Staples v. O'REILLY

288 S.W.2d 670, 1956 Mo. App. LEXIS 68
CourtMissouri Court of Appeals
DecidedMarch 26, 1956
Docket7395
StatusPublished
Cited by18 cases

This text of 288 S.W.2d 670 (Staples v. O'REILLY) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Staples v. O'REILLY, 288 S.W.2d 670, 1956 Mo. App. LEXIS 68 (Mo. Ct. App. 1956).

Opinion

STONE, Judge.

In this court-tried case, defendants appeal from the judgment for plaintiff (a) on her .petition for $2,900 principal, $215.-49 interest and $311.55 attorney’s fee on a promissory note (hereinafter referred to as the Godfrey note) executed by defendants, (b) on defendants’ counterclaim, in which defendants sought to recover $2,209.-86, the amount of a check issued by them in payment of another promissory note in the principal sum of $2,900 (hereinafter referred to as the $2,900 Oliver note) executed by defendants, and (c) on defend-, ants’ “petition for equitable relief and declaratory judgment,” in which defendants sought cancellation of three promissory notes in the principal sum of $553.33 each (hereinafter referred to as the three $553.33 Oliver notes), likewise executed by defendants.

In answer to plaintiff’s petition on the Godfrey note, defendants pleaded that they had executed that note “as a part of a real estate sale transaction entered into with the plaintiff on December 15, 1952”; that the Godfrey note was, in fact, “a real estate sales commission for services rendered in said real estate transaction” by plaintiff’s agent-husband, George Staples, Jr. (hereinafter- referred-to as George); who, being an unlicensed real estate broker [Section 339.010], “could not lawfully charge or collect a real estate sales commission” [Sections 339.020 and 339.160]; and that, therefore, the Godfrey note was “null and void for want of consideration.” (All statutory references herein are to RSMo 1949, V.A.M.S.)

In their counterclaim, defendants averred that the $2,900 Oliver note and the three $553.33 Oliver notes (hereinafter collectively referred to as the four Oliver notes) “represented real estate sales commissions” to plaintiff “to be deducted from the purchase price” of a 456-acre farm which defendants contracted to purchase from Dear-mont and Margaret Oliver; and, that the four Oliver notes were “null and void” for want of consideration or for failure of consideration because neither plaintiff nor George was at the time ' a licensed real estate broker or salesman [Sections 339.010, 339.020 and 339.160] and because the Oliver transaction was not consummated and, rio commission was earned. Defendants also alleged that they had executed the $2,900 Oliver note “with the understanding that said note was to be can-celled and returned to * * * defendants upon the delivery by them or for or on their behalf of one new Pontiac automobile to the plaintiff * * * or upon the payment of a sum of money equal to the dealer’s cost of said automobile”; that, on February 4, 1953, defendant Leland S. O’Reilly (hereinafter sometimes referred to as O’Reilly) delivered to plaintiff’s agent-husband, George, a check for $2,209.86 payable to the order of Jarvis Motor Company at Sikeston, Missouri, “which amount represented the dealer’s cost of one Pontiac automobile”; ■ and, that said check was, by George, delivered to and accepted by Jarvis “for the use and benefit of the said plaintiff and as the consideration for the cancellation * * * of the said $2,900 (Oliver) note,” which (with the Godfrey note) had been pledged by George with *673 Jarvis. Defendants further pleaded (in their amended answer but not in their counterclaim) that -O’Reilly instructed ■ George “to apply the ($2,209.86) check in payment of” the Godfrey note hut that George “fraudulently tendered and applied said check in payment of” the $2,900 Oliver note or payment of that note “was the result of a mutual mistake” on the part of George and O’Reilly.

We first refer to the evidence bearing-upon the Godfrey note, on which plaintiff sued. By a written “Offer to Buy Real Estate” dated November 20, 1952, plaintiff’s husband, George, offered to purchase a farm in Mississippi County, Missouri, from Ernest M. Godfrey for $20,-000, of which $500 was deposited with the offer. Upon the written acceptance of God-frey, this instrument became a valid contract 1 which, by its terms, obligated God-frey to sell and George to purchase the farm therein described. On December 15, 1952, plaintiff entered into a written contract with defendants to sell the Godfrey farm to them for $25,000. On a subsequent date (not fixed in the record 'but prior to February 4, 1953) this farm was conveyed by Godfrey directly to defendants, and all of the agreed purchase price was paid-(by defendants excepting only the $2,900. evidenced by the Godfrey note. Upon this state of facts, we are unable to find, as defendants would have us do, that plaintiff’s action on the Godfrey note is within the statutory prohibition of 'Section 339.160. 2 For, in our view of the matter, the God-frey note did not represent “compensation for services rendered in * * * buying, selling (or) exchanging * * * real estate” [Section 339.160] but rather was a portion of the purchase price of the God-frey farm payable by defendants to plaintiff under the firm contract by which plaintiff (not Godfrey) was obligated to convey that tract. Furthermore, upon trial, ,O’Reilly significantly commented concerning the Godfrey note, “that was the note I owed." We are of tire opinion that the judgment for plaintiff on her petition bottomed on the Godfrey note should be affirmed.

In their counterclaim, defendants seek to recover from plaintiff $2,209.86, the amount of a check issued by defendants to' Jarvis Motor Company of Sikestcm on February 4, 1953, representing “the dealer’s cost” of a new Pontiac automobile. On December 13, 1952, Dearmont and Margaret Oliver entered into a written contract with defendants (hereinafter referred to as the Oliver contract), whereby the Olivers agreed to sell their 456-acre farm in Stoddard County, Missouri, to defendants for $91,200 to be paid as follows: $20,000 by conveyance to the Olivers of a tract owned by defendants (hereinafter referred to as defendants’ garage property), on which they operated the Hi-Way Motor Company, the then Pontiac agency in Charleston; $41,000 by defendants’ assumption of a loan secured by deed of trust covering the 456-acre Oliver farm; $25,640 by notes to be “dated the day of the closing of this transaction”; and, in the language of the Oliver contract—

“The balance of said purchase price, i. e., $4,560:00, • shall be paid to Opal Staples (plaintiff) as commission for the handling of this transaction and as follows. The parties of the second part (defendants) shall, within thirty days after the closing of this transaction, as hereinafter set out, deliver *674 to the said Opal Staples a new Pontiac automobile at list price, the difference between said list price of said automobile and $4,560.00, shall be evidenced by three promissory notes, due one, two and three years after date, to bear interest from date at 5%, said notes to be executed by parties of the second part.”

Although not required so to do by the Oliver contract, defendants admittedly executed (under circumstances not reflected in the transcript) on December 13, 1952, the date of execution of the Oliver contract, the four Oliver notes payable to plaintiff’s order in the aggregate amount of $4,560, all of which were post-dated to February 2, 1953, the date on or before which warranty deeds to the 456-acre Oliver farm and defendants’ garage property were to have been exchanged. One of these post-dated notes, i.

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Bluebook (online)
288 S.W.2d 670, 1956 Mo. App. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/staples-v-oreilly-moctapp-1956.