Carney v. Hayter

145 P.2d 712, 62 Cal. App. 2d 792, 1944 Cal. App. LEXIS 875
CourtCalifornia Court of Appeal
DecidedFebruary 7, 1944
DocketCiv. 14322
StatusPublished
Cited by4 cases

This text of 145 P.2d 712 (Carney v. Hayter) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carney v. Hayter, 145 P.2d 712, 62 Cal. App. 2d 792, 1944 Cal. App. LEXIS 875 (Cal. Ct. App. 1944).

Opinion

DORAN, J.

The defendant, in an action in quantum meruit for the reasonable value of work, labor and services performed, appeals from a judgment in favor of plaintiff. The trial court denied defendant’s motion for a new trial, but modified its findings of fact and amended the judgment accordingly. The appeal is taken from the amended judgment. The action was brought by respondent plaintiff to recover the balance of the amount alleged to be the reasonable value of respondent’s services as manager of a bowling establishment owned by appellant. Respondent alleged in his complaint that the reasonable value of the services was $6,375, that only the sum of $2,743 had been paid respondent, and that appellant had failed and refused to pay the balance of $3,632; Trial was by the court, a jury having been waived, and respondent was awarded a judgment of $3,132, with interest and costs.

Evidence as to the agreement under which respondent was employed by appellant is conflicting. According to respondent’s testimony, the amount actually received by respondent during his term of employment was received as a drawing account and not as salary. According to appellant’s ■testimony, there was a definite agreement that respondent was to work for appellant as manager of the bowling establishment at a salary of $200 per month. The checks by which respondent was paid were signed in blank by appellant and completed by respondent. With the exception of the first three, these checks bore the notation “Drawing.” Respondent testified that this notation was made at the direction *794 of appellant, who told respondent to make such notation on the cheeks that were drawn to respondent and to appellant. In some instances the notation of “Drawing” on the stubs of checks made to respondent had been crossed out and the word “salary” written above it. These changes had been made by appellant, apparently toward the end of respondent’s period of employment. There is a discrepancy between the testimony of respondent and that of appellant as to the time when respondent actually started to work for appellant. Respondent testified that compensation was first discussed between appellant and respondent in August of 1940, and that respondent did work preliminary to the opening of the bowling establishment from that time on until the business opened up on October 23d, for which work he received no pay.

Respondent and appellant first met in the summer of 1939, when appellant sold respondent a home in the city of Compton, in appellant’s subdivision. The home sold to respondent was on the lot adjoining appellant’s real estate office and respondent frequently visited with appellant at this office. According to respondent, the subject of possible business dealings between appellant and respondent was first broached about the spring of 1940. Respondent at that time was employed as a field man for a brewing company. Following is respondent’s account of the conversation:

“During the course of the conversation, Mr. Hayter said to me, ‘Ted, let’s you and I get into something together.’ I said to him, ‘What do you mean, Speck?’ He said, ‘Well, my tract is-I am going to close my tract out.’ He said, ‘I have got six or seven houses yet to sell. I want to get in something else.’ ‘I would like to get into something with you,’ I said. ‘How about your acreage on Chester Street?’ He said he has got a man to buy that and subdivide it himself. I said, ‘Have you anything in mind, Speck?’ He said, ‘No.’ We had both been ex-druggists. Neither one was licensed. We had a lot in common. Talked about those things. I said, ‘I haven’t any money to put in a business.’ He said, ‘That won’t be necessary; I can get it.’ I said, ‘I don’t know, Speck.’ He said, ‘Think it over.’ I said I had nothing in mind at that time. Neither did he. The conversation went into other channels. Nothing more said about it that day.” Later, according to respondent’s testimony, respondent suggested the proposition of a bowling alley; *795 and after invesigating the matter, appellant decided upon such a venture, and eventually a location was selected and the establishment in question constructed. Appellant financed the venture. Around the first part of August, 1940, respondent testified that the following conversation took place, as revealed by the following excerpt from the record:
“I said to Mr. Hay ter, ‘I would like to have an understanding as to our arrangement at the bowling alley.’ He was very congenial, Mr. Hayter; very good sport. He said, ‘You bet, my boy. What do you want to know?’ I said, ‘I want to know where I stand. ’ He took out a sheet that Brunswick sends out as to the recommendations for the personnel of bowling alleys they made. He said, ‘I have been thinking about that myself. What will it take you to get by on to start with?’ I said, I don’t know. He said, ‘Could you get by on $200?’ I said, ‘I presume I could on $200 a month.’ He said, ‘Yes.’ He said, ‘You understand that is just a drawing account.’ He said, ‘That is just to get started. Business may be good or bad. We don’t know what to look for in the future. But I can tell you this: You stick with me. That is your drawing account, and that is all it is. When there is more money there, it is yours. ’ He said, ‘ Don’t consider it a salary in any sense of the word.’ He said, ‘I will go further than that.’ He said, ‘We are going to incorporate this business and you will receive stock in it. Holly will get stock, and I will.’ ” Holly is appellant’s brother. The following was developed upon cross-examination of respondent. “Q. Did he ever tell you when you were to receive anything in addition to $200 a month? A. The nearest date I can give you is when he said the heavy payments to Brunswick would be over in one year. Then we would have something to ourselves. Q. When did he tell you that? A. When we first opened up. Prior to the time we actually opened up. Q. Would you say that was around the first part of August, 1940? A. It was after I had my first conversation with him, but in the first part-it was before Christmas, 1941. When you are talking to a man every day, you cannot place a conversation every day in the week. I cannot. Q. Then you understood the Brunswick obligation had to be paid off before you would receive anything in addition to $200 a month? A. That and the heavy contracts.” Respondent left his position as manager of the bowling establishment early in January 1942, after a dispute with appel *796 lant. The termination of the relationship between respondent and appellant apparently was the result of two incidents, first, a dispute over the working hours of an employee, and second, a heated argument over appellant’s purported intoxication and behavior one evening on the premises. According to respondent, “From then on, it was very miserable.” Respondent introduced expert testimony as to the reasonable value of his services as general manager of a bowling establishment of the type in question. Testimony to this effect was that the services would be worth at least $325 to $350 a month, as a conservative estimate, if the work were performed as it was supposed to be- performed.

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Bluebook (online)
145 P.2d 712, 62 Cal. App. 2d 792, 1944 Cal. App. LEXIS 875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carney-v-hayter-calctapp-1944.