Georgia Wholesale Co. v. Downs

4 S.E.2d 107, 60 Ga. App. 441, 1939 Ga. App. LEXIS 599
CourtCourt of Appeals of Georgia
DecidedJune 22, 1939
Docket27433
StatusPublished

This text of 4 S.E.2d 107 (Georgia Wholesale Co. v. Downs) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia Wholesale Co. v. Downs, 4 S.E.2d 107, 60 Ga. App. 441, 1939 Ga. App. LEXIS 599 (Ga. Ct. App. 1939).

Opinions

Guerry, J.

Mrs. F. K. P. Downs, as transferee and assignee for value of the claim of her husband, EL S. Downs, brought suit against Georgia Wholesale Company. The petition alleged that on January 20, ■ 1922, H. S. Downs entered into a verbal contract with the authorized officer of the defendant to open and operate for it in the City of Atlanta a certain store for the sale of surplus army goods; that at that time the defendant had entered into contracts with the United States government for the purchase from it “of various supplies and clothing, including shoes, which the United States of America had provided and accumulated for the use of its soldiers and its army in the World War, the originals and copies of which contracts are in the exclusive custody and control of the defendant company and the government, and that, in order to promote the sale of these supplies it had contracted to buy from the government, the defendant entered into this verbal contract with plaintiff’s husband for him to operate this store in Atlanta for the sale and disposal of these goods, and under the terms of this agreement “EL S. Downs was to receive at the end of all operations of said company under said contracts with the United States of America as above mentioned, one third of the profits of said branch, and that in compliance with said agreement” Downs did open and operate said branch in the City of Atlanta, “and as a result of his said operation, which began at that time and ended January 17, 1924, upon an accounting had, it was agreed that Downs had earned $10,000, but only $8608.99 was to be paid at all events and $1391.01 additional was to be paid” if said defendant [443]*443did make a profit on the army shoes. The petition alleged further that the operations of said company with the government ended December 7, 1936, and the full amount of $10,000 became due at that time, for the reason that a profit in excess of that amount had been made. A written memorandum was attached, dated January 17, 1924, as follows:

“Carmichael gvt. goods upset credit to H.S.D. 12/31/22, $8,608.99 Car gvt. goods period 1/23 to 2/23 (P) $7810.52 Georgia Wholesale Co. period 2/23 to 12/23 (L) $16,638.99

Georgia Wholesale Co. period 12/23 to 1/13/25 (L) 4,523,67

21,162.66

Less (P) car gvt. goods 1/23 to 2/23 7,810.52

Net loss, from 1/23 to 1/13/25 1/17/24. $13,352.14

Memo for Mr. Downs [written in ink] :

The above $8608.99 to be credited to EL S. Downs on Ga. Who. Co. Books. If we make profit on the army shoes he is to receive $1391.01 additional at the end of our operations.

[Signed] F. S. Carmichael.”

The petition alleged further that the operations between Georgia Wholesale Company and the United States Government ended December 7, 1936, “when the said defendant company in the court of claims of the United States was awarded the sum of $492,316.65, or some other large sum, in its suit against the United States of America before said court upon a claim under the contract of said defendant company for the purchase of army shoes from the United States of America” which sum was paid to the defendant. The defendant demurred to the petition on the ground that under the facts as alleged the action was barred by the statute of limitations.

That part of the petition which alleged that the defendant had entered into contracts with the United States government and that EL S. Downs was to be paid his part of the profits at the end of all of the defendant’s operations “under said contract with the United States government” was specially demurred to on the ground that said allegations were too vague, uncertain, and indefinite, it not appearing what said contracts were, or when they were to terminate, or when said contracts actually terminated, or what was [444]*444the understanding at that time between Downs and the defendant as to when they Avere to terminate, it merely being alleged elsewhere that the United States government breached said contracts and it not being alleged when said breach occurred.

We think if the contracts between the government and Georgia Wholesale Company made before January 22, 1922, had a definite time in which they were to end that a valid agreement might be made between Doavias and the defendant AAdiereby payment to be made Downs for his services was not to become due until the end of such contracts then in existence between the defendant and the government. The petition- alleged that such Avas the contract between Downs and the defendant, and the statute of limitations did not therefore begin to run until the end of such contract. There was no error in overruling the general demurrer as to'the statute of limitations. If these contracts had no time in which to end, and might operate indefinitely at the will of the parties, a person who had performed services for the defendant and who Avas to be paid at the end of the contracts to which he was not a party, Avas entitled to have his pay at the end of a reasonable time, otherAvise he might never be paid for the reason that such contracts might continue indefinitely.

The special demurrers called for allegations as to when these contracts AA^ere expected to end. In view of the position Ave take in respect to the evidence submitted, it becomes unnecessary to pass on the ruling on such demurrers.

Under the pleadings it is apparent that under the contract entered into January 20, 1922, Downs AAas to be paid for his services at the termination of the contracts which were then in existence between the government and the defendant. The evidence for the plaintiff shows that Downs entered upon the performance of his contract and opened and operated the store in the City of Atlanta, and AAhatever amount 'he earned according to the terms of this contract was due at the end of his services to the defendant and became barred within four years thereafter unless there was an express agreement to the contrary. The petition alleged, and the evidence Avas sufficient to Avarrant a finding, that this amount so earned was not to be paid until the contracts between the defendant and. the government which were in existence January 20, 1922, were at an end. The petition alleged that these contracts did not come [445]*445to an end until December 7, 1936. It appears from the allegations and the evidence that the defendant recovered in the court of claims from the government a large sum on this date. The record of these proceedings introduced in evidence showed, however, that the basis of the claim or contract on which the defendant recovered from the government was the breach of a contract not made until some time in 1930, which was five years after Downs had severed his connection with the defendant and after the amounts he claims had been earned. Construed in its most favorable light, this record may show that this contract made in 1930 on which the defendant recovered in the court of claims was sufficient to prove that the contract made in 1930 was a renewal of a contract made in 1926, which was in turn a renewal of a contract made in June, 1923. It nowhere appears that any of the contracts made in 1923, 1926, or in 1930, had any relation to contracts which were in existence in 1922. It is apparent that the contract sued on, which was entered into on January 20, 1922, did not contemplate, nor is it alleged that it did contemplate, that Downs was not to be paid for his services which he was to render until all contracts which were then in existence between the defendant company and the government and

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Bluebook (online)
4 S.E.2d 107, 60 Ga. App. 441, 1939 Ga. App. LEXIS 599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-wholesale-co-v-downs-gactapp-1939.