Phillips v. Riedinger
Phillips v. Riedinger
Opinion of the Court
Opinion op the Court by
Affirming.
Appellant, Mrs. Elanore R. Phillips, was the owner of a block of houses on Overton street in the city of Newport, Kentucky, in April, 1920, which she listed with the real estate brokerage firm of Eiedinger & Broering, of Newport, for sale on a commission of three per cent. Her husband was. her agent and made the arrangement and acted for her in all matters hereinafter mentioned. The prices fixed on the houses and at which the real estate brokers were to sell, were $3,200.00 for each of the inside houses and $3,600.00 each for the two end houses. Appellees did not have the exclusive privilege of selling the property, for appellants had listed the property with several other brokers in that city. On May 3rd, appellees, found a prospective purchaser for either one-half or all of the six houses, but he offered only $15,000.00 for .the
Appellant in her brief says that there are- but two issues of fact: (a) whether house No. 613 was listed for sale' by appellees, and whether prior to the purchase by Riedinger they-sold it-as such agent or at all; (b) whether •appellant' would- have sold all six houses to appellee Riedinger-if- she had .known of -the sale theretofore-made by the brokers of house 613.
■ Taking up the first-of these issues of fact, w.e are persuaded that house 613 was listed for'sale by appellees and that the brokers had found a purchaser for it- and -entered into a contract with the purchasers for the sale of this house, receiving $100.00 as earnest money, and this trade was finally consummated by the brokers after the purchase of the-property from Mrs-. Phillips.
The- second question of fact .-is not nearly so clear as the first. - -But we think the whole case involves one question.only-,-and-that is whether .at-the time the -brokers sold house-.613 for $3,200,00,-and received a payment of $100.00 thereon,-they-had a purchaser for the balance of the houses at the price at which.the same had been listed with them. Clearly'-the brokers sold house 613 while they were acting as agents-for and on behalf of-Mrs: Phillips, and in consequence- were-entitled to receive only three per cent upon the sale-price -of. $3,200.00, and no more. It was their .duty to discloseto: their .principal, Mrs. Phillips, the
The proof shows conclusively that at the time they entered into the contract for the purchase of the six houses, including house No. 613, they had no contract for the sale of the balance of the property but merely had a proposition from a would be purchaser to take the six houses at $15,000.00, which was $5,000.00 less than the amount at which Phillips had listed the property with the brokers. The brokers told Phillips that they had understood he had listed the property with other brokers at $18,000.00 and asked him if he would not let them sell it at the same price, and asked Phillips to give them the exclusive right to do so until 11 o ’clock the following day, and this Phillips agreed to. Before 11 o’clock the next day the brokers appeared at the office of Phillips in Cincinnati and asked him how little he would take for the whole property and sell it to them, and upon their agreeing to give him a prompt answer he told the brokers he would take $17,000.00 for the six houses. This proposition the brokers immediately accepted and they entered into a written contract whereby Reidinger, one of the members of the firm, purchased the property from Mrs. Phillips at that price, and Reidinger paid Phillips by check $500.00 to bind the bargain. In a few days after this transaction took place the brokers found a purchaser for three of the houses and caused Phillips and his wife to make a deed for the said house to the purchaser and at that time the brokers paid Phillips $8,500.-00, which made $9,000.00 in all. Later and within a few days the brokers found three other purchasers for the other three houses and Phillips and wife made deeds to each of the individual purchasers, whereupon the brokers paid Phillips $8,000.00, the balance of the purchase price.
It therefore appears that at the time the brokers purchased the property from Phillips and wife they had no proposition for the purchase of any of the property except for house 613, at $3,200.00 and a proposition to purchase all of the property at $15,000.00. The latter proposition of course Phillips would not consider when it was laid before him. This being true the brokers were not entitled to commission from Phillips on any of the houses sold except No. 613 but were entitled to a commission of three per cent upon that house; nor was Phillips and wife entitled to recover of the brokers the difference between
The doctrine is well stated in 21 R. C. L. p. 829, where it is said “that an agent cannot, either directly or indirectly, have an interest in the sale of the property of his principal which is within the scope of his agency, without the consent of his principal, freely given, after full knowledge of every matter known to the agent which might affect the principal. If employed to sell, the agent may not become the purchaser; and if employed to buy he may not be the seller. An agent may undoubtedly buy of his principal, or have an interest in the sale of the-property belonging to his principal; but in such case the burden is upon the agent to show that the principal had knowledge, not only of the fact that the agent was. buying the interest, but also of every material fact known to the agent which might affect the principal, and that, having such knowledge, he freely consented to the transaction.”
We think the principal, Mrs. Phillips, and her husband freely consented to the purchase of the six houses except house No. 613, but' they did not have knowledge of the actual facts and did not therefore give their consent or assent to the transaction concerning house No. 613, which was. sold by the brokers and the contract closed while the said brokers were acting as the agents of appellants, Phillips and wife.
As the judgment entered for $359.00 is equal to, if not greater than the true amount due appellants, and there being no cross-appeal, it must be and is affirmed.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.