Stone v. Brown

515 N.E.2d 384, 162 Ill. App. 3d 405, 113 Ill. Dec. 575, 1987 Ill. App. LEXIS 3383
CourtAppellate Court of Illinois
DecidedOctober 29, 1987
Docket3-86-0594, 3-86-0600 cons.
StatusPublished
Cited by5 cases

This text of 515 N.E.2d 384 (Stone v. Brown) 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
Stone v. Brown, 515 N.E.2d 384, 162 Ill. App. 3d 405, 113 Ill. Dec. 575, 1987 Ill. App. LEXIS 3383 (Ill. Ct. App. 1987).

Opinion

JUSTICE SCOTT

delivered the opinion of the court:

This action was initially brought by plaintiff-appellant (Stone) to recover a brokerage commission occasioned by the sale of property from defendants-appellees and third-party plaintiffs-appellants (Brown) to third-party defendant-appellee (Pearl). Brown filed a third-party complaint against Pearl, based on an indemnification clause in a contract between them wherein Pearl agreed to pay any brokerage commission owed as a result of the sale. Pearl counterclaimed against Brown alleging that Brown fraudulently induced Pearl to sign the contract containing the indemnification agreement.

The trial court granted Brown’s motion for a directed verdict at the close of Stone’s evidence and proceeded to try Pearl’s counterclaim against Brown. The jury returned a verdict in favor of Pearl and awarded Pearl $13,282.50 as compensatory damages and $50,000 as punitive damages upon which judgment was entered.

Stone filed this appeal from the judgment based on the directed verdict against him and Brown appealed the judgment in favor of Pearl on the counterclaim. Both appeals have been consolidated in this court. No questions were raised on the pleadings.

As to Stone’s appeal of the directed verdict, we note that Stone claims his commission arose as the result of an oral contract between the parties or on the theory of quantum meruit. The theories are premised on the following facts.

In 1976, David Brown, Philip Brown and Robert Brown purchased a three-acre tract of land situated in Pioneer Industrial Park, Peoria, Illinois. Legal title to the property was taken by Robert Brown as trustee for the benefit of himself and his two brothers. In 1980 or 1981 it was determined that the Pioneer Park property was no longer needed and a sign was placed on the property advertising it for sale.

On November 10, 1983, Philip Brown sent a letter to Stone, stating:

“We are interested in selling this [Pioneer Park] property at $2.25 a square foot. Because we have a couple of things in the fire, we cannot list this property at the moment. However, if you have any interested parties, we would be willing to pay the normal 10% commission if you found a buyer.”

After receiving the letter from Brown, Stone made relevant inquiries to determine the zoning, utilities and other pertinent information regarding the property and maintained a file on the property. Stone testified that from November 10, 1983, to April of 1984 he represented the property to various other commercial enterprises for development of retail establishments.

On April 25, 1984, Stone received a telephone call from Wayne Baum, president of Diversified Buildings, Incorporated, inquiring as to the availability of commercial sites in the Peoria area for the purpose of a car dealership. Stone testified that Baum indicated that he was working with Peoria Toyota-Volvo. Stone told Baum about three possible sites available and that of the three, the Brown property was most desirable for a car dealership. That same day, Stone contacted Brown inquiring as to whether the subject property was still for sale. Brown indicated that it was still for sale and Stone then called back Baum and told him that Brown was anxious to sell the property.

The next day (April 26, 1984), Baum called Stone and told him that $2.25 per square foot was too high and asked whether there would be any movement on the asking price. Stone then called Brown, inquiring whether Brown would accept a lower price per square foot. Brown stated to Stone that as little as $2 per square foot would be accepted if Stone had a buyer and also assured Stone that he would still receive the customary 10% commission. Stone then called back Baum, informing him that Brown would accept $2 per square foot.

Stone had also had conversations with Julian Cannell, Brown’s attorney, who, at the time in question, was also Stone’s attorney. Stone testified that at the end of April or early May, he met with Cannell and discussions were had concerning the Brown property. Stone stated that he informed Cannell of his conversations with Baum and the interest of Peoria Toyota-Volvo and Jack Pearl, who was the 50% shareholder in the dealership and trustee of the Pearl Enterprise Land Trust, regarding the Brown property. Cannell then informed Brown of his conversation with Stone. A week to 10 days later, Cannell called Stone advising him that Brown and Pearl were discussing the possible purchase of the Brown property by Pearl. Cannell also assured Stone that Stone would receive his 10% commission.

Stone’s next contact with Brown or Pearl was by a letter, dated July 16, 1984, addressed to Brown, a copy of which was sent to Pearl. A second letter, dated August 2, 1984, was sent to Brown, with a copy to Pearl, requesting that he be informed of any pending transaction and inquiring about payment of his brokerage commission. Neither Brown nor Pearl replied to either of these letters.

Stone admits that he never had direct contact with either Pearl or David Buysse (Buysse), the manager of Peoria Toyota-Volvo. Therefore, the central question is whether Baum was an agent for Pearl or Peoria Toyota-Volvo. Baum testified that he had been friends with Buysse for several years. In early 1984, Buysse told Baum that the owners of Peoria Toyota-Volvo were seeking a new location for the dealership. Baum stated, which Buysse affirmed, that Buysse requested Baum to do a feasibility study for the construction of a dealership building on another parcel of property (Cassidy property) in Peoria. After determining the Cassidy property was unsuitable, Baum then contacted Stone inquiring whether other sites may be suitable for a car dealership. At that time Stone told him of the Brown property and gave him other relevant information concerning the property. Baum indicated that he did this as a service to clients in hopes that his efforts would result in his company’s acquiring a contract for the client. Baum then passed the information he received from Stone on to Buysse.

Buysse testified that sometime after he had received information from Baum concerning the feasibility of the Brown property he passed this information on to John Pearl. Buysse also testified that he advised Bernie Wolfe, the sales representative from Toyota Corporation, about the Brown property and went with Wolfe to view the site. Buysse stated that when he advised Pearl of the available sites, one being the Brown property, Pearl responded that he was already aware of the available property.

Phil Brown testified that his first conversation with John Pearl was on May 10, 1984. During the conversation, Brown asked Pearl if he was involved with Stone, to which Pearl replied that neither he nor any of his associates were involved with Stone to his knowledge.

Pearl testified that his discussions with Buysse concerning the feasibility of certain properties for the dealership occurred in late 1983. Pearl also admitted, however, that Buysse advised him of the availability of the Brown property in the same conversation that Buysse told him Baum had considered the Cassidy property unfeasible.

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Cite This Page — Counsel Stack

Bluebook (online)
515 N.E.2d 384, 162 Ill. App. 3d 405, 113 Ill. Dec. 575, 1987 Ill. App. LEXIS 3383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-brown-illappct-1987.