Title: Brakensiek v. Shaffer

State: kansas

Issuer: Kansas Supreme Court

Document:

203 Kan. 817 (1969)
457 P.2d 511
C.W. BRAKENSIEK, Appellant,
v.
FRANK A. SHAFFER, MRS. FRANK A. SHAFFER and SHAFFER PRINTING COMPANY, INC., a Corporation, Appellees.
No. 45,399

Supreme Court of Kansas.
Opinion filed July 17, 1969.
Otto J. Koerner, of Wichita, argued the cause, and G.E. Carnahan, of Wichita, was with him on the briefs for the appellant.
Richard L. Honeyman, of Wichita, argued the cause, and W.A. Kahrs, Robert H. Nelson, H.W. Fanning, Richard C. Hite, Darrell D. Kellogg, Roger Sherwood, and Larry A. Withers, all of Wichita, were with him on the briefs for the appellees.
The opinion of the court was delivered by
KAUL, J.:
In this action plaintiff-appellant seeks to recover upon an oral agreement a reasonable commission and/or value of his services in procuring a purchaser for the printing business of defendants-appellees.
A trial to the court concluded in a judgment for defendants and plaintiff brings this appeal.
*818 The controlling question on appeal is whether the trial court, after finding the parties agreed that if plaintiff found a qualified purchaser some compensation might be paid, erred in not allowing compensation on a quantum meruit basis for plaintiff's services.
The evidence discloses that plaintiff and Frank A. Shaffer, during a luncheon conversation, discussed the sale of defendants' business, the possibility of plaintiff finding a purchaser, and the payment of some kind of compensation.
The fact of the conversation, the procurance of a buyer by plaintiff's efforts, and the agreement that plaintiff would be paid "something" are admitted. The dispute concerns the amount of compensation. Plaintiff claims defendants agreed to compensate him with a "substantial check." Shaffer contends he only agreed to give plaintiff a "case of whiskey" if a buyer were found.
At the conclusion of the trial, the court orally announced its findings and conclusions from the bench. Plaintiff complains the trial court failed to comply with K.S.A. 60-252 and Rule No. 116 of this court (201 Kan. XXXI) in not clearly defining its findings of fact, conclusions of law and reasons therefor. We must agree with plaintiff that the ruling announced is not in the best or most understandable form. However, no effort was made by plaintiff to secure a clarification.
Since disposition of this appeal depends upon a determination whether the trial court properly applied the law to the facts as found, the trial court's ruling is recited in full:
In reviewing this case our problem is not in ascertaining whether the trial court's findings are supported by the evidence, as suggested by defendants, but rather in determining whether the findings, as we interpret them, support the legal conclusions applied.
Construing the trial court's findings, as best we can, we believe a fair analysis to be that the parties agreed that if plaintiff procured *820 a buyer "some compensation of some kind would be paid," but since the precise terms of compensation were not agreed upon quantum meruit could not be resorted to in order to fix compensation.
We cannot agree with the trial court's disposition of the case in this manner.
The trial court found the parties agreed "that some compensation of some kind might be paid," then further in its ruling contradictorily stated the parties, "In fact, didn't even discuss commission."
Further, it is to be noted, the trial court failed to find that plaintiff's services were to be gratuitous.
Plaintiff testified he was engaged generally in selling interests in oil properties and operations and his business activities were such that he was in contact with investors qualified to make sizable investments. Plaintiff had been acquainted with Frank A. Shaffer for about twenty years and had done business with defendants' printing shop.
Plaintiff is not a licensed real estate broker and there is no suggestion that his activities necessitated a license; nevertheless, his description of his activities places him within the general definition of a broker. (12 Am. Jur., 2d, Brokers, § 1, p. 772.)
The undisputed evidence discloses that plaintiff contacted a number of qualified purchasers and that the eventual buyer, who purchased the business for $55,000.00, was procured solely by the efforts of plaintiff.
Further, it appears from the trial court's findings and evidence found in the record that the conversation between plaintiff and Shaffer was had with a contractual intent and gave rise to a contract to pay a reasonable compensation to be determined under evidence relevant and admissible on the point. There is no evidence suggesting that plaintiff's services were to be gratuitous.
