Welch v. Holmes
Welch v. Holmes
Opinion of the Court
The plaintiff is engaged in the real estate business in the city of Detroit, working on a commission basis in the office of his father, John M. Welch, Sr., and his uncle, Thomas Welch, doing business as Welch Brothers. The defendants' Elizabeth N. Meyer and Frank E. Holmes are children of defendant William S. Holmes.
The defendants owned a piece of property on the Snyder road which they wished to sell and on which they placed a sale price of $30,000. On the 28th of April, 1915, the property was listed with plaintiff to
“The court finds, as a matter of fact, in this case that John Welch, Sr., father of the plaintiff, and Thomas Welch, an uncle of the plaintiff, were the undisclosed principals in the purchase of this real estate, and that that fact was not made known to the defendant at the time they entered into this contract; that the plaintiff acted in a fiduciary relation and that it was the duty of the plaintiff to make known to the*587 defendant his interest and the identity of the undisclosed purchasers. The court also finds, as conceded by both parties, that the plaintiff obtained a part of the commission for the sale of this property to himself, and that this was illegal and against. public policy. The court further finds as a matter of fact that no consideration passed between the plaintiff and Frank Holmes and Elizabeth Meyer for entering into this contract, and that there was no legal tender made to the defendant Frank Holmes and Elizabeth H. Meyer of the balance due under the contract, which tender! must, under the law, be made before the commencement of suit. The court further finds that the only title which could pass between William Holmes and the plaintiff would be the life estate which William Holmes had at the time of entering into the contract. The court also finds that the consideration to be paid for the purchase of the property was grossly inadequate.”
The defendants’ right to a decree in this case must rest upon their claim that Welch Brothers were the real purchasers or undisclosed principals in the transaction and that the plaintiff was only an agent. It is undisputed that the plaintiff became the agent of defendants to sell the property on the 28th day of April, 1915, and that his agency terminated on the 1st day of June following. After that time he could with perfect propriety become the purchaser himself. On the 5th day of June, 5 days after his agency terminated, he entered into a written contract of purchase with the defendants for a consideration which the defendants now claim was grossly inadequate. The evidence does not support this claim, but, conceding that it does, if plaintiff had put off the character of agent, he was at liberty to make as advantageous a purchase as he legitimately could.
Whether he was still their agent is, of course, the controlling question of fact. The circuit judge found that he was, but the record discloses no testimony that would warrant such a conclusion. The written
The contract of purchase made provision for the payment of $1,500 as commission to Welch Brothers. The plaintiff explains that, according to the arrangement under which he was working in Welch Brothers’ office, he was required to pay them a commission on all property purchased by him. In view of the relationship between plaintiff and the brokers and the facts and circumstances attending the entire transaction, we are of the opinion that the agreement to pay the commission was wholly without consideration. It is independent of the other consideration, and, as the contracts are separable, specific performance of the contract to purchase may be decreed without including that for the payment of a commission. The defendants will not be required to pay the $1,500 commission ; neither may such sum be deducted from the purchase price.
The other questions urged by counsel, viz., lack of consideration, failure to make proper tender of payment, and the effect of plaintiff’s minority, are plainly without merit and we do not deem it necessary to discuss them.
The decree is reversed, and one will be entered in harmony with the conclusions herein reached. Plaintiff will have costs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.