Wood v. Strodtbeck

382 P.2d 170, 142 Mont. 180, 1963 Mont. LEXIS 81
CourtMontana Supreme Court
DecidedJune 5, 1963
DocketNo. 10527
StatusPublished

This text of 382 P.2d 170 (Wood v. Strodtbeck) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Strodtbeck, 382 P.2d 170, 142 Mont. 180, 1963 Mont. LEXIS 81 (Mo. 1963).

Opinion

MR. CHIEF JUSTICE JAMES T. HARRISON

delivered the Opinion of the Court.

Appeal from the district court of Sanders County from a judgment entered following the granting of defendants’ motion for judgment notwithstanding the verdict.

In this matter the defendants, who were husband and wife, elderly and ill, owned a ranch. On October 4, 1960, they signed a written agreement with the plaintiff real estate broker listing the ranch for sale. The listing originally was exclusive but later changed at the request of the defendants to a general listing. Some months before the signing of the listing agreement the defendants had negotiated with George Fulton for a sale of the ranch but these negotiations had terminated. Following the listing plaintiff contacted Fulton and showed him the ranch. Plaintiff assisted Fulton in arranging a loan in order to enable him to make the purchase and on November 25, 1960, plaintiff notified the defendants’ attorney that Fulton had the money and November 30th was fixed to close the sale and plaintiff also notified the defendants. This date was later postponed until December 2, 1960, at the request of the defendants.

On December 2, 1960, plaintiff and Fulton appeared at the attorney’s office and were advised that the ranch had been sold through another broker the previous day.

[182]*182Thereafter plaintiff commenced this action to recover á commission of 5%, alleging that he had secured a buyer who was ready, willing and able to buy the ranch upon the terms specified in the listing contract. Following a jury trial a verdict was rendered in favor of the plaintiff in the amount of $2,500, plus interest from December 1, 1960.

Defendants moved for judgment notwithstanding the verdict, or, in the alternative, for a new trial. On March 29, 1962, the motion for judgment notwithstanding the verdict was granted ordering judgment for the defendants, each party to pay his own costs. Judgment was entered on September 14, 1962, and plaintiff appealed on September 17, 1962.

The sole specification of error is that the court erred in granting defendants’ motion.

The court in its order reviewed the testimony and fully set forth its reasons for granting the motion as follows:

“A review of the testimony shows that the plaintiff secured a listing of the defendants’ property under a contract whereby the plaintiff agreed to find a purchaser for the defendants’ ranch property for a five per cent commission. The plaintiff produced one George Fulton as the prospective purchaser with whom the defendant had had dealings prior to the listing with the plaintiff. The plaintiff did considerable work with George Fulton, and finally George Fulton was able to borrow the money to make the down payment in the amount desired by the defendants. On November 26, 1960, the plaintiff advised the defendants of this fact, and advised the defendants to meet him in a lawyer’s office in Kalispell. On November 29, 1960, the defendants were contacted by another real estate broker with whom they had listed the property, and he brought a buyer to the defendants who presented the money for the ranch, and thereupon the defendants, on December 1, 1960, entered into a contract with that buyer and sold the ranch and paid the broker his commission. The plaintiff now contends that he had found a buyer who was * * ready, willing and able [183]*183* * * ’ to purchase the ranch, and therefore demands a commission for his efforts.
“The legal questions involved are whether or not under the evidence as presented there are any facts proven that permit a judgment in favor of the plaintiff. On the question of ‘ready and willing’, the prospective buyer stated he was ready and willing, that he had been for about a year, and that on or about November 19, 1960, he had met with the defendants’ lawyer and agreed upon the wording of the contract of sale, but at that time he did not have the funds for a down payment, and so a contract was not prepared and the parties did not reach any agreement as to any binding deal, but that the plaintiff and the prospective buyer did agree to the terms of a contract proposed by the lawyer who was the defendants’ lawyer, but who testified he had no power to bind the defendants, and it is agreed that the defendants were not there at that time. On November 26, 1960, the plaintiff merely notified the defendants that Fulton had arranged for the down payment, and requested that the defendants meet with the plaintiff and Mr. Fulton in the lawyer’s office in Kalispell on November 30, 1960.
“The question is whether or not this set of facts can justify a conclusion that the plaintiff had procured a purchaser who was ‘* * * ready, willing and able * * *’ to buy. This Court feels that question must be answered in favor of the defendants. A review of the Montana Reports shows that more is required of a real estate broker than merely securing a purchaser who says he is ready and willing. The view this Court takes of the Montana law is that the broker must either bind the buyer by taking a. deposit towards the purchase price and giving an escrow receipt, or having the prospective purchaser present a written offer to purchase or perhaps even signing a contract of sale, but the important thing is that the broker must present a buyer who is at least obligated to buy under the terms of some enforceable agreement. In this case the purchaser himself testified that even though he felt ready and willing to pur[184]*184chase, he was not obligated legally to do so in that he conld have refused to sign any contract of sale.
“The final legal question to be resolved is whether or not the prospective purchaser was able to buy. Anderson v. Craig, 111 Mont. 182, 188, 108 P.2d 205, defines ‘able’ as used in transactions such as this as ‘financial ability.’ So the question is whether or not the prospective purchaser had the financial ability to purchase the property.
“The testimony shows that the prospective purchaser was a young man, unmarried, and employed for wages on a cattle ranch, and that in addition to his job he was the owner of about 90 head of cattle that were being taken care of on the cattle ranch on which he was employed. The only testimony submitted was regarding the prospective purchasers efforts to obtain the money for the down payment. The defendants wanted to sell the ranch for $40,000, [sic $50,000] and wanted only twenty-nine per cent (29%) down because of the income tax problems and then wanted the balance in payments over ten years together with interest at five per cent (5%) per annum. The testimony also showed the defendants were willing to sell the cattle on the ranch, and the prospective purchaser then by executing a mortgage on those cattle, his own cattle, and also by having his prospective future in-laws sign a promissory note was able to borrow $30,000, the amount necessary to make the $14,500 down payment on the land, and also provide more than necessary to buy the defendants’ cattle. The Production Credit Association agent who made the loan testified that he felt the security was ample, and that the borrower would be able to repay the loan, and also that his investigation showed the borrower was a young man with a very good reputation. In addition, the P.C.A. agent testified that the P.C.A.

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Related

Flinders v. Gilbert
378 P.2d 385 (Montana Supreme Court, 1963)
Anderson v. Craig
108 P.2d 205 (Montana Supreme Court, 1940)
Nation v. Harness
1911 OK 414 (Supreme Court of Oklahoma, 1911)

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Bluebook (online)
382 P.2d 170, 142 Mont. 180, 1963 Mont. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-strodtbeck-mont-1963.