Red River Valley Land Co. v. Hutchinson
Red River Valley Land Co. v. Hutchinson
Opinion of the Court
This is an appeal from a judgment in favor of the plaintiff and from an order denying a motion for a new trial, which were entered in the district court of Cass county. The action was brought for the recovery of a commission of $5,000 alleged to have been earned in negotiating a sale of the defendant’s land. The contract upon which the action is brought is alleged in the complaint as follows:
“That said defendant on or about the 20th day of May, 1916, offered in writing to this plaintiff through its said agent, Ingstad, that if it would become the agent of said defendant and make a sale of said property upon the conditions and terms agreeable to said defendant, he would pay a commission for doing the work in connection with making such sale in the sum of five thousand dollars ($5,000) to be paid when the deal was completed.”
The facts necessary to an understanding of the questions presented upon this appeal are as follows: The defendant and appellant Hutchinson in 1916 was a farmer and real estate dealer, residing at Minne-wauken, North Dakota, and was the owner of a tract of land of considerable size which he was desirous of selling. In order to facilitate-the disposition of the tract, the defendant caused to be printed a cir-
One of these descriptive circulars came into the hands of one, Fred B. Ingstad, a real estate agent who was at the time employed by the plaintiff. Upon receipt of the folder, Ingstad wrote the defendant suggesting a prospective deal and inquiring as to the acreage as followst “In regard to the 3,000 acres of lake bottom of riparian rights, suppose you are in a position to give satisfactory papers for this.” The defendant, in replying to this portion of the letter, stated: “Relative to the title to the riparian land or receded lake bottom would state that Ralph Ward of Garrison, North Dakota, has just invested several thousand dollars in just such land as I am offering, and I believe that his father-in-law, an attorney by the name of Stevens who lives in Bismarck, is,
The foregoing correspondence was had on May 20th and prior thereto. On May 26th, Ingstad wrote Hutchinson from Kenneth, Minnesota, to the effect that he had a prospective buyer by the name of Frank Knowlton of Luverne, Minnesota, who was a thorough stockman and who would desire turning in on the deal some lands of his in Rock county, Minnesota. The letter contained considerable of the details of the prospective deal and Hutchinson immediately initiated negotiations with Knowlton. It appears from the subsequent correspondence that Knowlton was not altogether satisfied as to that portion of the land covered by the riparian rights and that Hutchinson was not satisfied to take in all of Knowlton’s Minnesota land at the prices stated. In order to take care of this latter difficulty, a conditional contract was suggested by Ingstad, whereby the final consummation of the deal was made to depend upon the parties being able to effect the resale of the Minnesota lands within thirty days so that they would not have to be carried by Hutchinson. Subsequently Ingstad brought Knowlton up to the farm and a conditional contract of the character previously suggested by Ingstad was signed, Avhich was dated June 19th, 1916. In that contract the gross consideration which Hutchinson was to receive and which, of course, embodies the Minnesota lands at Knowlton’s figures, was $10,000. Following the execution of this agreement, Ing-stad and Hutchinson became active in their efforts to dispose of the Minnesota lands. On July 12th, Hutchinson telegraphed Ingstad who was, at the time, in Luverne, Minnesota, working on the resale of the lands: “If you can get me all cash for Kenneth and south quarters, I will discount each $10 per acre. You can afford to throw off $5 each out of your commission. . . On the same day he wrote Ingstad to the same effect, saying: “I would discount the Kenneth and south quarter each $10 per acre. That would be $3,200 providing I got all cash out of them, say $100 down on each quarter, and the balance March 1st. Why can’t you also cut $2,500 off your commission. This would still give you and McLean $1,000 apiece and $500 for the other fellow, McDowell, I believe. Seems to me this would be a whole lot better than nothing. . . . Ingstad replied: “Your proposition, although
While the foregoing statement gives the facts relative to the transaction as they occurred in chronological order, we think the record justifies the following as a statement of conclusions of fact that must be drawn from the record. The acreage in the defendant’s farm was indefinite and the parties dealt with respect to an approximate acreage only. This was due largely to the character of the description and. from this fact it follows that the gross price obtained could not be said
In our opinion the foregoing statement of facts is decisive of this case and renders necessary the affirmance of the judgment. Exceptions are taken to the charge given by the court. The court’s charge, in substance, is the same as that given in the case of Paulson v. Reeds, 39 N. D. 329, 167 N. W. 371, recently decided by this court.- The appellants argue that this decision is also decisive of this case, but this argument does not take into account the clear distinction which exists between the facts in the case of Paulson v, Reeds, and the facts hereinbefore stated. In Paulson v. Reeds, it appeared that there was strong evidence of a change in the commission contract at the time the sale contract was executed, it being understood that the agent was to make up the difference between the sale contract as negotiated and one which would have fulfilled in all respects the listing agreement; whereas, here, there is no evidence that the Red River Valley Land Company ever agreed to cut its commission. The facts are also distinguishable in that in the Paulson v. Reeds Case the parties were dealing with respect to an exact quantity of land at an exact price per acre, while in this case the parties were dealing with an approximate acreage only. In reality the charge in the instant case is different from the charge in the Paulson v. Reeds Case in this respect: That it was stated in this charge that if Hutchinson sold his land to the purchaser found by the plaintiff upon modified terms, “then the plaintiff, in the absence of any neiv agreement, is entitled to the compensation fixed by its original contract.”
The appellant also argues that there is a failure of proof in that the plaintiff alleges an agreement to pay a commission of $5,000 upon a sale of the -farm upon conditions and terms agreeable to the defendant,
It is further argued that the question of the abandonment of the agency should have been submitted to the jury. There is no evidence in tlie record that the defendant ever abandoned the agency. There is a suggestion that Ingstad had given Hutchinson the impression that he had quit the defendant company. This, however, would not be evi
Finding no error in the record, the order and judgment appealed from are affirmed.
