170 Ind. 550 | Ind. | 1908
Appellee sued appellant in the Superior Court of Marion county to recover a certain commission for the sale, as.agent of appellant, of 4,000 shares of the common stock of the Indianapolis & Northwestern Traction Company. The -original complaint was subsequently amended and- the cause finally submitted to the jury upon the complaint as amended. A demurrer for want of facts was overruled to the latter complaint. Answer in two paragraphs — first, the general denial, the second alleged affirmative matter. Appellee’s reply to the second paragraph of the answer was the general denial. Trial by jury and a verdict returned in favor of appellee for the sum of $20,000.- Along with this general verdict the jury returned answers to certain interrogatories. Appellant unsuccessfully moved for. judgment upon the answers to the interrogatories. lie also moved for a new trial. This motion was denied and judgment was rendered upon the verdict.
From this judgment he appeals, and assigns that the court erred: (1) In overruling the demurrer to the amended complaint; (2) in overruling his motion for judgment upon the answers to the interrogatories; (3) in overruling the motion for a new trial.
In regard to the first objection urged against the complaint it may be said that it is true ordinarily that a broker has no implied authority to buy or sell in his own name. But certainly there is nothing in the complaint to show that appellee in any manner violated this rule of the law. It is not averred that he sold the stock in his own name; but, on the contrary, the pleading alleges that he sold the stock to Wilson for thirty cents on the dollar, and on the day following he reported his transaction to appellant, and that the latter agreed to deliver the stock for the use of said purchaser on July 1, 1905. Under his employment, as alleged in the complaint, appellee, it appears, was authorized as the agent of appellant to make the sale of the stock for a price not less than twenty-five cents on the dollar. Or, in other words, under the employment he undertook to find a purchaser who would be ready, willing and able to buy the stock of appellant at the price stiprilated. It appears that, in pursuance of his employment, he found a purchaser who agreed to buy 4,000 shares of stock at a price of thirty cents on the dollar. This agreement upon the part of Wilson appellee reported to appellant, and the latter appears to have approved the sale; at least, he agreed to deliver the stock on July 1, 1905, for the use of said purchaser. Reducing the question raised upon the demurrer to the complaint to a simple proposition, it máy be said that appellee, under his employment as the agent of appellant, found a purchaser who agreed to buy the stock in controversy at a price over and above that prescribed by appellant. Upon being informed by appellee of this sale, appellant appears to have approved it by agreeing to deliver the stock, on the date alleged, for the use of said purchaser. It further shows that such purchaser was ready, willing and able to accept and pay for the stock on the day upon which it was
The evidence in the case most favorable to plaintiff establishes the following facts: Plaintiff is a resident of Broad Ripple, Marion county, Indiana, and has resided in that town'for twenty-six years. He testified that for the last five years he had made a specialty of transactions in stocks and bonds of interurban railroad companies; that his office is at No. 535 State Life Building in the city of Indianapolis, and that his letterheads contain the word “broker.” He was acquainted with the defendant, William S. Reed, who resided at the city of Chicago, Illinois, and that prior to June 9, 1905, he had transacted business for the defendant. On the latter date he and the defendant had a conversation in the plaintiff’s office in the State Life Building. In regard to this conversation, the plaintiff testified that the defendant said “he wanted to give me an opportunity to make a big pile of money; that he had 4,262 shares in the Indianapolis & Northwestern Traction Company; that the Boston people, Rollins & Company, and other parties were, in his opinion, trying to euchre him out of his deal; that I was the man to prevent it; that if I could sell his stock right away so it would net him twenty-five cents on the dollar he would like for me to do it; that he would give me all over $25 a share that I sold it for, and that he would like to know the early part of the next week: I said I would do my best, but it was a short time; that I would undertake to sell the stock and would go at it immediately. On Saturday, June 10, I talked with Medford B. Wilson, president of the Columbia National Bank of Indianapolis, and on Monday, June 15, 1905, closed the deal with Mr. Wilson at $30 per share. A copy of my written offer and his written acceptance is as follows. [These documents were introduced in evidence.]
