GR 35368; (October, 1932) (Digest)
G.R. No. 35368; October 29, 1932
RAFAEL MORETA, administrator of intestate estate of the deceased, M. Singh, plaintiff-appellee, vs. TAN CHAY, defendant-appellant.
FACTS
M. Singh, a broker, secured a contract (Exhibit B) with defendant Tan Chay for the purchase of coconut lands from Bernardo Marquez at P4.50 per tree. Singh had a separate contract with Marquez to buy at P3.50 per tree, giving Singh a P1.00 per tree commission. Tan Chay later purchased the lands directly from Marquez (Exhibit I) to avoid paying Singh’s commission. Singh sued for damages (commission). It was discovered Marquez had no valid title to the lands at the time of sale due to prior foreclosure and execution sales. Singh acted in good faith, unaware of the title defect. Tan Chay later canceled the deed from Marquez and paid about P170,000 to third parties to secure good title, less than the original estimated price. The trial court awarded Singh P54,142 based on an estimated number of trees.
ISSUE
1. Whether Singh is entitled to his broker’s commission despite the lack of title in the vendor (Marquez).
2. What is the correct number of coconut trees upon which the commission (P1.00 per tree) should be based?
RULING
1. Yes, Singh is entitled to his commission. Lack of title in the vendor is not a defense against the broker’s claim when the broker acted in good faith and the purchaser voluntarily entered into an independent contract with the seller. The purchaser’s remedy for defective title is against the vendor, not a defense against the broker. The subsequent cancellation of the deed between Tan Chay and Marquez does not prejudice the broker’s rights.
2. The commission should be based on 41,164 trees, not the trial court’s higher estimate. The Court found the evidence supported 33,085 trees on some lots, but reduced the count on another lot (lot 4) to 8,079 trees (based on sheriff’s count in related litigation) instead of the uncredited claim of 21,000 trees.
DISPOSITIVE: The judgment is modified. Plaintiff is awarded P41,164, with costs against the defendant.
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