Investment Property Corp. of New England v. Whitten
Investment Property Corp. of New England v. Whitten
Opinion of the Court
The plaintiff (Investment), engaged in the real estate brokerage business, seeks in this action of contract to recover a commission from the defendant partners doing business as Mystic Builders’ Supply (Mystic). The jury returned a verdict for Investment. The case has been argued before us upon Mystic’s, exceptions to the trial judge’s charge and to his failure to give certain requested instructions.
Mystic owned certain real estate (the property). An employee of Investment approached George Whitten of Mystic about listing the property for sale. Richard W. Lubart, Investment’s president, then for the first time met with Whitten, who said that Mystic would sell the property for $1,400,000 net to it. Thereafter Robert Waldman was approached by Lubart. At a second meeting with Whitten, Lubart reported to him that he had an offer (which was from
There was a conflict of testimony concerning what next took place. Lubart testified that the transaction discussed at the second meeting ($1,410,000 gross price; $1,375,000 net to Mystic; $35,000 commission to Investment) was satisfactory to Whitten, and that Whitten imposed no conditions on his approval of the deal. Whitten, on the other hand, testified that, at the first meeting, he told Lubart that Mystic could not sell the property until its accountants and lawyers had advised whether the transaction, for tax purposes, would result in capital gains or in ordinary income. He also testified that, at the second meeting he told Lubart “if he sold the property that I would —when the property was sold and papers passed — I would sign an agreement if the lawyers and accountants said so, and that he would get the thirty-five thousand dollars.” Although this testimony was somewhat confused, we think that, if the jury believed Whitten’s testimony, they would be warranted in concluding that Whitten had imposed (a) upon Mystic’s obligation to sell the property a condition that its lawyer and accountant approve it, and (b) upon the obligation to pay a commission, a condition that title actually pass. There was testimony that the accountant advised that the sale would result in ordinary income, not capital gains. The sale did not take place and title did not pass. Mystic concedes in its brief that Waldman was a buyer, ready, able, and willing to buy at $1,375,000 net to Mystic. Mystic denies that it unconditionally agreed to accept that price. Mystic saved exceptions to the trial judge’s failure to give requested instructions nos. 24 and 25.
The judge should have given request no. 24 which accurately stated the law applicable to the situation if the jury believed Whitten’s testimony. We do not need to pass upon request no. 25, which, with respect to conditions “a” and “c,” we assume (without deciding) may have gone beyond the evidence. We must determine, of course, whether, view
The additional instructions did not adequately meet the situation in two respects. First, these instructions in effect required that the condition about actual passing of title be found to have been imposed by Mystic when it "engaged
Exceptions sustained.
These read, “24. To find for . . . [Investment] you must, find that . . . Whitten, told Lubart that . . . [Mystic] would pay . . . [Investment] a commission of $35,000 if Lubart obtained an offer of $1,410,000 in cash, whether or not the Whittens accepted the offer, whether or not the Whittens’ attorney and accountant approved or advised against the sale, and whether
We see no occasion to pass upon Mystic’s contention that the charge (a) did not adequately make clear, in effect, that the brokerage contract must be viewed as it existed after whatever arrangement was made at the second conference; and (b) contained confusing and possibly irrelevant instructions about the time before which Mystic must withdraw the property from sale to escape liability.
These additional instructions were in part: “I told you that if you find the facts to be in accordance with . . . [Investment’s] contention that there were no conditions, and . . . that . . . [Investment] produced a customer ready, willing and able to purchase the property for the price that you find was agreed to, then your verdict must be in favor of.. . . [Investment], I told you that [it must be for Mystic] if you found the facts to be in accordance with . . . [Mystic’s] contention . . . namely that the defendants agreed to sell for $1,375,000 and pay $35,000 commission, but that there were conditions imposed — and I mentioned only one condition, and that was if the defendants’ attorney and accountant said it was okay. . . . [M]y memory now serves me that there was one other condition, and it’s for you to determine from the evidence whether or not this other condition was imposed by . . . [Mystic] at the time that . . . [Mystic] engaged . . . [Investment] ... as broker. It’s for you to say whether or not . . . Whitten at the time that he mentioned the condition as to approval by his accountant and attorney said in addition to that that . . . [Mystic] would pay the plaintiff $35,000 if . . . the property [was sold], when it was sold and the papers were passed. ... [It is] undisputed that papers never passed to Lubart’s customer. If you find that that was one of the conditions that was imposed, and if you find that the condition of approval by the attorney and the accountant was also imposed, if you find that those conditions existed and were a part of the agreement, then if you find that those conditions were not met, then your verdict must fee in favor of . . . [Mystic]” (emphasis supplied).
Reference
- Full Case Name
- Investment Property Corp. of New England v. George D. Whitten & others
- Status
- Published