Seifert v. Dirk

184 N.W. 698, 175 Wis. 220, 17 A.L.R. 885, 1921 Wisc. LEXIS 200
CourtWisconsin Supreme Court
DecidedOctober 18, 1921
StatusPublished
Cited by9 cases

This text of 184 N.W. 698 (Seifert v. Dirk) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seifert v. Dirk, 184 N.W. 698, 175 Wis. 220, 17 A.L.R. 885, 1921 Wisc. LEXIS 200 (Wis. 1921).

Opinions

Eschweiler, J.

The complaint was treated in the court below and on its presentation here as sufficient in form to state a claim upon quantum meruit as well as upon an express contract to recover for rendered and accepted services [222]*222in the exchange of real estate by the plaintiff as real-estate broker for the defendants. We shall so treat it here, though the language of the complaint, so far as it purports to set out a cause of action quantum meruit, may not be as precise and definite as the usual rules of pleadings for such cause of action require.

The demurrer to the complaint was sustained in the court below upon the view that since the enactment of ch. 221 of the Laws of 1917 there can be no recovery for services rendered by real-estate agents in procuring either a buyer or a seller of real estate, except and unless such express contract be in writing in accordance with the conditions specified in said chapter, and that failing such express contract there can be no recovery upon any implied contract to pay what the services were reasonably worth. Said ch. 221, Laws 1917, created a new section inserted in ch. 104, Stats., concerning “Fraudulent conveyances and contracts relating to real estate,” and reads as follows:

“Section 2305;«. Every contract to pay a commission to a real-estate agent or broker or. to any other person for selling or buying real estate shall be void unless such contract or some note or memorandum thereof describing such real estate, expressing the price for which the same may be sold or purchased, the commission to be paid and the period during which the agent or broker shall procure a buyer or seller, be in writing and be subscribed by the person agreeing to pa.y such commission.”

This precise statute has been before the court twice since its passage: in Gifford v. Straub, 172 Wis. 396, 179 N. W. 600, where the written memorandum relied upon was held not to be a compliance with this statute, and for that reason a judgment for the defendant was sustained, and in Brown v. Marty, 172 Wis. 411, 179 N. W. 602, where the written contract there sued upon was held to be sufficient. In neither of these cases, however, was the question now before us presented or considered.

[223]*223The conclusion of the court below in sustainiñg the demurrer to each of the causes of action attempted to be set forth in the complaint herein is undoubtedly in accord with the general line of authorities upon statutes similar to the one here under consideration; it being generally stated that where a statute such as here requires written authorization, a broker who acts under an oral contract of employment cannot recover the value of his services as upon implied promise. 19 Cyc. 220; 4 Ruling Case Law, 300; 25 Ruling Case Law, 437. Such statement is supported by a number of decisions.

In McCarthy v. Loupe, 62 Cal. 299, passing upon the precise question here - presented as to whether the right still existed to rely upon an implied promise to recover the value of such services rendered, it was held that, inasmuch as an express contract was required by -statute, the law would no longer imply a contract. The rule has been repeatedly declared in that jurisdiction in many cases intermediate the decision above cited and the case of Ryan v. Walker, 35 Cal. App. 116, 169 Pac. 417. The same view is expressed in Indiana. Selvage v. Talbott, 175 Ind. 648, 95 N. E. 114, 33 L. R. A. n. s. 973, Ann. Cas. 1913C, 724, and again in Peters v. Martin, 69 Ind. App. 436, 122 N. E. 16.

In Idaho it was stated that to hold otherwise would be to absolutely nullify the statute. Weatherhead, v. Cooney, 32 Idaho, 127, 180 Pac. 760.

In Michigan, while recognizing that recovery quantum meruit may be permitted for services actually performed under other kinds of contracts if void under the statute of frauds, yet it was held under just such a statute as here that to make the same rtile applicable would nullify the new statute, and that as to this particular class of contracts no recovery could be had in any form of action in the absence of compliance with such a statute. Paul v. Graham, 193 Mich. 447, 160 N. W. 616; Smith v. Starke, 196 Mich. 311, 162 N. W. 998.

[224]*224In Iowa, in passing upon a Nebraska statute, limited, however, to the obtaining of a purchaser only, it was held that an oral contract for such services, being invalid in Nebraska where made, could not be held valid or enforced in Iowa. Brown & Brammer v. Wm. Pearson Co. 169 Iowa, 50, 150 N. W. 1057. The Nebraska court so interpreted their statute. Barney v. Lasbury, 76 Neb. 701, 107 N. W. 989.

The same view is held in Parker v. Bruggemann, 72 Wash. 309, 130 Pac. 358.

In Oregon the statute made an agreement of such kind not valid unless in writing, but.also provided that evidence of the agreement shall not be received other than the writing itself or secondary evidence thereof, and under such statute it was held that there can be no recovery as upon an implied contract. Taylor v. Peterson, 76 Oreg. 77, 147 Pac. 520.

In two jurisdictions acts have been passed punishing as a misdemeanor the offering to sell the real estate belonging to another without written authority. Upon an action brought to recover a commission the breach of such statute was urged as a defense, but it was held that such legislation was an arbitrary infringement upon the rights of persons engaged in a lawful occupation, but intimated that had it been an act for the purpose of regulating the business of brokerage or the statute of frauds a different question would be presented. Frank L. Fisher Co. v. Woods, 187 N. Y. 90, 79 N. E. 836, 12 L. R. A. n. s. 707. A similar, penal statute was however held valid in Missouri and prevented the recovery of a commission for a sale made in violation of its terms. Rothwell v. Gibson, 121 Mo. App. 279, 98 S. W. 801.

We are compelled, however, to reach a contrary conclusion and hold that the common-law right to recover quantum meruit for services of such a nature as those here involved, the benefits whereof are knowingly accepted and retained by the party against whom the claim is made, still remains, [225]*225though the express contract under which the services wéré entered upon is declared to be void because not reduced to writing. Such right to recover quantum meruit is grounded in the common law. 1 Page, Contracts (2d ed.) § 30. It has long been firmly established here. Wheeler v. Hall, 41 Wis. 447, 450; McMillan v. Page, 71 Wis. 655, 661, 38 N. W. 173; Miller v. Tracy, 86 Wis. 330, 336, 56 N. W. 866; Wojahn v. Nat. Union Bank, 144 Wis. 646, 667, 129 N. W. 1068; Grossbier v. C., St. P., M. & O. R. Co. 173 Wis. 503, 509, 181 N. W. 746.

While it is. undoubtedly true that the existence of an express contract between parties generally repels any inference of an implied contract for the same subject'matter, nevertheless, where such express contract is void by reason of some provision of public policy as expressed in other than penal statutes, the possibility of an implied contract being inferred is not excluded. 3 Page, Contracts (2d ed.) § 1438.

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Bluebook (online)
184 N.W. 698, 175 Wis. 220, 17 A.L.R. 885, 1921 Wisc. LEXIS 200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seifert-v-dirk-wis-1921.