Gardner v. Batsakes
Gardner v. Batsakes
Opinion of the Court
This is an action by a real estate broker for a commission in the amount of $5,000 claimed to be owing under a real estate listing agreement. A jury returned a verdict for plaintiff, and the court denied defendants’ motion for judgment notwithstanding the verdict and entered judgment for plaintiff. Defendant appeals.
Under our court rules a motion for a directed verdict is a prerequisite to a motion for judgment notwithstanding the verdict. GCR 1963, 515.2. See also 2 Honigman and Hawkins, Michigan Court Rules Annotated (2d ed), 1967 Pocket Parts, Authors’ Comments, p 71. Since no motion for directed verdict was made to the trial court, denial of defendants’ motion was not erroneous.
On December 11, 1963, plaintiff broker and defendants entered into a listing agreement in the form of an “Offer to Sell”, in which plaintiff was granted, for a one month period, the exclusive right to sell defendants’ bar in Ann Arbor. The “Offer to Sell” provided that if, during the one-month period, plaintiff produced a purchaser ready, willing and able to purchase the business under the terms set forth therein, defendants would pay him a commis
On January 2, 1964, plaintiff procured an “Offer to Purchase” the bar. After two unsuccessful attempts to present this offer, the broker notified sellers, in a certified letter received by them on January 6, 1964, that he had a ready, willing and able purchaser.
At the invitation of defendants, a meeting was held on January 15, 1964, whereupon sellers, reading buyer’s offer for the first time, pointed to certain variances between it and their offer to sell, namely:
1. Buyer’s provision that sellers cooperate in obtaining a lease with a renewal option.
2. Buyer’s provision that sellers not compete for 5 years within a 10-mile radius.
3. Buyer’s offer to pay the purchase price in monthly installments of $400 each as contrasted with sellers’ interpretation that their offer called for monthly payments of $400 each, meaning each partner.
The testimony is undisputed that the buyer, upon hearing these objections, agreed immediately to eliminate the first two provisions, hut, after reviewing sellers’ books, refused to purchase on terms of $800 monthly installments. No sale was consummated, therefore, solely because of failure to reach an agreement on the payments.
The jury, having been instructed by a summarization of the parties’ respective positions, including the two interpretations regarding the payments, returned their verdict for plaintiff.
“To complete the deal.”
Mr. Batsakes, when explaining one postponement of an earlier meeting stated:
“I told him [plaintiff] that I have to be away that afternoon [i.e. Friday, January 3, 1964] — if it was possible that I can meet him any day after a week.” (Emphasis added.)
This testimony allowed the jury to conclude that defendants, purportedly dealing in good faith, were willing either to extend or to waive the designated period for negotiations until such time as a meeting could be arranged. The expiration date reflected in the listing agreement was not expressly of the essence of the contract. It could be orally waived or extended. “Time of performance of a contract may be extended by parol, and this is especially true where time is not expressly made the essence of the contract.” Frazer v. Hovey (1917), 195 Mich 160, 168.
Affirmed. Plaintiff may tax costs.
It was said in that case that:
“There is considerable conflict in the testimony. But an examination of the testimony of defendant shows that he did not treat time as of the essence of the contract, for he testified that after November
Dissenting Opinion
(dissenting). I regret that I am unable to concur with my brethren in this case, for I am certain there is a large measure of poetic justice in their holding. But while, as Mr. Justice Wiest once remarked, there may be a modicum of the layman’s concept of equity in the Court’s holding, there are principles of law involved here which ought to be honored in a court of law.
There are certain statements of fact that I feel must be set out to fully understand the legal positions of the parties, and so, with an apology for
On December 11,1963, plaintiff broker and defendants (the sellers) entered into a listing agreement in the form of an “offer to sell” which provided plaintiff, for a one month period, the exclusive right to sell defendant’s bar in Ann Arbor. The offer to sell, containing an express expiration date of January 11, 1964, reflected a purchase price of $50,000, down payment of $12,500 and “Time Balance $37,-500 at $400 or more each per month, including interest at 6 per cent per annum.”
It further provided that:
“If, during the said period, the business is sold by you or me or anyone else, or if you produce a purchaser ready, willing and able to purchase the business under the terms herein set forth, or if it shall be sold within three (3) months after the expiration of this listing agreement to any person with whom you have had negotiations for the sale thereof, I (we) agree to pay you a commission of ten (10%) per cent of the sale price.”
On January 2,1964, plaintiff broker obtained from Theodore J. Dwyer a $3,500 deposit which accompanied an offer to purchase the business for $50,000, $12,500 down payment with a balance of $37,500 to be paid “in monthly installments of $400 or more each, including interest on the unpaid balance of 6% per annum..” In addition the purchaser’s offer contained these additional provisions not contained in the offer to sell, namely:
1. “Seller to cooperate in obtaining lease for 5 years — five-year option — $300 month rent.”
2. “Sellers are not to enter into competitive business directly or indirectly for five (5) years in a ten (10) mile radius of Ann Arbor.”
In my view, there is only one question that needs to be answered and that is whether, under the record here presented, the plaintiff producd a ready, willing, and able buyer in accordance with the terms of the offer to sell — that is by January 11, 1964. Other issues might have been framed and pursued (e.g. estoppel, substantial compliance, waiver, etc.) but they were not. The plaintiff might have pursued different theories, but we must deal with the one he did pursue, vis. that on January 3, 1964, he had (by virtue of the offer to purchase adverted to above) produced a ready, willing and able buyer and, hence, was entitled to his commission.
If plaintiff had produced such a buyer, I would agree that the actions of defendants, vis. refusing to look at the proposal, failing to keep appointments, etc., would not bar plaintiff’s recovery. Unfortunately for plaintiff, what he unsuccessfully sought to bring under the gaze of defendants was a counteroffer (Koster v. Simon [1954], 339 Mich 556; Sharrar v. Nestle [1923], 222 Mich 538), and all that happened thereafter, under the record here, is without legal significance to the disposition of this case.
At the expiration date of the listing agreement, plaintiff, as a matter of law, had not produced a purchaser ready, willing and able to buy the property. Had this position been urged on the trial court at the conclusion of plaintiff’s proofs, defendants would have been entitled to a directed verdict, though I agree with my brothers that failure to make such a motion precluded judgment non obstante veredicto for defendants. GrCB 1963, 515.2.
But my agreement ends there. The Court seems to base its affirmance on the premise that certain testimony by the defendant Batsakes (which is set
The trouble with trying to dispose of this case on that premise is that plaintiff made no such claim in this case, offered no proofs in support of such a theory, and, what is even more important, one can search the record in vain attempting to find where the trial court gave instructions to the jury suggesting they could find as a fact such alleged waiver or extension.
Additionally, having said that the jury “could have found” such waiver or extension, (thus justifying the verdict) this Court appears to have found such waiver itself in an unusual fact-finding venture of an appellate court:
“However at the January 15, 1964, meeting, the only irreconcilable variance revolved around the differing interpretations of sellers’ language regarding monthly payments, the other points of difference having been waived(Emphasis supplied.)
As I read the record it appears that at the January 15 meeting, defendants were claiming that plaintiff had failed to produce a ready, willing and able buyer by January 11. It is of some significance, too, in appraising this Court’s decision that plaintiff’s theory of the case is that he is entitled to the commission because on January 3 he had produced a ready, willing and able buyer. Indeed, that is exactly the burden of the trial court’s instructions.
I think I am as loath to disturb a jury’s verdict as the rest of the Court, but when the trial court
I would reverse and remand for new trial. No costs.
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