a reasonable time has elapsed without any more efforts on the part *224 of the broker, the owner sells the property to the same person through another broker at a less price, the first broker is not entitled to commissions.”

So it is also generally held that where more than one broker is authorized to sell and a sale is made by one of the brokers to a prospect first produced by another broker, the broker bringing about the meeting of minds of the buyer and seller in consummation of sale is the broker entitled to commission.

The following are among the cases supporting this view: Vreeland v. Vetterlein, 33 N.J.L. 247; Patten v. Willis, 134 Ill.App. 645; Morton v. Barney, 140 Ill.App. 333; Farrar v. Brodt, 35 Ill.App. 617; McGuire v. Carlson, 61 Ill.App. 295; Hobbs v. Edgar, 22 N.Y. Misc. 510, 49 N.Y.S. 1138, 23 N.Y. Misc. 618, 51 N.Y.S. 1120; Chaffee v. Widman, 48 Colo. 34, 108 P. 995, 139 Am.St.Rep. 220, 251 n.e; Witherbee v. Walker, 42 Colo. 1, 93 P. 1118; Conway-Bogue Realty & Investment Co. v. Burch, 93 Colo.

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Bluebook (online)
322 P.2d 147, 78 Wyo. 216, 1958 Wyo. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-taylor-wyo-1958.