Abrams v. Horizon Corp.

669 P.2d 90, 137 Ariz. 112
CourtCourt of Appeals of Arizona
DecidedDecember 21, 1982
Docket2 CA-CIV 4292
StatusPublished
Cited by2 cases

This text of 669 P.2d 90 (Abrams v. Horizon Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abrams v. Horizon Corp., 669 P.2d 90, 137 Ariz. 112 (Ark. Ct. App. 1982).

Opinion

OPINION

HOWARD, Chief Judge.

The main issue in this case is whether the trial court erred in awarding treble damages pursuant to A.R.S. § 23-355 when Horizon Corporation withheld appellee Abrams’ commissions after Abrams made an excessive demand for commissions upon the termination of his employment.

The case was tried before the court sitting without a jury, which made 31 findings of fact some of which are in reality conclusions of law or mixed findings of law and fact and six conclusions of law, some of which are findings of fact. Our review is thus circumscribed by the following legal tenets. An appellate court will not disturb the findings of fact of the trial court unless they are clearly erroneous. This doctrine only applies to appellate review of findings of fact, not to the trial court’s conclusions of law, nor to findings that combine both fact and law when there is error as to the law. Park Central Development Company v. Roberts Dry Goods, Inc., 11 Ariz.App. 58, 461 P.2d 702 (1969).

The findings of fact disclose the following: On June 1, 1976, Abrams and Horizon Corporation entered into a written employment contract. It provided, inter alia, that Abrams was to be vice president of Horizon Corporation in charge of sales, and was to be paid a salary of $51,000 per year plus commissions of V2% on all home or land sales made by sales personnel under Abrams’ supervision, excepting sales made to company personnel. The parties also agreed that “commissionable sales contracts” were bona fide sales contracts written during the term of the employment agreement by a sales representative or broker on property owned by Horizon Corporation. Abrams was also put in charge of a sales operation known as Horizon Realty. It sold land owned by third persons.

Abrams began receiving his commissions for land sold which was owned by Horizon Corporation but he did not receive commissions on sales involving Horizon Realty. About one year after executing the original employment contract, he sent a memo to the president of Horizon, Sidney Nelson, and suggested that he ought to be receiving commissions on the Horizon Realty sales. Nelson thought that it would be fair for him to do so and asked Abrams to compile statistics on the Horizon Realty sales so that they could arrive at the amount of commission Abrams should receive. Abrams never provided this information and two more years passed with Abrams receiving only commissions of sales of land owned by Horizon Corporation. During this period of time Nelson and Abrams tried to negotiate a new contract which included, inter alia, a provision for commission on Horizon Realty sales. However, no new contract was ever executed. Furthermore, during all this time, Abrams never made any demands on anyone for commissions on Horizon Realty sales.

Abrams remained in charge of Horizon Corporation’s entire sales operation until January 31, 1979, when Nelson issued a memorandum which elevated Abrams to executive vice president and relieved him of his duties regarding the Texas and New Mexico operations of Horizon Corporation. However, Nelson made verbal representations to Abrams that he should proceed as before with regard to his duties concerning the Texas and New Mexico operations and Abrams relied upon statements made that he would continue to receive commissions on sales of Horizon Corporation’s Texas and New Mexico properties.

*114 In the fall of 1979, the Horizon Corporation’s corporate structure was reorganized as a result of a shareholders’ proxy fight. A new board of directors was elected in early 1980 and a new president, Donald White, was appointed. While Abrams was originally asked to remain with Horizon Corporation in his position as vice president, his at-will contract was never modified. In February 1980 Abrams asked Kenneth Bad-ertscher, the comptroller of Horizon Corporation, to compute the commissions accrued for the first six months of the current fiscal year. Badertscher computed the commissions to be in the amount of $34,287.14.

On March 19, 1980, Abrams was discharged from his job by White. He was issued a severance paycheck for four weeks plus unused vacation pay. At the time that Abrams was discharged Horizon Corporation was aware that it owed him at least $34,287.14 as of November 30, 1979.

Eight days after the discharge, Abrams made a demand for back commissions. This demand totaled $153,735 which consisted of $118,735 for commissions from Horizon Realty sales and $35,000 in commissions from Horizon Corporation sales.

Horizon Corporation did not pay or make a valid tender of the $34,287.14 and when it failed to meet Abrams’ demands, he filed this lawsuit for commissions due on Horizon Realty sales, the commissions due on the Horizon Corporation sales and for treble damages.

After making its findings of fact the trial court concluded that the contract of June 1, 1976, clearly and unambiguously entitled Abrams to commissions of xh% on all of the defendant’s home and land sales, excluding “Horizon Realty” sales from June 1, 1976, to March 19, 1980. It also concluded that even if the contract of June 1 were ambiguous, the proper construction of its terms would be contrary to the plaintiff’s contentions that Horizon Realty sales were to be included because (1) defendant’s course of dealing and performance with respect to such sums was to pay commissions to plaintiff only on sales of Horizon Corporation land, which for the fiscal year ending May 31, 1979, included Texas and New Mexico sales; (2) plaintiff was assigned to perform and did perform supervisory duties with respect to all sales, including Horizon Realty sales and including sales in Texas and New Mexico after January 31, 1979, and (3) that after this possible ambiguity arose of not including commissions on Horizon Realty sales, the plaintiff and defendant, through its president, Nelson, never agreed that the plaintiff was also entitled to a commission of %% of the Horizon Realty sales. The trial court also concluded that Horizon was estopped to assert that the plaintiff’s commission rights to Texas and New Mexico sales terminated January 31, 1979, when duties of the executives were reorganized, and that defendant was indebted to plaintiff in the sum of $46,086.00 for commissions on Horizon Corporation land sales and that since Horizon Corporation failed to pay the $34,287.14, as to which there was no reasonable dispute as to whether it was owed, that Horizon had violated A.R.S. § 23-355 and was liable for treble damages. The trial court awarded Abrams attorney’s fees in the sum of $21,-000.

Appellant contends the trial court erred in assessing treble damages and awarding attorney’s fees. Appellee Abrams has filed a cross-appeal and alleges that the trial court erred in not finding that he was entitled to commissions on the Horizon Realty sales. For the sake of clarity, we shall discuss the cross-appeal first.

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Related

State Ex Rel. Fox v. New Phoenix Auto Auction, Ltd.
916 P.2d 492 (Court of Appeals of Arizona, 1996)
Abrams v. Horizon Corp.
669 P.2d 51 (Arizona Supreme Court, 1983)

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Bluebook (online)
669 P.2d 90, 137 Ariz. 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abrams-v-horizon-corp-arizctapp-1982.