SAMUEL BOWMAN v. F. W. RAHMOELLER, Appellant
Division One
December 20, 1932
55 S. W. (2d) 453
PER CURIAM: - The foregoing opinion by FERGUSON, C., is adopted as the opinion of the court. All of the judges concur.
SAMUEL BOWMAN v. F. W. RAHMOELLER, Appellant. - 55 S. W. (2d) 453.
Division One, December 20, 1932.
Randolph Laughlin for respondent.
In December, 1927, plaintiff wrote defendant, who was in Florida, asking him if he “would entertain a proposition to make a 30-year lease . . . to a very responsible concern which has a capital of not less than ten million dollars.” Defendant answered requesting plaintiff to get into communication with Mr. Flint, manager of thе Furniture Store. Defendant also wrote Flint to find out who the tenant was and to submit a proposition for a 30-year lease at a rental of $25,000 per year for the first ten years, $30,000 for the next ten years and $35,000 for the remaining ten years, in addition to the taxes
Plaintiff did submit the proposition to Mr. Sаnford of the real estate department of the Grant Company, but he answered that they considered the price “staggering.” Plaintiff wrote defendant asking him to reduce the price and also had other conversations with Flint about it, but defendant refused to make a better offer. Defendant also wrote plaintiff asking him to attempt to negotiate a sale to his prospect instead of a lease. Plaintiff continued to write to Sanford, whom he had met in 1927 at the Grant Company‘s real estate office in New York City, asking him to visit St. Louis and see the property. Sanford promised, in several letters, to come to St. Louis and to notify plaintiff in advance of his arrival. Plaintiff also suggested other buildings and districts as desirable locations for the Grant Company. There is no dispute as to the negotiations between plaintiff and defendant and between plaintiff and the Grant Company throughout the early months of 1928. However, on April 5, 1928, after defendant returned from Florida, he came to plaintiff‘s office and there is a sharp conflict as to what happened then and thereafter. Both agreed that they talked about a $300,000 valuation for the building; that plaintiff suggested that $18,000 per year would be a six per cent net return on that valuation; and that plaintiff аsked to be allowed to submit a 30-year lease on that basis to the Grant Company. Plaintiff said that defendant agreed to this and said “I will give you thirty days’ time to negotiate the lease, and I won‘t offer it to anyone else during that period, and I won‘t talk to anyone else about it.” Defendant‘s version was that he did tell plaintiff he would not offer the property to anyone else for thirty days; but that he did not tell him he would accept $18,000 annual rental, or that he would change his original price. Defendant said he told plaintiff: “I will give you thirty days to see what you can do and at the end of thirty days, if you have not done anything, I am going to take this matter
After this meeting, plaintiff did write Sanford by air mail that defendant‘s property was now available at $18,000 per year and received an answer from him saying: “We are now very much interested in this parcel” and “we are expecting to leave on a long trip through the southwest the latter part of the month, which will take us to St. Louis.” Plaintiff and Sanford had other correspondence throughout April in which plaintiff urged him to come to St. Louis. Plaintiff finally asked Sanford to come before May 5th, but he answered “that it will be impossible.” As to the continuation of his agency plaintiff testified:
“I had quite a few conversations with him (defendant) after May 5, 1928, at which time I tried to persuade Mr. Rahmoeller to stand on the $18,000 net proposition and he told me he had other parties who were figuring with him at higher rentals, but if I could get the same rental that he was trying to get from the other parties he would be glad to have me continue my efforts to get a lease for him, and he told me he had raised his price to $20,000, $25,000, $30,000 net a year.”
