Harten v. Loffler
Harten v. Loffler
Opinion of the Court
delivered the opinion of the Court:
The only question material to the determination of this case arises on the error assigned on the exception taken to the refusal of the court to direct a verdict for the defendant.
The law is quite liberal in its recognition of the right of a real-estate agent or broker to recover reasonable compensation from the owner of property, who, desiring to sell the same, contracts for, or accepts his services in finding a purchaser ready and able to pay the price. On the other hand, it is a thoroughly well-established principle that, out of consideration for human weaknesses, the law will not permit such brokers, and others occupying fiduciary relations, to put themselves in a position where they are subject to the demands of conflicting duties; without, at least the full knowledge and consent of both vendor and vendee, even if then, one cannot act as the agent and representative of both in the same transaction. The duty of an agent for the vendor is to obtain the highest possible price for his property; of the agent for the purchaser to buy it for the lowest price. These duties are so irreconcilable and conflicting that they cannot be performed by the same agent without danger that he will sacrifice the interests of one to the other, or both to his own when
Applying the principle above stated to the evidence offered on behalf of the plaintiffs, we are of opinion that the court should have directed a verdict for the defendant. It is clear that Andrew Loffler visited Harten at the suggestion, and on behalf of Ernst Loffler, who directed him to inquire if the property was for sale, and at what price. He said: “I went out there for the sole purpose of getting this business and this place for Ernst Loffler.” That he had no agreement for, or no intention of charging, compensation for his services, if such be the case, did not prevent the relation of principal and agent from attaching, and bringing his principal under an implied promise to pay the value of his services. He did not disclose this agency to Harten. Without disclosing the name of the proposed purchaser, whom he claimed to have found, he made the authorized offer of $11,000, which Harten declined to accede to, having fixed his price at $12,000. The many visits made were thus explained: “The necessity for so many visits to Harten was because I was trying to get it for Loffler.” Accepting the truth of this statement, which must be done on a motion to direct a verdict against him, to the effect that Harten authorized him to act as his agent for sale at $12,000, and promised to pay him a commission of $3,000, it appears that, instead of forwarding that object, as he was
The authorities cited on behalf of the appellee go no farther than to hold that, where one acts as a middleman, merely bringing vendor and vendee together, to make their own contract, without aid, advice, or interference to, or on behalf of, either, he may obtain compensation from both, even without knowledge by one of such arrangement with the other. Ranney v. Donovan, 78 Mich. 318, 329, 44 N. W. 276; McLure v. Luke, 154 Fed. 647; Manders v. Craft, 3 Colo. App. 236, 238, 32 Pac. 836; Orton v. Scofield, 61 Wis. 382, 384, 21 N. W. 262; Rupp v. Sampson, 16 Gray, 398, 401, 77 Am. Dec. 416; Knauss v. Gottfried Krueger Brewing Co. 142 N. Y. 70, 75, 36 N. E. 867.
Whether this doctrine be sound to the full extent of want of knowledge by the respective parties, it is unnecessary to inquire, as there is nothing in the facts of this case to which it can be applied. Andrew Loffler was no such “middleman.”
For the error pointed out, the judgment will be reversed with costs, and the cause remanded for further proceedings not insonsistent with this opinion. Reversed.
A motion to recall and amend the mandate was overruled June 2, 1908.
Reference
- Full Case Name
- HARTEN v. LOFFLER
- Cited By
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- Syllabus
- Principal and Agent; Brokers; Fraud; Contracts. 1. The law will not permit real-estate brokers and those occupying fiduciary relations to put themselves in a position where they are subjected to the demands of conflicting duties; and, without at least full knowledge and consent of both the vendor and vendee, even if then, a person cannot act as agent and representative of both in the same transaction. 2. A real-estate broker who acts as agent of the vendor and vendee without the knowledge of both is guilty of a breach of his contract, and commits a fraud by his concealment, and a contract under such conditions is contra bonos mores, and the law will refuse to enforce it. 3. In an action by a real-estate broker against the owner of real estate to recover a commission for procuring a purchaser of the property, with whom the owner made a contract of sale which he afterwards refused to consummate, the trial court errs in refusing to direct a verdict for the defendant, where it appears that the broker originally approached the owner at the suggestion of the prospective purchaser, for the sole purpose of getting the property for the latter; that, without disclosing the name of the purchaser to the owner, he made an offer for the property at the price named by the purchaser, which was less than that fixed by the owner, which offer the owner refused; that his explanation of his many subsequent visits to the owner, which resulted in the contract of sale at the original price fixed, was that he was trying to get the property for the purchaser; that, accepting his statement as true that the owner employed him to act as his agent and promised to pay him a commission, he tried to induce the owner to reduce the price in the interest of the purchaser, and that, according to his own statement, he was trying to get the property as cheap as he could for the purchaser, and trying to get all he could for the owner. 4. Queers, whether one who acts as middleman, merely Bringing vendor and vendee together, to make their own contract, without aid, advice, or interference to, or on Behalf of, either, may recover compensation from both without knowledge by one of such arrangement with the other.