Smith v. Mayfield

60 Ill. App. 266, 1895 Ill. App. LEXIS 256
CourtAppellate Court of Illinois
DecidedAugust 31, 1895
StatusPublished
Cited by2 cases

This text of 60 Ill. App. 266 (Smith v. Mayfield) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Mayfield, 60 Ill. App. 266, 1895 Ill. App. LEXIS 256 (Ill. Ct. App. 1895).

Opinion

Hr. Presiding Justice Scofield

delivered the opinion of the Court.

The second, third, fourth, fifth, seventh and ninth of the errors assigned amount to the same thing, that is, that the verdict is against the weight of the evidence. This proposition will be considered first.

Appellee sued appellant for commissions alleged to be due him for services as a broker in effecting a sale of two street car lines, familiarly called the Dummy Line and the Horse Car Line, to the Alton Electric Street Railroad Company.

The declaration alleged that appellant “ undertook and promised the plaintiff, who was then and there a broker, that if he, the said plaintiff, would negotiate the sale of said street car lines to one A. M. Farnum, or to a certain syndicate of capitalists who were then and there represented by the said Farnum, and should succeed in consummating a contract for the sale of said car lines to said Farnum for said syndicate, or to any corporation or company organized by him or them, or under his or their control, for the sum of §72,000, and in addition thereto the sum of certain costs and expenses of certain improvements, paving tax and other charges against said horse car line, which were then unascertained, but which were afterward liquidated, and stated by the defendant to the plaintiff to amount to the sum of §8,700, that he, the said defendant, in consideration thereof, would pay the plaintiff, for his services in conducting such negotiations, and in consummating such contract of sale, a commission of five per cent upon the price agreed to be paid for said street car lines, to wit, upon the sum of $80,700, which said commissions would amount, in the aggregate, to a large sum, to wit, the sum of $4,035.”

The declaration further alleged that the negotiations, which were begun with Farnum, resulted in a contract of sale of said car lines to a certain corporation called the Alton Electric Street Railroad Company, composed of said Farnum and the members of said syndicate associated with him, for the sum of $80,700.

It is contended that the burden of proof was on appellee to show that appellant intended to bind, and did bind, himself, personally, and not his principals; and that appellee was entitled to his commissions as soon as a contract of sale was effected.

Conceding this to be the law, the question remains whether or not the evidence justified the court, trying the case without a jury, in finding that appellee had proved those propositions. To set forth the evidence, pro and con, would lengthen this opinion without benefit to the parties or to the profession. The verdict of the jury must be palpably "unjust, or the result of passion or prejudice, or manifestly against the weight of the evidence, before an appellate court has a right, under the law, to reverse a judgment on the ground that it is not supported by the evidence. The same rule applies to the findings of a court when exercising the functions of a jury. Coari v. Olsen, 91 Ill. 273. If appellee’s testimony is to be taken as true, appellant was personally liable, and the commissions were due as soon as the contract of sale was made. Appellee is corroborated on this point by credible evidence. The fact that appellant may state the transaction differently furnishes no sufficient-ground for interference with the judgment.

It is urged, in the next place, that it was incumbent on appellee to show that the Alton Electric Street Eailroad Company was a corporation capable of binding itself, having power to carry out its contracts, and that the persons executing the contracts for the company were duly authorized to do so.

The contract between appellant and appellee, according to the latter’s testimony, was that he should sell the car lines, not to a corporation, but to “ one Farnum and Ms associates, who composed the syndicate of eastern capitalists which were about to build a line to North Alton.” It was a matter of no moment to appellee whether the contract was made with Farnum and his associates as individuals, or to a corporation organized by them, provided the latter arrangement was sanctioned by appellant. Negotiations were pending for nearly a year, and the sale was finally consummated by a written contract between the corporations owning the dummy and horse car lines and the Alton Electric Street Railroad Company. This contract was made on February 21, 1893, and afterward, as appellee testifies, appellant congratulated him upon the “ successful termination of the contract,” stated that he was glad it “ was finished up in that way,” and also said he was sorry that he did not have the money to pay appellee’s commissions. Appellant’s letter to J. H. Hayner, dated February 27, 1893, stated that the only question between him and appellee related to the time when the commissions were to be paid.

These being the facts, it was not necessary for appellee to prove that the Alton Electric Street Eailroad Company was a corporation dejure, and there was sufficient evidence to show that it was a corporation defacto. But even if it was not a corporation at all, it was the thing to which appellant was willing to have the sale made, and he should not now be heard to defend on the ground that it was not duly incorporated.

This is a sufficient answer, also, to the argument that the Alton Electric Street Bailroad Company, if sued on the contract, could interpose the defense of ultra vires, and that therefore appellee has not earned his commissions by a sale to such a company.

Therefore we deem it unnecessary to consider whether or not a corporation can be organized under chapter 32 of the Statutes of Illinois to build, construct and operate street railroads in and through the city of Alton, Upper Alton, North Alton, Godfrey township and suburbs, or whether or not such a corporation, if duly organized, can purchase horse and dummy roads. If appellee had been employed to effect a valid and enforcible contract of sale, with full power to select his vendee, then those questions might become important. In such case, if the contract was executory and the sale to a corporation which could resist the enforcement of the contract on the defense of ultra vires, there would be some reason for the claim that appellee had not earned his commissions. But these are not the facts of the present case. The contract between appellant and appellee contemplated a sale to a syndicate, composed of certain individuals, and a sale by parol to these persons was effected. The organization of a corporation by these individuals and the merging of the parol contract in a written contract on sale to this corporation, took place with the consent and active assistance of appellant, who had a large interest in and controlled the sale of, the horse car and dummy roads. This fact is shown by appellant’s testimony, when he states that the terms of sale “ were arranged on our side by Mr. Phinney and Mr. Hayner, and on the other side by Mr. White, Porter, and Mr. Farnum and Mr. Mayfield,” about the time, or shortly before the time, when the articles of incorporation were executed. Mr. Phinney was the secretary of the horse car and dummy roads. After the contract had been executed, appellant expressed himself as satisfied with the result. The sum of $8,700 was paid by Farnum and his associates on the contract.

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Cite This Page — Counsel Stack

Bluebook (online)
60 Ill. App. 266, 1895 Ill. App. LEXIS 256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-mayfield-illappct-1895.