delivered the opinion of the court.
The plaintiffs, together with Robards and Dresback, two employees of the defendant, examined Mr. Davie’s property and found that it was well adapted for division into lots and public sale. The plaintiffs testify that they informed Mr. Davie of the defendant’s methods and sought to interest him in having his property sold by the defendants. According to their testimony Davie did not seem to be inclined to talk or treat with them, saying that he had been bothered by real estate agents. Cosby told Davie that the defendant would shortly conduct a sale at Bon Air and .suggested that Mr. Davie attend that sale and see how he liked the defendant’s methods. Davie, who was
The defendant, in referring to this severance of relations testifies: “That Mr. Cosby became angry and left, saying that he was going to quit working for him (Clarke) and that there were others he could work for and he would do nothing more for Mr. Clarke,” and that evening notice of suit was served on him. This appears to refer not to this but to the previous proceeding. He also testifies that the settlement of these previous suits was June 27, 1928; “that it was about two months after the conversation with Mr. Cosby, in which Mr. Cosby had become angry and told him that there were others he could work for and that he was resigning and would work for him no longer, when Mr. Robards showed him a card from Mr. Davie, requesting him to come to see him, and thereupon he and Mr. Robards went down to see Mr. Davie and Mr. Davie placed his property with them for sale,” making a contract, dated July 21, 1928, for the subdivision, development, advertisement and sale .within thirty days.
Several errors are assigned;
On motion of the plaintiffs the court gave the jury instruction A: “The court instructs the jury that there can be no recovery in this ease unless the plaintiffs have shown by a preponderance of the evidence that a contract existed between the plaintiff Cosby or the plaintiff Stratton, or either of them, and the defendant Clarke, and that Cosby and Stratton accomplished all required by said contract and the burden of proof is on the plaintiffs to establish this by a fair preponderance of the evidence.”
This instruction is misleading because it is too vague as applied to the testimony in this ease. Under the
The court also gave, over the objection of the defendant, instruction B, which reads: “The court instructs the jury that if they believe from the evidence that the defendant, D. C. Clarke, agreed with James T. Cosby and J. A. Stratton, or either of them, that he would pay them two per cent of the gross proceeds of sale for their services in procuring lands to be sold by said D. C. Clarke at his auction sales, and that they, or either of them, are the cause of D. C. Clarke or his agent and W. B. Davie coming together and which afterwards resulted in their entering into a contract, under which the said Davie lands were sold by said Clarke for the sum of $32,180.68, then you should find for the plaintiffs against the defendant, D. C. Clarke, in the sum of $643.61. If, however, you should believe from the evidence that the plaintiffs were to receive only one per cent for such services then you should find for the plaintiffs against the said defendant in the sum of $321.80.”
Instead of this instruction the court should have given in substance the instructions 3 and 4 which were offered for the defendants and refused. Instruction 3 reads: “The court instructs the jury that if they believe from the evidence that Cosby and Stratton severed their connection with Clarke before a contract had been made between Davie and Clarke and discontinued their efforts, and that later Clarke secured from Davie a contract for a sale of the land mentioned
The testimony unquestionably shows that the plaintiffs had severed their connection with Clarke before the Davie contract was entered into and had previously discontinued all their efforts to secure such a contract with Davie. Under such circumstances without more there can be no recovery of commission. Of course we do not mean to say that there can be no recovery in cases in which there has been a severance of relations by fault of the principal in bad faith and for the very purpose of avoiding the payment of commissions to a broker who has faithfully served him.. There is, however, no evidence of any such fault on the part of the defendant in this case. There is not the slightest evidence that the brokers were wrongfully discharged, and the uncontradicted evidence that the plaintiffs discontinued all their efforts in behalf of the defendant and were serving a competitor in business in connection with the Louisa county land before the Davie contract was secured. It is not a case in which there was a conflict in the parol evidence which should be submitted to a jury. There was no conflict about the facts on which this Instruction 3 is based and it should have been given.
The court also refused to give Instruction 4 which reads: “The court instructs the jury that before the plaintiffs can recover in this case they must show from the evidence that they were the procuring cause of the contract made between Davie and Clarke; $hat they were the cause of the execution of the contract between Davie and Clarke. It matters not that they may have introduced the parties who would otherwise
“Unless they produced the contract or were the cause of procuring the contract in accordance with the contract between them and Clarke, they cannot recover.
“A broker is never entitled to commissions for failing to perform his contract.' To entitle them to commissions they must succeed and they take the entire risk of failure, for their reward comes only as a consequence of their success. If they fail to procure a contract, or abandon their efforts in endeavoring to procure a contract, they do not earn their commissions.” There may be fair objection to the last clause of this instruction. It seems to be substantially a quotation from the opinion of this court, in Leicht-Benson Realty & Construction Corp. v. J. D. Stone & Co.,
The legal questions arising out of the facts of this ease are not novel, and the principles applicable have been frequently determined. Among the later Virginia cases are these: Long v. Flory,
Leicht-Benson Realty Construction Corp. v. Stone, supra. In' that case the general principles are thus summarized: “A broker is never entitled to commissions for failing to perform his contract. To entitle him to his commissions he must succeed and he takes the entire risk of failure, for his reward comes only as a consequence of his success. He may devote his time and labor and expend his money with ever so much devotion to the interests of the owner, and yet, if he-fails to procure a purchaser, abandons his efforts, or his authority is fairly and in good faith terminated, he does not earn his commissions.” Mitchell v. Hughes,
Patton v. Garnett,
There is an instructive note in the case of Max Rosenfield v. James J. Wall,
The subject is pursued in a later note, 43 A. L. R. 1116 where this is said: “Although the broker may be the means of first bringing the parties together and of opening negotiations with them, yet if the negotiations are unproductive and the parties in good faith withdraw therefrom and abandon the proposed purchase and sale, a subsequent renewal of negotiations followed by a sale at a less price, does not entitle the broker to the commission as he cannot be said to be the procuring cause of sale,” and in support -of this statement cases from Alabama, California, Colorado, Florida, Iowa, Kansas, Michigan, Mississippi, New York and Wisconsin are there cited.
In the case of Walsh v. Grant,
One test in such cases is whether or not his contract with the broker has been terminated in good faith by the principal. If so, the broker is not entitled
Applying these established rules to this case it is manifest that it was not a ease which should have been submitted to a jury in order to determine whether or not the plaintiffs were entitled to commissions, because upon the conceded facts the relations between the plaintiffs and the defendants had been terminated before the contract was made, because the brokers failed to procure the Davie contract and had ceased their efforts to procure it before it was made. In no aspect of the ease can it be fairly said that they induced, secured or procured the Davie contract. It follows that the trial court should have set aside the verdict and entered judgment in favor of the defendants. Such a judgment will be enteied here.
Reversed.
