Wisconsin & Arkansas Lumber Co. v. Day

35 F.2d 563, 1929 U.S. App. LEXIS 3010
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 25, 1929
DocketNo. 8528
StatusPublished
Cited by9 cases

This text of 35 F.2d 563 (Wisconsin & Arkansas Lumber Co. v. Day) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wisconsin & Arkansas Lumber Co. v. Day, 35 F.2d 563, 1929 U.S. App. LEXIS 3010 (8th Cir. 1929).

Opinion

MUNGER, District Judge.

The appellee recovered a verdict and judgment against the appellant upon an alleged contract by the appellant to pay to the appellee a reasonable commission if he .procured a purchaser for appellant’s lands, and an alleged performance of the contract. Upon this appeal the errors assigned relate to the refusal of instructions to the jury asked by the appellant and to an exception to a portion of the instructions given. The appellee claimed that the contract, on whieh he based his right of action, was made by the agent of appellant. The appellant contends on this appeal: (1) That the court should have directed a verdict for appellant, because the agent had no express nor implied authority to make the alleged contract; (2) that there never was ány ratification of it by the appellant; (3) and that the court erred in instructing the jury that the agent had authority, as a matter of law, to make the contract; (4) that the court should have directed a verdict for appellant because the evidence did not show performance of the contract; (5) or should have given a requested instruction that the jury should ascertain if the agent was the procuring cause of the sale. The refusal of other requested instructions is also assigned as error. The appellant is the Wisconsin & Arkansas Lumber Company, hereafter called lumber company. It is a Wisconsin corporation, but owned about 145,000 acres of timber land in Arkansas, with sawmills and logging railway and the accessories usual to such operations. At the time of the transactions in controversy it had cut the logging timbers from nearly all of this land.

The lumber company had a board of directors, a president, vice president, secretary, and a treasurer. A. B. Cook was the treasurer and also the general manager. He lived in Arkansas, at the seat of the mills, and was in active operation of the plant. The other officers and nearly all of the directors resided in Wisconsin. No regular meetings of the directors appear to have been held, and rarely were any of the officers, other than Cook, in Arkansas. The directors owned or controlled practically all the corporate stock, and they, or some of them, would confer informally on matters brought to their attention, and the president would usually advise Cook of their conclusions. Correspondence was frequent between Cook, and the president, and Cook at times would confer personally with the other officers in Wisconsin. The appellee testified, in effect, that he had an express oral contract with the appellant, made by him with Cook as its agent, for a reasonable commission, if appellee should find a purchaser ready and able tp purchase its lands, and offered testimony to show that he found such a purchaser to whom the appellant sold its land. Cook de[565]*565nied the making of the contract. There was no express authority shown, authorizing Cook to make the contract in question, either by the articles of incorporation, resolutions of the board of directors, or by any specific instructions given to him. No ratification of a contract to pay appellee a commission was shown. Cook’s apparent authority extended to the management and operation of the sawmills and lumbering operations. He had a large amount of stock in the lumber company, had operated the plant in Arkansas for many years, and seems to have acted in all ordinary matters upon his own judgment. The officers and directors had had a number of discussions about the disposal of the cut-over lands. They had reached the conclusion that it was the best policy to sell all of the lands, with a reservation of the uncut timber, the mill sites, and some of the mineral rights. Cook had contracted to sell small tracts of the land to local farmers, usually in tracts of small sizes, from 40 to 320 acres, and this had continued for some years. The president of the lumber company had executed deeds for these traets so sold. There was no evidence that any agent had been paid a commission, or had been employed in these sales. The lumber company had employed a forester to aid in keeping fires out of the lands and to promote a growth of young timber. The lands were becoming of some value to mills engaged in making paper, because of this growth of young trees. The expense of the reforestation and of current taxes, and the absence of any income from the cut-over lands, impelled the lumber company to seek an early sale of the lands. The officers and directors had informally agreed that a price of $4 per acre for the whole tract would be reasonable.

The appellee was not a real estate broker, but had engaged in several lines of business and was slightly known by Cook. He informed Cook that he had some persons who might consider the purchase of the lands, and Cook gave him a writing as follows:

“August 26, 1925.
“Mr. T. S. Day, City. Dear Sir: Subject to approval of our Board of Directors we offer our cut-over land in Grant County, approximately 17,000 acres, at price of $5.00 per acre and it is understood that we shall reserve half the oil and mineral rights and also railroad right of way and camp site to be used in our logging operations. This offer expires sixty days from this date.
“Yours very truly,
“Wisconsin & Arkansas Lumber Company,
“[Signed] A. B. Cook, Treasurer.”

The appellee solicited a further extension and Cook later gave him a writing as follows:

“December 12,1925.
“Mr. T. S. Day, 126 Butler Street, Malvern, Ark. Dear Sir: We will not dispose of our land before the 10th of January, 1926. That is, we will give your clients until the 10th of January, 1926, to look over our land and submit a proposition to us.
“As stated to you, we would consider a price of $4.00 an aere for all of our cut-over land, to be passed on and approved by our Board of Directors, would carry oil and mineral rights reservations, right of way, etc., which we discussed with you.
“Yours very truly,
“Wisconsin & Arkansas Lumber Company,
“[Signed] A. B. Cook,
Treasurer-Gen’l Manager.”

The appellee’s testimony tended to prove that he found a purchaser, who afterwards dealt with the lumber company directly, and purchased the land at $4.50 per aere, on the terms that the lumber company, by Cook, had offered. Cook, on December 10, 1925, wrote the president of the lumber company a letter, in which he stated as follows (referring to the efforts of appellee):

“There are some people looking at our cut-over land, and I told them that for our entire holdings I would be willing to submit to our directors a price of $5.00 an acre, reserving one-half the oil and mineral rights, excepting on the Hamlen land, on which we could give them all our oil and mineral rights as Hamlen reserved one-half the oil and mineral rights. I do not know that anything will' come of this, but I would not be surprised if we get a proposition of $5.00 án acre. In the meantime I would be glad to have you advise what you think about it. I was careful not to commit ourselves.”

And the president, on December 14,1925, in his reply to Cook stated: “Dear Mr.

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Bluebook (online)
35 F.2d 563, 1929 U.S. App. LEXIS 3010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wisconsin-arkansas-lumber-co-v-day-ca8-1929.