Freeman v. King

662 S.W.2d 479, 10 Ark. App. 220, 1984 Ark. App. LEXIS 1452
CourtCourt of Appeals of Arkansas
DecidedJanuary 11, 1984
DocketCA 83-92
StatusPublished
Cited by8 cases

This text of 662 S.W.2d 479 (Freeman v. King) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freeman v. King, 662 S.W.2d 479, 10 Ark. App. 220, 1984 Ark. App. LEXIS 1452 (Ark. Ct. App. 1984).

Opinion

Melvin Mayfield, Chief Judge.

The appellant, Sidney Freeman, appeals from the granting of appellees’ motion for summary judgment.

The appellees are George King and various corporations used by him to operate an industrial laundry business in the Fort Smith area. In 1967 Freeman was employed to manage this business under an agreement which provided for a salary and profit-sharing arrangement. In December of 1981, Freeman resigned because he believed he was not receiving the agreed share of profits, and in February of 1982, he filed this suit seeking an accounting and judgment for the profits he contends are due him.

Answers were filed for the appellees and after the depositions of Freeman and King had been taken the appellees filed a motion for summary judgment. The motion was submitted upon the pleadings and depositions, from which the court found “the following material facts to be undisputed.”

1. There was an oral employment contract.

2. An unsigned memorandum of some of the terms of the employment agreement was prepared.

3. The oral agreement was modified numerous times over the 14 years it was in effect.

4. Approximately ten years ago King stopped showing Freeman the books despite Freeman’s requests to see them.

5. For six to ten years Freeman suspected King was not paying his bonus in accordance with the agreement.

6. For the past six to ten years Freeman did not controvert King’s unilateral right to determine such bonus as King deemed reasonable without accounting to Freeman for the method by which such bonus was computed.

7. During the past decade King and Freeman agreed upon various increased benefits to Freeman’s advantage in addition to those provided in the August 21, 1967 document, including a substantially increased salary — the most recent salary increase, $1,200.00 per week or $62,400.00 per year, being four times the maximum provided in the agreement regardless of the amount of the profits.

Next, the court’s judgment states “there being no genuine issue as to the above material facts, the court finds that the defendants are entitled to judgment as a matter of law.” The court’s reasoning is then set out as follows:

Freeman with knowledge (constructive if not actual) that King was not strictly complying with the bonus formula, and while acquiescing in modifications of the original agreement substantially to his advantage, remained silent and failed to assert any right he might have had to an accounting based upon the August 21, 1967 document for a period of at least six and perhaps as many as ten years. The voluntary relinquishment of rights by Freeman (waiver), the detrimental reliance by King (estoppel), and the unreasonable delay in the enforcement of any right Freeman might have had to demand an accounting or to enforce the other rights claimed herein (laches) entitle the defendants, and all of them, to judgment as a matter of law.

Motions for summary judgment are governed by some well-established principles of law. In Walker v. Stephens, 3 Ark. App. 205, 626 S.W.2d 200 (1981), we said:

On such motions the moving party has the burden of demonstrating that there is no genuine issue of fact for trial and any evidence submitted in support of the motion must be viewed most favorably to the party against whom the relief is sought. Summary judgment is not proper where evidence, although in no material dispute as to actuality, reveals aspects from which inconsistent hypotheses might reasonably be drawn and reasonable men might differ. Hendricks v. Burton, 1 Ark. App. 159, 613 S.W.2d 609 (1981); Dodrill v. Arkansas Democrat Co., 265 Ark. 628, 590 S.W.2d 840 (1979); Braswell v. Gehl, 263 Ark. 706, 567 S.W.2d 113 (1978). The object of summary judgment proceedings is not to try the issues, but to determine if there are any issues to be tried, and if there is any doubt whatsoever the motion should be denied. Trace X Chemical, Inc. v. Highland Resources, Inc., 265 Ark. 468, 579 S.W.2d 89 (1979); Ashley v. Eisele, 247 Ark. 281, 445 S.W.2d 76 (1969). A motion for summary judgment cannot be used to submit a disputed question of fact to a trial judge. Griffin v. Monsanto Co., 240 Ark. 420, 400 S.W.2d 492 (1966).

The parties do not really disagree as to what the real issue is in this appeal. The appellant says regardless of whether the facts listed in the trial court’s judgment are disputed, reasonable minds could differ as to the inferences to be drawn from those facts and summary judgment was therefore inappropriate. On the other hand, the appellees say that reasonable minds could not differ and it would be a fruitless exercise to spend two or three days trying the case. It is our view that summary judgment should not have been granted and we reverse and remand the case for further proceedings.

The first ground upon which the court based its decision is waiver. That term was defined in the case of Ray Dodge, Inc. v. Moore, 251 Ark. 1036, 479 S.W.2d 518 (1972), as follows:

Waiver is the voluntary abandonment or surrender by a capable person of a right known by him to exist, with the intent that he shall forever be deprived of its benefits. It may occur when one, with full knowledge of the material facts, does something which is inconsistent with the right or his intention to rely upon it.

Freeman’s testimony was that in the early years of their agreement he was shown financial statements and had no reason to question the amount of profits which he shared. Later, however, he suspected his share should have been more, but when he asked to see the information upon which it was calculated he was told the books were at the accountant’s and a financial statement was not available. He said he asked for this information several times through the years and received the same response. He testified that in 1979 he was told his share of the profits for 1978 was about $20,000.00 although during the summer of 1977 he had been told by King that within two years he would be making $100,000.00, and although he knew 1978 had been an extremely profitable year.

At about the same time King opened a quarter horse ranch in which he began to invest large sums of money. So, in August of 1979, when Freeman tried to find out what the profits were for 1978, and was again told that the books were at the accountant’s, he became convinced he was being cheated. He said he actually preparecl a resignation dated August 29, 1979, but did not turn it in and worked on until the end of 1981, at which time he did resign.

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Bluebook (online)
662 S.W.2d 479, 10 Ark. App. 220, 1984 Ark. App. LEXIS 1452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-v-king-arkctapp-1984.