Bomson v. Electra Mfg. Co.

402 S.W.2d 7, 1966 Mo. App. LEXIS 721
CourtMissouri Court of Appeals
DecidedFebruary 7, 1966
DocketNo. 24371
StatusPublished
Cited by4 cases

This text of 402 S.W.2d 7 (Bomson v. Electra Mfg. Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bomson v. Electra Mfg. Co., 402 S.W.2d 7, 1966 Mo. App. LEXIS 721 (Mo. Ct. App. 1966).

Opinion

SPERRY, Commissioner.

Plaintiff sued defendant for damages growing out of a breach of an oral contract of employment. Plaintiff had a verdict and judgment for $12,500.00 and defendant appeals.

Plaintiff had been manufacturer’s representative, for thirty years, for Northeast Tool and Dye Company. He was hired to sell its large accounts, such as Sears Roebuck, Montgomery Ward, Gambles, Coast to Coast, all bicycle factories in the United States, and many others. Most of his accounts issued catalogs, some every two years, some yearly, and some twice a year. Plaintiff would call on his accounts every year, and from time to time, to see that Northeast products were listed in the catalog and, when new catalogs were issued, to see that such products were listed in each new edition. He would procure from the buyers an estimate of the kind and quantity of Northeast products they would require during the following calendar year and advise his employer thereof so that it could be prepared to deliver accordingly. He did not sell directly to customers but was paid a commission ranging from 5% to 7% on the dollar volume of all orders received by Northeast and shipped to any of his accounts. He received no salary and paid all of his travel and other expenses. He received commissions due him for each year that he worked, during the following calendar year. For instance, he would receive commissions for goods shipped in 1958 on orders solicited during 1957.

On November 1, 1958, defendant acquired ownership and control of Northeast. A few days later Mr. Sealey, who was sales manager for defendant, told plaintiff that defendant would like for him to continue in its employ on the same terms and conditions as those existing when he worked for Northeast. Plaintiff told Mr. Sealey that he only wanted to work for one more year and that, then, he would like to retire. Plaintiff stated that they agreed on those conditions. Plaintiff stated that Sealey agreed that he would be paid commissions on sales to be made in 1959. However, there was some conversation between Sealey and plaintiff later, when they started a trip to see customers, to the effect that a mutually satisfactory agreement would be reached. The evidence on this question was not clear but there was testimony from which the jury could have found that such was the understanding between Sealey and plaintiff. Plaintiff stated that, the week before Christmas, 1958, Sealey and he were in Chicago and met with Electra’s president in his room; that they talked about arrangements to be made for the following year; that plaintiff told them that he only wanted to work one more year, and then retire; that they agreed on a contract providing for a salary and expenses for his services in 1959; that plaintiff returned to Kansas City where, on December 23rd, he was called on the telephone by Mr. Sealey; that they discussed a contract which defend [9]*9ant had prepared for plaintiff’s execution; that the contract provided for optional cancellation upon thirty days notice; that plaintiff refused to execute it if that clause were not stricken, but that defendant refused to do so; that he, therefore, refused to execute the contract and defendant “terminated” his employment; that he has never been paid anything on account of merchandise shipped by defendant to plaintiff’s accounts in 1959.

Mr. Sealey testified in behalf of defendant. His testimony was to the effect that defendant wished to retain the services of plaintiff so that he could contact his accounts and retain them for the new owner of Northeast. Plaintiff stated that defendant wanted him to remain in its employ so that he might introduce defendant’s salesmen to plaintiff’s numerous accounts and buyers; that he was to tell the buyers that defendant had taken over control of Northeast but that he, plaintiff, would continue to call on them and service their accounts.

Sometime after November 8th, 1958, plaintiff and Mr. Sealey made two trips to visit buyers representing plaintiff’s accounts. Plaintiff stated that each trip lasted about a week; that they called on buyers representing most of Northeast’s bicycle accounts, and were in New York, Illinois, Evanston and Chicago. Plaintiff stated that the majority of them had their commitments in for the year 1959; that all of his accounts for all merchandise produced and sold by Northeast totalled from five hundred to seven hundred; that his personal out-of-pocket expense on these trips was from five hundred to six hundred dollars.

We have stated the facts in evidence from a standpoint most favorable to plaintiff. Mr. Sealey was the only witness for defendant. His testimony varied to some extent, but not completely, from that of plaintiff. The jury could have believed plaintiff’s version, as it apparently did. Mr. Peterson, the real owner of Northeast, testified for plaintiff and substantiated plaintiff’s testimony.

The nature and terms of plaintiff’s employment with Northeast for many years, was not in dispute. He was Northeast’s representative in the solicitation of sales from several hundred large buyers over a very large territory. He received no salary and paid all of his own expenses. He received a commission of from five to seven percent on the dollar value of all merchandise shipped to these accounts. His commission was paid during the calendar year that the goods were shipped although plaintiff had solicited the business during the preceding calendar year.

Defendant does not say that it was misinformed as to the terms and conditions of plaintiff’s employment. The jury could have reasonably believed, from the testimony of plaintiff that defendant’s president, Mr. Groth, (who did not testify) and its vice-president and sales manager, Mr. Sea-ley, that defendant was fully informed as to these facts; and plaintiff’s testimony was to the effect that Sealey asked him to “continue” in its employment on those same terms and conditions. Sealey admitted in his testimony that defendant wanted to retain plaintiff’s services. Plaintiff agreed to Sealey’s proposal and they made two extensive trips to visit buyers in December, 1958, although most of the buyers’ commitments for 1959 were already “in”. Obviously, plaintiff could not profit from any business produced on these trips unless he was to receive commissions in 1959 on business produced in 1958.

However, defendant’s president and plaintiff agreed, in Chicago, on a contract for 1959 whereby plaintiff would receive a salary and expenses for that year. But when plaintiff was requested to sign a new contract it provided for optional cancellation on thirty days notice. Plaintiff refused to sign it and defendant terminated his employment.

True, the verbal contract, when made, was to operate in the future; but [10]*10plaintiff, in good faith, entered into its performance at the request of defendant and spent two weeks in travel and expended substantial sums. The contract is valid and enforceable. Burg v. Bonn Terre Foundry Co., Mo.App., 354 S.W.2d 303. In the Burg case the contract provided that if employee should cancel the contract he should be paid commissions only on sales made up until date of cancellation, but if the company should cancel, commissions would continue to be paid until a satisfactory arrangement should be made between the parties. The court enforced the contract as to sales delivered after cancellation. In short, it enforced the contract as made.

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Bluebook (online)
402 S.W.2d 7, 1966 Mo. App. LEXIS 721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bomson-v-electra-mfg-co-moctapp-1966.