*558 'Indianapolis, Indiana, June 12, 1905.
Medford B. Wilson, City.
I hereby agree to sell you 4,000 shares of the common stock of the Indianapolis & Northwestern Traction Company for the sum of $30 per share, the par value of each share being $100, and on your acceptance of this offer I will arrange to have the stock placed in the Columbia National Bank of this city, to be delivered to you on your return from New York City, and on the payment of the price as above named, it being agreed or understood that you will pay for said stock within ten days from this date.
R. C. Light.’
‘R. C. Light, City.
I hereby accept your offer to sell me 4,000 shares of the common stock of the Indianapolis & Northwestern Traction Company, and inclose you a check for $100 as a guarantee that I will take the stock and pay for it on the terms of your offer.
Medford B. Wilson.’ ”
Plaintiff further testified that on Tuesday, June 13, 1905, he, very early on that day, called the defendant over the long distance telephone at the Chicago Beach Hotel, Chicago, Illinois, and notified him that he had sold 4,000 shares of stock, and that he would take the remaining 262 shares himself. He stated to the defendant that the party to whom the stock had been sold wanted it delivered or put up so that he would know he would get it; that he would have to make some arrangements for the money to pay for the stock, and that he would have to be certain that he would get the stock. Plaintiff informed the defendant that he had agreed to deliver the stock, and that it was bought within ten days after it was put up at the Columbia National Bank. The defendant in this conversation over the telephone informed the plaintiff that he (defendant) could not get the stock until July 1; that it had not been issued to him, but for plaintiff to arrange for delivery of the stock on July 1, 1905. After this conversation, on the same day in the afternoon, it was agreed between Medford B. Wilson and the plaintiff that instead of the stock being delivered in ten days
“June 13, 1905.
• To William S. Eeed,
Chicago Beach Hotel, Chicago.
Have sold 4,000 shares Indianapolis & Northwestern stock as per our talk this a. m. over phone, delivery to be made July 1. E. C. Light.”
On the day following, June 14, 1905, the plaintiff received a letter from the defendant, dated Chicago, June 13, 1905. In this letter the defendant wrote to plaintiff as follows:
“Dear Sir:
In the matter of the sale of my stock in the Northwestern, which we have talked over, I find that through a syndicate agreement I will not be at liberty to do anything until after July 1, next. The stock is tied up until that date, and a clause in the agreement- citing that I must, prior to that date, give any member of the syndicate the first right to purchase. Therefore, we will have to let matters rest as they are until after that date. From a legal standpoint, I could not even quote you a price. Therefore, you had better let matters rest until that date, and be very careful about talking about it and instruct your party also to keep very quiet.
Yours very truly,
W. S. Eeed.”
In answer to this letter, on June 14, 1905, the plaintiff wrote the defendant as follows:
“W. S. Eeed, Esq.,
Chicago Beach Hotel, Chicago.
Dear Sir: Your letter dated Chicago, June 13, is at hand. After you were in my office last Friday, I proceeded in a quiet way to sell 4,000 shares of Indianapolis & Northwestern Traction Company stock as per your proposition, having promised to try to have the matter definitely arranged by Tuesday the 13th, when you said you would be in our city and see me. I sold this stock to one of my most intimate friends and of course made five points on the sale as profit to myself. The party left Indianapolis on Monday for New York and requested me, as stated over long distance telephone yesterday morning, to have you put the stock up in*560 escrow, or confirm the sale by wire, as he would be compelled to dispose of certain securities he had in order to raise the money. After my talk with you over the telephone, I expected a wire as per your promise until 3 o’clock. I then took it for granted that you had concluded to write instead of wire, and wired my man in New York that the deal was all right. ITe is a good friend of mine and will keep everything mum. I have wired him this morning as follows: ‘Waldorf Hotel, New York City. Do nothing further in regard to purchasing stock which I bargained you on Monday until you return to Indianapolis. Mum must be the word. Will explain why on your return.’ Yesterday afternoon, after wiring my man in New York that, the deal was all right, I sent you the following telegram to Chicago: [This is the telegram heretofore copied, dated June 13.] You can therefore rest assured that your wishes to leave the matter stand as per our understanding of last Friday until the first of July, as per your letter, will be complied with. I hope, however, that you will be in Indianapolis within the next day or so, when we will talk the matter over further. Assuring you that you will find me always ready to cooperate in a fair and honorable business with my friends, I am,
