Spilky v. McDonald

236 N.E.2d 907, 94 Ill. App. 2d 411, 1968 Ill. App. LEXIS 1075
CourtAppellate Court of Illinois
DecidedMay 14, 1968
DocketGen. 67-157
StatusPublished
Cited by6 cases

This text of 236 N.E.2d 907 (Spilky v. McDonald) 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
Spilky v. McDonald, 236 N.E.2d 907, 94 Ill. App. 2d 411, 1968 Ill. App. LEXIS 1075 (Ill. Ct. App. 1968).

Opinion

MR. JUSTICE MORAN

delivered the opinion of the court.

This is a suit for a real estate broker’s commission. Plaintiff, a broker, filed a verified action in the Circuit Court of Cook County, alleging that he and W. P. Randell, another broker, entered into an agreement with the defendants on October 3, 1966, to procure a purchaser for certain real estate in DuPage County which was owned or controlled by the defendants. The complaint alleged that the sales price was to be $460,000, and that the real estate commission was to be 6% of the sale price, so that plaintiff and the other broker would each receive $13,800 as commission. The complaint went on to allege that plaintiff and Randell did procure a purchaser who was ready, willing and able to purchase the property on the defendants’ terms, but that the defendants refused to execute the real estate contract and escrow agreement requested by the purchaser and refused to pay plaintiff his commission. Randell did not join in the action.

The defendants filed a motion to transfer venue of the case from Cook County to DuPage County, and supported their motion by affidavits to the effect that they resided in DuPage County, that they had met the plaintiff on one occasion in DuPage County and at no other time or place, that they never spoke with him by telephone, and that they never authorized anyone to prepare a real estate contract concerning the property in question. Plaintiff filed a verified answer to the motion, stating (1) he had telephone conversations with either or both defendants on and after October 3, 1966; (2) that on October 3, 1966, a meeting took place at the law office of Thomas Krone in Downers Grove, Illinois (which is in DuPage County) and that the persons present at the meeting were the defendants, who were being represented by Krone, the plaintiff, Randell and Alfred W. Israelstam, an attorney representing the purchaser, Lloyd Levine; (3) “that after the principals agreed upon the terms, provisions and conditions of the sale as set forth in the complaint filed herein,” Israelstam and Krone agreed to meet three days later at the Chicago Title and Trust Company in Chicago, said appointment being approved by the principals thereof; (4) that on the appointed day, October 6th, Israelstam was at the Chicago Title and Trust Company in Chicago and that Randell appeared and advised him that he, Randell, was authorized by the defendants to prepare the escrow agreement on their behalf, whereupon such an agreement was drawn up. Plaintiff also filed an affidavit of Israelstam, reciting that, on October 3, 1966, at the office of Thomas Krone in Downers Grove, Illinois, a conference took place between the persons already mentioned and “that at said conference the terms, conditions and provisions of sale as set forth in the complaint filed herein between the sellers and purchaser were orally agreed upon.” This affidavit further recited that an agreement was made to meet three days later at the Chicago Title and Trust Company in Chicago “for the purpose of preparing an escrow agreement containing the terms, conditions and provisions of sale heretofore orally agreed upon.” The affidavit concluded by reciting that on October 6, 1966, Israelstam was met by Randell at the Title and Trust Company and that Handed “stated that he would sit in during the drafting of the escrow pending the retaining by sellers of another attorney to represent them.” Thereupon, according to the affidavit of Israelstam, an escrow agreement was drafted.

Defendants’ motion to transfer the case to DuPage County was made pursuant to section 8(3) of the Civil Practice Act (Ill Rev Stats 1965, c 110, § 8(3)), which provides that such motions may be supported and opposed by affidavit, and that, in determining issues of fact raised by the affidavits, “any competent evidence adduced by the parties shall also be considered.” At the hearing on the motion, plaintiff endeavored to convince the court that venue was proper in Cook County because, although neither defendant resided there, venue could be based upon the fact that a part of the “transaction” occurred in Cook County. The applicable venue statute is section 5 of the Civil Practice Act, (Ill Rev Stats 1965, c 110, § 5), which provides that, in actions of this kind, suit must be commenced in the county of residence of any defendant, or “in the county in which the transaction or some part thereof occurred out of which the cause of action arose.”

The motion for transfer was argued orally, and, after considering the affidavits, the trial judge indicated that he was inclined to grant the motion. Plaintiff’s attorney then offered to produce testimony by the plaintiff to supplement the affidavits, and it appears from the colloquy that his testimony would have related to statements of Randell and to “negotiations.” No offer of proof was made, and we are unable to tell what “negotiations” were referred to.

Plaintiff claims that the court erred in transferring the case to DuPage County, because part of the “transaction” occurred in Cook County, and, further, that the court erred in refusing to hear testimony by the plaintiff in regard to the motion. We believe that no error was committed. It is conceded that neither defendant resided in Cook County and that the only possible basis for venue there would be on the theory that part of the transaction in question occurred there. However, to justify venue on the basis of a “transaction” it must be a “transaction or some part thereof . . . out of which the cause of action arose” This is a suit on an oral contract to pay a real estate commission. From everything we can glean from the original complaint and the affidavits, that agreement, if it was made, was made in Downers Grove on October 3, 1966. It also appears from the complaint and the affidavits of plaintiff and Israelstam that the purchasers were procured by plaintiff and Randell at that same time, and that the terms and conditions of the sale were agreed upon by the defendants and the purchasers in the office of Mr. Krone in Downers Grove. Thus, from the pleadings and the affidavits, it appears that all necessary elements of plaintiff’s cause of action against the defendants were fulfilled in Du Page County on October 3, 1966. As plaintiff points out in another connection, “The broker becomes entitled to a commission from the seller at the time he finds a buyer ready, willing and able to enter into an agreement on the seller’s terms. It is not essential in Illinois that an executed written agreement actually be entered into. The seller becomes bound at the moment that his terms have been met. Chicago Bar Ass’n v. Quinlan & Tyson, Inc., 53 Ill App2d 388, 412, reversed in part on other grounds in 34 Ill2d 116.” Thus, the fact that the formal contract between the defendants and the purchasers was to be drawn up in Cook County three days later is immaterial, because the execution of that contract is no part of plaintiff’s cause of action. Accordingly, assuming that Randell did appear in Chicago as the agent of defendants for the purpose of drawing up the contract and escrow agreement, still, his activity on that occasion was not a part of the transaction out of which plaintiff’s cause of action arose. See Heldt v. Watts, 329 Ill App 408, 413, 69 NE 2d 97 (1946); La Ham v. Sterling Canning Co., Inc., 321 Ill App 32, 43-45, 52 NE2d 467 (1943).

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Bluebook (online)
236 N.E.2d 907, 94 Ill. App. 2d 411, 1968 Ill. App. LEXIS 1075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spilky-v-mcdonald-illappct-1968.