Dyke Brothers v. Stokes

272 S.W. 663, 168 Ark. 943, 1925 Ark. LEXIS 375
CourtSupreme Court of Arkansas
DecidedMay 25, 1925
StatusPublished

This text of 272 S.W. 663 (Dyke Brothers v. Stokes) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dyke Brothers v. Stokes, 272 S.W. 663, 168 Ark. 943, 1925 Ark. LEXIS 375 (Ark. 1925).

Opinion

Wood, J.

This is an action by the appellee against the appellants. Appellee alleged in substance that the appellants entered into a verbal contract with him for employment whereby they agreed to pay appellee, in addition to a fixed salary of $200 per month, a bonus of ten per cent, of the net earnings of appellants ’ business; that he had received his salary for the year 1922, but had not received the bonus, and that the net earnings of that year were more than $60,000; that the appellants therefore were due the appellee a bonus in the sum of $6,000, for which he prayed judgment.

The appellants answered denying that they had entered into any contract whatever to pay the appellee a bonus, and therefore denied liability.

The testimony on behalf of the appellee tended to prove that Dyke Bros, was a partnership composed of M. T. Dyke, Nathan Dyke, Jr., Frank W. Dyke, and Martin T. Dyke, Jr. The partnership was engaged in the business of retailing building material and manufacturing mill work in Fort Smith and various other places in Arkansas, and at Poteau, Oklahoma. The appellee first began work for the firm in July, 1907, and quit in January, 1920. He was for thirteen years the bookkeeper and cashier, and the last two or three years he was salesman. Part of the time he received a salary of $175 per month, and later the sum of $200 per month. The appellee, after quitting appellants in 1920, went to DeQueen, where he, with others, established a corporation engaged in the lumber business. While appellee was at DeQueen, M. T. Dyke, Sr., requested him at least four times to come back to Fort Smith, and told him that he (Dyke) had been trying to work out a way whereby the appellee, as employee, would share in the profits of the business of appellants to compensate him for the years of service he had given to appellants in the past. While witness .was at DeQueen he received for a time a salary of $200 per month as bookkeeper, and the last six months it was reduced to $175 p'er month. Witness went back to work for the appellants from January 15, 1922, at a salary of $200 per month, and at the end of the year appellants were to give him as a bonus ten per cent, of the net profits of the business. The net profits of the business for the year 1922 were something like $60,000. During the early part of the year 1923 witness asked the appellants about his bonus, and Dyke stated that there would be no bonus for the year 1922, giving as a reason that appellee did not measure up to the standard — didn’t give appellants what they thought he would. Appellee replied that they had been a long time saying anything about his not measuring up to the standard, and that they had let him work all that year expecting the bonus, and he told appellants that he was going to quit at once. Appellee demanded ten per cent, of tlie $60,000 profits, and the appellants refused to pay it, and appellee instituted this action.

Appellee testified that he gave up his salary and the profits in his business at DeQueen when he returned to Fort Smith the first of the year 1922 to work for the appellants, and, in July of that year, he sold his stock in the corporation at DeQueen. The attorney for the appel-lee asked him the following question: ‘ £Is there any possibility of your being mistaken about Mr. Dyke offering to pay you, in addition to the $200 per month salary, a ten per cent, interest in the profits of Dyke Bros, business, if you would come back and go to work for them?” Appellee answered, “No sir.” The appellants objected to the question, the' objection was overruled, and they duly excepted. After the appellants closed their case, the appellee was called in rebuttal, and, during the cross-examination, he was asked by his attorney the following:

“Q. Would you have given up your business at DeQueen but for the promise that you were to have ten per cent, of the profits of the business as a bonus?” The appellants objected, the court overruled their objection, and the appellants duly excepted. Thereupon the appel-lee answered the above question as follows: “I would not; I neverwould have sold my business and given up my position in DeQueen if he had not promised me that bonus.” The appellee was further asked: “Q. Did you contract debts on the strength of the promise of Mr. Dyke that he would pay you this bonus if you came back to work for him?’’ The appellants objected, the court overruled their objections, and the appellants duly excepted. The- appel-lee then answered the question as follows: “Yes sir.” The counsel for appellee then asked appellee when he contracted these debts and what debts he contracted in DeQueen in December. Thereupon the court ruled that it would not allow the witness to go into detail in explaining the debts. Counsel for appellants then stated that they had a right to go into detail as to the debts on cross-examination. The court ruled that that was not material, and refused to allow appellants’ counsel to examine the appellee as to the specific debts contracted in December, stating that it was sufficient that he said he had contracted debts. Appellants objected to the ruling of the court, and excepted thereto.

Appellants categorically denied that there was any contract with the appellee to pay him a bonus, and denied that they had requested him to return to Fort Smith. They admitted that he was employed by them after he returned to Fort Smith. The testimony on behalf of the appellants was to the effect that they never promised a bonus to any one as a part of compensation or salary for services. They had paid some bonuses for twelve or fourteen years, but never promised one to anybody. When given, they were given purely as a reward for good service and not as a contractual obligation. Their testimony was to the effect that they never asked appellee to return from DeQueen, and that appellee asked employment of the appellants on his own initiative, stating that he could not make any money in DeQueen, whereupon the senior member of the firm of appellants told appellee that he (appellee) knew he could always have a job with them at any time. Appellee finally telephoned the senior Mr. Dyke that he wanted to see him, and he came up on a Sunday morning in December. Appellants told him that he could come back, and his salary would be $200 per month. During the former years that appellee had worked for appellants they had always paid him a liberal salary, and he was always satisfied with it. They positively denied^ that there was anything said about a bonus or interest in the business as a part of appellee’s compensation. They did not tell appellee that they would give him the same per cent, of the profits as was received by the sons of the senior members of the firm.

Appellee quit the employ of the appellants in March, 1923. Mr. M. T. Dyke, Sr., described in detail the conversation that he had with the appellee at that time as follows: “He came into my room and sat down and said, ‘Mr. Dyke, I have always come to you when I was in trouble, and you have always helped me out,’ and I said, ‘What’s the trouble, Walter?’ and he said he was owing debts which were making him trouble, and showed me a list of debts he owed, and I looked them over and said, ‘I have helped you three or four times before, but how in the world have you come to owe so much money?’ and he said, ‘On account of the sickness of my wife.’ We talked for quite a while, and I told him I did not see how I could help him out that much, and he left. Nothing more was said until the following Monday, about 4 o’clock in the afternoon, and he asked me again to help him.

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Bluebook (online)
272 S.W. 663, 168 Ark. 943, 1925 Ark. LEXIS 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyke-brothers-v-stokes-ark-1925.