Walthour v. Pratt

292 S.W. 1017, 173 Ark. 617, 1927 Ark. LEXIS 228
CourtSupreme Court of Arkansas
DecidedApril 11, 1927
StatusPublished
Cited by12 cases

This text of 292 S.W. 1017 (Walthour v. Pratt) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walthour v. Pratt, 292 S.W. 1017, 173 Ark. 617, 1927 Ark. LEXIS 228 (Ark. 1927).

Opinion

Mbhappy, J.

Tlie appellee, Elsie Pratt, and lier husband, R. 0. Pratt, filed suit in the Pulaski Circuit Court against J. 1). Walthour, the appellant, 'alleging- that R. C. Pratt had entered into a contract with appellant fo purchase certain lots and 2, block 2, Pinehurst Addition to the city of Little Rock, from the owner, who was unknown to the plaintiff; that said Walthour was instructed by plaintiff to purchase the property for the least sum possible; that, in pursuance of said agreement, the defendant located the owner, and reported to plaintiff that he could not get the owner to state the price, but requested the plaintiff to make an offer to the owner; that, relying upon the-statements, plaintiff offered $1,850 and instructed defendant to convey the offer to the owner, and, if satisfactory, to have deed made to Elsie Pratt; that, instead of having deed, made to plaintiff, defendant purchased the property for himself through one J. S. Bailey, who was in collusion and connivance with the defendant, purchased, the property in his name for the sum of $1,500, and that Bailey conveyed the property to plaintiff for $1,850; that defendant paid only $1,500 of this to the owner, making a profit for himself of $350.

Defendant answered, denying* all the material allegations of the complaint. Thereafter R. C. Pratt’s name was stricken out, and the case proceeded to trial in the name of Elsie Pratt as the plaintiff.

Elsie Pratt testified, in substance, that she and her husband went out with Mr. Walthour to look at some lots; that was the first time she had ever met him, and they looked at lots which belonged to Mr. Walthour, but she did not care for them, and later they came to the lots involved in this suit; that she asked Mr. Walthour about them, and he said they belonged to Mr. Cox. Her husband asked if he had any idea what Mr. Cox wanted for them, and Mr. Walthour said he did not know, but lie imagined about $2,100. They told Mr. Walthour to find out what he would take for them, and that thereafter her husband conducted the negotiations, and that she signed the notes, but did not notice the name of the payee and never noticed the name of the grantor when the deeds were delivered to her; that she did not inspect it more closely because she thought Walthour would do the right thing; that she signed the notes'and made the payments; gave the money to her husband, and that it was her own money; that it was on a Saturday in July when they looked at the lots.

R. C. Pratt testified, in substance, that he went out with his wife and* Walthour, and they did not like tlaÉ lots first shown them, but they saw these lots, and Walthour told them there was not a chance to get price down below $2,100, and suggested that Pratt mqH an offer, and he did make an offer of $1,850. He sigiMI the contract, but did not remember seeing the name S Bailey on it; he placed confidence in'the bank to loo« after his affairs, and just signed the contract and paia no attention to it. He said that Walthour later came tel the house and said that Cox had accepted their offer. Hj gave him a check for $1,105, the balance to be paid $2 a month. They did not have the abstract examined. He carried the deeds home and put them in a trunk, and did not look at them; did not notice who the grantor was. Later he began to investigate, after he had a conversation with Mr. Cox, and looked over the papers, and saw Bailey’s name on the notes, and that was the first thing he knew of Mr. Bailey. He never read the contract. He never let his eyes get above the bottom line; he just signed the papers.

Contract was introduced, showing the agreement to purchase the lots for $1,850, the payment of $1,100 in cash, and the balance at $25 a month. Cash payment of < $100 was put up to bind the contract.

Tipton Cox testified, in substance, that he owned the lots, and that Mr. Walthour came to him, or called him over th'e ’phone, asking him what he would lake for the lots, and he told him $1,500, and finally agreed to take $1,400 net. This was allowing a commission to Walthour of $75. He said Pratt was buying it, that is, he mentioned the name of Pratt. It seems, when the deed was made, he said the deed would be made to Mr. Bailey, as there Avas some financing to be done. At the time he signed the contract he did not notice to Avhom he Avas making the offer; he Avals paid $1,400, and never paid any attention to the contract. The conversation Avas that Pratt Avas buying the lots to put a brick veneer house on, that was one of the considerations. There was some talk about making the deeds to Bailey on account of some ^financing, but he never gave that any thought. The Beeptanee of the offer from Bailey Avas dated July, 20. Be had not, prior to this time, listed these lots with him B>r sale. Walthour merely called him up and asked what pe would take for these lots. He had sold some lots to fWalthour prior to this.

* The defendant testified, in substance, that he Avas the manager of the real estate department of the W. B. Woi-then Company, and works on a commission basis, part of which goes to the bank and part to him; that he met Mr. and Mrs. Pratt on Saturday morning, July 20, look them out and showed them his lots. They did not like them, and, coming back, they came by lots 1 and 2, and Mr. and Mrs. Pratt said they were nice lots, but he told them that he did not own them, and the party who owns them wants $2,000 or $2,100, and he had just sold them for Cox the day before to J. S. Bailey. He bought them for an investment. Bailey is the 'brother-in-law of AValthour. He did not tell Pratt who owned the lots, but ho thought that, made no difference. He never at any time told them that Cox owned lots 1 and 2, or that he was negotiating for them to buy these lots from Cox. They never agreed at any time to pay him anything for finding the lots for them. He wrote this contract that Pratt signed; he told him if he would make an offer for $1,850 he could possibly get it through for him; that it was customary in real estate transactions to put, up some earnest money. He did not say to buy the lots from Cox or Bailey, and did not ask who they belonged, to. They never at any time agreed to pay any commission for his services. He was representing Bailey, and Bailey paid him a commission of $92.50, that is all the commission he made except the $75 commission on the sale from Cox to Bailey. There was no connivance or scheme between him and Bailey, as charged in the complaint, and the charge that they were in collusion, he says, is untrue. It was a straightout sale. There were two sales.

J. S. Bailey testified} in substance, the same as Walthour with reference to the purchase of the lots, and that there was no collusion.

The above statement of the evidence is sufficient to show the issues and the contentions of the parties. The jury rendered a verdict in favor of the plaintiff for $350. Defendant filed its motion for a new trial, which was overruled and exceptions saved, appeal to the Supremo Court prayed and granted.

The appellant earnestly contends that there is no evidence to show that he was the agent of appellee, and that, for that reason, the court should have directed a verdict in his favor. As to whether he was the agent of Mrs. Pratt is a question of fact properly submitted to tlxo jury, and, under tbe facts as developed in this case, the jury might have found either way. They might have found that there was no agency.

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Bluebook (online)
292 S.W. 1017, 173 Ark. 617, 1927 Ark. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walthour-v-pratt-ark-1927.