Worner Agency, Inc. v. Doyle

459 N.E.2d 633, 121 Ill. App. 3d 219, 76 Ill. Dec. 718, 1984 Ill. App. LEXIS 1400
CourtAppellate Court of Illinois
DecidedJanuary 19, 1984
Docket4-83-0429
StatusPublished
Cited by25 cases

This text of 459 N.E.2d 633 (Worner Agency, Inc. v. Doyle) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Worner Agency, Inc. v. Doyle, 459 N.E.2d 633, 121 Ill. App. 3d 219, 76 Ill. Dec. 718, 1984 Ill. App. LEXIS 1400 (Ill. Ct. App. 1984).

Opinion

JUSTICE WEBBER

delivered the opinion of the court:

This is a contract case based upon a writing prepared by the defendants and signed by one of them in his capacity as a partner; it was unsigned by the plaintiff. Both parties moved for summary judgment and the trial court awarded summary judgment to the plaintiff and denied it to the defendants who appeal.

The plaintiffs complaint is extremely attenuated. It alleges the identification of the parties and venue, and then further alleges that “defendants agreed in writing to pay plaintiff a real estate commission upon the construction of an office for the Institute for Personality and Ability Testing.” There are further allegations that defendants received the bid for the construction, completed the construction, and that the building was occupied. The commission was then demanded.

Appended to the complaint and incorporated by reference therein is the writing described above. The complete text is as follows:

“If Doyle Construction Co. should receive the bid to build an office building for Mrs. Cattell or the I.P.A.T. organization, a 3% real estate commission will be paid The Worner Agency of Rantoul on the total cost of the building. If the land is purchased separately by the buyer, this cost would not be included in the cost of the building.
The commission will be paid within 15 days of final settlement day, date of occupancy, or within 1 year of the above date, whichever occurs first.”

A motion to dismiss was denied and the defendants then answered, admitting the authenticity of the document appended to the complaint and also admitting they received the bid for the structure and built it. They denied that any commission was due and set up as an affirmative defense the following:

“There was no consideration of any kind whatsoever for the agreement set forth in exhibit A of the complaint, for the reason that:
(a) The complaint does not set forth facts showing the existence of consideration in return for defendant’s promise.
(b) The written agreement set forth in exhibit A fails to mention any act or promise on the part of Plaintiffs which constitute consideration for Defendant’s promise.
(c) Any contract between Doyle Construction Company and the Institute for Personality and Ability Testing for the construction of an office building was not the result of any efforts of employees or agents of THE WORNER AGENCY, INC.”

The plaintiff filed a general denial to the affirmative defense.

As has been indicated, both sides filed motions for summary judgment. Defendants’ motion was bottomed on section 4.02(a) of the Real Estate Brokers and Salesmen License Act (Ill. Rev. Stat. 1981, ch. 111, par. 5706). In substance, it alleged that plaintiff was seeking a commission as a real estate broker and that the act limited brokers to commissions on sales, purchases, and exchanges of real estate, none of which occurred here.

Plaintiff’s motion incorporated a copy of defendants’ bid on the construction of the building which included an item designated “3% Real, fee 5000.” The theory apparently was that this was an indication that defendants admitted that such a fee was due in accordance with the writing.'

The trial court denied defendants’ motion, holding that the Real Estate Brokers and Salesmen License Act does not define a real estate commission, nor does it prohibit a licensed broker from receiving a commission on simple contracts. The court allowed the plaintiff’s motion with the following terse finding:

“A contract or memorandum executed by Morris Doyle does not specify the activity in which the Worner Agency was to engage, but the tenor of the writing would indicate that it is based on a finders fee. In any event, it is apparent that the parties were aware of what they were bargaining for and memorialized that in the document dated November 19, 1980.”

The court’s calculation of the amount due under the agreement was stated with equal brevity:

“The defendant does not quarrel with the cost of the building constructed, such amount being $201,747. Three percent of that figure is $6,052.41,”

In addition, the court awarded $470.10 in interest plus costs.

On appeal the defendants have raised a variety of issues, two of which we deem most significant to the disposition of this case: first, the complaint is defective in that it alleges no facts from which it may be deduced that there was consideration for defendants’ promise to pay; therefore, the trial court was in error in denying the motion to dismiss. Second, the defendants having answered the defective complaint, their affirmative defense raised an issue of fact, making summary judgment inappropriate.

Plaintiff maintains that a want or failure of consideration is an affirmative defense under section 2 — 613 of the Code of Civil Procedure. (Ill. Rev. Stat. 1981, ch. 110, par. 2 — 613.) This is true, but it is also apparent that the legislature, like many courts, has fallen into confusion between want of consideration and failure of consideration. These are distinct concepts and lead to quite different results. If there be a want of consideration, there can be no contract and hence no complaint sounding in contract could stand. Failure of consideration, on the other hand, necessarily admits the contract, but then refers to transactions in which consideration was anticipated but did not materialize. It is then possible to state a cause of action in contract reciting the consideration therefor; and it then becomes the burden of the defendant by means of affirmative defense to establish failure of that consideration. See 17 C.J.S. Contracts sec. 129 (1963); 17 Am. Jur. 2d Contracts sec. 397 (1964).

We believe that, properly construed, section 2 — 613 may apply only to failure of consideration. The structure of its language leads to this result: “want or failure of consideration in whole or in part ***,” (Empliasig added.) (Ill. Rev. Stat. 1981, ch. 110, par. 2 — 613.) Logically there can be no want of consideration “in part.”

The test of whether a defense is affirmative and must be pleaded by a defendant is whether the defense gives color to the opposing party’s claim and then asserts new matter by which the apparent right is defeated. The admission of the apparent -right is inferable from the affirmative defense. (Warren Barr Supply Co. v. Haber Corp. (1973), 12 Ill. App. 3d 147, 298 N.E.2d 301; Horst v. Morand Brothers Beverage Co. (1968), 96 Ill. App. 2d 68, 237 N.E.2d 732.) Under this test the defense of failure of consideration would be an affirmative defense, because the defense impliedly admits the sufficiency of the underlying contract but offers an excuse for the defendant’s failure to perform.

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Bluebook (online)
459 N.E.2d 633, 121 Ill. App. 3d 219, 76 Ill. Dec. 718, 1984 Ill. App. LEXIS 1400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worner-agency-inc-v-doyle-illappct-1984.