Futrell v. Reeves

• Decision Date: 08 June 1915
• Citation: 176 S.W. 1151,165 Ky. 282
• Parties: FUTRELL v. REEVES.
• Court: Kentucky Court of Appeals

176 S.W. 1151

165 Ky. 282

FUTRELL v. REEVES.

Court of Appeals of Kentucky.

June 8, 1915

Appeal from Circuit Court, Ballard County.

Action by G. J. Reeves against T. E. Futrell. From a judgment for plaintiff, defendant appeals. Affirmed.

John E Kane, of Bardwell, for appellant.

J. B Wickliffe, of Wickliffe, for appellee.

HANNAH J.

On February 2, 1914, T. E. Futrell, being the owner of a tract of land which he desired to sell, entered into a contract with G. J. Reeves, employing him to find a purchaser therefor, at the price of not less than $7,975 net to the owner, of which $4,975 was to be cash and the remaining $3,000 to be paid by the purchaser assuming a mortgage debt against said land, held by the Union Central Life Insurance Company. The contract contained this additional stipulation:

"It is further understood and agreed between the parties that if the party of the first part sells or conveys the above-described tract of land while this contract is in force, said party of the first part shall pay to the second party five hundred dollars commission."

The contract by its terms expired on April 1, 1914. At some time prior to March 19th, Reeves got in touch with a prospective buyer by the name of Cave, who at that time lived in Canada and whom he took to examine the farm twice. Futrell ascertained who the prospective purchaser was, and succeeded in entering into direct negotiations with him, which resulted in a sale to him of the farm on March 19, 1914, at the price of $7,975, together with certain personal property at the price of $1,165. Futrell and Cave entered into a written contract evidencing this transaction, on March 19, 1914; and this contract contains a provision that the deed was not to be made until on or after April 2, 1914. The deed was executed on April 4, 1914, in accordance with the terms of the purchase by Cave; and, Reeves' demand for compensation in the sum of $500 being refused by Futrell, Reeves brought this action in the Ballard circuit court, and obtained a verdict and judgment therefor. The defendant appeals.

1. As has been stated, the contract between appellant and appellee provided that should appellant himself sell the farm before April 1, 1914, he should pay appellee $500. But, as appellee was employed to find a purchaser at the price of $7,975 net to appellant, we think it the proper construction of the contract that, if appellee found a purchaser, his compensation would have been such sum as the purchaser was able, ready, and willing to pay for the farm in excess of $7,975; and that the $500 stipulation was to apply only in case the appellant himself sold the farm other than through appellee.

2. The great weight of authority supports the rule that a stipulation in a real estate broker's contract promising him a compensation in the event of a sale of the property by the owner himself during the life of the contract is valid and enforceable, where the broker has used ordinary diligence in endeavoring to make a sale of the property. Schoenmann v. Whitt, 136 Wis. 332, 117 N.W. 851, 19 L.R.A. (N. S.) 598 (with...