Citation Numbers: 220 A.D. 454, 221 N.Y.S. 653, 1927 N.Y. App. Div. LEXIS 9329
Judges: Proskauer
Filed Date: 5/6/1927
Status: Precedential
Modified Date: 10/27/2024
The plaintiffs appeal from a judgment entered in favor of the defendants upon mutual motions made at the con
On October 11, 1922, the plaintiff Wisner and one Reynolds agreed to buy and the defendants to sell certain voting trust certificates representing shares of stock of the DeForest Radio Telephone and Telegraph Company; the buyers were to pay $656,500 in installments and to procure a license under certain patents issued to General Squier; this license and the voting trust certificates were then to be transferred to a corporation to be formed, the new corporation to issue stock to both sellers and buyers. Subsequent agreements eliminated Reynolds and extended Wisner’s time for performance. Prior to March 12, 1923, when Wisner was finally in default and ceased to have any rights under this agreement (Wisner v. Jewett, 213 App. Div. 667), Wisner had paid to the defendants $31,000 on account of the purchase price and had expended $13,500 in the purchase of the Squier patents. As the time of his default approached and as, despite frequent extensions granted him by the defendants, he found himself unable to perform, Wisner endeavored to and finally succeeded in "bringing about an agreement on March 16, 1923, by which one Jewett purchased the stock from the defendants for $670,000, this being the amount of the original purchase price, plus the $13,500 which Wisner had expended for the license. In the complaint it is alleged that at the special instance and request of the defendants Wisner “ used his best efforts and endeavors to get other and additional parties interested in the purchase of said ” stock; had carried on negotiations with Jewett and endeavored to procure Jewett as a purchaser; that Jewett executed the agreement of purchase, and that the defendants agreed in consideration of his services and disbursements and the cancellation of his rights under his agreement with the defendants to refund to him the $31,000 which he had paid under the original agreement and the extra payment of $13,500 which the defendants were securing from Jewett and which he claimed had been added to the purchase price in order to enable the defendants to reimburse him, without loss to themselves, for the payment he had made to Squier.
The plaintiff could give no consideration in the form of a surrender of his rights under his original agreement with the defendants because those rights had lapsed; but if he rendered, at defendants’ request, services in procuring Jewett as a purchaser, his agreement to accept for this service a refund of the $44,500 which he had expended on the original contract was a sufficient consideration to support a promise by the defendants to pay him that sum. His uncontradicted evidence makes out a prima facie case to sustain
On this proof it was error to direct a verdict for the defendants. We order a new trial so that the defendants’ version of the transaction may be given, if they are so advised, and any possible questions of credibility may be determined by the trial court.
The judgment and order appealed from should be reversed and a new trial ordered, with costs to the appellants.
Dowling, P. J., Merrell, Martin and O’Malley, JJ., concur.
Judgment and order reversed and a new trial ordered, with costs to the appellants.