Dorr-Oliver, Inc. v. Webster Computer Corporation

300 A.2d 45, 30 Conn. Super. Ct. 544, 30 Conn. Supp. 544, 1972 Conn. Super. LEXIS 166
CourtConnecticut Superior Court
DecidedOctober 24, 1972
DocketFile No. CV 1-711-32241
StatusPublished
Cited by5 cases

This text of 300 A.2d 45 (Dorr-Oliver, Inc. v. Webster Computer Corporation) is published on Counsel Stack Legal Research, covering Connecticut Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dorr-Oliver, Inc. v. Webster Computer Corporation, 300 A.2d 45, 30 Conn. Super. Ct. 544, 30 Conn. Supp. 544, 1972 Conn. Super. LEXIS 166 (Colo. Ct. App. 1972).

Opinion

This is an appeal from a judgment rendered for the defendant arising out of an alleged contractual relationship of the parties.

The court's finding of facts may be summarized as follows: The defendant, a foreign corporation, was primarily engaged in the business of providing computer systems for large companies and was qualified to do business in the state of Connecticut. The plaintiff was also a foreign corporation qualified to do business in the state of Connecticut. The defendant also acted as computer consultants through its branch known as "executive search." As a consultant, the defendant would be called upon to develop a computer system for a company, to define its objectives, and to design the system. As a by-product, the defendant would help find people to man the computers in an operations capacity, program the computers, design the system, or manage the facility. Initially, the defendant's computer division offered to provide the plaintiff with a standard computer system. At the plaintiff's special request, the defendant procured an individual as senior systems analyst programmer with the plaintiff. The defendant then was specifically asked by the plaintiff to find an attorney to be employed by the plaintiff. The defendant procured Attorney Robert C. Roxby, who was later interviewed and hired by the plaintiff on September 3, 1969. The *Page 546 plaintiff paid the defendant $3402 as a fee for procuring the employment of Robert C. Roxby. He remained in the employ of the plaintiff from September 3, 1969, until October 31, 1969, a period of about eight weeks. The defendant never collected any fee from a person for whom it secured employment. It never solicited the public at large or advertised for or concerning replacements of individuals in employment. At the time of the employment of Attorney Roxby, the defendant agreed to refund 100 percent of the fee paid by the plaintiff in the event the attorney terminated his employment within thirty days. On November 19, 1969, the defendant, by way of compromise, made an offer of settlement to the plaintiff of a 50 percent rebate of the fee paid in connection with the Roxby employment in the form of a credit toward future placements. The offer was never accepted by the plaintiff. The defendant has never obtained a license from the commissioner of labor authorizing it to carry on an employment agency business, nor has it filed with him a fee schedule relative to commissions for procuring employment or employees. The plaintiff has demanded from the defendant the return of the $3402 fee, but the defendant has never returned any portion thereof to the plaintiff.

The plaintiff brought this action in three counts. The first count demands the return of the fee of $3402 because the defendant was not licensed to do business as an employment agency in the state of Connecticut. The second count demands the refund which is required to be paid by a licensed employment agency under § 31-131 of the General Statutes if the duration of the employment is less than ten weeks.1 The third count, based on an alleged agreement *Page 547 between the parties, demands a return of one-half of the fee paid. On November 18, 1971, judgment was rendered for the defendant on all counts.

I
The question to be decided in the first count is whether the defendant was operating an employment agency under §§ 31-129 to 31-133 of the General Statutes. In § 31-129, "employment agency" is defined as including "the business of procuring or offering to procure work or employment for persons seeking employment or employees for persons seeking the services of employees or acting as agent for procuring such work or employment or supplying employees to render services where a fee or other valuable thing is exacted, charged or received for procuring or assisting to procure employment, work or a situation of any kind or for procuring or providing help for any person."

The basic question to be determined is to what extent and in what way must a "person" be engaged in the practice of "procuring ... work ... or help" for others in order to hold that he is in that "business" and thus must obtain a license in order legally to do his business.

An employment agency statute was first enacted in 1901; Public Acts 1901, c. 100; Rev. 1902, c. 259; but none of the subsequent amendments and changes have ever been interpreted by an appellate court. Hence, this issue is one of first impression, and we find it necessary to look to the law of sister jurisdictions for guidance on the subject.

In Heyman v. Howell, 133 N.Y.S.2d 19 (Sp. Sess.), the court was called upon to decide whether a co-partnership *Page 548 which described itself as "business engineers" or "efficiency experts" became for legal purposes an "employment agency" by virtue of the fact that "[t]hey also attempt to recruit `executives' to fill positions in their clients' organizations." The New York court held that the copartnership was not an employment agency and thus did not need a license to carry on its activities. The court relied on four major factors: (1) No fee was paid by the new employee, directly or indirectly. (2) The main business of the copartnership was efficiency advice, and securing employees was only incidental. (3) The defendant did not advertise or solicit the public at large. (4) The primary purpose of the statute in question was to regulate employment agencies for the protection of the applicant for work against many possible abuses.

In National Staffing Consultants, Inc. v. Districtof Columbia, 211 A.2d 762 (D.C.App.), the appellant corporation was engaged in the practice of charging a client a fee in exchange for bringing him together with prospective employers at "career centers." The District of Columbia Code § 47-2101 (a) (1961) is similar to the Connecticut statute and defines "private employment agency" as "any business, enterprise, or undertaking that procures, offers to procure, ... attempts to procure, or aids in procuring, either directly or indirectly, help or employment for another, for any fee, remuneration, profit, or any consideration whatsoever." The court held that the corporation was not an employment agency within the meaning of the District of Columbia Code, citing Heyman v. Howell, supra. The court decided that the corporation was not an employment agency as it was "engaged principally in activities of management consulting and executive recruiting." The employer was charged a fee for services, not the employee, and the corporation did *Page 549 not advertise or solicit the public at large. The court held that the "primary objective of Congress was to furnish by careful supervision and regulation protection of individual applicants seeking employment through unscrupulous private agencies from many possible abuses in that area."

Another case, arising under Minnesota law and favorably citing Heyman v. Howell, supra, and NationalStaffing Consultants, Inc. v. District ofColumbia, supra, is Telex Corporation v. Balch,382 F.2d 211. Balch had been working for Telex as a management consultant.

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Bluebook (online)
300 A.2d 45, 30 Conn. Super. Ct. 544, 30 Conn. Supp. 544, 1972 Conn. Super. LEXIS 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dorr-oliver-inc-v-webster-computer-corporation-connsuperct-1972.