Salsbury v. Ware

56 N.E. 149, 183 Ill. 505
CourtIllinois Supreme Court
DecidedDecember 18, 1899
StatusPublished
Cited by18 cases

This text of 56 N.E. 149 (Salsbury v. Ware) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salsbury v. Ware, 56 N.E. 149, 183 Ill. 505 (Ill. 1899).

Opinion

Mr. Justice Magruder

delivered the opinion of'the court:

One controlling fact stands out prominently in this record. That fact is', that appellant furnished to appellee $8640.00 to be applied toward the purchase of 720 acres of land in Indiana from one Ingraham; and that appellant furnished to appellee $3840.00 to be applied to the purchase of 480 acres of land in Indiana from one Wood; and that appellee applied only $5040.00 of the $8640.00 towards the purchase of the 720 acres, and appropriated the difference, to-wit, $3600.00 to himself; and that appellee applied only $1600.00 of the $3840.00 towards the purchase of the 480 acres/and appropriated the difference, to-wit, $2240.00 to himself. The question in the case is, whether the appellee should be required to account to the appellant for the two sums of money so retained by him, amounting to $5840.00.

The solution of this question depends upon the nature of the relation, which existed between appellant and appellee in the making of the purchases in question.

The contention of the appellant is, that the appellee undertook to buy the land for him as his agent, and deceived him by making him believe that he paid $12,480.00 for the lands, when, as matter of fact, he paid only $6640.00 therefor. The contention of appellee is, that he obtained option prices upon the lands from the owners thereof, and sold the lands, as owner, to appellant, and that he in no way acted as the agent of appellant.

In September, 1890, the appellee, Ware, was a real estate agent doing business, and having an office, in Chicago. At that time he owned 2600 acres of land in Jasper county, Indiana, and, with other parties, was interested in ditching and draining the surrounding district for the purpose of improving his own and other lands in the vicinity. At that time, also, he was dealing in lands other than his own in Jasper county, Indiana. The owners of these other tracts subsequently gave to him the prices, for which they would sell the same. Appellant and appellee had been acquainted for a year or more prior to September, 1890, lived near each other in Chicago, and occasionally conversed respecting these lands in Indiana. In July or August, 1890, Ware told Salsbury that, if he would buy some lands in J asper county, he could sell the same soon and realize a handsome profit. Ware told Salsbury that he himself owned lands there, and that he could obtain for Salsbury a tract of some 1100 acres for $10 an acre. They went to Indiana and looked at some of the lands in company with one Siegler, who then lived upon the 2600 acres owned by Ware, and acted as the manager thereof for Ware at a salary, as Ware says, of $50.00 per month. Ware told Salsbury, that there was a tract of 720 acres owned by a man named Ingraham, who asked $12.50 an acre for the same. Ware, however, said that he would see if he could “do better on the price” than $12.50. Salsbury, Ware, and Siegler went to look at the Ingraham tract of 720 acres, and at a three-quarter section, or 480 acres, then owned by one Thompson. Salsbury agreed to take the two pieces, the Ingraham tract of 720 acres at $12.00 per acre, and the Thompson or Wood tract at $8.00 per acre. The negotiations and transactions, so far as Salsbury was concerned, were had with Ware alone, and on September 13, 1890, Salsbury made a deposit of $250.00 with Ware, and the terms of sale were agreed upon.

Thereafter, by warranty deed, dated October 6, 1890, and acknowledged October 25, 1890, Ingraham and wife conveyed the 720 acres to Salsbury. Part of the consideration was paid in cash, and the balance was secured by a purchase money trust deed and note, which have since been paid. The deed was delivered by Salsbury to Ware, and the payments were made to Ware. By deed, dated October 7, 1890, and acknowledged the same day, one William M. Wood conveyed to Salsbury the tract of 480 acres for $3840.00, part of which was paid in cash and the balance of it was secured by trust deeds and notes, which have since been paid. On the same day, on which Wood conveyed the 480 acres to Salsbury, to-wit, October 7, 1890, one Alfred Thompson, the real owner of the 480 acres, conveyed the same by warranty deed to Wood for $1600.00. Wood was a mere figure-head acting for Ware, who paid him $20.00 for his services in taking*1 the title and executing the notes for a part of the purchase money. All the negotiations concerning the 480 acres were carried on between Salsbury and Ware. Salsbury did not come in contact with Ingraham, or Thompson, or Wood, in connection with the purchases.

It cannot be said that, in making these purchases, Ware acted as agent for Ingraham and Thompson, the owners of the property. The theory, that he was acting as agent for the vendors, is negatived by his contention, that he was himself the owner of the property, and was ■selling it as his own property to the appellant. If he owned the property himself, or had been given options for the purchase of it by the owners, he certainly was not acting as the agent of such owners in making the sales.

He never told Salsbury, the appellant, nor did the appellant ever know until shortly before the present bill was filed, that the appellee, Ware, claimed to own the property, or to be selling it as his own property, or that he had, or claimed to have, any interest of any kind in it.

The evidence shows, that Salsbury dealt with Ware as his agent, or in such a way that a trust relationship existed between them. Ware had no right to take advantage of that relationship to make a profit for himself, which properly belonged to Salsbury. The position, which he occupied towards Salsbury, was one of trust and confidence, and, inasmuch as trust and confidence were placed in him by Salsbury, he could not take advantage thereof to the injury of Salsbury.

The law upon this subject is well settled. In equity, an agent is disabled from dealing in the matter of his agency on his own account. The agency being established, the agent will be compelled to transfer the benefit of his contract to his principal, even though he may swear that he purchased on his own account. It makes no difference that such agent is a mere volunteer; if he professes to act not for himself but for another, he has trust and confidence placed in him. The rule applies as well to an agent, who becomes such by volunteering, as to one who is made such by appointment. If confidence is reposed, it must be faithfully acted upon and preserved from any intermixture of imposition. The party relied upon must see, that he meets fairly and squarely the responsibility of his position, and does not take any advantage, either for his own gain, or to the injury of the person whom he represents. If a party employs an agent to make a purchase of land, he is entitled to all the skill, ability and industry of such agent to make 'the purchase on the best terms that can be had, and is entitled to the property at the price the agent pays. The agent cannot avail himself of any advantage his position may give him to speculate to the injury of his principal; all the profits and advantages gained in the transaction belong to the principal. (Casey v. Casey, 14 Ill. 112; Dennis v. McCagg, 32 id. 429; Cottom v. Holliday, 59 id. 176; Conant v. Riseborough, 139 id. 383; Heiberg v. Nichol, 149 id. 249).

It is said, however, by the appellee, that the evidence in the case does not establish the relation of principal and agent between appellant and appellee.

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Bluebook (online)
56 N.E. 149, 183 Ill. 505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salsbury-v-ware-ill-1899.