Hidden Wells Ranch, Inc. v. Strip Realty, Inc.

• Court: Supreme Court of Nevada
• Citation: 425 P.2d 599,83 Nev. 143
• Docket Number: No. 5162,5162
• Parties: HIDDEN WELLS RANCH, INC., a Nevada Corporation, Appellant, v. STRIP REALTY, INC., a Nevada Corporation, Respondent.
• Decision Date: 30 March 1967

Page 599

425 P.2d 599

83 Nev. 143

HIDDEN WELLS RANCH, INC., a Nevada Corporation, Appellant, v. STRIP REALTY, INC., a Nevada Corporation, Respondent.

No. 5162.

Supreme Court of Nevada.

March 30, 1967.

Jones, Wiener & Jones, Las Vegas, for appellant.

John Peter Lee, Las Vegas, for respondent.

OPINION

COLLINS, Justice.

This is an appeal from an order of the trial court granting respondent's motion for summary judgment. We believe that the order was in error and remand for further proceedings.

In 1962 appellant purchased real property known as the Hidden Wells Ranch. Respondent acted as real estate broker on this transaction. In 1964 appellant, through the brokerage efforts of respondent, sold Hidden Wells Ranch to Nevada Land and Mortgage Company. The purchaser assumed an outstanding obligation against the property and executed a second deed of trust to the seller for the balance of the purchase price. No money exchanged hands on this transaction. Nevada Land and Mortgage Company breached its purchase contract, paid no money under the second deed of trust, and the property was bid in by appellant at the trustee's sale.

Prior to default, oral conversations were had between appellant and respondent regarding real estate sales commissions. It was then agreed that appellant would pay, and did pay, respondent $15,000 as the commission earned on its initial purchase of the ranch in 1962. The controversy arises over the agreement relating to the commission to be paid on the sale of the ranch by appellant to Nevada Land and Mortgage Company in 1964. The amount of the commission, $10,118.50, is not in dispute, but disagreement exists whether the agreement establishes that the commission payment is to be considered a presently existing obligation to be paid by appellant to respondent regardless of default by purchaser Nevada Land & Mortgage Company (see Engel v. Wilcox, 75 Nev. 323, 340 P.2d 93 (1959)) or whether liability for the commission was conditioned (precedent) upon payment by the purchaser of all or at least two installments under the promissory note secured by the deed of trust (see Fitch v. LaTourrette, 75 Nev. 484, 346 P.2d 704 (1959).

The trial court granted summary judgment in favor of respondent, holding that there was no genuine issue as to any material fact and respondent (plaintiff below) was entitled to judgment as a matter of law for $10,118.50, together with certain interest payments. In reaching this conclusion the trial court ruled that the contract of the parties was established by Exhibit B offered by respondent and that an affidavit by I. P. LaRue, Jr., on behalf of appellant and in opposition to Exhibit B, 'did not rebut' respondent's exhibit. The trial court ruled as a matter of law that respondent's Exhibit B was the contract of the parties, although signed only by appellant. I. P. LaRue's affidavit, on the other hand, contends the oral agreement establishes the contract of the parties and that Exhibit B is merely some evidence of the contract. The trial court in granting summary judgment to respondent passed upon the weight and credibility of the affidavits and exhibits of the respective parties when it ruled, 'Rule 56 and the interpretations thereof provide that an affidavit by a person competent as a witness to testify as to certain matters in controversy is conclusive.' This may not be done. We said in Short v. Hotel Riviera, Inc., 79 Nev. 94, at 103, 378 P.2d 979, at 984 (1963), 'In 6 Moore,...