Clanan v. Curtis Metal Products Co.

95 N.W.2d 854, 356 Mich. 100, 1959 Mich. LEXIS 359
CourtMichigan Supreme Court
DecidedApril 14, 1959
DocketDocket No. 55, Calendar No. 47,724
StatusPublished

This text of 95 N.W.2d 854 (Clanan v. Curtis Metal Products Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clanan v. Curtis Metal Products Co., 95 N.W.2d 854, 356 Mich. 100, 1959 Mich. LEXIS 359 (Mich. 1959).

Opinion

Carr, J.

At the time of the occurrences from which this case has resulted, and for some time prior thereto, defendant was engaged in the manufacture of tools and dies, principally for the automotive industry. On the 24th of March, 1955, it entered into an agreement with the plaintiff to act as its representative in the obtaining of production work. The contract specified several corporations from whom plaintiff was to endeavor to obtain business. Compensation was agreed to be paid plaintiff for his work on a 5% commission basis. The agreement also provided that plaintiff should not represent any competitor of the defendant. The employment was subject to termination, by either party, on 60 days written notice. Following its execution the parties instituted performance thereunder.

On May 3, 1955, the contract of employment was supplemented by adding to the list of accounts other [102]*102prospective customers from whom plaintiff was authorized to seek orders for products manufactured by defendant. Pursuant to the arrangement plaintiff was compensated on a commission basis for several months. On October 3, 1955, defendant submitted to plaintiff a memorandum reading as follows :

“In view of the fact that Mr. Warren Clanan is to be placed on a fixed salary with the Curtis Metal Products Company as of this date, it is hereby agreed that all commissions accumulated against work obtained by Mr. Clanan are hereby forgiven by him; the company, on the other hand, will as of this date forgive all draws against commissions which have been carried on company books. This memorandum supersedes all agreements written prior to this date.”

The purported agreement, above set forth, was executed on behalf of defendant by its executive vice-president, Ernest S. Curtis. The signature of plaintiff was also affixed, it being the claim of the latter in this litigation that he was urged to affix his signature and that he did so subject to his expressed reservation that the parties would discuss it further and reach a definite conclusion. Following the signing of the paper, plaintiff continued in defendant’s employ until on or about May 31, 1957. Checks were issued to him each week. The aggregate amount received, however, was materially less than the aggregate of compensation due if determined in accordance with the original contract of March 24, 1955. Claiming that he was entitled to be paid during the entire period of his employment on the 5%-com-mission basis on business obtained by him, plaintiff instituted the present action at law. Defendant, by answer to the declaration, denied any indebtedness owing by it to plaintiff, and by way of special defense pleaded that the memorandum of October [103]*1033, 1955, constituted an accord and satisfaction can-celling all previous commissions that may have been due to plaintiff, and abrogated the method of payment for plaintiff’s services on that basis.

The case was tried before the circuit judge without a jury. It was plaintiff’s claim that he was induced to sign the writing submitted to him on October 3, 1955, without an opportunity to give it full consideration, and that after he had read it carefully he returned to the office of the defendant where he expressed to defendant’s executive vice-president, who had procured his signature, his dissatisfaction with the apparent purpose of the memorandum. Thereupon the parties went to the office of the president of defendant corporation, Theodore Curtis, where the matter was discussed between the 2 officers of defendant and plaintiff in the presence of a salesman for defendant, Alfred Knudson.

In substance, plaintiff on the trial relied on the claim that the memorandum of October 3, 1955, was repudiated by mutual agreement. He testified, also, that at the time he signed the agreement it was in form as above set forth, and that, when he took the position with the executive vice-president of the company that he would not accept a salary arrangement, the latter wrote on the memorandum the following:

“This agreement is based on the payment of a bonus on a semiyearly or yearly basis, to be in some relationship with the salesman’s effort to obtain work in volume adequate to result in profitable operation : The Co. overhead is assumed to remain about the same as it is at this date.”

The initials of the vice-president were affixed to this writing, but no claim is made that plaintiff signed it after the attempted addition. He insisted on the trial that he refused approval. As pointed out by the trial judge in his opinion, the added language [104]*104was somewhat ambiguous and uncertain, apparently indicating that plaintiff’s ultimate compensation should be determined with reference to his efforts to obtain work for defendant. It will be noted, also, that the memorandum as originally prepared did not specify any salary that plaintiff should receive, nor did it indicate any method by which it was to be fixed. Plaintiff’s claim as to the memorandum and the abrogation thereof by mutual agreement at the conference in the office of Theodore Curtis is fairly indicated by the following excerpt from his testimony:

“Q. All right. Now relate to the court fairly and to the very best of your recollection exactly what was said by whom and in what order.

“A. Well, Ernie, when [he?] got over there, I said to Ernie, I said, ‘As far as this letter is concerned,’ I said, ‘I’m not in agreement with it. And I will not work on a salary for you or anyone else.’

“And he said, ‘This is not meant to he a salary.’ Pie said, ‘Very well then. You tear up your copy and I’ll tear up my copy.’

“Q. He said that to you?

“A. Very definitely in front of Ted Curtis, in front of Al Knudson, in front of myself. Then Ted Curtis spoke up. He said, ‘Warren,’ he said, ‘I realize you are going to have a good year.’ He said, ‘We intend to have a good year. I know you can do us a lot of good over at Fisher Body.’ And he said, ‘We’re very happy you are with us and we want you to stay with us.’ He said, ‘This is not a salary.’ He said, ‘The only reason I’m asking you to do this at this time,’ he says, ‘we’re all in the same boat.’ And he said, ‘If I have to pay you at the end of one month 5,000, the next month 6,000.’ He said, ‘Right at this particular time it will tie up some of their capital.’ And he said, ‘If you’ll go along with us on this basis,’ and he said, ‘We’ll pay you a bonus,’ he said, ‘I’ll give you $1,000 a month now.’ And he said, ‘I want [105]*105to pay your expenses so you can do a little more entertaining.’

“And Ernie spoke up, he said, ‘You should do more entertaining.’

“Q. All right.

“A. At any rate, I said, Well, Ted, Pm not going to take a salary.’

“He said, ‘This is not a salary.’

“And I said, ‘Well, then we revert back to our original contract.’ I repeated that.

“And he said, ‘No, it’s not a salary because all you are doing is helping us at this time because we had arranged to get a loan of $200,000.’ And he said, ‘This is actually,’ he said, ‘You’re helping the company out at this point, period.’

“And I said, Well, as long as it’s understood, I’ll take your word for it.’ I said, ‘Your word is good enough for me.’ Which I did take his word. And I believed in him 100%, and I also believed Ernie.

“And he said, ‘Very well, you destroy your copy, tear up your copy and I’ll tear up my cony.’ * * *

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ferries v. Copco Steel & Engineering Co.
73 N.W.2d 850 (Michigan Supreme Court, 1955)

Cite This Page — Counsel Stack

Bluebook (online)
95 N.W.2d 854, 356 Mich. 100, 1959 Mich. LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clanan-v-curtis-metal-products-co-mich-1959.