Schwartz v. Weiner

94 Colo. 251
Supreme Court of Colorado·Decided December 4, 1933·No. No. 12,913·Published·Cited by 3 cases

Opinions

Mr. Justice Burke

delivered tlie opinion of the court..

These parties are hereinafter referred to as Schwartz and Weiner.

Weiner, alleging that he had been employed by Schwartz to assist in the purchase of an apartment house, that he did so, that the property was purchased, and that. [253] he had been promised compensation for his services but that payment had been refused, sued for $875 as the reasonable value thereof. Schwartz denied generally, and further alleged that at the time in question Weiner had no license to engage in the business of real estate broker. Weiner admitted he had no license, alleged that none was necessary because he was not in the business, and averred that this was the only transaction of the kind in which he had engaged. Schwartz’ motion for judgment on the pleading’s was overruled and the cause tried to a jury. At the close of his evidence Weiner was permitted, over objection, to amend his complaint to a demand for $1,250. On a verdict in his favor for $875 judgment was entered. To review that judgment Schwartz prosecutes this writ.

The contentions here made under the assignments may be thus summarized: (1) The motion for judgment on the pleading’s should have been sustained; (2) The motion to amend the complaint should have been overruled; (3) The verdict is unsupported by the evidence and is excessive.

1. On this point the position of counsel for Schwartz is, first, that one cannot maintain a suit to collect pay for a forbidden service; second, that under our statute one not licensed as a real estate broker, although not in fact in the business, may not lawfully engage in a single, isolated transaction. The first proposition is correct. Hittson v. Browne, 3 Colo. 304; Payne v. Volkman, 183 Wis. 412, 198 N. W. 438. We address ourselves to the second. Section 1, chapter 147, p. 423, S. L. 1925, makes it unlawful for a person to engage in the business of real estate broker or salesman without a license from the secretary of state. Section 2, Id., defines the terms. Under these sections one who engaged in the business, irrespective of actual transactions, must have a license or incur the prescribed penalty. Horsley v. Woodley, 12 Ga. App. 456, 78 S. E. 260. And one not in the business needed no license for his protection, though engaging irregularly in isolated transactions. Commonwealth v. [254] White, 260 Mass. 300, 157 N. E. 597; Miller v. Stevens, 224 Mich. 626, 195 N. W. 481; 56 A. L. R., p. 484, §III, par. b, and par. h. But section 4 of said chapter 147, provides that two acts, or offers to act, “within any calendar year,” shall constitute the person so acting or offering, a broker or salesman. This section was repealed by section 1, chapter 149, p. 582, S. L. 1927. Classifying said section 4 as a “permissive” statute, counsel for Schwartz argue that its repeal had the effect of penalizing every person who engaged in a single real estate transaction without a license. Without that fatal “permissive” not a case cited in support of this contention is in point. We select the three best. In Roman v. Lobe, 243 N. Y. 51, 152 N. E. 461, 50 A. L. R. 1329, the opinion is by Judge Cordozo and is all that fact might lead us to expect. But the plaintiff there was admittedly a broker, who was claiming a commission on a transaction between the date of the expiration of his license and the date of its renewal. Moreover, the sole question was, as the court states, “whether the requirement of a license is a constitutional exercise of a legislative power. ’ ’

In Haas v. Greenwald, 196 Cal. 236, 237 Pac. 38, the statute involved provided that “One act, for a compensation, * * * shall constitute the person * * * a real estate broker.” There three persons engaged in a forbidden transaction and sued for compensation. One had no license. He was denied recovery because of the statute above quoted, and because a part of the consideration was unlawful the entire contract was held void and the unlicensed dealer’s licensed associates also lost. The decision upholds the statute but does not intimate that the claim would have been doubtful in the absence of express legislation.

Bank for Savings v. Collector [Field], 3 Wall. 495, 18 L. Ed. 207, is cited in support of the proposition that repeal of a permission constitutes a prohibition. Granted, but that is not the case. For the reasons there given, however, the repeal of a prohibition constitutes a [255] permission. That is this case exactly. There is no hint in said section 4 of “permission” to do anything. The language is “Two acts * * * shall constitute the person * * * a real estate broker”; and section 21 Id., provides that “Any person * * * acting as real estate broker * * * without having obtained a license * * * shall upon conviction * * * be punished” by a fine of $100 to $500 or imprisonment for not more than six months, or both. The clear intent was to penalize every unlicensed person who engaged in the business, and strip every unlicensed person, who committed two acts, of the defense that he was not in the business. The former was punished irrespective of the number of his transactions, and the latter was conclusively presumed to be in the business because of two transactions. Section 4 has nothing to do with those actually in the business. It deals with persons in other occupations who merely make occasional forays into the field, and who, but for this section, would be untouched by the act, and restricts then-activities to a single incursion. It is clearly a prohibition and its repeal left Weiner as free as if it had never been passed. He needed no license unless he was in the business, and, admittedly, he was not. The motion for judgment on the pleadings was properly overruled.

2. We need give no further attention to this objection than to observe that Weiner obtained nothing under the amendment which he might not have obtained under his original complaint, and the record discloses no possible influence of that amendment on the verdict.

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