Stein v. Goldberg

2 Pa. D. & C.2d 562, 1954 Pa. Dist. & Cnty. Dec. LEXIS 37
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedDecember 20, 1954
Docketno. 48
StatusPublished

This text of 2 Pa. D. & C.2d 562 (Stein v. Goldberg) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stein v. Goldberg, 2 Pa. D. & C.2d 562, 1954 Pa. Dist. & Cnty. Dec. LEXIS 37 (Pa. Super. Ct. 1954).

Opinion

Oliver, P. J.,

This is a suit in equity under the Bulk Sales Act of May 23, 1919, P. L. 262. Plaintiff is seeking to recover a brokerage commission allegedly due him. On June 21, 1954, a hearing was held on plaintiff’s application for a preliminary injunction. The injunction was granted and, on September 30, 1954, the matter came on for final hearing.

Plaintiff, Morris Stein, alleged that he is a broker engaged in buying and selling, on commission, going business concerns; that defendants Nathan Goldberg and Morris Rosen were co-partners who owned and operated a taproom; that on September 28, 1954, defendant Goldberg, on his own behalf and as the authorized agent for defendant Rosen, entered into a written agreement whereby plaintiff was employed as the broker for the partnership and authorized to attempt to obtain a purchaser of the taproom; that plaintiff was to receive five percent of the sale price of the business if sold while the agreement was still in force, and that plaintiff made diligent efforts to sell the business.

[564]*564Plaintiff further averred that on April 6, 1954, while said agreement was still in effect, defendants Goldberg and Rosen entered into a written agreement of sale with defendant, Stevel Bar, Inc.; that the purchase price was $30,000; that plaintiff was a creditor of defendants Goldberg and Rosen, and entitled to the benefit and protection of the Bulk Sales Act of May 23, 1919, P. L. 262; that defendants failed to comply with the Bulk Sales Act in that the purchaser, Stevel Bar, Inc., failed to demand or receive from vendors Goldberg and Rosen, an affidavit setting forth the name of plaintiff as a creditor of the vendors; that the purchaser failed to notify plaintiff of the proposed sale, and failed to see to the proper application of the purchase money.

Plaintiff prayed the sale be declared void and fraudulent; that Stevel Bar, Inc., be held liable as receiver and the property purchased by it be held for the benefit of the creditors of defendants, Goldberg and Rosen; that Stevel Bar, Inc., be restrained from selling or disposing of the stock and fixtures; that plaintiff be declared a creditor of defendants, Goldberg and Rosen, in the sum of $1,500; that Stevel Bar, Inc., be decreed to pay plaintiff’s claim with costs and interest.

Each defendant filed a separate answer. Goldberg denied that he had authority from Rosen to enter into any written agreement with plaintiff. Goldberg alleged that he was unable to read the printed form presented to him by plaintiff because he did not have his glasses with him; and that he was under the mistaken belief (due to plaintiff’s misrepresentation) that the form provided for an exclusive broker’s agency for only three months. He further denied that the agency was to continue until terminated by 30 days’ written notice, and he denied any ' failure to comply with the Bulk Sales Act.

[565]*565Rosen filed an answer which, in substance, was similar to that of Goldberg. He denied that he ever entered into any agreement with plaintiff, directly or indirectly. Specifically, he denied giving his partner any authority to contraction his behalf, or on behalf of the partnership, with plaintiff. Finally, Rosen denied failure to comply with the Bulk Sales Act.

Stevel Bar, Inc., pleaded that it had no knowledge of the material averments of plaintiff’s complaint and denied failure to comply with the Bulk Sales Act.

All three defendants denied that plaintiff was entitled to the relief he sought.

At the hearing plaintiff was granted leave to amend his complaint. He did so, alleging that the purchase price was $25,000 and that he was entitled to $1,250. He also alleged that the sale was consummated on March 29, 1954.

Findings of Fact

The chancellor makes the following findings of fact:

1. Plaintiff, Morris M. Stein, individually and trading as Regal Business Brokers, is a broker engaged in the business of buying and selling, on commissions, going business concerns.

2. Defendants, Nathan Goldberg and Morris Rosen, trading as copartners under the name of Nate’s Bar, owned and operated a taproom at 1432 West Columbia Avenue, Philadelphia.

3. Defendant, Stevel Bar, Inc., is a corporation organized and existing under the laws of the Commonwealth of Pennsylvania and is presently engaged in the business of conducting the taproom at 1432 West Columbia Avenue, Philadelphia, formerly owned by defendants, Nathan Goldberg and Morris Rosen. •

4. On September 28, 1954, defendant, Nathan Goldberg, on his own behalf, and as the duly authorized agent of the partnership, entered into a written agree[566]*566ment with plaintiff whereby plaintiff was appointed their sole and exclusive agent for the sale of the taproom business located at 1432 West Columbia Avenue, Philadelphia, pursuant to the terms and conditions therein set forth.

5. The agreement provided, inter alia, that the agency was to continue for a minimum of three months and thereafter until terminated upon 30 days’ written notice.

6. Plaintiff thereupon undertook said employment and did advertise the busines for sale, and did invite prospective customers to inspect the business premises.

7. On March 29, 1954, defendants, Goldberg and Rosen, sold the busines to defendant, Stevel Bar, Inc., who took possession of the taproom and paid to defendants, Goldberg and Rosen, the sum of $25,000.

8. Neither at that time nor at any time prior thereto, had defendants Nathan Goldberg or Morris Rosen given plaintiff notice of their desire to terminate the agency agreement pursuant to the terms and conditions of the agreement.

9. Upon the execution of the agreement of sale for the business, defendants, Nathan Goldberg and Morris Rosen, became obligated to pay plaintiff five percent of $25,000, or $1,250, in accordance with their agency contract with plaintiff.

10. At the time.of the. consummation of the sale both defendants, Nathan Goldberg and .Morris Rosen, knew or should have known that plaintiff was a creditor of theirs to the extent of the commission due him, to wit, $1,250.

11. Defendant, Stevel Bar, Inc., paid to defendants, Nathan Goldberg and Morris Rosen, the purchase price without receiving from them any affidavit setting forth the names and addresses of all their creditors, together with the amount of indebtednes due and owing each by the partnership.

[567]*56712. Defendant, Stevel Bar, Inc., failed to notify plaintiff of the proposed sale, the price to be paid, the time for the sale, and the terms and conditions thereof.

13. Defendant, Stevel Bar, Inc., failed properly to apply the purchase money to the claims of creditors of defendants, Nathan Goldberg and Morris Rosen.

Discussion

Defendants, Nathan Goldberg and Morris Rosen, were formerly partners, each having a one-half interest in the taproom known as Nate’s Bar, located at 1432 West Columbia Avenue, Philadelphia. Plaintiff, Morris Stein, individually and trading as Regal Business Brokers, was and is engaged in the business of buying and selling, on commission, going business concerns.

On September 28,1953, plaintiff spoke to defendant Goldberg and, as a result of this conversation, Goldberg signed an agreement giving plaintiff an exclusive agency to sell defendants’ taproom.

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

Related

Silberman v. Crane
44 A.2d 598 (Superior Court of Pennsylvania, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
2 Pa. D. & C.2d 562, 1954 Pa. Dist. & Cnty. Dec. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stein-v-goldberg-pactcomplphilad-1954.