Defendant denied that he had this or any other conversation with plaintiff authorizing him to continue his efforts after May 5th. Between Mаy 17th and June 18th plaintiff and Sanford corresponded about Sanford‘s proposed trip to St. Louis. Plaintiff said that he had several locations to show him. According to Mr. Flint, plaintiff had, during March or April, brought to look over the building a representative of Neisner Brothers, another five and ten-cent store corporation. Defendant testified that in June another broker called him about Neisner Brothers and he went to see Mr. Smith, the manager of the Woolworth store, to ask him how he “would like Neisner as a next door neighbor.” He said Smith thought they would be an undesirable competitor and suggested that he knew the officers of the W. T. Grant Cоmpany and the J. C. Penney Company and would write to them about the location. Since they sold higher priced goods than Woolworth, he said they would not be direct competitors. On June 29, 1928, Smith did write the Grant Company, recommending defendant‘s building and the Wellston business district. This letter was referred to Mr. Story of the Grant Company, who was the head of its real estate department, and he arranged for their representative, Mr. Mesnier, to go to St. Louis to see defendant. He also wrote defendant asking for information about his building. Defendant answered, offering to rent it at $22,000 for the first ten years, $25,000 for the next ten years, and $30,000 for the final ten years.
On thе day after defendant wrote this letter to Mr. Story, Mr. Mesnier arrived in St. Louis. There is some conflict between the
Mesnier brought back a proposition from defendant dated July 9, 1928, for a lease which provided for a sublease of a pаrt of the building to the furniture company. This was not satisfactory to the Grant Company and on July 27, 1928, they obtained from defendant a new proposition for a lease of the entire building at a rental of $22,000 for the first twenty years and $24,000 for the last ten years. A lease was finally made on these terms. According to defendant‘s testimony, Sanford himself came to St. Louis to get this proposition, and Sanford, with a man from the engineering department of the Grant Company, inspected the building at that time. It was also shown that Sanford had written to defendant on July 11th. Sanford said: “I was in St. Louis with reference to the Rahmoeller proposition shortly before the lease was closed. I did not call on Mr. Bowman. I did not phone him. I did not let him know that I was in town.”
During the last ten days of July plaintiff was at Mt. Clemens, Michigan. While there he wrote defendant asking “that you afford me the opportunity of presenting your property . . . at a net rental of $18,000 per year, which was the sum you fixed on your property after our conference on April 5th.” Plaintiff further stated
On September 1st, plaintiff wrote Sanford reminding him of his promise to visit St. Louis soon after Labor Day, referring to another property in the Wellston district, and also describing defendant‘s property and stating with regard to it: “This is probably the best building in the Wellston district and the property adjoins on the west the store occupied by the Woolworth Company. As I told you, the owner originally gave me a net price of $18,000 and afterwards jumped his price $20,000, $25,000 and $30,000, for three ten-year terms of lease. Have been trying to get him back to earth and if I succeed in doing so will advise you.” Sanford acknowledgеd receipt of this letter and stated: “A proposition was submitted to us on the property adjoining the Woolworth store at a very much lesser rental than mentioned in your letter,” and also said, “we hope to be able to meet you very shortly.”
Defendant left St. Louis about September 19th, and went to California. Plaintiff had some further correspondence with Sanford throughout September and October. He said that during that time he learned that defendant‘s building had been rented and he so informed Sanford in one of his letters, but he did not then know what firm had rented it and he was not informed by the letter which Sanford wrote in answer to his September lеtters. When plaintiff learned that defendant had rented his building to the Grant Company, he wrote to him in California reminding him that he got the Grant Company interested in defendant‘s property. He later demanded payment of his commission, which was refused and this suit was commenced. Upon trial the jury returned a verdict for plaintiff in the amount of $16,900. Defendant has appealed from the judgment entered upon this verdict.
Defendant first contends that his demurrer to the evidence at the close of the whole case should be sustained. Defendant‘s
Defendant‘s next contention is that the court erred in giving Instruction No. 1, which submitted plaintiff‘s theory, as follows:
“If you find and believe from the evidence that on December 23, 1927, or thereafter, the defendant requested and employed the plaintiff as his agent to find for him a party or parties who would lease on a rental basis the building then owned by defendant and occupied by the Rahmoeller-Flint Furniture Company at 5977-5979-5981 Easton Avenue, St. Louis, and that thereupon the plaintiff went to work for the defendant and succeeded in arousing the interest of W. T. Grant Company as a prospective lessee for said building, and that plaintiff disclosed to the defendant the name and address of said W. T. Grant Company as a prospective lessee for said building, and that thereafter the defendant himself negotiated a lease of said building to the said W. T. Grant Company behind the back of the plaintiff, and to avoid paying a commission to plaintiff and that plaintiff‘s efforts were the procuring cause, that is, the direct and proximate cause, of said W. T. Grant Company becoming interested in said building and becoming the lessee thereof under said lease, then you may return a verdict in favor of plaintiff and against defendant.” [Italicized words added by the court.]