070rehearing
On Petition for Rehearing.
In petition for rehearing counsel for the appellant renew the main argument advanced upon the hearing, to the effect that the decision in this case is necessarily controlled by the prior decisions of this court in Grangaard v. Betzina, 33 N. D. 267, 156 N. W. 1035, and Paulson v. Reeds, 39 N. D. 329, 167 N. W. 371. As we interpret the facts, however, this case falls clearly within the widely recognized rule that, where a broker, who is employed at a stipulated commission to sell lands on given terms, finds a purchaser with whom the seller negotiates a sale upon terms and conditions differing from those named.
As we view the prior decisions of this court, referred to by counsel for appellant in his petition, none of them can.be said to conflict with the principle above stated. In fact, in Paulson v. Reeds, upon the last two appeals, the rule which, in our judgment, is controlling in the case at bar, was tacitly recognized. See Paulson v. Reeds, 33 N. D. 141, 156 N. W. 1031, and Paulson v. Reeds, 39 N. D. 329, 167 N. W. 371. The reversals were necessary in both appeals for the reason that, under the instructions given, the jury were practically directed to return verdicts for the full amount of the commission claimed, regardless of any change that might have been agreed upon by the parties at the time the sale contract'was executed. Upon the last appeal the court was unanimously of the opinion that the jury must be given the right to determine whether or not a change had been effected in the commission agreement. Beference to the dissenting opinion of Mr. Justice Grace will disclose that the only difference of opinion was as to whether or not, under the instructions, the jury could have taken the alleged change into consideration, the majority of the court being of the opinion that it could not, whereas Mr. Justice Grace interpreted the instructions otherwise.
Of the authorities cited in support of the rule, which we regard as decisive of this case, the case of S. E. Crowley Co. v. Myers, 69 N. J. L. 245, 55 Atl. 305, perhaps most aptly illustrates the principle and the distinction, as will be seen in the following paragraphs of the syllabus :
“2. When the authority conferred is to sell at the price of $70,000,*203 the owner may decline to accept a proposing purchaser whose offer is to buy the lands at the price fixed to be paid, not all in cash, but in part by the conveyance to the seller of other lands at the price of $30, '000. But if the owner accepts such an offer, the agent is entitled to his •commissions.
“3. If the owner, upon, receiving such an offer, accepts it on an agz’eement with the agent that he shall not be entitled to or receive commissions upon the price at which the lands are taken in exchange until the agent has procured a satisfactory purchaser for such lands, and the agent has failed to do so, a defense available in an action for ■commissions is disclosed upon, a proof of the agent’s failure. Whether the acceptance of the owner was upon such a condition, if contested, presents a mere question of fact.”
In the case at bar, there was no evidence that there was any agreement reached, involving a change in the commissions, and in this respect the case differs both from. Paulson v. Reeds and S. E. Crowley Co. v. Myers, supra. But it comes directly within the principle supported by all the authorities above cited.
The petition for rehearing is denied.
Dissenting Opinion
(dissenting). This is an appeal from a judgment for $5,000 against the defendant for alleged services rendered in regard to the sale of certain land under a special contract. As it appears, for the sale of certain land at the sum of $70,000, the defendant promised to pay $5,000. The plaintiff never produced a purchaser ready or willing to pay $70,000, or any sum in excess of $65,000. Indeed, it was with considerable effort and some expense on the part of defendant himself that he was able to make a sale of the land at $65,000. The contention of plaintiff is that inasmuch as defendant made a deal with the person whom the plaintiff tried to secure as a purchaser and made the sale for a reduced price he, the defendant, became liable to pay a commission of $5,000 in accordance with the terms of the special contract, and the court did, in effect, charge the jury that in ease there was an agreement to pay a commission of $5,000 for a sale of $70,000, and a sale at a less sum without any agreement to change the commission and if the plaintiff obtained a purchaser ready and willing to purchase the land upon different terms than first stated, and such modified terms were assented to by the defendant. The plaintiff in the absence of any new agreement is entitled to the compensation fixed by the original contract. That instruction is manifestly erroneous and the court repeated it over and over again so as to impress it on the mind of the jury.
Under such a law if the defendant had sold his property for $5,000 and no more, the plaintiff would be entitled to recover the $5,000 as his commission. Indeed, in case he made any sale whatever, even
And so, if a party should contract to pay $1,000 for the building of a two-story house worth $4,000, and then cause the contractor to make it a one-story house worth $2,000, the carpenter or contractor would still be entitled to a compensation of $1,000 in the absence of a special contract fixing a different compensation, but such is not the law. For the building of a one-story house, the carpenter would have no right to recover on a special contract for the building of a two-story house. For the one-story house his right to recover would be limited to the reasonable value of his services.
And so it is in every case where a party sues to recover on a special contract, he must prove a substantial compliance with the terms of the contract. The charge of the court was manifestly wrong and contrary to the decision of the court in Paulson v. Reeds, 39 N. D. 329, 167 N. W. 371.
It furthermore appears that in charging the jury the court read to them the argumentative complaint which might well have been received as a part of the charge of the court. In charging a jury there is no occasion for reading the pleadings of either party, or for repeating the same thing over and over again in different language. The charge should be short and pointed and limited to the issues in the case. A judge seldom gives a charge without overdoing it. There is always a disposition to talk too much.
The judgment should be reversed.
Reference
- Full Case Name
- RED RIVER VALLEY LAND COMPANY, a Corporation v. A. E. HUTCHINSON
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- Published