Breen v. Central Iowa Power & Light Co.

234 N.W. 562, 207 Iowa 1161
CourtSupreme Court of Iowa
DecidedApril 2, 1929
DocketNo. 39275.
StatusPublished
Cited by1 cases

This text of 234 N.W. 562 (Breen v. Central Iowa Power & Light Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Breen v. Central Iowa Power & Light Co., 234 N.W. 562, 207 Iowa 1161 (iowa 1929).

Opinion

Grimm, J.

— The defendant is a corporation engaged in the manufacture, sale, and distribution of electric current in northern Iowa, having, among others, an office in Charles City, Iowa, in the territory known as the “Cedar Valley Division” of said defendant company’s territory. In the year 1925, the plaintiff was working for the said defendant, in the securities department, assisting in the sale of stock in the corporation. There is some conflict in the evidence as to what his real position was, but it appears that, generally speaking, it was his duty to assist various employees of the corporation in selling stock of the company, the sales, however, not being'made in the name of the plaintiff, but credited to some particular employee instrumental in procuring the sale. The plaintiff was living and located at Humboldt, Iowa, at this time, and employed on a salary. In September, 1925, the question of removing the plaintiff from Humboldt to Charles City arose, it appearing that Charles City was more centrally located for the territory covered by the plaintiff. The plaintiff refused to remove to Charles City unless he could have an increase in compensation and a definite understanding with reference to his future employment. This matter was taken up with one Sterns, then vice president and general manager of the defendant company. The plaintiff claims that, sometime in October, 1925, he entered into a definite oral agreement with the said company, through Sterns, by the terms of which (broadly speaking) the plaintiff was to remove to Charles *1163 City and continue his work from that point, but at a salary increased to $175 a month, and for a period of not less than one year, and in addition to the salary, that a certain bonus and commissions were to be paid; that, at the time of the making of this oral agreement, the bonus and commission were not definitely worked out, because Sterns did not have sufficient data at hand, but Sterns agreed to have an investigation made, and subsequently advise the plaintiff as to the amount of bonus and commission. On the basis of this oral agreement,, the plaintiff moved his family to Charles City, rented a house for a year, and continued his work for the defendant. On December 1, 1925, Sterns wrote plaintiff a letter, as follows:

“Central Iowa Power & Light Company * ‘ General Office, ‘ ‘ Humboldt, Iowa.
“Office of Central Division Offices
“D. M. Sterns Waterloo
‘ ‘ Vice-President Charles City
‘ ‘ and General Manager Humboldt
“December 1, 1925
“Mr. Edward J. Breen
“Central Iowa Power and Light Co.,
“Charles City, Iowa.
“Dear Sir:
“I have been checking over the Preferred Stock Sales for the past ten months with a view of arriving at some basis for a bonus proposition for you, which I told you sometime ago I would prepare. I realize that stock sales of the Cedar Valley Division have been a little slow this year due to the fact that the stock was new in that territory and for that reason the sales of 1925 could not be used as a basis for a bonus proposition. I figure that on your present salary basis you should sell on an average of $12,000 worth of stock each month during the coming year. If you reach the amount of $144,000 during the calendar year of 1926, you will receive, in addition to your present salary of $175.00 per month, a bonus of $500.00. On all sales in excess of $144,000 during that period you will receive a commission of one dollar per share.
“In preparing this proposition I have tried to take everything into consideration and hope that you are pleased with it.
*1164 “I -understand you are nicely located in Charles City and you are much pleased with the change. Wish you success in your work during the coming year and with kindest personal regards, I am
•“Yours very truly,
“D. M. Sterns
“DMS-W-P Vice Pres. & Gen’l Manager”

The plaintiff had been receiving his increased salary of $175 per month from about October 1, 1925. After the receipt of Exhibit A (the letter above quoted), he continued his work for the company at Charles City. He began a stock-sales campaign for the month of January. It appears that a series of stock-selling campaigns had been arranged for by the management of the company, the first to be in January, 1926, the second in March, one.from June 1st until July 15th, and another for a number of weeks previous to the 10th of November. The record shows that in 1926 sales of stock were made in the Cedar Valley Division amounting in January to $42,000, in February, $10,600, and in March, up to March 10th, $10,600. The company discontinued the sale of stock on the 10th of March, 1926. There is evidence in the record to show that the reason given for this discontinuance of the sale of stock was because, on account of some rearrangement of plans, the books of the company were to be removed from Philadelphia to Fort Dodge, and that the suspension of sales was only temporary, and that the sales probably would be renewed about May 1st.- Later, it appeared that the sale of stock was to be discontinued for an indefinite period. In the meantime, there is evidence to show that the company undertook to transfer the plaintiff from the stock-sales department to the department in charge of the sale of merchandise, such as vacuum cleaners, washing machines, and similar merchandise. The defendant ceased paying the plaintiff his salary about the 1st of May, 1926, and the plaintiff sought and obtained other employment.

While the plaintiff was in the service of the defendant, he bought certain merchandise on credit, amounting to approximately $80. After the plaintiff ceased working for the defendant and sought other employment, he asked the defendant for a recommendation. This was refused until and unless the plain *1165 tiff would pay this merchandise bill. The plaintiff gave a note for $60 and a cheek for the balance. This note was still in the hands of the defendant company and unpaid at the time of the trial of this case. The defendant filed an amendment to its answer, setting up the facts in reference to this bill of goods and the delivery of the note and check, and alleged that by reason thereof the plaintiff was barred and estopped from making his claim.for damages for alleged breach of contract; and, by a separate division, as a counterclaim, asked for judgment for the amount of the note. At the close of all the evidence, the defendant filed a motion for a directed verdict, containing six grounds. The motion was sustained. Near the close of the remarks of the court in ruling on the motion, the court said:

“There is another matter that isn’t in the motion. There is some question as to whether there wasn’t a settlement by the payment of the bill without making any claim against the company.”

Defendant’s counsel then said:

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234 N.W. 562, 207 Iowa 1161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/breen-v-central-iowa-power-light-co-iowa-1929.