Titus v. Smith

59 Pa. D. & C.2d 150, 1972 Pa. Dist. & Cnty. Dec. LEXIS 256
CourtPennsylvania Court of Common Pleas, Pike County
DecidedAugust 5, 1972
Docketno. 174
StatusPublished

This text of 59 Pa. D. & C.2d 150 (Titus v. Smith) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Pike County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Titus v. Smith, 59 Pa. D. & C.2d 150, 1972 Pa. Dist. & Cnty. Dec. LEXIS 256 (Pa. Super. Ct. 1972).

Opinion

WILLIAMS, P. J.,

The complaint alleges that defendant, as executor of his mother’s estate, engaged plaintiff, a real estate broker, to appraise real estate owned by the mother at the time of her decease. After the appraisal was made, defendant orally listed the property for sale with plaintiff at the price of $38,000 with the understanding that defendant would consider any other offer. Plaintiff found a buyer for $32,000. The complaint alleges that defendant was willing to sell at that price but the prospective buyer did not consummate the sale. On July 14, 1971, plaintiff secured a purchaser for $34,000 and obtained a $500 deposit on the purchase price. He notified defendant by letter and a telephone call to defendant’s home that he had the $34,000 offer. Defendant on July 18, 1971, agreed to sell the property to a buyer for $34,000 and so advised plaintiff by letter. The deposition of plaintiff shows that his $34,-000 offer was subject to the payment to him of a brokerage commission of seven percent. The sale consummated was free of a brokerage commission.

On Sunday, July 18, 1971, when defendant was showing his buyer the property, plaintiff arrived at the property. Plaintiff asserts that he asked defendant to protect his brokerage commission. He avers that defendant agreed to do so. Defendant, in his [152]*152deposition, testified that while plaintiff made the request, he does not recall that he agreed to the request.

Plaintiff contends: (1) That he had an open listing to sell the property and that he secured a buyer who was willing and able to pay a price which was the same price for which defendant sold the property to another buyer; and (2) that the promise of defendant to protect his brokerage commission constituted a separate and alternative contract to pay him a brokerage commission.

Defendant moved for summary judgment because:

(1)defendant never authorized plaintiff to sell the real estate for less than $38,000, a fact established by the pleadings and deposition; (2) defendant never authorized the sale of the property for $34,000; (3) plaintiff was not entitled to a commission because the sale to his buyer was never consummated.

The record creates three legal issues:

(1) Did plaintiff contract with defendant individually, or, as executor of his mother’s estate?

(2) Did plaintiff produce a buyer able and willing to purchase the real estate at a price agreed upon by defendant?

(3) Was the separate and alternative contract having been made on Sunday, July 18, 1971, legally enforceable?

In answering these questions, we will accept as true both the facts pleaded by plaintiff and testimony of plaintiff taken on deposition.

Did Plaintiff Contract Individually with Defendant or as Executor of his Mothers Estate?

There is a marked distinction between the duty of a fiduciary in choosing between competing offers for the purchase of real estate, and an individual owner. [153]*153Unless a fiduciary has signed an agreement to sell (Act of May 24, 1945, P. L. 944, 20 PS §818), it is the duty of a fiduciary to accept the higher offer of purchase: Warfel Estate, 417 Pa. 458 (1965). There, a broker who had a nonexclusive listing for $53,000 secured a purchaser for $42,000, later raised to $43,700. This offer was subject to a five percent brokerage commission. The fiduciary accepted the offer of another purchaser for $42,000, free of a broker’s commission. The Supreme Court, in denying the broker’s claim for commissions, said at pages 460,461:

