Vere v. Bianchi
Vere v. Bianchi
Opinion of the Court
delivered the opinion of the court.
We are principally concerned with the following contract :
“Memorandum of Agreement entered into by the Undersigned this ninth day of June. — Mr. Servejean, principal shareholder and, at the same time, representative of other shareholders of the ‘Su-crerie Céntrale Coloso’ of Paris, France, commissioned Mr. Charles Vere, a merchant of San Juan, to negotiate the sale of said company in the following manner:
“6,500 shares @ 100 francs_ 650,000 fcs.
‘ ‘ 2, 750 bonds @ 460 francs- 1, 265, 000 ‘ ‘
“These shares and bonds make up the whole working capital of said company.
“The purchasers would also assume charge or take over the debt of the corporation amounting to 1,200,000 francs in a bank in France to be hereafter mentioned.
“And Mr. Vere having, in turn, commissioned Messrs. Carlos Cabrera and Cayetano Coll Cuchí to negotiate the deal; and the parties hereto having agreed upon the following conditions: we hereby declare that Messrs. Francisco Bianchi and Miguel Esteves have agreed to make the purchase subject to the following conditions :
“First: To accept the conditions proposed by Mr. Servejean; making a cash payment for the shares and bonds at the rate of exchange ruling on the day the deal is consummated in francs on Paris.
“Second: Taking over the debt of the Bank.
“Third: Payment of a commission to Messrs. Vere, Coll y Cu-chí and Cabrera of 132,525 dollars, the third part of which shall be jiaid in cash and the rest by notes to be given by the purchasers and made payable the 30th day. of June, 1917.
“Fourth: If on the day when the principal amount is paid the exchange should exceed 15%, the purchasers shall advance, within the margin denoted by the exchange, a sum sufficient to raise the commission, in toto, to $140,000.
“This agreement is subject to the approval of the transaction in Paris.
(sd.) Cli. Vere,
Miguel Esteves,
Francisco Bianchi.”
Very shortly after the foregoing contract was signed and after Vere had written and cabled to Servejean ashing for an option, then Servejean communicated to defendant through Vere the fact that the contract could not be carried out on the terms therein exhibited, but that the Central Co-loso could be bought for the sum of $1,500,000.
Upon the receipt of the information that the terms mentioned could not be carried out, the defendants, through Vere, sent a cable to Servejean offering to come to Paris in order to make slight modifications in the terms of said contract and that, to said proposition, Servejean replied that the voyage was useless.
There is no question that the defendants knew that the original contract could not be carried out. Nevertheless, through Vere they sent a cable to Servejean in which they protested against the abandonment of the contract and notified him that lawyers here thought the Central Coloso could be held responsible on said contract. From this point on, however, it appears that the defendants took up matters directly with Servejean and that Francisco Bianchi went to Paris himself and concluded the purchase for something like $1,480,000. . -
At no-time- did-the defendants notify Vere that-his serv
The books are full of cases.where an agent is employed to sell a piece of property and he finds a purchaser ready and willing to buy, if the owner takes the negotiations out of the hands of his broker and concludes the sale either at the same price or a reduced price yet the broker is entitled to a commission. McMillin v. Beves, 147 Fed. 218; In re Breon Lumber Co., 181 Fed. 909; Hoadley v. Savings Bank of Danbury, 44 L.R.A. 321 and note; Lerner v. Harvey (Mich.) 155 N. W. 427, 428; Coon v. St. Paul Park Realty Co., 101 Minn. 391, 394; Southwick v. Swavienski, 114 N. Y. App. Div. 681, 683; Lord v. U. S. Transportation Co., 143 N. Y. App. Div. 437, 455; Friedenwald v. Welch, 174 Mich. 399, 401; Cleveland Cliffs Iron Co. v. Gamble, 201 Fed. 329, 331; Phoenix Securities Co. v. Dittmar, 224 Fed. 892; French v. McKay, 181 Mass. 485; Carnes v. Finigan, 198 Mass. 128. Likewise .the authorities show that even where a. specific contract is made, fixing the price and the commission to be paid, yet if the parties finally conclude the transaction on a different -basis, the broker is entitled to a
We have no doubt in this case that Vere was entitled to a reasonable compensation, but the question has arisen whether the defendants were bound to pay it. This was a case where the defendants were anxious to buy the property. The record clearly discloses, despite some words to the contrary in the contract itself, that the defendants knew that they were not purchasing the whole property, but only a control therein. In the contract as originally written the words that the sale included all the property of Coloso were, interlined. Vere says that these words were put in by Coll after the contract was signed. Coll says his recollection is otherwise. That the understanding of the parties was of an entire sale is otherwise negatived and we are quite sure, that all the parties understood that the defendants wpuld only obtain a control of the company. What defendants'subsequently purchased was the entire property and there is no showing that they did not receive a quid pro quo in the' said purchase. In other words, it does not appear that in acquiring the whole property the defendants paid an excessive-price for the difference between the part they offered to-purchase and the whole property. They purchased not only the stocks and bonds originally offered, but more. It,.is-
If a broker is selling property and the purchaser finally only agrees to buy half, the broker ordinarily would be entitled to a commission on the part sold. An inverse line of reasoning might perhaps apply to the case where purchasers who expected to spend something over $600,000 are ■called upon to expend more than twice as much and buy twice as much as they were originally willing and ready to buy. In determining the compensation we need not consider Coll and Cabrera, inasmuch as they have abandoned all claims to the commission by not joining with Yere, and he is 'in no way responsible to them. Under the original contract among the three brokers Yere was entitled to receive $70,000. Given the variation from the terms of the
Reversed and substituted.
Dissenting Opinion
DISSENTIN' Or OPINION OP
I do not concur in the reversal of the judgment appealed from. In my opinion it should be affirmed because the evidence shows clearly that the contract entered into between Yere and the Successors of Bianchi, which would have entitled Vere to the stipulated commission, never was performed. If the Successors of Bianchi finally acquired the Coloso Central it was due to,a distinct negotiation. Both the evidence and the cases cited by the appellant convince me that the doctrine of quantum meruit is not applicable as regards the Successors of Bianchi. If so, it might perhaps be applicable as regards Serve jean and he has not been made a defendant. In my opinion it is not possible to conclude from the evidence that Yere acted as the agent of the Successors of Bianchi.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.