Whalen v. Burkhardt

129 Misc. 586, 221 N.Y.S. 352, 1927 N.Y. Misc. LEXIS 726
CourtNew York Supreme Court
DecidedApril 21, 1927
StatusPublished
Cited by1 cases

This text of 129 Misc. 586 (Whalen v. Burkhardt) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whalen v. Burkhardt, 129 Misc. 586, 221 N.Y.S. 352, 1927 N.Y. Misc. LEXIS 726 (N.Y. Super. Ct. 1927).

Opinion

Lynch, J.

This is an action for broker’s commissions amounting to $1,000. Plaintiff claims that defendant agreed to pay to him that amount in case he succeeded in procuring a purchaser for defendant’s property situated on the Albany Post road in the borough of The Bronx, New York city, and that he (the plaintiff) did procure such a purchaser.

It is admitted in the pleadings that the defendant did, on July 16, 1926, list the property referred to with the plaintiff, who is a real estate broker with offices in Yonkers. It is alleged in the complaint and denied in the answer that the plaintiff procured a purchaser ready, able and willing to purchase the property in question at the purchase price of $21,000, the price fixed by the seller.

The evidence established without contradiction that defendant, at the time he listed the property at the plaintiff’s agency, defined the terms on which he would sell to the extent that he fixed the price at $21,000, stating that he would take $2,000 in cash, and that the first mortgage on the property was $12,000, payable $840 yearly. 8o much appears from the listing card signed by the defendant.

From the fact that the cash payment might be but $2,000, and that the amount of the first mortgage was $12,000, it is a clear inference, and indeed the testimony shows, that a purchase-money mortgage for the remaining ,$7,000 was to be given. The amount of plaintiff’s commission is also fixed by this card as $1,000.

It appears without dispute that plaintiff, subsequently to being thus authorized to procure a purchaser, did procure Mr. and Mrs. [587]*587Eisman and introduced them to the defendant. Negotiations followed between the defendant and these prospective purchasers. Plaintiff was present at some or all of the conferences between the prospective buyers and the defendant. Although there was some conflict in the testimony, I am satisfied that the Eismans professed a willingness to pay for the property the sum of $21,000, the amount the plaintiff had insisted upon. So much of the defendant’s argument as is to the effect that he is exonerated by reason of the fact that no contract was signed I do not consider well founded. I am satisfied that, whether the contract was signed or not, the plaintiff was entitled to his commission if the Eismans were ready, willing and able to purchase the property upon terms to which the defendant had assented.

At this point, however, the plaintiff encounters a difficulty which, in my judgment, his proof has not surmounted. It was not enough for plaintiff to establish merely that his purchasers were ready, willing and able to pay in some form the price upon which the seller insisted, viz., $21,000, and that in addition thereto they were willing to assume payment of the first mortgage of $12,000 in the manner fixed by that mortgage. It was necessary further that the purchasers should be willing to give such a mortgage for the remaining $7,000 of the purchase price as would be within the terms expressly or impliedly communicated by the defendant to plaintiff. Of course, even failing to show that the purchasers were ready to meet such express or implied terms, the plaintiff could recover if the sale had actually been made of if the defendant and the purchasers reached an agreement respecting the terms of the second mortgage. There was no sale, and the evidence, instead of showing an agreement between the Eismans and the plaintiff as to the terms of the mortgage or mortgages to be given, establishes that on the contrary no such agreement ever was reached.

The parties had a conference on July 19,1926, at which a different arrangement respecting the mortgages was discussed. It was suggested that the Eismans would pay $2,000 in cash and the entire balance of $19,000 in a single mortgage, the principal of which was to be paid at the rate of $500 annually; the defendant to pay the existing first mortgage of $12,000 himself. The evidence shows that the Eismans were willing to purchase upon these terms. The defendant, however, did not assent to them, but did state that he would give such u-ssent if the plaintiff would accept $200 as his compensation instead of the $1,000 which had been contemplated by the original agreement between the plaintiff and the defendant.

Plaintiff’s counsel, in his orief, relies upon these negotiations as showing that in fact the defendant and the Eismans had reached an [588]*588agreement as to the terms upon which the defendant was willing to sell and the Eismans to buy. I think the evidence does not justify this interpretation of the dickering between the parties. The question is not as to whether the sum of $200 was reasonable compensation; it is not whether the defendant was reasonable in not accepting plaintiff’s suggestion of about $500. The question is, first, were the Eismans ready, willing and able to buy on the terms set forth in the original arrangement between the plaintiff and the defendant; and, secondly, if they were not, did defendant and the Eismans reach an agreement in which the defendant assented to terms different from those originally proposed? Both of these questions must be answered in the negative.

In defendant’s original terms as stated to the plaintiff there was no offer, express or implied, to accept $2,000 in cash and the rest in a mortgage to run for thirty-eight, years. No agreement to substitute such a mortgage for the terms originally proposed was made by plaintiff except upon a condition, namely, the reduction of plaintiff’s compensation to $200, which condition the plaintiff himself refused. Accordingly, the parties reached an impasse, and no sale was made. Producing a purchaser ready, willing and able to buy imports readiness, willingness and ability to buy upon the terms the seller proposes. If the purchaser procured by the broker is not willing to buy upon those terms — if the terms upon which he is ready, willing and able to buy are different — then the broker’s commission is not earned unless the seller either makes the sale upon the new terms, or at least agrees unconditionally to do so. This is clear as a matter of principle, and is well settled as a matter of precedent. (Haase v. Schneider, 112 App. Div. 336; Maxwell v. Alexander Hamilton Apartments, 215 id. 348; Gallagher v. Dullea, 199 id. 119: Randell v. Ranken Realty Co., 188 id. 165; Strout Farm Agency v. De Forest, 192 id. 790.)

In Maxwell v. Alexander Hamilton Apartments (supra) an action was brought for a broker’s commission. The plaintiff, alleged that the seller was willing to accept a second mortgage for eight years. The plaintiff’s proof showed that the plaintiff had a purchaser who was willing to buy if he could give a ten-year second mortgage. This proposition the plaintiff rejected. The court (First Department) held that the commission was not earned, and accordingly the judgment for the plaintiff was reversed.

In the case of Randell v. Ranken Realty Co. (supra) the same condition was present, and the same result was reached.

This position was even more strongly stated by the Appellate Division in this department in the case of Haase v. Schneider (supra). In that case the court, Mr. Justice Woodward writing, summarized [589]*589the rule to which reference had been made, and also the facts to which in that case they applied that rule, as follows: “ In Sibbald v. Bethlehem Iron Co. (83 N. Y.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Brocher v. Olcott
130 Misc. 859 (City of New York Municipal Court, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
129 Misc. 586, 221 N.Y.S. 352, 1927 N.Y. Misc. LEXIS 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whalen-v-burkhardt-nysupct-1927.