Drake v. Block

74 N.W.2d 577, 247 Iowa 517, 37 L.R.R.M. (BNA) 2687, 1956 Iowa Sup. LEXIS 430
CourtSupreme Court of Iowa
DecidedFebruary 7, 1956
Docket48698
StatusPublished
Cited by25 cases

This text of 74 N.W.2d 577 (Drake v. Block) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drake v. Block, 74 N.W.2d 577, 247 Iowa 517, 37 L.R.R.M. (BNA) 2687, 1956 Iowa Sup. LEXIS 430 (iowa 1956).

Opinion

Hays, J.

The defendants operated a mercantile business in Burlington. The plaintiffs are former employees. In August 1952, due to a fire, the business was closed. It was contemplated the same would reopen about December 10. The plaintiffs remained as employees. In November a dispute arose between them and defendant Walter M. Block and they were discharged. They bring this action to recover salary, bonus and vacation pay from the date of their discharge in November to the reopening date, December 10. The various issues were submitted to a jury with a resulting verdict and judgment for the plaintiffs. A form of verdict was submitted as to each plaintiff. An itemized statement of the way the verdicts were reached was returned therewith, and by agreement of counsel it was made a part of the record.

This memorandum is as follows:

“Drake allowed salary of 376.93
extra work 80.00
456.93
Korb allowed salary of 673.07
bonus 200.00
873.07
Mrs. Sinn allowed salary of 255.79
bonus 96.37
352.16
Mrs. Storks allowed salary of 188.51
bonus 47.55
1 week vacation 30.00
266.06”

Judgments were entered in accord with the totals appearing in the memorandum. Both in pleading and at the trial, defendants tendered each plaintiff the amount of salary due him at the date of discharge in the following amounts: Drake, $76.70; Korb, $81.15; Sinn, $57.11; Storks, $36.50, all above being net after tax deductions. It is conceded that said amounts *520 are correct as to salary for the time up to the date of discharge and are included in the judgment.

The appellants assign four errors. Each deals with a separate item of award as set forth in the above memorandum, each treated collectively as to all appellees. The alleged error is failure of the trial court to withdraw that particular item from consideration by the jury.

I. Salary. The record shows that appellees were hired at different times and at different salaries. The claim for salary recovery is based upon an oral contract. Appellant states that he specified the type of work and how much was to be paid. All appellees were witnesses. They, in substance, state: “They were not employed for any definite time and did not agree to stay any specified time. They were free to leave his employment at any time. After the fire, Mr. Block assured them that the store would reopen and that they would have their jobs.”

Appellants contend that the evidence fails to show a contract upon which liability may be predicated. Appellees say that since there is a conflict in the evidence, the terms of thn contract were to be determined by the jury. While there may be a dispute shown in the record as to some details (treated in other assigned errors), we find no conflict as to the length of time of employment; and as to this issue it is for the court to determine. 17 C. J. S., Contracts, section 618.

Under the undisputed testimony the oral contract of employment was unilateral. That is, it is one in which one party made an express agreement or undertaking without receiving in return any express agreement or promise of performance. See: Black’s Law Dictionary, 4th Ed., page 397; Port Huron Machine Co. v. Wohlers, 207 Iowa 826, 221 N.W. 843. The law is well settled that mutuality of obligation must exist in order to create a contract of employment that is binding and enforceable, short of execution. 35 Am. Jur., Master and Servant, section 11; 17 C. J. S., Contracts, sections 100(g) and 101; 56 C. J. S., Master and Servant, section 6; Burmeister v. Hamann, 208 Iowa 412, 226 N.W. 10; Lewis v. Minnesota Mutual Life Ins. Co., 240 Iowa 1249, 1263, 37 N.W.2d 316; Kazos v. Ginsberg’s, Inc., 241 Iowa 395, 41 N.W.2d 30. Where a contract of *521 employment is indefinite as to time the same lacks mutuality and may be terminated at will by either party without incurring liability. Harrod v. Wineman, 146 Iowa 718, 125 N.W. 812; Larsen v. Postal Telegraph Cable Co., 150 Iowa 748, 130 N.W. 813; Lewis v. Minnesota Mut. L. Ins. Co., supra, 240 Iowa 1249.