As we understand plaintiff's case, from his petition and evidence submitted at the trial, he does not attempt to establish an express contract as to compensation, but merely claims an agreement was made between the parties, that the defendants benefited therefrom, and that he is entitled to reasonable compensation for his services. In other words, although both remedies might have been pursued in the same action (Berry v. Craig, 76 Kan. 345, 91 Pac. 913), plaintiff is seeking recovery only on the theory of quantum meruit, rather than on an express contract full and complete in and of itself.
*821 Apparently, the trial court adopted the view that plaintiff's failure to establish an express agreement as to compensation entirely barred his right of recovery.
Where there is no evidence showing that the services were to be gratuitous the law implies a promise to pay for services performed by one person for another which are known to and accepted by the latter. While some authority may be found to the contrary, we believe the prevailing rule is stated in 58 Am. Jur., Work And Labor, § 36, p. 540:
For many years in this jurisdiction the doctrine quoted has been adhered to and quantum meruit applied in factual circumstances similar to those existing here. In the early case of Turner v. Webster, 24 Kan. * 38, written by Justice Brewer, it was held:
In Williams v. Jones, 105 Kan. 282, 182 Pac. 391, plaintiff recovered for services in the absence of an agreement as to compensation, on review of the case this court said:
In Millspaugh v. McKnab, 134 Kan. 579, 7 P.2d 51, the plaintiff sought to recover on a basis of quantum meruit for his services in obtaining an oil and gas lease. The positions taken by the parties and applicable rules of law are set out in the opinion as follows:
In the instant case plaintiff alleged and testified that the amount of commission was not discussed; that Shaffer merely stated he would award plaintiff a substantial check if a buyer were obtained. In his petition plaintiff asked for a reasonable commission and value for his services. We think the language used clearly falls in line with the phrases set out and discussed in the Millspaugh case. See also Lambertz v. Builders, Inc., 183 Kan. 602, 331 P.2d 559.
Shaffer's assertion that he agreed to pay only a $65 case of whiskey for a $55,000.00 sale, admittedly brought about by plaintiff's sole efforts apparently, and understandably, did not impress the trial court since no finding was made to that effect. This leaves the case with services fully performed by plaintiff and no agreement as to compensation.
The trial court found a misunderstanding between the parties as to compensation and that the contentions of neither party was "corroborated sufficiently for a finder of fact to be convinced what *823 was said about compensation for finding a buyer for this business." Defendants pick up this statement of the court and argue that it should be construed not as a finding that the terms of compensation were uncertain, but that plaintiff had failed to persuade the court that his version of the conversation was true and, therefore, his right to recovery was barred.
Regardless of which interpretation is given to the trial court's ruling, defendants are not benefited. If compensation was uncertain the doctrine of quantum meruit is applicable under the rules already noted; if a misunderstanding exists as to compensation and neither party succeeds in establishing his version with the court, the law rejects the understanding of each and awards reasonable compensation. (Brown v. Quinton, 86 Kan. 658, 122 Pac. 116; Turner v. Webster, supra.)
We are compelled to view this case as one in which plaintiff fully performed a valuable service to defendants which was known to, and accepted by, them. The absence of a definite agreement as to compensation does not bar recovery by plaintiff. It follows plaintiff is entitled to recover on a basis of quantum meruit. (Lambertz v. Builders, Inc., supra; Millspaugh v. McKnab, supra; Stewart v. Fourth Nat'l Bank, 141 Kan. 175, 39 P.2d 918.)
In its ruling the trial court suggested no evidence was offered sufficient "to pick a standard upon which to determine what the value of services might be." On this point it is to be noted plaintiff testified the reasonable value of his services to be ten percent of the sale price. Plaintiff was competent to give this testimony. (Millspaugh v. McKnab, supra.) The competency of a plaintiff to testify under these circumstances is the subject of an annotation in 5 A.L.R.3d p. 948, where we find at page 949:
If there is no agreement fixing compensation or if recovery is sought on the basis of quantum meruit any evidence tending to show the reasonable value of the services rendered by a broker or an agent is admissible. (12 Am.Jur.2d, Brokers, § 253, p. 995; 3 Am.Jur.2d, Agency, § 248, p. 615.) Factors to be considered and standards of measurement in determining reasonable compensation are enumerated in 58 Am. Jur., Work and Labor, § 10, p. 518.
*824 In view of what has been said the judgment must be reversed and the case remanded with directions that reasonable compensation for the services rendered by plaintiff to defendants be determined in harmony with the views expressed in this opinion.
It is so ordered.