Defendant says that this instruction overlooks his contention that plaintiff‘s authority to negotiate a lease expired on May 5, 1928. It is now well settled that, although plaintiff‘s instructions omit mention of some of defendant‘s defenses, such error, if any, is cured where such defenses are fully covered by defendant‘s instructions. [Morrow v. Missouri Gas & Electric Service Co., 315 Mo. 367, 286 S. W. 108; State ex rel. North British & Mercantile Ins. Co. v. Cox, 307 Mo. 194, 270 S. W. 113; Stаte ex rel. Jenkins v. Trimble, 291 Mo. 227, 236 S. W. 651; McIntyre v. St. Louis-San Francisco Ry. Co., 286 Mo. 234, 227 S. W. 1047; Ash v. Natl. Life & Accident Co. (Mo. App.), 40 S. W. (2d) 505; Cottier v. C. B. & Q. Ry. Co. (Mo. App.), 33 S. W. (2d) 173; Royal Indemnity Co. v. Poplar Bluff Trust Co. (Mo. App.), 20 S. W. (2d) 971; Scott v. Am. Mfg. Co., 20 S. W. (2d) 592; Emory v. Emory, 53 S. W. (2d) 908.] This defense was fully covered by defendant‘s Instruction No. 4 (as offered), which was given as follows:
“The court instructs you that the owner of a building has the right, after his agent‘s authority has been terminated or expired, to enter in good faith into direct negotiations for a lease with a person or persons to whom the agent had previously offered said building, when the agency was in force, without incurring any legal liability to such agent for a commission, even though you may believe and find that the efforts put forth by the agent, during the term of his agency, contributed to the decision of the lesseе, made after the termination or expiration of the agent‘s authority, to lease the building. Therefore, if you believe and find from the evidence that the plaintiff‘s authority to offer defendant‘s building for lease terminated or expired on May 5, 1928, and if you further find and believe that the W. T. Grant Company first decided to lease said building at a date after or subsequent to May 5, 1928, then your verdict must be for the defendant Rahmoeller and against the plaintiff Bowman, even though you may believe and find from the evidence that the plaintiff had negotiations with the W. T. Grant Company prior to May 5, 1928, which contributed to the ultimate decision of the W. T. Grant Comрany to lease defendant‘s building, unless you find from the evidence that plaintiff‘s negotiations with Grant Company were the proximate and direct cause of Grant Company‘s decision to lease.”
Defendant, however, says that the italicized words at the end of the instruction, which were added by the court, nullified the rule stated in the instruction as offered by the defendant and incorrectly allowed the jury to find for the plaintiff even though they found that plaintiff‘s authority terminated on May 5, 1928, and that the Grant Company decided after that time to lease the building. The instruction as modified does not limit “plaintiff‘s negotiations with Grant Company” to negotiations prior to May 5, 1928. In fact, the evidence fails to show that plaintiff‘s negotiations prior to May 5, 1928, “were the proximate and direct cause of the Grant Company‘s decision to lease.” The most shown is that plaintiff, by his negotiations, prior to May 5, 1928, aroused the Grant Company‘s interest in the building if it could be had for $18,000, and obtained a promise from Mr. Sanford to look at it, as well as other properties, which plaintiff had as agent to lease, whenever he made a trip west. Sanford, in one of his letters, definitely stated that he could not be in St. Louis to look at it prior to May 5th. Therefore, plaintiff had not at that time proсured anyone ready, willing, and able to lease defendant‘s
Instruction No. 4 as given is in direct conflict with Young v. Stecher Cooperage Works, 259 Mo. 215, 168 S. W. 611, Gibson v. Pleasant Valley Development Co., 320 Mo. 820, 8 S. W. (2d) 828, LaForce v. Washington University, 106 Mo. App. 517, 81 S. W. 209, and Westerman v. Peer Investment Co., 197 Mo. App. 278, 195 S. W. 78. The rule laid down by these cases is well statеd in the Young case. There plaintiff was given an exclusive agency to sell a tract of land within twenty days at $11 per acre. Plaintiff had evidence to show that before the expiration of the twenty days he obtained an offer of $10 per acre for about three-fourths of the land which was communicated to the owner with the name of the prospective purchaser. After the expiration of the plaintiff‘s agency, the defendant sold this same portion of the land at $10 per acre to the purchaser plaintiff claimed to have procured. The court held that a demurrer to the evidence shоuld have been sustained, saying:
“The contract between Young and the defendant, taken in connection with the fact that Young did not, within the contract time of twenty days, ‘secure a purchaser’ willing to take the land at the price named, leaves the plaintiff without any cause of action. Under
that contract, had Young within the twenty days introduced to defendant a person able, ready and willing to buy at the price, defendant would have been liable for the commissions whether he ever closed the deal or not. That was his contract. By that contract, the failure of Young to secure such purchaser in the allоtted time left the defendant free to sell to any one for such price as suited it. The fact that Young within the contract time found a person or persons willing, able and ready to take a part of the land at a reduced price, even though that fact was communicated to the defendant, and even though the defendant, after the expiration of the contract time, closed with the purchaser on such reduced terms, does not avail the plaintiff.”
The question of when a broker is entitled to a commission depends upon his contract. It is, of course, well settled that even though property is plaсed in the hands of a broker for sale at a certain price, he is entitled to commission for a sale, of which he was the procuring cause while his agency continued, even though the owner conducted the final negotiations and accepted a smaller price in order to make a sale. [9 C. J. 601, sec. 89; 4 R. C. L. 313, sec. 52; 43 A. L. R. 1104, note, in which a number of Missouri cases are cited.] But, if the broker‘s contract makes the right to commission conditional on a sale at a fixed price or within a definite time, he is not entitled to a commission for sale made at a less price or after such time. [Gibson v. Pleasant Valley Dеvelopment Co., 320 Mo. 828, 8 S. W. (2d) 828; Young v. Stecher Cooperage Works, 259 Mo. 215, 168 S. W. 611; LaForce v. Washington University, 106 Mo. App. 517, 81 S. W. 209; Westerman v. Peer Investment Co., 197 Mo. App. 278, 195 S. W. 78; 9 C. J. 601, sec. 89; 9 C. J. 606, sec. 92; 4 R. C. L. 305, sec. 47; 26 A. L. R. 784, note.] However, even though the broker‘s contract of employment makes his right to commission dependent upon obtaining a sale upon a fixed price or within a fixed time, the owner cannot defeat his right to commission if he is guilty of any fraud or bad faith which prevents performance by the broker in accordance with his contract. [9 C. J. 607, sec. 92; 4 R. C. L. 305, sec. 47; 43 A. L. R. 1115, note; Glade v. Eastern Illinois Mining Co., 129 Mo. App. 443, 107 S. W. 1002; Weisels-Gerhart Real Estate Co. v. Epstein, 157 Mo. App. 101, 137 S. W. 320.]
In this сase there was a direct conflict as to whether plaintiff had a continuing general agency to obtain a satisfactory lease from December, 1927, until after the lease was made but during that time had an exclusive agency for thirty days to make a lease at $18,000 (which was plaintiff‘s claim); or whether plaintiff‘s original agency was ended April 5, 1928, by a new agreement to give him an exclusive agency for thirty days to negotiate a lease at the originally stipulated price to his prospect after which his agency entirely terminated
Plaintiff further contends that, since defendant‘s answer was a general denial, he was not entitled to Instruction No. 4 (as offered) because, under a general denial defendant was not entitled to show that plaintiff‘s employment terminated, prior to the time the lease was procured. Plaintiff says this was an affirmative defense which must be specially pleaded. Plaintiff cites Hoyt v. Buder (Mo.), 318 Mo. 1155, 6 S. W. (2d) 947, where it is said that the defense of “revocation” of a contract is in the nature of confession and avoidance and should be so pleaded. Plaintiff here, however, pleads his negotiations with defendant, in detail, up to April 5, 1928, and then pleads the contract made on that date as follows:
“On or about April 5, 1928, the defendant called in person at plaintiff‘s office and then and there by word of mouth confirmed plaintiff‘s employment as his agent, told plaintiff that he authorized him to make a lease of his property on the basis of $18,000 per year net; that he would pay him the usual commission if he did so, and that to aid plaintiff to secure a tenant for him at that rental he would give him the exclusive agency for thirty days, to the end that plaintiff‘s efforts might not be interfered with or embarrassed by negotiations with any other prospect.”
