Fulton v. General Electric Supply Corp.

76 Pa. D. & C. 401, 1950 Pa. Dist. & Cnty. Dec. LEXIS 27
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedDecember 13, 1950
Docketno. 1457
StatusPublished

This text of 76 Pa. D. & C. 401 (Fulton v. General Electric Supply Corp.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fulton v. General Electric Supply Corp., 76 Pa. D. & C. 401, 1950 Pa. Dist. & Cnty. Dec. LEXIS 27 (Pa. Super. Ct. 1950).

Opinion

MacNeille, P. J.,

— This is a bill in equity brought by plaintiff, Frederick M. Fulton, against the General Electric Supply Corporation, former employer of plaintiff, praying for an accounting and the awarding of commissions allegedly due plaintiff for services rendered during the year 1947 and part of the year 1948.

From the pleadings, the evidence, and stipulation filed by the parties, the court makes the following

Findings of Fact

1. Plaintiff, Frederick M. Fulton, was employed by defendant, General Electric Supply Corporation, under written agreements for the periods from January 1, 1947, to December 31,1947, and from January 1,1948, to May 1,1948, as an appliance salesman in the Greater Philadelphia area.

2. The written agreement for the year 1947 was signed and executed January 29,1947, and the written agreement for the year 1948 was signed and executed March 18, 1948.

3. Plaintiff began his employment on January 1, 1947, and sold appliances for defendant for the entire year in accordance with the terms of the agreement executed by the parties.

4. Plaintiff, under the terms of the agreement for the year 1948, was employed as an appliance salesman for defendant from January 1,1948, until May 1,1948, when the employment was terminated.

[403]*4035. The contracts of employment for the years 1947 and 1948 were identical in terms except that the maximum commission credit at the rate of 12% percent in the 1947 contract was fixed at $5,600, while in the 1948 contract it was fixed at $6,000.

6. The contract signed by the parties, sometimes referred to as “Field Salesman’s Commission Plan”, provided, in part, as follows:

“1. Basic Commission Rate: The Salesman is hereby assigned a basic commission rate of 12% % subject to Paragraphs 3 and 4.
“2. Credited Gross Margin: The Salesman will be credited with the Corporation’s Gross Margin on sales made by the above named District of the Corporation during the Salesman’s employment under this Plan, within the period specified above, of commodities to accounts which at the time of the sale were assigned to the Salesman.
“3. Commission Credit on Credited Gross Margins: The Salesman will be given, during the period specified above, a commission credit on the Gross Margin credited to the Salesman under Paragraph 2 computed at the basic rate assigned to him under Paragraph 1 until the aggregate amount of commission credit given to him equals $5,600. Thereafter, during the remainder of the period specified above, the Salesman will be given a commission credit on all further Gross Margin credited under Paragraph 2 computed at a rate to be determined by the Manager of the above named District and the President of the Corporation in their sole discretion at the end of the period covered by the Plan.
“4. Commission Payable to Salesman: From the total commission credit computed under Paragraph 3, there will be deducted the salary, drawing account or other compensation (other than prize awards and push commissions) received by the Salesman for the period on [404]*404which such credits were computed — and the remainder will represent the total amount of commission to which the Salesman will be entitled for the period, subject to the rules which follow:
“1. The Commission provided for in the Plan will be payable to the Salesman only if at the end of the calendar year specified in the Plan he is in the employ of the Corporation, or if his employment shall have been terminated prior thereto by death or retirement, or by reason of permanent disability or retirement on pension under the Corporation’s pension rules provided that if his employment is terminated prior to the end of said calendar year by death or retirement or by reason of permanent disability or retirement on pension under the Corporation’s pension rules, the figure specified in the fourth line of Paragraph 3 shall be reduced by that percentage which the length of time the Salesman was not employed by the Corporation in the period specified in the Plan, is of the period specified in the Plan. Payment of such commission will be made after completion of the Corporation’s annual audit covering the calendar year, on or about the succeeding April 1. . . .
“7. The Corporation may in its absolute discretion, discharge or lay off the Salesman, or assign him to other duties at any time, with or without cause, and if any such is done, or if the Salesman’s employment hereunder is otherwise terminated, prior to the end of the calendar year specified in the Plan, the Salesman will not be entitled to any compensation hereunder, except as provided in Rule 1. . . .
“9. The Corporation shall have the right in its absolute discretion from time to time to change the basic commission rate specified in Paragraph 1 of the Plan; to change the assignment of accounts to the Salesman in whole or in part; and to credit the Salesman only with such portion of the Corporation’s Gross Margin [405]*405on any assigned account, as it in its judgment deems fair and equitable. . . .”

7. The gross sales made by defendant credited to plaintiff for the calendar year 1947 amounted to $366,-880. The gross margin credited to plaintiff on said sales amounted to $60,474.

8. The rate of commission credit for the year 1947 on the excess gross margin credited to plaintiff was fixed by the manager of the district and the president of the corporation at three percent.

9. The total commission credit, including the aggregate credit ascertained at the rate of 12% percent, plus three percent on the gross margin, amounted to the total sum of $6,070 for the year 1947.

10. In February 1948 plaintiff received from defendant, without protest, a sum representing, together with his drawings heretofore paid, a total compensation of $6,070 for the year 1947.

11. Plaintiff continued in the employ of defendant under the terms of the agreement for the year 1948, which was actually signed and executed on March 18, 1948, until May 1, 1948.

12. During the period from January 1 to May 1, 1948, plaintiff received a drawing of $225 per month or a total of $900.

13. On April 30, 1948, plaintiff’s employment was terminated at the instigation of defendant.

14. The gross sales credited to plaintiff for the months of January, February, March and April 1948 amounted to $172,609. The gross margin credited to plaintiff on these sales amounted to $25,616.

15. The agreement for the year 1948 provided that the commission rate of 12% percent would apply until the aggregate amount of commission credit equalled $6,000, and that commission credit on further gross margin was to be computed at a rate to be determined [406]*406by defendant in its sole discretion at the end of the period.

16. Plaintiff was paid for the year 1948 only advance drawings in the amount of $900 and was not paid a commission rate of 12% percent upon any amount of gross margin credited to him.

Discussion

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Bluebook (online)
76 Pa. D. & C. 401, 1950 Pa. Dist. & Cnty. Dec. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fulton-v-general-electric-supply-corp-pactcomplphilad-1950.