DeArmit v. Milnor
DeArmit v. Milnor
Opinion of the Court
Opinion by
The plaintiff brought this action to recover the share of her ward out of rents which had been collected by the defendants, as agents managing certain real estate. The defendants sought to set off a claim for commissions alleged to have been earned
Accepting the theory that the sale in partition was made for the purpose of carrying into effect the written agreement, the sale was not completed at the time Mr. Bingaman signed the agreement, but when he became the purchaser under the proceeding in partition, when it was approved by the orphans’ court. If Clark & Company ever were the agents for the sale of the estate of this minor, the relation continued down until the time the sale was approved by the court. During the existence of the relation, the defendants were bound to exercise the utmost good faith towards their principal and to exert their skill for her benefit. A failure to discharge the duties of the employment must deprive them of the right to commissions for procuring a buyer: Singer v. McCormick, 4 W. & S. 265; Everhart v. Searle, 71 Pa. 256; Pratt v. Patterson, 112 Pa. 475; Wilkinson v. McCullough, 196 Pa. 205 ; and see the opinion of our brother Orlady, J., in Linderman v. McKenna, filed during the present term. The jury having found, under instructions of which the defendants had no just ground of complaint that the defendant Clark, who acted for his firm, had been guilty of bad faith, in attempting to depress the price of the property at the sale, that finding is conclusive against the right of the defendants to a commission. The facts being so found, the amount tendered by the defendants before the trial was less than the amount owing, and it is therefore unnecessary to consider the question, as to the allowance of interest, raised by the first specification of error. All the assignments of error are dismissed and the judgment is affirmed.
Reference
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- Guardian and ward — Sale of real estate — Agreement to pay commissions Fraud. In the absence of specific provisions in the instrument creating the trust, a guardian has no power to sell the real estate of a minor without the approval of the orphans’ court, nor to enter into a contract to pay commissions for effecting such a sale without such approval. Where a guardian contracts to pay commissions on the sale of the ward’s real estate, and partition proceedings are resorted to for the purpose of effecting the sale, and in that manner securing the approval of the orphans’ court, the agents with whom the agreement was made for the payment of commissions, cannot recover such commissions where it appears tiiat one of the agents, acting for his firm, was guilty of bad faith in attempting to depress the price of the property at the sale.