141 Iowa 485 | Iowa | 1909
In May, 1905, plaintiff, who is a resident of this State, went to Dickey County, N. D., and there.met one Caldwell, with whom he entered into negotiations for the exchange of plaintiff’s farm, containing about one hundred and sixtyi acres, in Iowa, for the farm of said Caldwell, containing about three hundred and twenty acres, in North Dakota. The details of the terms of the exchange are not important, but plaintiff’s contention is: That he offered his own farm at a cash value of $70 per acre and took the farm of Caldwell on the representation that it was of the cash value of $25 per acre; that defendant Omstead, acting as plaintiff’s agent in the negotiations for the exchange, became aware that Caldwell was willing to dispose of his farm at the cash price of $15 per acre, allowing out of that amount $1 per acre for commission ; and that defendant, instead of disclosing this fact to plaintiff, as was his duty, concealed it, and allowed plaintiff to enter into the exchange on the basis of a cash valuation of $25 per acre for Caldwell’s fárm, having at the time secured an agreement with Caldwell by which defendant was to take plaintiff’s farm off Caldwell’s hands at. such a valuation as would net Caldwell $14 per acre for his North Dakota land. Plaintiff asked by way of equitable relief that defendant and his grantees be required to turn over to plaintiff the land thus acquired by defendant
If defendant was plaintiff’s agent in the negotiations with Caldwell, and, by fraudulently concealing from plaintiff knowledge of the real cash price for which Caldwell was willing to sell his North Dakota land, was enabled to secure an advantage for himself, he ought to account to plaintiff for whatever he secured as the result of his bad faith, and it matters not that plaintiff was satisfied with his purchase of the North Dakota land and has retained it. What defendant in fact secured was the farm which plaintiff thought he was transferring to Caldwell but was in fact transferring to defendant under the arrangement between defendant and Caldwell at a price much less than that for which plaintiff understood that he was disposing of the farm to Caldwell, and plaintiff might properly elect to avail himself of the benefits of this transaction, which was fraudulent on the part of his agent.
After returning to Iowa defendant reported to plaintiff that he had been unable to secure any modification from Caldwell of his proposition, and represented to plaintiff that if he wanted the land he should take it at once to secure the bargain, and plaintiff then concluded to make the trade with Caldwell. In the meantime, and while defendant was at Monango, Caldwell had . communicated to defendant the fact that he was willing to dispose of the tract of North Dakota land which he was offering to plaintiff for $25 per acre at'$14 per acre net cash, and asked defendant whether he could get a purchaser for plaintiff’s land if he (Caldwell) should make the trade. Defendant gave Caldwell no definite assurance as to what could be done as to selling plaintiff’s land, and Caldwell then proposed to transfer it to defendant in the event that a trade was made at such price as would net him $14 per acre for his North Dakota land. Defendant acceded
It is insisted for defendant that the facts do not establish an agency, which can'arise only by contract; and further that, even if there was an agency while the parties were at Monango, there was none when the plaintiff finally accepted Caldwell’s offer and completed the transaction by the passing of deeds through defendant’s hands, for, as it is claimed, defendant was at that time acting for Caldwell. But we are well satisfied that defendant recognized an agency on his part for plaintiff at Monango which entitled him to a commission if an exchange of properties between plaintiff and Caldwell should be made, and, if he was plaintiff’s agent at that time, it was his duty to disclose to plaintiff the fact that Caldwell was willing to dispose of his land for a net cash price of $14 per acre while attempting to secure $25 per acre in the exchange. Cald
It is contended for appellant that the price fixed by plaintiff on his Iowa land was merely a trading price, and that it was not actually worth more than $55 or $60 per acre, and the testimony of several witnesses is referred to as supporting this contention; but the actual value of plaintiff’s land is not the basis on which to determine the extent of defendant’s liability. He did in fact acquire title to property as the result of a breach of trust toward plaintiff while acting as his' agent, and he is bound to account for the value of the property thus acquired. He disposed of the land to the Beshys at $75 per acre, taking in part pay a stock of goods which he says he disposed of at the value for which he accepted it in the exchange. Under these circumstances he can not contend that he is not
Binding that the decree of the trial court is right in principle and supported by a preponderance of the evidence, it is affirmed.