Benjamin v. Stanislaus Title Co.

PEEK, J.— This is an appeal by plaintiff from a judgment in favor of defendants and cross-complainants Murray and Huffman who were substituted in place of Stanislaus County Title Company in the action filed by plaintiff against said defendant for the recovery of certain real estate commission then held in escrow by said defendant.

Following the institution of said action by plaintiff, the title company, through its president, filed its affidavit for “Interpleader of Third Persons” wherein it was averred that it held the sum of $940 in an escrow; that certain realtors, doing business under the name of Murray-Huffman, were claiming said sum as a commission for the sale of real property belonging to one Peterson and prayed that the court order said sum deposited with the court and that said partnership be substituted as defendant in the place of said title company. Thereafter the partnership appeared and alleged by cross-complaint that on November 20, 1946, it had taken a listing contract for the sale of a ranch belonging to said Peterson; that the partnership was a member of Modesto Multiple Listing Service, an organization whose members agreed that in the event of the sale of property listed with the service the broker procuring the listing is entitled to 40 per cent of the commission and the balance thereof goes to the broker effecting the sale subject to a small percentage which is deducted for the expenses incident to the operation of the service; that Mary Benjamin, while employed as a saleswoman for one Goodin, a member of the listing service, obtained information concerning Peterson’s listing with Murray-Huffman; that while said listing was still in full force and effect she obtained another listing from Peterson for her son, a realtor not a member of the listing service, and thereafter sold the property as saleswoman for her son, plaintiff herein. Attached to the cross-complaint as a part thereof is a copy of the Murray-Huffman listing which shows that it was irrevocable for the first 60 days and thereafter revocable on five days’ written notice until the expiration of four months after which it was automatically canceled. Following the order of the court overruling plaintiff’s general and special demurrer to the cross-complaint appellants answered denying any right of respondents to the sum, in question; denied that respondents ’ listing [333]was in effect at the time of the sale or that she knew of the listing while working for Goodin and alleged that the listing in question was not obtained until .approximately a month after commencing work with her son. At the conclusion of the trial the court, over appellants’ objection, granted respondents’ motion to amend to conform to proof. The amendment consisted of the allegation that at the time the listing was obtained from Peterson by Mary Benjamin it was agreed between them that the second listing was subject to the prior rights of the parties under the first listing until that document was canceled by the previously mentioned five-day written notice. In other words in the event of a sale while that listing was still in effect appellants would recognize respondents’ superior rights to a commission.