“The Court below properly dismissed appellant’s claim. If a real estate agent does not have an exclusive agency to sell a piece of real estate, he is not entitled to a commission ‘unless his efforts constituted “the efficient procuring cause of the sale’”: Axilbund v. McAllister, 407 Pa. 46, 56, 180 A. 2d 244; Helmig v. Rockwell Mfg. Co., 380 Pa. 305, 311, 111 A. 2d 118. The ‘sale’ for which appellant claims a commission is an offer by Dr. Maccoby to purchase the property for $43,700, subject to a broker’s commission of $2,185. No sale nor any agreement to sell to appellant’s client was ever made by the executor, nor was Dr. Maccoby’s purchase offer the highest offer made.
“The duty of a fiduciary to obtain for his or its estate ‘the most advantageous price’ is a duty owing to the estate and the beneficiaries thereof and not to a broker: Heilig Bros. Co., Inc. v. Kohler, 366 Pa. 72, 76 A. 2d 613; Herbert Estate, 356 Pa. 107, 51 A. 2d 753. Cf. also the Act of May 24, 1945, P. L. 944.”

While the complaint charges defendant individually, the complaint, as well as plaintiff’s reply to new matter, set up in defendant’s answer avers that plaintiff was dealing with defendant in his fiduciary capacity. Paragraph 4 of the complaint alleges:

[154]*154“That in 1969, the defendant, Arthur Smith acting as Executor of his mother’s estate, hired the plaintiff to make an appraisal of real estate situate in the vicinity of Child’s Park ...” (Italics supplied.)

In paragraph 26 of plaintiff’s reply to new matter, plaintiff alleges that defendant’s promise (to protect plaintiff’s broker’s commissions) . . . was a promise by the agent of the estate to answer for the debt of the estate ...” (Italics supplied.)

Plaintiff’s pleadings show that defendant contracted with plaintiff not as an individual but in his fiduciary capacity as executor of his mother’s estate. As shown by the depositions, defendant was one of three beneficiaries of the estate. Under Warfel, it was his duty to accept the best offer for the estate property, which he did. Had defendant accepted the offer made by plaintiff’s prospective buyer, such acceptance would have reduced the amount obtained by the estate by seven percent of the sale price. This defendant could not lawfully have done. See Warfel, supra.

Did Plaintiff Produce a Buyer Able and Willing to Purchase the Property at a Price Agreed Upon by Defendant?

The listing was oral. Plaintiff, in his deposition, stated “At that time I think we were going to shoot for $38,000.” This listing was in September 1969. Plaintiff did produce a buyer who agreed to pay $34,-000. In his deposition, plaintiff testified as follows:

“Q. Did Mr. Smith ever authorize you to sell this property for $34,000 net?
“A. No.
“Q. Did he ever authorize you to sell this property for $34,000 gross?
“A. No.”

[155]*155Plaintiff’s own testimony negates his claim that he obtained a buyer who was willing to pay a price agreed to by defendant.

Is the Separate and Alternative Contract Void Because It Was Made on Sunday ?

It is to be observed, at the outset, that the situation here present is not apposite to the situation present in Andrien v. Bennett, 191 Pa. Superior Ct. 150 (1959). There, a listing contract was agreed upon not on Sunday but on a week day. The sales agreement with the buyer was entered into on Sunday.

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Related

Warfel Estate
209 A.2d 293 (Supreme Court of Pennsylvania, 1965)
Andrien v. Bennett
155 A.2d 206 (Superior Court of Pennsylvania, 1959)
Heilig Bros. Co., Inc. v. Kohler
76 A.2d 613 (Supreme Court of Pennsylvania, 1950)
Axilbund v. McAllister
180 A.2d 244 (Supreme Court of Pennsylvania, 1962)
Fiegelman v. Parmoff Corp.
257 A.2d 575 (Supreme Court of Pennsylvania, 1969)
Helmig v. Rockwell Manufacturing Co.
111 A.2d 118 (Supreme Court of Pennsylvania, 1955)
Herbert Estate
51 A.2d 753 (Supreme Court of Pennsylvania, 1947)
Chestnut v. Harbaugh
78 Pa. 473 (Supreme Court of Pennsylvania, 1875)
Smyers v. McMahon
71 Pa. Super. 142 (Superior Court of Pennsylvania, 1919)

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Bluebook (online)
59 Pa. D. & C.2d 150, 1972 Pa. Dist. & Cnty. Dec. LEXIS 256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/titus-v-smith-pactcomplpike-1972.