Clark v. Onaway-Alpena Telephone Co.

163 N.W. 44, 196 Mich. 168, 1917 Mich. LEXIS 767
CourtMichigan Supreme Court
DecidedMay 31, 1917
DocketDocket No. 127
StatusPublished
Cited by4 cases

This text of 163 N.W. 44 (Clark v. Onaway-Alpena Telephone 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
Clark v. Onaway-Alpena Telephone Co., 163 N.W. 44, 196 Mich. 168, 1917 Mich. LEXIS 767 (Mich. 1917).

Opinion

Stone, J.

This is an action to recover an amount claimed to be due plaintiff for services as general manager of the defendant under a written contract hereinafter set forth. The plaintiff, his wife, A. S. Clark, and Morris T. Streeter were the organizers of the defendant company in October, 1911, and they comprised all of the stockholders, and were elected the directors at the. first meeting, and thereafter made the plaintiff president of the company. The same directors continued in office until the election of a new directorate in September, 1913, except that in December, 1912, Mrs. Clark resigned, and this vacancy was filled by a qualifying shareholder, F. M. B. White, and the minutes of the directors’ meeting of January 21, 1913, show that the plaintiff, Morris T. Streeter, and said White (all of the directors at that time) were [170]*170appointed an executive committee to employ a general manager at a salary of not more than $400 a month, whose duties should be to have general charge and supervision of the business and property of the company, and who should perform such work and have charge of such affairs pertaining to such company and its property as the executive committee and directors of such company should determine. It was provided that such executive committee should have power and authority to enter into a written contract with such general manager for such length of time as they should deem expedient for the welfare of the company, and it provided that a majority of such executive committee should have power to act. The plaintiff, F. M. B. White, and M. T. Streeter were appointed such executive committee. At a directors’ meeting held February 24, 1913, at which the plaintiff and F. M. B. White only were present, the executive committee was directed to make a contract for the employment of a general manager, “when a satisfactory person for this position shall be found.” Thereafter, and on April 1, 1913, the executive committee, for the defendant, and the plaintiff, entered into the following contract:

“This memorandum of agreement, made and entered into this 1st day of April, 1913, by and between the Onaway-Alpena Telephone Company, a corporation, with its principal office at Alpena, Mich, (by a majority of its executive committee duly authorized), party of the first part, and J. M. Clark, of Alpena, Mich., party of the second part, witnesseth as follows:
“I. For and in consideration of the payments and agreements hereinafter contained, the party of the second part hereby agrees to continue and remain the general manager of the party of the first part, and as such general manager do and perform such duties and services as he shall deem expedient and essential, and as shall be required of him by the directors and executive committee of the party of the first part, in [171]*171connection with said corporation, and the running, operating, and handling of the business and property of the party of the first part.
“II. Said second party shall- have general authority and supervision of the executive and business department of said corporation, also general authority and supervision over the operative and constructive departments of said corporation, and shall in all things have authority and supervision over the conduct of the affairs of said corporation, wheresoever the same shall be carried on.
“III. Said second party, to the best of his ability, shall see to it that accurate and suitable records are kept of all the finances incident to said business, which records shall show at all times the property of the corporation and its financial standing. Suitable books shall be kept, in which shall be entered an accurate record of affairs of such corporation.
“IV. Said second party shall have authority to employ and discharge any and all help and employees, and shall determine what employees shall be engaged, and the amount they shall receive for their services. At any time second party shall deem expedient, he shall be and is hereby authorized and empowered to employ a suitable engineer, a suitable purchasing agent, and a good and competent bookkeeper for such time and at such wages as he may deem for the best interests of the company; also competent attorney or attorneys. They shall be under the supervision of the said party of the second part.
“V. For and in consideration of the employment herein designated, said party of the first part shall pay said party of the second part two hundred ($200) dollars per month (payable monthly on the 5th day of the month succeeding the month for which payment is made), and in addition thereto such amounts as said second party shall be required to spend and disburse in and about the performance of his duties as general manager of such corporation, and in addition thereto the further compensation of 50 per cent, of the actual increase in net earnings of the company’s properties for the year beginning April 1, 1913, up to, but not exceeding, twelve hundred ($1,200) dollars for the first year of this contract. The second year of [172]*172this contract the first party hereby agrees to pay a straight salary of ($800) dollars per month, and necessary expenses.
"VI. For and in consideration of the agreements and provisions herein contained, said party of the second part is hereby employed for a period of two years, from and after the date of this contract; and unless within sixty (60) days prior to the expiration of such employment, written notice shall be given by either party hereto of the termination of this contract, such contract shall renew .itself from year to year thereafter, without further agreement between the parties thereto, and at the same salary as for the second year of this contract.
“VII. This memorandum of agreement is declared binding upon the representatives, successsors, and assigns of the parties hereto.
“VIII. This memorandum of agreement is made in pursuance of the authority vested in the executive committee of said corporation, by its directors, at a regular meeting of such directors.
“In witness whereof, the parties hereto have hereunto set their hands this 1st day of April, A. D. 1913.
“Onaway-Alpena Telephone Co.,
“Per F. M. B. White, Sec.
“J. M. Clark,
“F. M. B. WHITE,
“M. T. Streeter,
“Executive Committee,
“Party of the First Part.
“J. M. Clark,
“Party of the Second Part.
“In presence of:
“R. B. Miles.
“Florence G. Shaw.”

After the making of this contract the plaintiff claims to have operated under it for the defendant. The annual meeting of the stockholders of July 15, 1913, was adjourned to be held in Jackson, July 22, 1913. At this meeting Charles S. Davis, John W. Allen, and Charles S. Ruthruff were elected directors, and the board was increased from three to five di[173]*173rectors. This meeting was adjourned to September 3, 1913, when Charles R. Henry and plaintiff were also made directors. The directors met on September 27th and elected Mr. Davis president.

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Related

People v. Marvill
211 N.W. 23 (Michigan Supreme Court, 1926)
People v. Purman
185 N.W. 725 (Michigan Supreme Court, 1921)
Humphrey v. Onaway-Alpena Telephone Co.
170 N.W. 1 (Michigan Supreme Court, 1918)
Clark v. Detroit & Mackinac Railway Co.
169 N.W. 863 (Michigan Supreme Court, 1918)

Cite This Page — Counsel Stack

Bluebook (online)
163 N.W. 44, 196 Mich. 168, 1917 Mich. LEXIS 767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-onaway-alpena-telephone-co-mich-1917.