Clark v. General Foods Corp.

400 N.E.2d 1027, 81 Ill. App. 3d 74, 36 Ill. Dec. 447, 1980 Ill. App. LEXIS 2333
CourtAppellate Court of Illinois
DecidedFebruary 7, 1980
Docket79-279
StatusPublished
Cited by21 cases

This text of 400 N.E.2d 1027 (Clark v. General Foods Corp.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. General Foods Corp., 400 N.E.2d 1027, 81 Ill. App. 3d 74, 36 Ill. Dec. 447, 1980 Ill. App. LEXIS 2333 (Ill. Ct. App. 1980).

Opinion

Mr. JUSTICE ALLOY

delivered the opinion of the court:

Defendant General Foods Corporation appeals from a judgment in favor of plaintiff Mary Jane Clark, d/b/a Management Professional Specialists International, for services rendered in her action based upon an oral contract. Ms. Clark’s employment firm supplied General Foods with the resume of a job applicant who was subsequently hired by General Foods. The court, in a bench trial, entered judgment for Mary Jane Clark in the amount of $5,375. General Foods argues that the court erred in entering such judgment and seeks a reversal.

Four issues are raised: (1) whether the evidence established a contract between the parties; (2) whether terms of the contract were properly supplied or shown by custom and usage in the trade; (3) whether expert testimony was properly admitted on the question of custom and usage; and (4) whether the evidence established a severance of the relationship between the parties so as to establish that plaintiff had no right to recovery.

The facts are largely undisputed. In the early spring of 1976, General Foods was in need of a packaging engineer at their Kankakee division. They advertised the open position in the Chicago newspaper want-ads and may also have sent a “flyer” to Management Professional Specialists International (hereinafter MPSI), plaintiff’s employment agency. In response to the advertising, MPSI contacted General Foods and informed them that they had an individual who met the requirements for the packaging engineer’s job. MPSI sent General Foods the resume of their applicant, one Brian Hopkins, with his name and address withheld, as is the custom in the employment business. After determining that the resume indicated the individual’s adequate qualifications for the position they wished filled, General Foods requested MPSI to supply them with the applicant’s name, address and phone number so that an interview could be scheduled. Testimony indicated that the foregoing procedure is standard practice between business and employment firms with regard to initial contacts and supplying applicants. General Foods then contacted Mr. Hopkins and set up an interview with him for the middle of May. Subsequent to setting the interview, Mr. Hopkins cancelled the May interview and another was reset for June 1, 1976. Before the newly scheduled June 1 interview occurred, General Foods filled the open position for a packaging engineer. General Foods cancelled the second interview and informed Hopkins that the position had been filled and that he was no longer under consideration. The testimony of the personnel employees at General Foods was that they then disposed of Hopkins’ resume sent by MPSI.

Three months later, in August 1976, General Foods developed another opening for a packaging engineer, specifically for a senior packaging engineer. A different employment firm, Management Recruiters of Indianapolis, in response to advertisements for the open position, sent to General Foods a resume on August 12,1976. The resume that firm supplied was that of Brian Hopkins. An interview was scheduled and conducted, and on September 12, 1976, Brian Hopkins was offered the position. He began working for General Foods in October 1976. General Foods thereafter received a bill for services rendered from Management Recruiters in the amount of $4,730, being approximately 22% of Hopkins’ starting salary. All contacts with Management Recruiters, as with plaintiff MPSI, were oral, and no written contract was ever entered into between General Foods and either employment agency. General Foods paid the Management Recruiters’ bill.

On July 6, 1977, MPSI informed General Foods that in the process of updating their files, they had discovered that Mr. Hopkins had been employed by them. They enclosed a bill for their services in supplying the resume of applicant Hopkins. John Engler, General Foods personnel man, informed MPSI that Hopkins had been placed in his position by another agency to whom a fee had already been paid. General Foods informed MPSI that they felt no obligation to MPSI and would not pay the bill. MPSI responded by demanding payment, in the amount of $5,375, being 25% of the starting salary paid Hopkins, in accordance with their fee schedule. The parties were unable to work out their differences amicably. MPSI brought the instant suit upon an oral contract for services rendered in connection with General Foods’ hiring of Brian Hopkins.

The underlying theory of MPSI’s action was that there existed an oral contract between MPSI and General Foods when General Foods requested that MPSI forward the name, address and phone number of Brian Hopkins for consideration as packaging engineer. According to plaintiff, the contract, by custom and usage in the recruitment and employment business, included provisions that a fee, based upon plaintiff’s fee schedule, would be paid it if Hopkins was hired for that position, or a similar one, within one year of the referral. At trial, MPSI established, through the testimony of General Foods personnel manager John Engler, that General Foods had frequent contacts with employment agencies and that most of their hiring of management personnel was done through such agencies. Engler also acknowledged that the initial contact and conduct between General Foods and MPSI in this case was the usual method of doing business in the field. He also acknowledged that service charges are usually a set percentage of the starting salary, as established by the employment firm’s fee schedule. Engler admitted that had General Foods hired Hopkins in June, as a result of MPSI’s services, he would have paid them for their services. Put succinctly then, the evidence established the existence of an oral contract between General Foods and MPSI and also that such oral contractual agreements, with much left to implication, are a standard practice in this area of business. It was also established that General Foods had a great deal of experience in the recruitment field.

The dispute, in actuality, does not center upon the existence of a contract, although that is put in issue by General Foods. Engler’s testimony, however, admits the existence of the contract. The real dispute centers upon whether the contract included a provision, supplied by custom and usage, that General Foods would pay MPSI for its services if, within one year of their referral, Brian Hopkins was hired for the position advertised or a similar position. On this crucial area of dispute, plaintiff s evidence consisted of the testimony of Rita Oster, a certified employment consultant with over 26 years in the employment business, and of plaintiff Mary Jane Clark, an executive recruiter with nearly 25 years’ experience in the employment field. Both these women testified as to the existence in the professional employment and recruitment field of a long standing custom and usage with respect to the length of the contract term. Mrs. Oster testified that once an employer requests information concerning an applicant referred by an agency, it is an accepted custom and usage that the employer will pay a fee to the agency by whom the applicant was referred if, within one year thereof, it hires the applicant for the position applied for or a similar position. She also testified that the nature of the contacts between General Foods and MPSI in this case was that generally prevailing in the employment business.

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Bluebook (online)
400 N.E.2d 1027, 81 Ill. App. 3d 74, 36 Ill. Dec. 447, 1980 Ill. App. LEXIS 2333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-general-foods-corp-illappct-1980.