Wells v. Hazlett

264 P. 19, 125 Kan. 265
CourtSupreme Court of Kansas
DecidedJanuary 15, 1928
DocketNo. 27,849
StatusPublished
Cited by2 cases

This text of 264 P. 19 (Wells v. Hazlett) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells v. Hazlett, 264 P. 19, 125 Kan. 265 (kan 1928).

Opinion

The opinion of the court was delivered by

Dawson, J.:

This was an action for a commission for a broker’s services in finding a purchaser for certain oil and gas leases of Greenwood county land.

Plaintiff is a broker of oil and gas leases and resides at Independence. Defendants are oil producers and business men, three of whom, Hazlett, Bradford and Frazier, reside at El Dorado, and Davis, who resides in Wichita. Defendants are owners in common of certain productive and highly valuable oil leases in Greenwood county — one 240-acre tract and a three-fourths interest in an adjacent quarter section. Defendant Davis maintained an office in El Dorado where the accounts concerning their common business interests were kept, and where the defendants occasionally met for business purposes.

According to the least controversial aspect of the facts (almost every detail of which is in dispute) it appears that on Monday, February 8, 1926, the plaintiff by long-distance telephone communication made an engagement to meet defendant Davis at his office at El Dorado. Theretofore they were strangers. Plaintiff met Davis and defendant Bradford in Davis’ office on Tuesday, February 9. Plaintiff stated that his business was to see if he could get a price on defendants’ leases, as one of the major oil companies might be induced to buy them. David and Bradford replied that he would have to give the name of his prospective buyer. He said he hoped to interest the Prairie Oil and Gas Company. Davis and Bradford told plaintiff it would be necessary to consult their co-owners, Hazlett and Frazier; and the same day the four defendants met and 'fixed a price of $1,750,000 for their property, and agreed with plaintiff to pay him a commission of 5 per cent if he should induce the [267]*267Prairie Oil and Gas Company to purchase it. According to plaintiff’s version of the employment, he was to have a reasonable length of time to accomplish this, which assertion of fact is emphatically denied by defendants. On Wednesday, February 10, plaintiff submitted to the Prairie Oil and Gas Company a written statement of-defendants’ property, giving its legal description, nature of title,ownership, number of producing wells, number of wells drilling,' gross daily production, and other data, including defendants’ price, $1,750,000. That company directed two of its officers to repair forthwith to Greenwood county to examine the property and the books and records in Davis’ office concerning it. After two days’ inspection by these officers, the Prairie Oil and Gas Company, on Saturday, February 13, offered $1,500,000 for the property upon certain conditions. This offer was received the same day by defendant Bradford, who replied that he was not interested in such an offer. It also appears that an officer of the Prairie company, Sidwell, had a telephone conversation with defendant Davis the same evening in which he says (but Davis denies) that Davis said the Prairie company would be given until Wednesday of the following week, February 17, .to accept or reject defendants’ original proposition. Plaintiff testified that Davis informed him that he (Davis) had given the Prairie company until Wednesday to accept or reject the original offer to sell at $1,750,000. On Monday, February 15, Meyer, officer in charge of negotiations for the Prairie company, told plaintiff his company would give $1,600,000. Plaintiff met Davis that evening and informed him of the Prairie company’s latest bid. Davis told plaintiff to come to the office next morning and he would have the other defendants there and consider the offer. On Tuesday morning, February 16, plaintiff met defendants and told them of the $1,600,000 bid. This bid was rejected, and Hazlett, apparently speaking for himself and the three other defendants and in their presence, held a conversation with plaintiff to this effect:

Hazlett: “Mr. Wells, you gave the Prairie our proposition just as it was given you, did you?”
Wells : “Yes, sir.”
Hazlett : “That is, that the price of this property was to be a million seven hundred and fifty thousand dollars cash?”
’ Wells : “Yes, sir.”
Hazlett: “This is their answer, is it — a million six hundred thousand, etc.?”
Wells: “Yes; that is all there is to it, right now, all there is to it.”
Hazlett: “Now, Mr. Wells, we made this offer and the Prairie has rejected [268]*268it; and that offer is withdrawn, and this matter is closed as far as we are concerned.”
Wells : “I don’t think that you have any right to call this deal off at this time, and I am going over to the El Dorado hotel right away and phone the Prairie that you have refused the offer of a million six hundred thousand for the property and see if I cannot get them to give your price of a million seven hundred and fifty thousand dollars.”

A sharp dispute next occurs as to what was said. Hazlett testified:

“I said, Mr. Wells, I have no control over the Prairie, could not keep them probably from making an offer, but so far as making an offer that has anything to do with our proposition to them, we won’t consider it at all, and you don’t represent us any further.”

According to plaintiff’s testimony, this was what occurred:

“Mr. Bradford asked me how long it would take to find out or hear from the Prairie whether they would increase the offer to $1,750,000 and I told him that Mr. Moody and Mr. Fitzpatrick and Mr. Kelsay [higher officers] were on their way to New York, and it might b.e necessary for Mr. Meyer to get in touch with them by telephone or telegraph before he had the authority to make an increased offer, but I think at best I can let you know definitely in a few hours. Mr. Hazlett said: ‘Well, that is all right, you see if you can get the Prairie to increase the offer — to offer $1,750,000.’ ”
Wells: “Well, where can I get in touch with you gentlemen as soon as I hear from the Prairie?”

Defendant Davis answered that he would see plaintiff at the hotel that evening. Within a short time plaintiff talked with Meyer, the Prairie company officer, and the latter said his company would pay defendants their price, $1,750,000, and that he would have a check for that sum in defendants’ hands by noon the following day. Plaintiff informed Davis of that fact Tuesday evening, February 16, about 9:30 p. m.; but plaintiff added that the Prairie company wanted the taxes prorated, the transfer to be effective as of Saturday, February 13, and that defendants should go to Independence, headquarters of the company, to close the deal. Davis said he could not take the responsibility of accepting for his associates; that it was too late to see Hazlett who was 78 years old, and retired-early; but that he would get the defendants together at his office next morning and call plaintiff at 9:30 a. m. Not until 2:30 p. m. next day did plaintiff meet defendants and when they did, Hazlett informed plaintiff, “We are not going to sell the property at this time.” Plaintiff replied:

[269]*269“Well, Mr. Hazlett, I cannot understand why you won’t deliver the property to the Prairie because I have tendered you the Prairie’s offer of a million seven hundred and fifty thousand dollars, which meets your price.”
Hazlett: “Well, it doesn’t meet our proposition.”

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Related

DeYoung v. Reiling
199 P.2d 492 (Supreme Court of Kansas, 1948)
Orr v. Meng
271 P. 292 (Supreme Court of Kansas, 1928)

Cite This Page — Counsel Stack

Bluebook (online)
264 P. 19, 125 Kan. 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-v-hazlett-kan-1928.