Wheelock v. Dillard

100 So. 840, 211 Ala. 599, 1924 Ala. LEXIS 262
CourtSupreme Court of Alabama
DecidedMay 29, 1924
Docket6 Div. 159.
StatusPublished
Cited by2 cases

This text of 100 So. 840 (Wheelock v. Dillard) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheelock v. Dillard, 100 So. 840, 211 Ala. 599, 1924 Ala. LEXIS 262 (Ala. 1924).

Opinion

MILLER, J.

Charles P. Wheelock, complainant and appellant, filed this bill in equity against J. W. Dillard. It was amended twice, and seeks, as amended, to have a decree rendered declaring that the defendant holds certain lands described therein in trust for the benefit of complainant and defendant, and that complainant has a lien thereon for commissions or profits or other compensation due complainant by .defendant under contract made by them in regard to this land.

The defendant demurred to the bill as amended, which demurrers were sustained by the court, and from this decree the complainant appeals and assigns it as error.

This principle in Eldorado v. Rust, 202 Ala. 625, 81 South. 567, is applicable to some of the averments appearing in the bill as amended:

“A broker is entitled to his commission when he produces to his principal a customer ready, willing, and able to buy on the terms provided by such principal, within the period allowed, or, if the time is not limited, before the revocation of the agency.”

In Scottish U. & N. Ins. Co. v. Dangaix, 103 Ala. 394, 15 South. 956, this principle was quoted with approval, which applies to this cause:

“Wherever one person is placed in such relation to another, by the a'ct or consent of that other,, or the act of a third person, or of the law, that he becomes interested for him, or interested with him, in any subject of property or business, he is prohibited from acquiring rights in that subject, antagonistic to the person with whose interests he has become associated.” -

This same proposition of law and quotation was approved in Kent v. Dean, 128 Ala. 609, 30 South. 543, and on page 608 of this case we find this equitable principle quoted *600 with approval, which is applicable to the facts as averred in this hill as amended:

“Suph trusts, termed ex maleficio or ex de-licto, are, as Mr. Pomeroy- says, practically without limit, and in general, are-'properly applied. ‘Whenever the legal title to property, real or personal, has been obtained through actual fraud, misrepresentation, concealments, or through undue influence, duress, taking advantage of one’s weakness or necessities, or through any other similar means or under any other similar circumstances which render it un-conscientious for the holder of the legal title to retain and enjoy the beneficial interest, equity impresses a constructive trust on the property thus acquired in favor of the one who is truly and equitably entitled to the same, although he may never perhaps have had any legal estate therein; and a court of equity has jurisdiction to reach the property in the hands of the original wrongdoer or in the hands of a subsequent holder, until a purchaser of it in good faith and without notice acquires a higher right, and takes the property relieved of the trust.’ 2 Pom. Eq. §§ 1053, 1055; 1 Story Eq. Juris. § 187; Manning v. Pippen, 86 Ala. 357; Moore v. Crawford, 130 U. S. 122.”

This bill of complaint as amended alleges that the defendant, Dillard, had a contract or agreement with the Lost Creek Coal & Mineral Land Company, whereby Dillard is to be paid a commission for the sale of all or a part of the lands of this company; that this company owned 2,800 acres or more of land. The complainant and defendant entered into a written contract on November 24, 1919, by which complainant was to aid and render services to defendant in making a sale of the said lands. This contract between the parties contains these clauses:

“1. That said Wheelock shall lend such aid and assistance as shall lie in his power to do to effect such sale.
“2. The said Dillard agrees that, in the event of a sale of said lands, or any part thereof, by him under any agreement with said company, the said Wheelock shall be entitled and shall be paid an amount of the commission or profits or other compensation coming to said Dillard in connection with said sale or sales equal to 33% per cent, of the amount so coming or payable to said Dillard. Such payments shall be made to said Wheelock by said company or by said Dillard at the time said compensation or commission is payable to or received by said Dillard.”

The bill as amended alleges the complainant secured, after entering into the foregoing contract, a purchaser, Moss and McCor-mack, for said lands. They were ready, willing, and able to pay the commissions due Dillard under this contract with the Lost Creek Coal & Mineral Land Company, and they were ready, willing, and able to pay the purchase price for the land according to the contract of Dillard to the Lost Creek Coal & Mineral Land Company within the time limit, but Dillard refused to let them have it. This, if true, would entitle complainant to his part of the commissions due under the contract, and the defendant would be liable for it. Authorities, supra.

The defendant, within a short time after this, and before the bill was filed, did purchase this land from the Lost Creek Coal & Mineral Land- Company, and did take title thereto in himself; and in making such purchase of the lands the defendant did get the benefit of a reduction in the contract price equal or equivalent to the commissions payable to him, which amount to approximately $13,000. The purchase price paid by defendant for the land was reduced by the amount of the commission due the vendee, defendant, under his contract with the vendor. The complainant was interested in and owned one-third of this commission. The defendant received the benefit of it, and holds the same in, the form of this land. The one-third of the commissions due complainant is not held by defendant in the form of money, but it is represented by land or interest in this land, for which it has been used in part payment of the purchase price, and the legal title to the land is held by the defendant. Complainant and defendant by contract were each interested in selling the land and in the commissions derived from a sale of it. The complainant secured a purchaser ready, willing, and able to buy the land on the terms of the vendor and to pay ttíe commissions due complainant and defendant. The defendant prevented the consummation of this sale, and then purchased the property from the vendors, taking title to it in his name', and used the one-third commissions under the contract due complainant in reducing or paying part of the purchase price.

These averments in the bill as amended, if true, indicate the defendant purchased this property with the intent to' injure and defraud complainant of his right therein under the contract with the defendant for his part of the commissions. The complainant in equity and good conscience is entitled to i-eceive from the defendant one-third of the commissions allowed the defendant by the vendors. It is unconscientious for him to hold the land and refuse to pay complainant one-third of the commissions.

The legal title to this property wa$ obtained by the defendant from the Lost Creek Coal &

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Related

Jacksonville Public Service Corp. v. Profile Cotton Mills
180 So. 583 (Supreme Court of Alabama, 1938)
Dillard v. Wheelock
110 So. 278 (Supreme Court of Alabama, 1926)

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Bluebook (online)
100 So. 840, 211 Ala. 599, 1924 Ala. LEXIS 262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheelock-v-dillard-ala-1924.