Thomas J. Johnson Co., Inc. v. Mueller

205 S.W.2d 521, 356 Mo. 1109, 1947 Mo. LEXIS 665
CourtSupreme Court of Missouri
DecidedOctober 13, 1947
DocketNo. 40474.
StatusPublished
Cited by8 cases

This text of 205 S.W.2d 521 (Thomas J. Johnson Co., Inc. v. Mueller) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas J. Johnson Co., Inc. v. Mueller, 205 S.W.2d 521, 356 Mo. 1109, 1947 Mo. LEXIS 665 (Mo. 1947).

Opinion

*1112 ELLISON,- J.

This is a combined original and third party-action under Sec. 20 of the Civil Code. 1 . The causes were tried in equity and the appeal has been lodged here on the ground that title to real estate is involved in' the third party action. The principal questions to be decided are: whether the original plaintiff-appellant, an incorporated realtor, represented the original defendant with undivided fidelity in securing a purchaser and effecting a sale of real estate for the original defendant-appellant; whether the latter had a merchantable title to the land; and whether the trial court erred in permitting the original defendant as third party plaintiff to implead the contract purchaser of the land, and his wife, as third party defendants.

In the original action the plaintiff realtor' sued the original defendant, Mrs. Marie E. Mueller, for $690, the items of which were: a $425 real estate commission of 5% for securing a purchaser for her 90 acre farm in Jefferson county at the price of $8500; plus $15 advanced for extending the abstract of title; plus $250 refunded by the plaintiff realtor to the purchaser, Joseph, R. Robison, out of $500 earnest money the latter had .paid down. This refundías made after the sale had failed-to go through.- —

■ The plaintiff contended it was entitled to recover, notwithstanding the sale’ was not-consummated, on the ground that the failure was the fault of the original defendant, Mrs. Mueller, in that-she failed to deliver a warranty deed within the time prescribed by the written contract of sale between her and the purchaser, and because her .title was not merchantable in fact and law.

The original defendant Mueller contended: that she did have a merchantable title; that she was at all.times ready, able and willing to perform the sale contract; that the plaintiff realtor did not repre.sent her with undivided fidelity, though she alone was paying the commission ; but on the contrary without her knowledge actually represented the purchaser also, and wrongfully told the latter -her title was not merchantable in consequence of which he refused to take the farm; and that the plaintiff realtor furthermore permitted the purchaser, Robison, to appropriate valuable - fruits grown on the farm while he was in possession thereof through the summer of 1945, and then to move off without paying for them.

After the defendant Mueller had filed her original answer, she filed a motion for leave to implead the purchaser and his wife, Hilda E.-Robison (who was not a party to the sale contract), as third party defendants. That motion was sustained by the court over the original plaintiff’s lengthy suggestions in opposition, and the defendant Mueller as third party plaintiff thereupon filed her third party peti *1113 tion in two counts against the Robisons. Both counts alleged her ability to perform the sale contract and that she had always had a merchantable title. The second count alleged additionally that the Robisons had been in possession of the farm and gathered fruits therefrom worth $750. The prayer of both counts was for-specific performance, and payment of the balance of the purchase price. The second count prayed alternatively that if that relief be denied, she be awarded $750 damages for the fruits taken.

-The third party defendants Robison answered denying liability and contending: that the defendant Hilda Robison was not a party to the contract -of sale and should not have been impleaded; that the defendant Joseph R. Robison, with his wife as a member of his household, was entitled under the contract to possession. of the farm and growing fruits;. that no deed conveying a merchantable title was ever tendered by the third party plaintiff, Mrs. Mueller; that on the contrary the original plaintiff realtor was the third party plaintiff’s agent, not Robison’s, and as such informed Robison the title was not merchantable and that it would be necessary to bring a quiet title suit which would take two or three months more; that the-defendant Robison thereupon demanded and received back his $500 earnest money, moved off the farm and bought another.

The original plaintiff realtor refunded the entire $500, although $250 of it had already been paid to the original defendant-third-party plaintiff, Mrs. Mueller. The $250 item in the original suit represented that money.

The sale contract in part- provided as follows (parentheses ours) : “This contract to be binding when and-if signed by the other party within four days. Sake is to be closed at office of (the plaintiff realtor) on. or before 7/11/45 (July 11, 1945) under the usual closing practices of the St: Louis Real Estate Exchange hereinafter set forth, and made a part of this contract (copy of rules attached). Title to property is-to pass when sale is closed. Possession is to be-delivered on June 30,, 1945. Deed to be made to Joseph R. Robison and Hilda E. Robison, his wife. Commission shall be'5%, to be páid by seller and to be a lien on the property.” The contract was signed by both parties, Marie E. Mueller, the seller, and Joseph R. Robison; the purchaser, on June 11, 1945. Robison’s wife was not a party to it, and did not sign. Neither did the plaintiff realtor sign, though it receipted for the earnest money.

The rules of the St. Louis Real Estate Exchange, which were made a part of the contract, required a general warranty deed and “merchantable title,” and provided in part-: “If title is merchantable, purchaser shall pay for the certificate of title and recorder’s fees; if title must be perfected seller shall pay cost of perfecting, and purchaser pay for certificate of title;'if title fails and cannot be perfected within 60 days from date of this contract, earnest money shall *1114 be returned to purchaser and seller shall pay for certificate of title and pay agent’s commission and expenses. Time is of the essence of this contract.”

-In addition to the foregoing, the evidence, showed that the original defendant-third party plaintiff, Mrs. Mueller who was a widow, had listed- her farm for sale with the plaintiff realtor two or three months before June 11, 1945, when the sale contract with Joseph R. Robison was made. At or about the latter date she delivered to the-plaintiff realtor her abstract of title to the farm, which covered the title only to May 25, 1922. ■ Mr. Thomas J. Johnson, president of the plaintiff realtor, testified he mailed this abstract to the abstractor, Mr. Schubel, for extension. .

On August 13, 1945, at the telephonic request of Mr. Johnson, Mr; Schubel, who was a lawyer as well as an abstractor, issued a certificate of title stating that the fee simple title to one quarter-quarter section of the 90 acre-farm was well vested in;the original defendant-third party plaintiff, Mrs. Mueller.- But as to the othér quartern quarter section the letter said the title was vested in one Emilie Schilling’ (who, if living, resided in Germany), and that on July 7, 1907, One John Reichart had conveyed that land to two sons from whom it had passed by mesne conveyances to Mrs. Mueller. In other words, as we understand the certificate, that particular -tract was omitted in the deed from Emilie Schilling to John Reichart, ov$r 38 years earlier, but had appeared in his and subsequent deeds. At the trial Mr.

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Bluebook (online)
205 S.W.2d 521, 356 Mo. 1109, 1947 Mo. LEXIS 665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-j-johnson-co-inc-v-mueller-mo-1947.