Gross v. Campbell

118 Ohio St. (N.S.) 285
Procedural entryThis page is a short order in Gross v. Campbell. Read the opinion of the Court — 118 Ohio St. 285
Ohio Supreme Court·Decided March 28, 1928·No. No. 20482·Published

Opinion

Kinkade, J.

This is an action to recover $1,000, 000 as damages resulting from a breach of a contract of employment. The plaintiff in error, Elmer Gross brought an action against the Youngstown Sheet & Tube Company and the other defendants, seeking tc recover $1,000,000. The issues were presented bj a second amended petition, an answer thereto, ano a reply. At the time the contract was alleged to havi [286]*286been entered into, Gross was a private detective residing at Gibsonia, Pa., near Pittsburgh. The Youngstown Sheet & Tube Company was an Ohio corporation, located at Youngstown, and engaged in the manufacture and sale of metal products. The other defendants were officers of the steel company. The initial contract between the parties consisted of a letter written by the steel company upon August 11,1922, to Gross, and by Gross accepted as an accurate statement of their contractual relations. The term of this contract expired, as therein provided, December 1, 1922. Gross alleged that at that time he and the steel company agreed orally that the. time of the contract should be extended so as to afford Gross an opportunity to further extend his investigations with respect to the subject-matter of the contract. Gross averred that, by this oral agreement of extension of time, the steel company agreed that, if Gross would go forward with further investigations, and was successful in procuring the evidence which the steel company desired with respect to the manner in which, and the extent to which, the steel company had been defrauded by its own employees and others, then and in that event the steel company would institute whatever actions in court, whether civil or criminal, which Gross deemed necessary to accomplish a recovery of property, or money in lieu thereof, which the investigation indicated the steel company was entitled to recover from those who had defrauded the company, and that the steel company would reimburse Gross for his time and expenses, and would give him one-half of the amount recovered from the wrongdoers.

Gross alleged that, pursuant to the original writ[287]*287ten contract of August 11,1922,-as supplemented by tbe oral agreement of December 1, 1922, he went forward with bis investigations, and that be was successful in securing all of tbe evidence asked for by tbe steel company, and that this relation of tbe parties continued up to tbe 2d day of June, 1923, at wbicb time tbe steel company informed Gross that tbe company had all tbe evidence that it needed in order to make tbe contemplated recoveries, and wrote Gross a letter inclosing therein a check to bis order for $10,000 to cover all claims that be might have against tbe company up to that time. Gross alleged that be declined to accept tbe check in full of all demands as stated in tbe letter of June 2,1922, and that thereupon, and for tbe purpose of -inducing him to accept tbe check, tbe steel company agreed orally that be should still bold bis interest in any recoveries that tbe steel company might thereafter make of tbe wrongdoers, and that bis interest of 50 per cent, in such recoveries should be paid to bim when made, in addition to tbe $10,000, and that tbe steel company would very soon begin all tbe actions, criminal and civil as well, wbicb were necessary to make . full recoveries as justified by tbe evidence Gross bad produced, to wbicb interpretation' and modification Gross assented, and thereupon accepted and cashed tbe check for $10,000, wbicb amount he has since retained.

Gross then alleged that tbe steel company bad wrongfully and fraudulently failed and refused to bring any action to recover property, or damages in lieu thereof, from tbe wrongdoers, to bis damage in tbe sum of $1,000,000, for which be prayed judgment.

Tbe steel company, by its answer denied generally ' [288]*288all wrongful acts charged against the company by Gross, and also specifically denied most of the statements made in the second amended petition. The steel company admitted that it had written the letter of August 11, 1922, and also the letter of June 2, 1923, and had sent to Gross the check therein referred to, for $10,000, which was cashed by Gross. The steel company averred that the contract of August 11, 1922, was null and void, for the reason that it contravened public policy. The steel company denied that it had made the oral modifications of the original contract on December 1, 1922, and June 2, 1923, as alleged by Gross. The steel company averred that, if the contract had been modified in the manner and to the extent as claimed by Gross, it would have been more violative of public policy than it was without such modification. The steel company also averred that there had been a full and complete accord and satisfaction effected between the parties by the delivery and acceptance of the check for $10,000 sent by the steel company to Gross.

The relations of the parties, as set forth in the letters of August 11, 1922, and of June 2, 1923, are best shown by those letters themselves, which read as follows:

“The Youngstown Sheet & Tube Company.
“J. A. Campbell; President.
Youngstown, Ohio, August 11, 1922.
“Gross-Capone National Detective Agency, Keystone Building, 324 Fourth Avenue, Pittsburgh, Pa. —Gentlemen: Referring to your letter of June 15th, directed to Mr. Meub, and confirming your conversation with me a few days since, you maly proceed to investigate for us the matter of our having been de[289]*289frauded. in material at our plant upon the understanding that you are to receive, as your full compensation, fifty per cent. (50%) of all amounts recovered and actually received by us as the direct result of your investigations and evidence secured thereby.
“No investigation shall be made of our records or of employees at our plant, except with the full understanding and approval, in advance, of our general superintendent, W. C. Reilly.
“We are to receive full information of all your investigations and findings, and all records, documents and evidential matter, of every character received by you are to be returned to us. No proceedings, civil or criminal, shall be commenced except with the approval of our counsel, and all proceedings, if commenced, shall be under the sole direction of our counsel.
“We will co-operate with you in every reasonable and proper way in furthering your investigation.
This arrangement shall expire on December 1st, 1922, bp.t may be terminated at any time prior to such date by our giving you written notice to such effect.
“If so terminated by us without any compensation having been earned by you hereunder, as above provided, we will pay you, in lieu thereof, and as your full compensation hereunder, a reasonable amount for time and expense actually spent by you on this work.
“Very truly yours,
“ [Signed] J. A. Campbell, President.”
[290]*290“The Youngstown Sheet & Tube Company.
“Youngstown, Ohio, June 2, 1923.
“Walter E. Meub, Secretary.
“Mr. E. W. Gross, 324 Fourth Ave., Pittsburgh, Pa.

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Gross v. Campbell, 118 Ohio St. (N.S.) 285 (Ohio 1928).

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