Voth v. Hackley Union National Bank

91 N.W.2d 857, 353 Mich. 596, 1958 Mich. LEXIS 402
CourtMichigan Supreme Court
DecidedSeptember 10, 1958
DocketDocket 30, Calendar 47,318
StatusPublished
Cited by1 cases

This text of 91 N.W.2d 857 (Voth v. Hackley Union National Bank) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Voth v. Hackley Union National Bank, 91 N.W.2d 857, 353 Mich. 596, 1958 Mich. LEXIS 402 (Mich. 1958).

Opinion

Kelly, J.

Plaintiff sued to obtain realtor’s commission allegedly earned by sale of real estate. Plaintiff appeals from a directed verdict for defend.ants.

The property in question is located in Muskegon, Michigan. The history of the title shows that on December 4, 1922, legal conveyance of the premises was made to Paul J. Schlossman, Frank Hubbard Smith, Henry A. Bauknecht and Jesse G-. Bauknecht, composing the Paul J. Schlossman Company, a co-partnership.

Under date of March 9,1927, the partnership articles were amended and said amendment placed on record. This amendment provided:

“It is agreed between the parties hereto that all lands and other interests in realty now held or hereafter acquired by said partners shall be held by them as tenants in common and not as.tenants in copartnership ; that said partners shall have the interest in said land and realty set opposite their respective names, vis: Paul J. Schlossman, an undivided 1/3; Frank Hubbard Smith, an undivided 1/3; Jesse O. Bauknecht, an undivided 1/6; Henry A. Bauknecht, an undivided 1/6. It is further agreed that if for any reason this article shall be held insufficient to constitute said parties tenants in common in said land and realty, then said parties, their heirs, legal representatives and assigns shall execute such instruments of conveyance as shall be required in or *598 der to constitute' said parties tenants in common, having undivided interests in said land and realty in the proportions above mentioned.”

As .the. original partners died, their heirs succeeded to their interest so that title was in the present defendants on July 1, 1950, when another partnership agreement was executed. This agreement followed the death of Paul J. Schlossman, and provided, in part:

“Article 11 — It is agreed between the parties hereto that all realty now held or hereafter acquired by the copartners shall be held by them as tenants in common, and not as tenants in copartnership, but that the income from said real estate shall, subject to the provisions of article 7 hereof, be deemed, treated and dealt with as copartnership assets.”

■ Article 7, above referred to, is not important to this litigation as it only provided for the respective interests of Ruth Bauknecht McNiff and Nynah Bauknecht.

Notice of dissolution of the partnership was filed on February 19, 1953, by the executor of the estate of Paul J. Schlossman. The real estate involved comprised 6 pieces of valuable commercial property, including the parcel referred to as the “Kresge building,” which is the subject of this litigation.

After receiving the notice of dissolution, the various individuals, who held as either partners or as tenants in common, agreed to partition or division of moneys obtained through sale of the property.

The defendant bank, as trustee under the will of Henry A. Bauknecht, contacted several realtors, including plaintiff, advising them that the Kresge property was. for sale.

Plaintiff was well-acquainted with the Kresge property, as he was the realtor who. consummated the long-term lease between the partnership and the *599 Kresge Company. Thiip lease provided for a right of purchase by the Kresge Company matching the highest bona fide offer of purchase, if defendants decided to sell.

Between July 10, 1953, and March 27, 1954, several letters were exchanged between plaintiff and the hank as trustee, in regard to this property. The interest defendant hank represented was merely 1/6, and plaintiff did not, directly or indirectly, have contact with the several owners of the remaining 5/6 interest.

On January 11, 1954, plaintiff went to the Muskegon hank and informed its officers that he had an offer for $220,000. A letter was prepared by the hank, signed by plaintiff, which read:

“January 12, 1954
“The Hackley Union National Bank
“Muskegon, Michigan
“Gentlemen:
“Trustee under the will of
Henry A. Bauknecht
“In your capacity as trustee in the above-captioned estate you own a 1/6 interest in property located at 261-263 West Western avenue which is leased to S. S. Kresge Company. This property is for sale and I have procured a hid from Norman Barnes & Company, Chicago, Illinois, of $220,000 for the property. Under the terms of the S. S. Kresge lease they have the option of meeting any bid for the property within 30 days.
“On occasions in the past as well as in correspondence the Hackley Union National Bank as trustee has stated that they would not approve the payment of 2 commissions on the sale of this property. Should claims for 2 commissions arise, the real-estate brokers involved shall themselves settle the question *600 without implicating the sellers in any way whatsoever.
“I agree to pay the expenses of an appraisal of the-land and building to be made by an appraiser, the legal services of Paul Lathan, 310 South Michigan avenue, Chicago, Illinois of $500 and such other reasonable expenses as may be incurred not to exceed, $125, enabling the sellers to net $209,000 from this, sale.
“Yours very truly,
“Westleigh H. Voth.” '

The bank notified the Kresge Company of the offer, and on February 10,1954, Kresge elected to purchase for the same amount as the offer,. namely, $220,000.'

A commission of 5% was paid by defendants to the real-estate agent who represented the Kresge Company. The record does not show what services that real-estate agent performed to consummate the $220,000 deal, but it is conceded that said realtor could not have successfully demanded and prosecuted an action against defendant bank for said commission.

In determining that a judgment of no cause for action should be entered, the Honorable Archie D. McDonald, circuit judge, filed a written opinion in which he stated: • ■

“It is the theory of the plaintiff that the interest represented by the bank as a partner was in process of liquidating the partnership and thereby had authority to bind the partners in an agreement to pay commission. ■
“It is also a theory of the plaintiff that if the foregoing principle does not apply, that the parties were engaged in a joint venture.
“The following questions therefore must be considered :
*601 “Question 1. Was the property owned by the respective parties as tenants in common a part of the partnership being liquidated?
“Question 2. Has there been sufficient memoranda in writing to take the case out of the statute of frauds ?
“Question 1.

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Related

Louis Schlesinger Co. v. Kresge Foundation
260 F. Supp. 763 (D. New Jersey, 1966)

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Bluebook (online)
91 N.W.2d 857, 353 Mich. 596, 1958 Mich. LEXIS 402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/voth-v-hackley-union-national-bank-mich-1958.