Wolfersberger v. Miller

39 S.W.2d 758, 327 Mo. 1150, 1931 Mo. LEXIS 586
CourtSupreme Court of Missouri
DecidedJune 5, 1931
StatusPublished
Cited by37 cases

This text of 39 S.W.2d 758 (Wolfersberger v. Miller) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolfersberger v. Miller, 39 S.W.2d 758, 327 Mo. 1150, 1931 Mo. LEXIS 586 (Mo. 1931).

Opinions

* NOTE: Opinion filed at October Term, 1930, March 25, 1931; motion for rehearing and motion to modify opinion overruled April 14, 1931; motion to transfer to Court en Banc overruled at April Term, June 5, 1931. This is a law action for damages for fraud. Twelve parties were originally made defendants, but plaintiff dismissed as to six of them. The cause as to the remaining six defendants was submitted to the jury, and they returned a verdict finding the issues in favor of plaintiff and assessing his damages at $32,561.97. On judgment entered on the verdict, said defendants appealed.

The facts adduced warrant the finding that, prior to 1920, plaintiff owned and operated a farm in Illinois. Disposing of his Illinois farm, he purchased land in and near San Benito, Texas. In 1922, due to conditions, a financial depression existed in that locality. At that time he owned three Texas properties. First, a home erected at a cost of $14,000, free of incumbrance. Second, an eighty-acre farm for which he paid $150 an acre and cleared at an expense of $21.50 an acre, and on which he had erected two houses costing $2900 and $3300 respectively, subject to a $6,000 mortgage. Third, a tract of 140 acres, unimproved, costing $175 an acre, subject to a $6600 mortgage. Irrigation rights were appurtenant to the two farms, with water on three sides. These three investments aggregated $58.420, and were subject to mortgages of $12,600, and in addition, to taxes and interest of probably not over $1,000. While discussing conditions and the depression with a neighbor by the name of Youker plaintiff concluded that he desired to dispose of his Texas properties, among other reasons that the climate did not seem to agree with his wife. About July 4, 1922, plaintiff was advised by Youker that he was going to Kansas City, desiring to know whether plaintiff would consider trading his Texas properties for flats. Plaintiff informed him that he desired a northern farm, and Youker replied that a trade for flats would be easier, and that the flats later could be traded for a farm. Youker mentioned defendant Hansen as a real estate dealer.

On July 27, 1922, Youker, at Kansas City, wired plaintiff at San Benito that he had worked up a deal on a twenty-four apartment building and to come at once. Plaintiff left immediately for Kansas City and on his arrival met, on a certain morning, Youker and Hansen, and was taken by them to Hansen's office. On inquiry by Youker as to the incumbrances on his Texas lands, plaintiff advised him, whereupon Youker declared that the trade for the twenty-four apartment building could not be consummated, due to the $6,000 mortgage on the eighty-acre tract, which Youker said had slipped his memory. On further inquiry, Youker ascertained that plaintiff desired to trade. Thereupon the Gregg Realty Company was called. *Page 1157

At this point it is well to state that the Gregg Realty Company was a corporation engaged in acting as agent relative to the sale of real estate. The McCanless-Miller Realty Company was also a corporation, engaged in building. It constructed and, at all times herein mentioned, owned the two apartment buildings situated in the 2700 block on East 27th Street for which plaintiff later traded his Texas properties. The Gregg Company was the sales agent of the McCanless Company. Defendant Snyder was a salesman in the employ of the Gregg Company. Defendant McCanless was a stockholder and officer of both companies. Defendant Miller was a salesman in the employ of the Gregg Company, and had an understanding with McCanless as to an interest in its stock. Miller was also a stockholder and an officer of the McCanless Company. The two companies and Snyder, Miller and McCanless occupied the same suite of rooms in an office building. The same employee kept the books of said companies.

The evidence tends to show that Hansen purported and led plaintiff to believe that he was plaintiff's agent with respect to the exchange of the Texas land for the apartment buildings owned by the McCanless Company. With this relation obtaining, the office of the Gregg Company was called, resulting that Snyder went to Hansen's office. Upon inquiry as to what he had to trade, Snyder mentioned several properties, which they went to view and cursorily examine. Plaintiff was taken by Snyder, Hansen and Youker through an apartment and the basement of the 27th Street property, and, on his return to Hansen's office, informed Hansen and Youker that he liked this property the best. Subsequently, in both Hansen's and the Gregg Company's office a trade was discussed. In the presence of Hansen and Youker, during negotiations, Snyder declared to plaintiff that George K. Adams owned the apartments, that each apartment carried a $12,000 first and a $9500 second mortgage, and that the least they could be acquired for was $79,000 cash. Defendant Miller was then present, having been introduced by Snyder. Miller then stepped away six to eight feet and Snyder went to him and conversed, but plaintiff did not hear what was said. Hansen, while Snyder and Miller were conversing, said to plaintiff, "Why do you hesitate on making a deal like this?" Snyder returned to the conference, declaring that the apartments in the building were under a year's lease at $70 a month, and that the income would carry the expenses, interest and a $4,000 a year payment on the principal of the mortgages and leave a net balance of $1750 a year on each building. Snyder further declared that the Gregg Company was Adams's agent, that Adams had agreed to sell for cash or exchange for $79,000, because he desired to go to a warmer climate and wanted Texas property, and that the buildings alone cost more than $79,000 to construct them. Hansen declared *Page 1158 that he was an experienced real estate agent, that he had no interest in a trade of the apartments other than a commission, and that he knew they were worth $100,000. Plaintiff was shown a circular to the effect that the gross income was $10,280, and he was told that property earning that amount was worth $100,000.

Snyder prepared a contract relative to the exchange of plaintiff's Texas properties for the McCanless Company's 27th Street apartments. The contract, however, for the exchange of said properties was executed by and between plaintiff and Adams, who was a straw person. The evidence tends to show that Adams's signature on the exchange contract was forged, but he declared that he signed deeds to the Texas properties after plaintiff conveyed them to him. Plaintiff did not know that Adams was a straw person, for such fact was concealed by defendants. Plaintiff declared that he relied upon the representations made by Hansen and Snyder, and believed such representations to be true.

On behalf of the owner, the McCanless Company, Snyder presented to Miller the proposition of the exchange of the apartments for plaintiff's Texas properties, and Miller advised him that an exchange would not be considered. Snyder communicated to Hansen the fact that the owner was not interested in an exchange, and suggested that the owner would sell the apartments to him (Hansen) at a reasonable cash price, and that he (Hansen) could then effect an exchange with the plaintiff, and it was orally agreed between Hansen and Snyder that Hansen might have an option of thirty days to purchase the apartments for $6500 cash, subject to mortgages for $43,000. This proposition was communicated to Miller and he agreed to it, understanding that Hansen was the purchaser. He denied that he knew that Hansen was plaintiff's agent. It was after this agreement that Hansen and Snyder negotiated and procured the execution of the contract between plaintiff and Adams, the reputed owner.

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Bluebook (online)
39 S.W.2d 758, 327 Mo. 1150, 1931 Mo. LEXIS 586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolfersberger-v-miller-mo-1931.