It has been held that, under a general denial, a defendant “may prove that the contract sued on was conditional and that the condition was not fulfilled, or that the contract by force of the condition has terminated.” [13 C. J. 737, sec. 874; Stewart v. Goodrich, 9 Mo. App. 125.] Also, under a general denial, a defendant, in an action on a contract, may prove that the contract was different from that sued on. [Wilkerson v. Farnham, 82 Mo. 672; Clemens v. Knox, 31 Mo. App. 185; Parker Corn Co. v. Sexton (Mo. App.), 217 S. W. 616; Ruemmeli-Dawley Mfg. Co. v. May Dept. Stores Co. (Mo. App.), 231 S. W. 1031; Walsh v. Venable, 219 Mo. App. 383, 270 S. W. 1003; Smith v. Brougher (Mo. App.), 274 S. W. 532; Main Street Bank v. Werner (Mo. App.), 7 S. W. (2d) 723.] Moreover, plaintiff made no objection to the introduction of defendant‘s evidence concern-
Since the case must be retried it is proper to discuss defendant‘s further contention that Instruction No. 1 was erroneous because it contained the words “behind the back of the plaintiff and to avoid paying commission to plaintiff” and that defendant was entitled to a withdrawal instruction informing the jury that there was no evidence of a conspiracy between Sanford, the Grant Cоmpany, or defendant, or either of them, to defraud plaintiff out of his commission nor to make a lease behind plaintiff‘s back. Defendant‘s contention is that there was no substantial evidence in the case to warrant such a finding. No doubt the term “behind the back of the plaintiff” in the instruction would be understood by the jury to mean without plaintiff‘s knowledge. It is not, however, good practice to use such words in an instruction. Similes and parables are all right in argument but they are out of place in instructions, which should state the issues in such plain and simple language that their meaning is clear and unambiguous. However, we do not agree with defendant‘s contention that there was no substantial evidence of a conspiracy (collusion) to defraud plaintiff out of his commission. We think that, upon plaintiff‘s theory that his employment was never terminated and that he was with plaintiff‘s consent throughout May and June attempting to continue negotiations with the Grant Company and get Sanford to come to St. Louis to see defendant‘s property, that there is substantial evidence to submit such an issue. There is evidence which tends to show that defendant was attempting, with the aid of Sanford at least, to lease the property to plaintiff‘s prospect without his knowledge and to avoid paying him a commission. Regardless of what Story knew, Sanford knew before Mesnier left New York that he was going to St. Louis to see the very building which plaintiff had been writing him about for several months. Although Sanford had made plaintiff many unfulfilled promises to come there, during the same month that Mesnier went to St. Louis, Sanford wrote to defendant, went to St. Louis himself, and obtained an option on defendant‘s building at a lesser price than plaintiff was then offering it (while this was more than plaintiff had offered it in April defendant denied his authority to do so and there is also evidence that prices were advancing) and did nothing to let plaintiff know that he was in town. When plaintiff came to New York to see Sanford, about the time defendant‘s offer was accepted by telegram, he said nothing about his negotiations direct with defendant, but, instead, again promised plaintiff to come to St.
The judgment is reversed and the cause remanded. Ferguson and Sturgis, CC., concur.
PER CURIAM: - The foregoing opinion by HYDE, C., is adopted as the opinion of the court. All of the judges concur.
V. A. CAVEY, Executor of the Estate of JOSEPH PICKETT, Appellant, v. ST. JOSEPH RAILWAY, LIGHT, HEAT & POWER COMPANY, a Corporation. - 55 S. W. (2d) 438.
Division One, December 20, 1932.
