Shumaker v. Hazen

1962 OK 153, 372 P.2d 873, 1962 Okla. LEXIS 415
CourtSupreme Court of Oklahoma
DecidedJune 19, 1962
Docket39646
StatusPublished
Cited by9 cases

This text of 1962 OK 153 (Shumaker v. Hazen) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shumaker v. Hazen, 1962 OK 153, 372 P.2d 873, 1962 Okla. LEXIS 415 (Okla. 1962).

Opinion

JOHNSON, Justice.

The defendant in error, hereinafter referred to as plaintiff, filed this action against plaintiff in error (defendant) in the District Court of Tulsa County, Oklahoma, alleging in his first cause of action that defendant was the owner of 12,700 shares of the capital stock of the Utex Exploration Co., a mining corporation; that the defendant employed plaintiff to investigate said company and effect a sale of such stock; that the commission for such sale was to be from five percent to eight percent, depending on the sale price; that plaintiff could have made a sale of such stock for $5,416,639.00, but defendant refused to consummate said *875 sale thereby damaging plaintiff in the sum of $379,164.00.

The plaintiff in his second cause of action alleged that at the special instance and request of defendant he performed numerous services for defendant in building and equipping an ice plant at Moab, Utah, and in making numerous trips and advising and consulting with defendant over a long period of time concerning various phases of her business affairs, for all of which services plaintiff prayed $306,394.00 on his second cause of action.

For her answer to the plaintiff’s petition defendant interposed a general denial; that the authority of plaintiff was that set forth in the power of attorney and contract attached, and that plaintiff failed to effect a sale of such stock, and prayed that plaintiff take nothing.

In reply to defendant’s answer, the plaintiff pleaded a general denial and that the matters set forth in the answer failed to constitute a defense inasmuch as defendant prevented plaintiff from carrying out the contract.

Upon trial of the case before a jury, a verdict was rendered against defendant for $71,394.80, for which judgment was entered for the plaintiff and from which this appeal is perfected.

While the record in this case is long and involved, the issues are simple.

At the close of the evidence the court sustained defendant’s demurrer to the evidence in regard to the first cause of action, from which ruling no appeal has been taken by plaintiff, and therefore we are not concerned with the correctness thereof.

Before considering the several propositions submitted for our consideration, the following should be borne in mind:

1. There was no plea of fraud in any of the pleadings of the defendant.

2. In the opening statement of counsel for defendant it was admitted that defendant was indebted to plaintiff, and it was only a question of the amount.

With these things in mind, we consider the contentions of defendant ad seriatim.

The first contention of the defendant is: “There cannot be an express and an implied contract for the same thing existing at the same time. No agreement can be implied where there is an express contract.”

As a general proposition of law, the statement of counsel is correct, but its application is limited to a situation which does not exist here. The letter constituting the contract between these parties reads as follows:

“ * * * This will confirm an oral agreement which we have made this date. For and in consideration of the services rendered and to be rendered by me in negotiating for a sale of your stock in Utex Exploration Company, it is agreed that upon a satisfactory sale of said shares that I will be entitled to a commission therein in an amount mutually agreed by us at that time. ⅝ ⅜ * »

It will be observed that this agreement covers only a situation where a sale is made. It does not purport to cover conditions where a sale is prevented by act of the proposed seller. In such a case, the law implies an agreement to pay for the services rendered. In Williamson v. Winningham, 199 Okl. 393, 186 P.2d 644, it was said in the first paragraph of the syllabus by the court:

“Where a petition declares upon an express contract but negatives full performance of it because of defendant’s wrongful act, a recovery for debt may be had upon a quantum meruit.”

This was not a suit upon the written contract set out above, but was a suit upon the implied contract brought into being by defendant’s acts.

In Elwood Oil & Gas Co. v. McCoy et al., 72 Okl. 97, 179 P. 2, the second paragraph of the syllabus reads:

“Where a party to a contract was wrongfully prevented by the other from entirely performing his part of the con *876 tract, the- party prevented from performing will be entitled to recover the value of the services performed by him.”

We are of the opinion and hold that the matter sued upon was the right to recover for services where the performance of the contract has been prevented by the adverse party.

The issue of whether or not the defendant, prevented plaintiff from performing was properly not submitted to the jury for the determination for the defendant in counsel’s opening statement admitted liability. Therefore, the matter of the amount was the only issue submitted to the jury and properly so.

The defendant next contends that “Plaintiff’s evidence in this case shows beyond dispute his lack of good faith and loyalty to defendant; it shows plaintiff’s efforts were designed to further his own interests at the expense of defendant and that the revocation of his power of attorney was not wrongful.”

The power of attorney in this case provided that it should be “irrevocable” for a period of one year. The law is well settled that a principal may revoke an agent’s authority at any time and is not at all affected by the fact that there is an express or implied contract that the agency is irrevocable unless the power is coupled with an interest. 2 C.J.S. Agency § 73, p. 1153; Cloe v. Rogers, 31 Okl. 255, 121 P. 201, 38 L.R.A.,N.S., 366, and McKellop v. Dewitz, 42 Okl. 220, 140 P. 1161, 52 L.R.A.,N.S., 255. We hold that under the cited cases this was not a power coupled with an interest.

Therefore, the power to revoke is beyond question but subject to the qualifications set forth in the fourth paragraph of the syllabus in the McKellop case, supra.

“The principal, having the power to revoke an agency, is liable in damages if, by the revocation, substantial injury is sustained by the agent.”

The defendant was therefore answerable in damages.

The third contention of defendant is stated thus: “Inherent in the court’s order and judgment sustaining defendant’s demurrer to his first cause of action is the determination of the issue that the power of attorney was rightfully cancelled; but if it can be said that said issue still remained in the trial of the second cause of action, it was a decisive issue in the case and the court’s failure to instruct thereon was prejudicial error.”

We are not impressed with this contention. The sustaining of the demurrer to the evidence in so far as the first cause of action was concerned merely dismissed the cause based upon the written contract but did not dispose of the claim for damages allowed under the cited cases, supra.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Selrahc v. Burruss
Tenth Circuit, 2007
McCurdy Group, LLC v. American Biomedical Group, Inc.
9 F. App'x 822 (Tenth Circuit, 2001)
Montgomery Ward & Co., Inc. v. Tackett
323 N.E.2d 242 (Indiana Court of Appeals, 1975)
Wickham v. Belveal
1963 OK 227 (Supreme Court of Oklahoma, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
1962 OK 153, 372 P.2d 873, 1962 Okla. LEXIS 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shumaker-v-hazen-okla-1962.