William V. Ebersole Co. v. Payton

31 Ohio N.P. (n.s.) 190
CourtCourt of Common Pleas of Ohio, Hamilton County
DecidedNovember 2, 1933
StatusPublished

This text of 31 Ohio N.P. (n.s.) 190 (William V. Ebersole Co. v. Payton) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Hamilton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William V. Ebersole Co. v. Payton, 31 Ohio N.P. (n.s.) 190 (Ohio Super. Ct. 1933).

Opinion

Darby, J.

The action against the defendant is to recover a real estate commission based upon a contract in writing, under date of August 28, 1933, in which defendant agreed to pay four per cent commission for the sale of property.

The petition alleges that on August 28, 1933, plaintiff procured the purchaser (Pickering Hardware Co.) who bought the property at 440 Main St. for $100,000 within the time limit in said contract.

The defendant has not answered, but moved the court for an order of interpleader and filed an affidavit under Section 11265, General Code, which sets forth that—

“The Closterman-Fast Realty Company makes a claim to said sum of four thousand dollars as a commission for the same sale of the leasehold interest of said defendant above referred to, being the same sale relied upon by [191]*191plaintiff for its commission, as is more fully set forth in the petition herein.”

Statements of lack of collusion are made in the affidavit, and—

“that defendant has no interest in said sum except to pay the same to the person or party rightfully entitled thereto.”

Said defendant further states in the affidavit that he

“is ready and willing to pay or dispose of said sum as this court may direct, and hereby offers so to do, in order that said claimant may interplead and settle their claims between themselves.”

Defendant prays an order that the Closterman-Fast Realty Company appear within a reasonable time and maintain or relinquish its claim against defendant,

“and discharging defendant from all liability to said claimants or either of them upon its compliance with such order of this court.”

Section 11265, General Code, provides that in case an order to appear is made as provided, the person against whom it is made—

“shall be allowed to become defendant in the action in lieu of the original defendant, who shall be discharged from all liability to either of the other parties in respect to the subject of the action, upon his compliance with the order of the court for its payment, deposit or delivery.”

On the hearing'of the motion, evidence was offered by defendant that the Closterman-Fast Realty Company had filed a claim with him, which appears not to be Upon an express contract, but upon an implied contract. -

The plaintiff objected to the interpleader on the ground that its claim is based exclusively upon the contract with it, set forth in the petition, and that the Closterman-Fast Realty Company is not interested in plaintiff’s contract, and that any claim which the Closterman Company has is entirely independent of plaintiff’s claim, and if it exists, is as a separate and independent liability of the defendant.

There is a lack of harmony of the authorities upon the question as to whether statutory interpleader is a proper procedure under the facts stated in this case.

The latest decision called to the attention of the court is [192]*192Morgan v. Kraft, 285 Fed., 906, in which two real estate agents were claiming a commission for the sale of premises of the defendant, who procured an order of interpleader, which, however, was subsequently vacated. The court laid down the following rules applicable to such case:

“1. The four essential pre-requisites to an order of interpleader are: The same debt or duty must be claimed by all parties against whom the relief is demanded; the adverse titles or claims must be dependent or derived from a common source; the persons seeking the relief must not have any interest or claim in the subject matter; and he must have incurred no independent liability to either of the claimants, but must stand in the position of a disinterested stakeholder.
“2. Where vendors of property, who had listed it with one broker for sale, thereafter agreed to pay the commission to another broker, who brought purchasers to examine the property, without informing the vendors that such purchasers had been first interested in the property by the other broker, the vendors were not entitled to require the two brokers to interplead as to their right to the commission, since the rights arose from separate contracts, and the vendors were bound by separate contracts to each broker and might be liable on both.”

In the opinion of the court on page 909 appears the following :

“It seems to us that the demand of the defendants below for an interpleader did not respond to any one of these four requirements. The claims set up, respectively, by Kraft and Webb, were not for the same thing, debt or duty, for they arose from separate and individual contracts, which had created separate and individual rights and obligations. Nor were the claims dependent or derived from a common source, for, although both claims were asserted against the same persons, there was nevertheless no privity between either the claims or the claimants. Nor can it be said that the defendants below had not incurred any independent liability to either of the two claimants, or that they stood in a position of mere stakeholder between them, for the defendants in fact were bound by separate contracts with the respective claimants, and under the circumstances they may have become indebted to each of them. And certainly the full extent of their liability at law to the two claimants could not be litigated by means of an application for an order of interpleader. Such a procedure in this case would necessarily have implied that the several claim[193]*193ants were relegated to a contest inter sese against an assumed fund of $250.00, and were to be denied personal actions at law against the defendants below upon their several contracts with them. It would also have implied that the allowance of one claim would necessarily forbid an allowance of the other. Such a result, however, could not be justified, for the claimants had a right to litigate their several claims in a court of law, and to insist upon a trial at law in each instance.”

Many cases are referred to as sustaining the opinion of the court, among them: Maxwell v. Frazier, 52 Ore., 183, 96 Pac., 548; Sachsel v. Farrar, et al., 35 Ill. App., 277: Hoyt v. Gouge, 125 Ia., 607, 101 N. W., 465; to which further separate reference will not be made.

Attention is called to a note in 10 L. R. A. (N, S.), 758, in which many authorities are cited to sustain the proposition that—

“The general rule is that where the party seeking inter-pleader is under an independent contractual relation with one of the adverse claimants, interpleader will be denied.”

The same note contains authorities for the position that where a deposit or fund is the subject of claims by different persons, interpleader is a proper procedure.

The Supreme Court of Ohio, in State v. Guaranty Co. et al, 107 O. S., on p. 16 recognizes the pre-requisites for interpleader as set forth in Morgan v. Kraft, supra, and which are taken from 4 Pomeroy’s Equity Jurisprudence (4 Ed.) Section 1322, and it points out that the claim for interpleader in the case under consideration violated each and all of the essential conditions of the interpleader, and on p. 17 the court say:

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Related

Crane v. . McDonald
23 N.E. 991 (New York Court of Appeals, 1890)
Maxwell v. Frazier
96 P. 548 (Oregon Supreme Court, 1908)
Sachsel v. Farrar
35 Ill. App. 277 (Appellate Court of Illinois, 1890)
Merchant's National Bank v. Murphy
125 Iowa 607 (Supreme Court of Iowa, 1904)
Golinvaux v. Burlington, Cedar Rapids, & Northern Railway Co.
101 N.W. 465 (Supreme Court of Iowa, 1904)
Morgan v. Kraft
285 F. 906 (D.C. Circuit, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
31 Ohio N.P. (n.s.) 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-v-ebersole-co-v-payton-ohctcomplhamilt-1933.