Yours very truly,
R. C. Light.”
On June 20 plaintiff wrote defendant as follows: .
“W. S. Reed,
Chicago Beach Hotel,
Chicago, Illinois.
My Dear Reed: '
Failing to see you in Indianapolis last week, as per our talk over the long distance telephone on last Tuesday, the 13th (you having told me then that you would be in Indianapolis the latter part of the week), I am somewhat at a loss to know exactly what to do. As heretofore stated to you, immediately after you were in my office on June 9, and made me the proposition to sell me, or any syndicate I might form, a little over 4,000 shares of the common stock of the Indianapolis & Northwestern Traction Company at $25 a share, I proceeded at once to place the stock and did place it at $30 a share, not knowing, of course, but what you would be in a position to make immediate delivery, until our conversation over the-L, D. on June 13, when you informed me you*561 could not make delivery until July 1. I then arranged with my party by wire for delivery on July 1. I have just been served with a notice from the man to whom I sold the stock that he will expect the stock to be delivered to him on that date, and that the money is ready now and will be ready at that time to pay for it. You will, therefore, understand, Mr. Reed, that there must not be any delay in the delivery of this stock, as I will have the money ready to pay you as per your proposition.
In conclusion I triist you will realize that the matter is in such shape that prompt action will be necessary and that there will be nothing left undohe on your part that may cause me any embarrassment when the time comes for delivery of the. stock, as a failure upon, your part to deliver the stock to me would certainly precipitate litigation, as the parties I have sold it to would be sure to institute suit against me for damage, should I fail to make delivery. Trusting that I will see you or hear from you soon, I am,
Respectfully yours,
R. C. Light.
P. S. Yesterday afternoon I wired you as follows:
‘W. S. Reed, Chicago Beach Hotel, Chicago, 111.,
Important I see you. When, will you be in Indianapolis? Answer. Dr. Light’' — • and I was very much disappointed at not receiving any reply from you. ’ ’
The stock sold to Wilson was never delivered to him, either by the defendant or the plaintiff, and was never delivered to the Columbia National Bank, and plaintiff never received any part of the commission. The stock was never in the possession, of the plaintiff. The check for $100, which was sent by Wilson in his letter of acceptance, was never cashed, but was returned to him by the plaintiff either on July 5 or 6, 1905. On June 12 the defendant did not know that plaintiff had sold the stock to Wilson, but upon being informed of the sále, by plaintiff on June 13, over the long distance telephone, he consented to it. What the plaintiff reported to defendant on June 13 was that the contract had been made. No consideration whatever passed
“R. C. Light, Esq.,
535 State Life Building, City.
Dear Sir: On June 12, 1905, you contracted to sell to me 4,000 shares of the common stock of the Indianapolis & Northwestern Traction Company at the price of $30 per share, the par value of each share being $100. Afterwards I agreed with you that the time of delivery and payment of the same should be extended to July 1, but not beyond that date. You have not performed your contract, and the shares of stock have not been delivered, or tendered, to me. In my judgment the shares of stock were on July 1 worth $50 per share or upwards. I now hereby notify you that I expect and intend to hold you, or your principal, or both of you, liable for damages for failure to perform the contract.
