Hutton v. La France

COUGHLIN, J. The principal issue on this appeal concerns the sufficiency of the evidence to sustain the findings of the trial court in support of its conclusion that the plaintiff, the appellant herein, executed a release which discharged his claim against the defendants, the respondents herein, for a brokerage commission which he sought to recover by this action.

The defendants, Mr. and Mrs. Hatcher, as owners of a hotel known as the Casa Del Vista, by written agreement, listed their property for sale with the plaintiff, a licensed real estate broker. In response to this listing, the plaintiff introduced the defendant La France to the defendants Hatcher and unsuccessfully attempted to negotiate a sale between them. However, the Hatchers and La France subsequently executed a lease and option to buy. This agreement followed conversations between the plaintiff and Mr. Hatcher wherein the latter had indicated his willingness to lease the hotel. Following these conversations the plaintiff had prepared a lease and option between the Hatchers and La France; had submitted it to both of them; but Mr. Hatcher turned it down because of the provision therein requiring the payment of a commission for the sale of the property in the event the option was exercised. The Hatcher-La France lease and option was upon different terms [22]from those previously proposed by the plaintiff; resulted from negotiations between themselves; was effected without any assistance from the plaintiff; and without his knowledge. When the latter learned that the property had been leased he demanded a commission for his services in procuring La France as a lessee. A controversy respecting his right to such a commission ensued; culminated in a compromise; and resulted in the Hatchers’ paying him $2,200 which, by an instrument in writing, he accepted “in full settlement for any and all claims arising out of services from the Hutton’s Real Estate Company and or its agent or agents, with reference to the premises known as the Casa Del Vista. ...” The next day the defendant La France exercised her option to buy and the transaction was placed in escrow. Thereupon the plaintiff brought this action against the Hatchers claiming that he was entitled to a commission for the sale to La France. The Hatchers set up the aforesaid instrument as a defense, claiming that it released them from the obligation sued upon. The plaintiff contends that he was paid and received the $2,200 in question as a commission for procuring the lease only; that he executed the instrument in question as a receipt therefor only; that at the time he signed the same he did not know of the option provision in the lease; that it does not constitute a full release; and that La France conspired with the Hatchers to prevent his getting the commission in question. The trial court found: