Howard

Howard v. D. W. Hobson Co.

Good Law
1918 Cal. App. LEXIS 184·38 Cal. App. 445·176 P. 715
Court of Appeal of CaliforniaOctober 17, 1918Civ. No. 1870.California12,847 words

Opinion

Opinion on Rehearing

The application for a hearing in this court, after decision in the district court of appeal of the third appellate district, is denied.

In denying the application, we deem it proper to say that we are not prepared to hold that subdivision 6 of section 1624 of the Civil Code is not applicable in the case of a simple contract between a real estate agent or broker and a proposed purchaser to obtain an option for the purchase of real estate *461 by the purchaser. The opinion clearly shows that this was in substance a joint venture on the part of plaintiff and defendant for the sale of real property of a third party, and the distribution of the profits between them. The district court of appeal was clearly right in concluding that subdivision 6 of section 1624 of the Civil Códe does not extend to agreements between brokers to co-operate in making sales for the sake of the commission or profits and that this substantially was such a case.

Lead Opinion

Hart, J.

The second amended complaint in this action is in four counts. In the first count it is alleged that D. W. Hobson Company is a corporation having its principal place of business in San Francisco; that, prior to the sixth day of November, 1912, Maud Moore was the owner of a certain tract of land in Colusa County; that, in March, 1912, “plaintiff informed said defendant and its agents that he could obtain an option giving him the exclusive right to purchase said land for the sum of $25,000 and said, defendant, then and thereby and through its authorized agents, agreed to and with plaintiff that if plaintiff would secure the option from said Maud Moore for the purchase and sale of said land for the sum of $25,000,” defendant would endeavor to sell said land “and in the event of such sale would divide the amount received for said land in excess of $25,000 equally with plaintiff,” and would pay to plaintiff “oneJialf of said excess sum over said $25,000 as his commission and share of the profits accruing under said option as aforesaid”; that, in March, 1912, plaintiff, pursuant to said agreement, procured from said Maud Moore an agreement in writing whereby, for the sum of one hundred…

Lead Opinion

The second amended complaint in this action is in four counts. In the first count it is alleged that D. W. Hobson Company is a corporation having its principal place of business in San Francisco; that, prior to the sixth day of November, 1912, Maud Moore was the owner of a certain tract of land in Colusa County; that, in March, 1912, "plaintiff informed said defendant and its agents that he could obtain an option giving him the exclusive right to purchase said land for the sum of $25,000 and said defendant, then and thereby and through its authorized agents, agreed to and with plaintiff that if plaintiff would secure the option from said Maud Moore for the purchase and sale of said land for the sum of $25,000," defendant would endeavor to sell said land "and in the event of such sale would divide the amount received for said land in excess of $25,000 equally with plaintiff," and would pay to plaintiff "one-half of said excess sum over said $25,000 as his commission and share of the profits accruing under said option as aforesaid"; that, in March, 1912, plaintiff, pursuant to said agreement, procured from said Maud Moore an agreement in writing whereby, for the sum of one hundred…

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