Anvil Mineral Mining Corp. v. Ravenhorst

403 So. 2d 142, 1981 Miss. LEXIS 2154
CourtMississippi Supreme Court
DecidedSeptember 9, 1981
DocketNo. 52849
StatusPublished

This text of 403 So. 2d 142 (Anvil Mineral Mining Corp. v. Ravenhorst) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anvil Mineral Mining Corp. v. Ravenhorst, 403 So. 2d 142, 1981 Miss. LEXIS 2154 (Mich. 1981).

Opinion

BROOM, Justice,

for the Court.

Cancellation of a contract and whether such cancellation in writing bars recovery of amounts allegedly owed prior thereto are featured in this appeal from the Circuit Court of Jasper County. Mack Ravenhorst (plaintiff) appellee, sued Anvil Mineral Mining Corporation, appellant, for sums the plaintiff claimed were due him for services he rendered as a consultant to Anvil. A $15,275 jury verdict and judgment were rendered for Ravenhorst. Anvil argues here on appeal that its requested peremptory instruction should have been granted without the case going to the jury because the contract upon which the plaintiff sued

had been cancelled and released by virtue of the execution of the instrument . . . dated May 23,1977 at the specific request of the appellee.

We find Anvil’s argument to be meritorious, and must reverse.

Plaintiff Ravenhorst was a founder and former president of Anvil which made and shipped fertilizer minerals. On account of ill health, in May 1976 he ceased his duties as president and on May 28, 1976, entered into a contract with Anvil whereby he would serve as Anvil’s consultant for five years at a fee calculated on each ton of minerals. The consultant type contract was [143]*143effective as of May 1,1976, and a year later on May 17, 1977, Ravenhorst asked by way of a letter to the corporation’s president, to be released from his consultant duties under the contract because of health problems. In the letter, Ravenhorst requested that he be paid any compensation which had accrued under the contract, if the corporation decided that the agreement should be terminated. However, the letter did not contain language that the requested termination was conditioned upon payment of any accrued compensation to Ravenhorst.

On May 23, 1977, Ravenhorst and Anvil executed a one-page document headed “Cancellation and Release of Contract” as follows:

CANCELLATION AND RELEASE OF CONTRACT
WHEREAS, under date of June 28, 1976, Anvil Mineral Mining Corporation and Mack Ravenhorst entered into a contract whereby the said Mack Ravenhorst was to perform certain services as a consultant for and on behalf of Anvil Mineral Mining Corporation, a xerox copy of said contract being attached hereto and made a part hereof; and
WHEREAS, the said parties have now mutually agreed to cancel said contract in its entirety, all terms and conditions provided for therein having been performed to date:
NOW, THEREFORE, in consideration of the premises, it is hereby agreed and understood that the aforesaid contract entered into by and between the parties hereto under date of June 28,1976 be and the same is hereby canceled, released and held for naught.

Ravenhorst testified that at the signing of the release, Anvil president M. M. Kalish orally told him he would “have my money within a few days.” Testifying further, Ravenhorst stated this money was his so-called “commission” under the contract for the period January through April, 1977, but Kalish denied making such an oral promise. According to Ravenhorst, he never received the commission and therefore brought suit to obtain the money.

Ravenhorst’s son, Vernon, who was Anvil’s plant supervisor during the time in question, testified that he examined the tonnages sold by Anvil during the months of January through April 1977, multiplied it by the contract prices and determined that Anvil owed his father $15,275.52 for the four months. Vernon, who was also present at the signing of the release, testified that Kalish said Ravenhorst would “be getting a check in the mail for everything within a few days.”

Kalish stated that Anvil refused to pay Ravenhorst because Ravenhorst had worked against Anvil’s interest by helping competing companies. This he said was in violation of a non-competition clause in the contract. Ravenhorst denied working against the company’s interest, and stated he was responsible for selling approximately 5,000 tons of fertilizer for the corporation during the contract period.

DID THE WRITTEN RELEASE EXTINGUISH ANY DEBT ANVIL OWED RAVENHORST FOR SERVICES RENDERED PRIOR TO THE INSTRUMENT’S EXECUTION? Anvil’s argument here as appellant is that its former employee, plaintiff Ravenhorst, forfeited any rights under the contract when he signed the cancellation and release instrument which Anvil contends was clear and unambiguous, and that any rights Ravenhorst had under the consultant type contract ended by his execution of the document. Anvil relies upon the general rule that where a contract is rescinded by agreement while in the course of performance, any claim in respect of performance, or of what has been paid and received thereon, will ordinarily be referred to the agreement of rescission and in general no such claim can be made unless expressly or impliedly reserved in the rescission contract. 17 Am.Jur.2d Contracts § 517 (1964).

Ravenhorst argues that the “Cancellation and Release” document did not forfeit his right to sue for the commissions accrued prior to the date of the execution of the [144]*144document. He says that the language of the cancellation instrument is ambiguous and subject to interpretation and therefore the issue was properly submitted to the jury for resolution. He cites Hadad v. Booth, 225 Miss. 63, 82 So.2d 639 (1955) for the general rule that it is the duty of the jury to determine the agreement of the parties when there is uncertainty in a written contract because of ambiguity or doubtfulness. Ravenhorst asserts the contract is ambiguous or silent as to accrued commissions, and therefore the trial court correctly allowed him and his son to give parol evidence as to the intent of the parties at the time of the execution of the release in order to assist the jury in making its decision.

No cases directly in point are cited by the litigants but we have decided a case having similarities, Southern Ry. Co. v. Anderson & Fuller, 158 Miss. 543, 130 So. 743 (1930). In writing our decision there, Justice Anderson stated the issue as follows:

Where the parties to a written contract subsequently agreed that the contract be cancelled and terminated, to take effect on a past date, does such agreement have the effect of extinguishing the rights and obligations arising under the cancelled contract prior to the effective date of the cancellation?

Id. at 547, 130 So. at 744.

In that case, the parties entered into a written three-year lease on June 10, 1925, for steel rails. On July 27, 1925, another lease was signed with identical provisions except that the tonnage was lowered. Each lease stated that the appellee would pay taxes on the leased property. On December 21, 1926, the parties signed a contract can-celling both leases, to take effect as of July 31, 1926. When the appellee failed to pay the taxes for the property for the year beginning October 1, 1925, the appellant brought suit. The appellee defended by claiming that the cancelling contract terminated his obligation to pay the taxes. Our opinion in Southern Ry. Co., supra, set forth the general rule that when the contract is rescinded by mutual agreement, the parties are restored to their original rights and cannot bring an action for breach.

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Related

Southern Ry. Co. v. Anderson & Fuller
130 So. 743 (Mississippi Supreme Court, 1930)
Roe v. . Conway
74 N.Y. 201 (New York Court of Appeals, 1878)
Hadad v. Booth
82 So. 2d 639 (Mississippi Supreme Court, 1955)

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Bluebook (online)
403 So. 2d 142, 1981 Miss. LEXIS 2154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anvil-mineral-mining-corp-v-ravenhorst-miss-1981.