Spring Co. v. Holle

78 N.W.2d 315, 248 Minn. 51, 1956 Minn. LEXIS 616
CourtSupreme Court of Minnesota
DecidedJuly 20, 1956
Docket36,794, 36,864
StatusPublished
Cited by9 cases

This text of 78 N.W.2d 315 (Spring Co. v. Holle) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spring Co. v. Holle, 78 N.W.2d 315, 248 Minn. 51, 1956 Minn. LEXIS 616 (Mich. 1956).

Opinion

Thomas Gallagher, Justice.

Action by The Spring Company, a corporation engaged as a real estate broker in Minneapolis, against defendants, Spencer F. Hollé and Jack J. Beugen, for damages alleged to have been sustained by plaintiff because of their actions in interfering with and invading plaintiff’s rights under a listing agreement executed by Hollé, where- *53 under he agreed to pay plaintiff a commission on the sale of his house. The house was sold by Hollé to Beugen for $35,000. It is plaintiff’s claim that it produced Beugen as a prospective purchaser and that it was the procuring cause of the sale to him. The damages it claims are equal to 5 percent of the sales price, the commission provided for under the terms of the listing agreement.

The trial court found that plaintiff had been the procuring cause of the sale; that Hollé had become obligated to pay plaintiff as commission therefor 5 percent of the sales price; and that by their procedure in closing the transaction as hereinafter described Hollé and Beugen had interfered with and invaded plaintiff’s contractual right against Hollé for such commission to plaintiff’s damage in the sum of $1,750. Judgment against both defendants in such amount was ordered and subsequently entered. There is joined herein the appeal of defendant Hollé from an order denying his motion for amended findings or a new trial; and the appeal of the defendant Beugen from the judgment.

The facts are as follows: On April 7, 1953, Hollé executed a listing agreement granting plaintiff exclusive authority to sell the property involved for $19,900 or “any price or terms that I accept” and “when sold * * * to pay The Spring Co. a commission of five per cent * * By its terms this agreement expired June 1, 1953.

During the months of April and May 1953, on seven occasions, plaintiff advertised the house for sale in the Minneapolis Sunday Tribune, each of such advertisements advising readers that on the date thereof the house would be open for inspection. While the property was thus held open on such occasions, one of plaintiff’s salesmen remained upon the premises to show it to prospective purchasers. As a result many of them called and examined the house, among them defendant Beugen who went through it with plaintiff’s salesman on two different occasions. Later he was introduced to Hollé by such salesman and subsequently on April 25, 1953, in consequence of the plaintiff’s efforts, he submitted to Hollé through plaintiff a written proposal, wherein he offered to purchase the house for $37,500. This offer was rejected by Hollé who then made *54 a counterproposal that Beugen purchase it for $45,000, which proposal was rejected by Beugen. On May 15, 1958, likewise through plaintiff’s salesman, Beugen submitted a second offer — this time for $39,000 — which was also rejected by Hollé.

Thereafter, subsequent to the expiration date of the listing agreement, plaintiff continued to show the house until late in the fall of 1953. Its activities in this respect were conducted with the knowledge and consent of Hollé, who permitted it the use of the house keys on various occasions so that the house might be shown to additional prospects presented by plaintiff. Likewise, during this period, plaintiff’s salesman continued to talk with Beugen with respect to the latter’s purchase of the house, such discussions extending until November of 1953.

' In October of 1953, without plaintiff’s knowledge, Hollé communicated directly with Beugen with respect to purchasing the property and persuaded him to look at it again. This time Hollé offered it for $35,000, and Beugen quickly indicated his desire to purchase the property at that figure. An unusual sales procedure was then adopted, which the trial court found was resorted to because of Holle’s belief that most listing contracts had provisions protecting the agents therein on their commissions for six months after the expiration date thereof. The procedure was as follows: On November 6, 1953, an agreement was executed, wherein Hollé extended to Beugen an option of 30 days in which to purchase the property for the sum of $35,000. As consideration for this 30-day option, Beugen paid Hollé the sum of $2,500. Attached to the option agreement was an earnest money contract, execution of which by Beugen would indicate his exercise of the option. At the same time, Hollé signed and delivered to Beugen an instrument which provided that if Beugen exercised the option and “if any person, firm or corporation shall after the exercise of said option claim or demand a commission for the sale of said property to Jack Beugen that the undersigned will save and hold harmless said Jack Beugen from any claim or demand for said commission and will defend at his own cost any action instituted on said claim or demand.” On Decern- *55 ber 2, 1953, six months and a few days after the exclusive listing agreement had expired, Beugen exercised his right to purchase and executed the earnest money contract.

No details of the transaction were disclosed to plaintiff who first became aware that Beugen had purchased the property when the warranty deed thereof was recorded. Thereafter, it demanded of Hollé that its commission be paid. In response thereto Hollé replied : “We do not owe a commission to the Spring Company * * * because the six months have elapsed between the time the listing expired and the house was transferred” and that “If you transfer a house six months after the expiration of the listing, we do not owe you a commission * * * just try and get a dime out of me.” There was testimony that many listing contracts contain a provision protecting agents for six months on sales made to prospects procured by them while such agreements have been in effect but that plaintiff had eliminated such provisions from the form of listing agreement which it used. When asked why the above procedure was followed, neither defendant was able to offer an explanation. The trial court found that it was resorted to in “a deliberate attempt to deprive the plaintiff of an earned commission.”

On appeal it is contended that the evidence fails to sustain the trial court’s finding (1) that plaintiff had been the procuring cause of the sale; and (2) that defendants, by the procedure outlined, had unlawfully interfered with plaintiff’s contract right so as to deprive it of its earned commission.

It is conceded by defendants that, if the evidence sustains the finding that plaintiff was the procuring cause of the sale described, the fact that the sale was not consummated until after the expiration date of the listing agreement and then by Hollé alone at a price lower than specified to plaintiff would be immaterial. Neumeier v. Sperzel, 223 Minn. 60, 25 N. W. (2d) 651; Jaeger v. Glover, 89 Minn. 490, 95 N. W. 311; Hubachek v. Hazzard, 83 Minn. 437, 86 N. W. 426; Steidl v. McClymonds, 90 Minn. 205, 95 N. W. 906. (Hentges v. Wolff, 240 Minn. 517, 61 N. W. [2d] 748, is limited to the specific provisions of the contract there involved.)

*56 To sustain a finding that an agent is the procuring cause of a sale, there must he evidence that he originated a course of events which without a break in their continuity created a cause of which the sale was the result. It is not enough that his services merely contributed to the result.

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

Related

Rosenberg v. Heritage Renovations, LLC
685 N.W.2d 320 (Supreme Court of Minnesota, 2004)
Lynn Beechler Realty Co. v. Warnygora
396 N.W.2d 717 (Court of Appeals of Minnesota, 1986)
Better Homes & Gardens v. Bittmann
357 N.W.2d 351 (Court of Appeals of Minnesota, 1984)
Banner Realty, Inc. v. Turek
546 P.2d 798 (Arizona Supreme Court, 1976)
Gudim Realty, Inc. v. Hughes
169 N.W.2d 216 (Supreme Court of Minnesota, 1969)
F. D. Hill & Co. v. Wallerich
407 P.2d 956 (Washington Supreme Court, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
78 N.W.2d 315, 248 Minn. 51, 1956 Minn. LEXIS 616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spring-co-v-holle-minn-1956.