Very truly yours,
M. B. Wilson.”
In the letter of July 6 the plaintiff wrote as follows:
“Mr. Wilson is the gentleman to whom I sold your stock as per our previous arrangement. As you did not deliver the stock to me on July 1, as you agreed to do, I could not make delivery to Mr. Wilson. This letter explains itself. I shall expect you to settle with me for all damages I have sustained and all liabilities I have incurred by reason of your failure to keep your agreement with me and make delivery of stock on July 1. Trusting that you will realize the importance of arranging to see me at an early date, and that we may be able to adjust the matter in a way satisfactory to all concerned, I am, Respectfully yours,
R. C. Light.”
On cross-examination the plaintiff was asked, and answered, the following questions: “ Q. Therefore Mr. Reed
The defendant testified in his own behalf, in which he stated that he resided in Chicago, and had been engaged in building railroads for eighteen years; that he had known the plaintiff about three years; that he (the defendant) had engaged in building the Indianapolis & Northwestern Traction Company’s line through Townsend, Reed & Company, of which company Townsend was president and he was a director; that by contract he had become the owner of 4,262 shares of traction stock. He admitted that on June 9, 1905, he had a conversation with the plaintiff in the latter’s office at Indianapolis, Indiana. He testified that in this conversation the plaintiff wanted to know “if I still owned stock in the company. Told him I did; that I had over four thousand shares. Plaintiff wanted to know if I wanted to sell it. I told him I did. He wanted to know the price. I told him $25 a share. He told me he might be able to sell it. I think that was about all that occurred as to sale of stock. Nothing was said in the conversation about plaintiff acting as my agent. Nothing said about a big bunch of money.” He stated that on the morning of Juno 13, 1905, he had a telephone conversation with plaintiff; that he was then at the Chicago Beach Hotel, and in this conversation plaintiff said “he had practically sold 4,000 shares of my stock, and wanted it delivered right away. I told him he had no authority from me to sell 4,000 shares of stock to anybody; that the stock was not in my possession ; that it would not be in my possession until after July 1; that I was not at liberty to talk to anybody or to sell or offer to sell any stock to any one until after July 1.”
The evidence given in behalf of appellee may be said to prove the cause of action as alleged in the complaint, and fully sustains the judgment below. Some of the same propositions which were raised and discussed by counsel for appellant upon the demurrer to the complaint are renewed upon the argument that the evidence is insufficient to uphold the judgment of the trial court. It is contended that appellee made the contract with Wilson to sell the stock in his own name and on his own account, and consequently he only found a purchaser for himself and not for the appellant. This argument is not tenable. It will be noted that appellee testified that after he had offered to sell the stock to Wilson, and after the latter had accepted the offer and agreed to purchase the same, he, on the day following— June 13 — reported the sale or transaction to appellant over the long distance telephone; that appellant consented to the sale and directed appellee to arrange for delivery of the stock on July 1, 1905. The evidence given by Mr. Wilson, the purchaser, also shows that at the time he agreed to purchase the stock appellee told him it belonged to Mr. Reed, the appellant. While appellee, in his written proposition to Wilson to sell the shares of stock in controversy, may have formally made the offer in his own name, nevertheless the evidence discloses that Wilson knew that appellee was not the owner of the stock, and consequently was not proposing to close or consummate the deal in his own name, but only as the agent of appellant, his principal. Under the terms of the employment appellee was not limited to finding a purchaser for appellant’s stock, but he was’ authorized to fix the sale price at any sum in excess of’ twenty-five cents on the dollar. Under the contract of em
Appellant criticises as erroneous the third, fourth and fifth instructions as given by the court. These instructions are strictly in harmony with the principles of the law which we announce and adhere to in this case, and they each properly advised the jury in respect to the law applicable to the facts in the case.
We have considered all the questions raised and presented by counsel for appellant, but do not deem it essential that we specifically mention all of them. It is sufficient to say that, upon the consideration of all the questions properly presented by the record, we find no available or reversible error. Consequently the judgment is affirmed.