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76 Ark. 395

Taylor v. Godbold

Supreme Court of Arkansas

Decided July 29, 1905

Supreme Court of Arkansas · decided 1905-07-29

Edward W. Wineield, Judge. statement by the court. Godbold was a cotton seed broker; Taylor, a planter, owning a plantation at South Bend on the Arkansas River. They had a transaction over the purchase of Taylor’s cotton seed, and Godbold’s version of it was given in this letter: “Tittle Rock, Ark., Feb. 4, 1903. :‘Dr. C. -M. Taylor, “City. “Dlar Sir :— “I was very much surprised when I received your letter of the 31st ult., saying that you had sold your cotton seed.

Key passage — most relied on by later courts

““ ‘Like other agents in whom trust and confidence are reposed, the broker owes to his principal the utmost good faith and loyalty to his interests.*** It is his duty, therefore, to fully and freely disclose to his principal at all times the fact of any interest of his own or of another client which may be antagonistic to the interests of his principal, and he will not be permitted to take advantage of the situation to make gain for himself by forestalling or undermining his principal.’ ””

quoted by 1 later decision, including Green v. Pickens

Relies on Wadsworth v. Adams · Shaeffer v. Blair

Good law ✅— No negative treatment on recordhow we know

Reversed · Decided 1905-07-29

How this case has been cited

Cited by 18 later decisions — most recently January 1983

18 state decisions

40190519101920193019401950196019701980decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

Hirr, C. J.

¶1Godbold under his own testimony cannot recover as a broker. Mr. Mechem thus states the reason: “Like other agents in whom trust and confidence are reposed, the broker owes to his principal the utmost good faith and loyalty to his interests. … It is his duty, therefore, to fully and freely

¶2disclose to his principal at all times the fact of any interest of his own or of another client which may be antagonistic to the interests of his principal, and he will not be permitted to take advantage of the situation to make gain for himself by forestalling or undermining his principal.” Mechem on Agency, § 952. It is unquestionably good law, as well as good morals, that the unfaithful broker who seeks a profit from the transaction other than the commission for his brokerage cannot recover of his principal for any commissions. Wordsworth v. Adams, 138 U. S. 380; Shaeffer v. Blair, 149 U. S. 248; Mechem, Agency, § § 952, 972, and numerous authorities cited. This necessarily reverses the case, and there is another matter which calls for its dismissal. Either the sale as claimed by Godbold was through him as broker or to him individually. If the former, he cannot recover on account of his failure to disclose to his principal that he had sold to his, the principal’s, advantage at $1.00 per ton and commissions above what the principal asked; and if the latter, he cannot recover because he is precluded by the statute of frauds. Kirby’s Digest, § 3656.

¶3It is true that the statute of frauds is not pleaded in this action; there is no room for it, as the action is for broker’s commissions ; but if the action is sought to be maintained on the other theory, the facts as stated by Godbold show the contract to be void. The judgment is reversed, and cause dismissed;

•BaTTrb, J., absent.
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