Under the undisputed record in the light of the law applicable thereto, no enforceable contract for salary, beyond the date of termination of employment, is presented. Since appellants tendered full salary to termination date, this issue should not have been submitted to the jury.

II. Bonus. Appellants contend that there is no showing of any agreement to pay a bonus in any fixed amount; and hence to submit the question to the jury is but to permit it to speculate as to the amount thereof. Appellees assert the question was properly submitted on a quantum meruit theory.

There is no question under this record but that a bonus or profit sharing plan was discussed by the parties and contemplated by both. However, all parties are agreed that at no time was any definite amount agreed upon. It appears without dispute that all matters concerning this bonus, time of payment and the amount thereof rested solely and exclusively with appellant Walter M. Block. He states that he had no fixed plan or schedule to be followed in determining the amount. The record clearly shows such bonuses, as were paid, followed no set plan or percentage of salary paid. Under the well-recognized rules of law here applicable, any attempt to recover a bonus under an express contract must fail as too indefinite and uncertain. Restatement, Contracts, section 32; 12 Am. Jur., Contracts, section 71; Faulkner v. Des Moines Drug Co., 117 Iowa 120, 90 N.W. 585; Kollman v. McGregor, 240 Iowa 1331, 39 N.W.2d 302; Petersen v. Pilgrim Village, 256 Wis. 621, 42 N.W.2d 273, 18 A. L. R.2d 206, and annotation, page 211.

However, recovery is sought on a quantum meruit basis. There appears to be a sharp split among the various jurisdictions as to the availability of this remedy. See authorities last above cited. While somewhat a new question before this court, the trend appears to be to allow such recovery. Hall v. Luckman, 133 Iowa 518, 110 N.W. 916; Westerfield v. Liberty Oil Co., 208 Iowa 912, 223 N.W. 894; Kollman v. McGregor, supra.

*522 Quantum meruit in effect means “as much as he deserved.” It is the reasonable value to be given for the service performed or, in case of a definite time of service, to be performed. Its determination, in the absence of an agreement as to a definite amount, is to be based upon a comparison with some other established or stable fact such as custom in a certain trade, conduct between the parties over an appreciable period of time which shows a certain degree of continuity or pattern.

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

Related

Iowa Waste Systems, Inc. v. Buchanan County
617 N.W.2d 23 (Court of Appeals of Iowa, 2000)
Frank Millard & Co. v. Housewright Lumber Co.
588 N.W.2d 440 (Supreme Court of Iowa, 1999)
Audus v. Sabre Communications Corp.
554 N.W.2d 868 (Supreme Court of Iowa, 1996)
Jordan v. Iowa Department of Transportation
468 N.W.2d 827 (Supreme Court of Iowa, 1991)
Dallenbach v. MAPCO Gas Products, Inc.
459 N.W.2d 483 (Supreme Court of Iowa, 1990)
Bossuyt v. Osage Farmers National Bank
360 N.W.2d 769 (Supreme Court of Iowa, 1985)
Community Design Corp. v. Antonell
459 So. 2d 343 (District Court of Appeal of Florida, 1984)
Heninger & Heninger, P.C. v. Davenport Bank & Trust Co.
341 N.W.2d 43 (Supreme Court of Iowa, 1983)
Janda v. Iowa Industrial Hydraulics, Inc.
326 N.W.2d 339 (Supreme Court of Iowa, 1982)
Abrisz v. Pulley Freight Lines, Inc.
270 N.W.2d 454 (Supreme Court of Iowa, 1978)
Marta v. Nepa
385 A.2d 727 (Supreme Court of Delaware, 1978)
Douglass v. Panama, Inc.
504 S.W.2d 776 (Texas Supreme Court, 1974)
Douglass v. Panama, Inc.
487 S.W.2d 228 (Court of Appeals of Texas, 1972)
Hilgenberg v. Iowa Beef Packers, Inc.
175 N.W.2d 353 (Supreme Court of Iowa, 1970)
Langer v. Iowa Beef Packers, Inc.
420 F.2d 365 (Eighth Circuit, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
74 N.W.2d 577, 247 Iowa 517, 37 L.R.R.M. (BNA) 2687, 1956 Iowa Sup. LEXIS 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drake-v-block-iowa-1956.