Spencer v. Ellis

339 P.2d 1116, 216 Or. 554, 1959 Ore. LEXIS 332
CourtOregon Supreme Court
DecidedJune 3, 1959
StatusPublished
Cited by4 cases

This text of 339 P.2d 1116 (Spencer v. Ellis) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spencer v. Ellis, 339 P.2d 1116, 216 Or. 554, 1959 Ore. LEXIS 332 (Or. 1959).

Opinion

CRAWFORD, J.

(Pro Tempore)

Defendant appeals from a decree directing specific performance of a contract for the sale and exchange of real properties in Baker and Multnomah counties.

The four assignments of error present three questions. Was defendant’s offer to purchase accepted, resulting in a binding contract; if so, is defendant entitled to rescission; if not, was specific performance properly decreed.

The essential facts are these: June 28, 1957, the parties entered into a written exchange agreement. July 12,1957, the contract with which we are concerned was signed by the defendant. July 15, 1957, defendant took possession of the Tower Motel, Baker, and remained in possession until August 7, 1957. July 19, 1957, defendant, at plaintiffs’ request, wrote the word “fully” before the word “inspected” in the contract and all parties initialed the change. Later in the day, plaintiffs signed the contract in the office of their attorney in Baker, and July 22, 1957, transmitted the same to the Title & Trust Company, Portland, with letter of instructions. The morning of July 23, 1957, [556]*556Mr. Shepherd, attorney for defendant, notified the company to proceed no further, and in the afternoon of the same day the company received the letter from plaintiffs’ attorney with enclosures mailed at Baker. August 2, 1957, Mr. Shepherd withdrew all papers of defendant on deposit with the company.

We are satisfied there was acceptance of the offer to purchase upon the initialing of the change and the signing of the contract, thereafter mailed to the Title So Trust Co., resulting in a binding agreement. And the parties understood this to be the effect of the transaction. Defendant manifested satisfaction with this method of acceptance and plaintiffs adopted it. 12 Am Jur, Contracts, 536, Sec. 41; Shaw Wholesale Co. v. Hackbarth, 102 Or 80, 198 P 908, 201 P 1066; 55 Am Jur, Vendor and Purchaser, Sec. 15.

Defendant contends the lower court erred in failing to decree rescission based on misrepresentation for which plaintiffs should be held responsible. The misrepresentation, which is conceded, related to a statement of income and expense of the Tower Motel, wherein gross income for 1956 was given as $19,537.02, expenses as $7,224.29 and net income as $12,312.73. Admittedly the net income was but $3,905.89. This incorrect information was contained in defendant’s exhibits 4 and 8 for identification, which were not formally received but which apparently were considered by the trial judge. Exhibit 8, from which exhibit 4 was taken, is a statement describing the physical features of the Tower Motel and lists expenses and gross income. The gross income is stated as $19,537.02, the total expenses as $7,224.29. Exhibit 4, entitled “Operating Statement of Tower Motel, Baker, Oregon, 1956,” lists gross income $19,537.02, expenses $7,224.29, and in two places net income $12,312.73. The follow[557]*557ing also appears on this exhibit: “These figures are figures furnished by the owners of the Tower Motel and not any brokers figures.” The origin of the contents of these exhibits and the part they played in this transaction follow.

Three sets of real estate brokers participated: Payne & Faust, with whom plaintiffs had an “oral” listing of the Tower Motel, represented by Elmer Gr. Seidler; E. TL Boly & Son, with whom defendant had previously listed her Portland property for sale, represented by Elwyn Boly, sole proprietor of E. H. Boly & Son, and by Carl W. Poss, Jr., general manager of E. H. Boly and Son; and Collyer T. Potter, instrumental in bringing the parties together to consummate the sale, represented by Elmer F. Niemala.

In 1956 and 1957 Seidler was representing plaintiffs in connection with the sale of the Tower Motel for which he had a “verbal” listing. Exhibit 8 was prepared in his office from figures he took from plaintiffs’ books and records. Plaintiffs gave him the books, saying, “Well heres our records you take the copy.” Seidler made notes from which Exhibit 8 was prepared. Exhibit 4 was prepared in Seidler’s office under his supervision from exhibit 8. Poss “picked up” a copy of Exhibit 8 in Seidler’s office, showed it to defendant and discussed the same with her. Boly had no personal knowledge of the source of exhibit 4 but “found same in his office files” and he and Niemala discussed the same with defendant on the trip to Baker prior to the signing of the exchange agreement, and the exhibit was shown to her. Plaintiffs and the three brokers were sharing a common effort: to effect the sale of plaintiffs’ Tower Motel. Every act showed in the transcript just what was to be expected of party and agents eager to make a sale. There was here a rather [558]*558unusual representation and participation. Seidler primarily representing the plaintiffs, Boly primarily representing the defendant, and Niemala, the so-called “go-between,” seeking to tie up the deal; and yet all cooperating in a joint endeavor. Collectively and individually they participated in all negotiations that preceded and contributed to the sale. Commissions were split three ways; and their joint efforts, though addressed to different phases and incidents, brought about the deal’s consummation. We cannot and need not apportion the separate contributions and responsibilities of each agent and thus consider and evaluate the same divorced and apart from those of the others; they must be considered as concurring factors creating the situation of which defendant complains and resulting in misrepresentation causing her to purchase the Tower Motel. Clearly, there was misrepresentation justifying rescission if plaintiffs are responsible therefor and if defendant relied thereon. Sharkey v. Burlingame Company, 131 Or 185, 197, 282 P 546, 550; Dahl et al. v. Crain et ux., 193 Or 207, 229, 237 P2d 939; Gamble et ux. v. Beahm, 198 Or 537, 257 P2d 882; 37 CJS, Fraud, Sections 8 and 9, pp 224, 225.

Much of the foregoing relating to the factual origin of the misleading statements and the utilization of this information in prosecution of the sale applies with equal force to the question of agency. We find plaintiffs orally listing the Tower Motel with Seidler and furnishing their books that information might be secured for his use in promoting a sale on their behalf, and knowing that Seidler intended to use such information in making the sale. Seidler secured data from plaintiffs’ books and is responsible for exhibits 4 and 8, and Seidler’s office made these exhibits available to Boly and Poss. Boly and Niemala accompanied [559]*559defendant to Baker and en route and after arrival discussed the exhibits with her. Boly testified he told defendant the income statement was correct on the basis of the statement he had seen. There is here an unbroken chain of causation leading from Seidler’s preparation of exhibits 4 and 8 to the part they played through Boly, Poss and Niemala in influencing defendant to purchase the Tower Motel. Clearly, plaintiffs are responsible for Seidler, to whom they had given an oral listing and whose active representation they aided and accepted, paying a commission to all three agents.

Further, the exchange agreement bears this endorsement:

“I hereby ratify and confirm the employment of E. H. Boly & Son and Collyer T.

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Bluebook (online)
339 P.2d 1116, 216 Or. 554, 1959 Ore. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spencer-v-ellis-or-1959.