Hanson Motor Co. v. Young

265 S.W.2d 501, 223 Ark. 191, 1954 Ark. LEXIS 636
CourtSupreme Court of Arkansas
DecidedFebruary 22, 1954
Docket5-304
StatusPublished
Cited by14 cases

This text of 265 S.W.2d 501 (Hanson Motor Co. v. Young) 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
Hanson Motor Co. v. Young, 265 S.W.2d 501, 223 Ark. 191, 1954 Ark. LEXIS 636 (Ark. 1954).

Opinions

. Minor W. Mill wee, Justice.

Appellants, Jimmie Hanson and Emma 0. Hanson, husband and wife, opened a Willys automobile and truck agency in the city of Stuttgart, Arkansas, in May, 1946, and employed appellee, Jerry M. Young, to sell cars and do general work. Appellee remained in their employ from about the time of the opening until September 14, 1948, when his employment was terminated by appellants. Each week of his employment, appellee received from appellants a check for $50, less deductions for social security and withholding tax, each check being marked for “labor.” He also received one additional check on June 20, 1947, for $50, marked “commission on jeep.”

Appellee filed this action against appellants alleging an oral contract of employment under the terms of which he was to receive 3% of the gross sales of the business and a $50 weekly drawing account. He alleged that he had not been paid any of the 3% commissions and that $12,000 was due by reason thereof.

Appellants’ answer alleged that appellee was employed by them in May, 1946, at a salary of $50 per week, and that no further compensation was agreed upon. The answer also alleged that on June 2, 1948, appellee executed a written instrument in which he acknowledged the terms of employment and receipt of payment in full of the $50 weekly salary to date, and further acknowledged that such weekly salary was in lieu of a 3% commission on the gross sales.

On trial of the cause, a verdict and judgment were rendered against appellants in the sum of $4,892.20.

The principal issues presented to and determined by the jury in appellee’s favor were, (1) the terms of the original oral contract of employment, and (2) whether appellee’s signature to the written instrument of June 8, 1948, was obtained by the trickery, fraud or deceit of the appellant, Jimmie Hanson. The only witnesses in the case were the parties to the suit, appellee’s wife and a kinsman of Mrs. Hanson; and their testimony is in irreconcilable conflict on the issues thus presented.

The first contention for reversal is that the evidence is insufficient to sustain a jury finding that the written contract of June 8, 1948, was procured by the fraud or misconduct of the appellants or either of them. In testing the sufficiency of the evidence on this point, it must be considered in the light most favorable to appellee. In briefly so reviewing the testimony on this issue, we deem it appropriate to relate some facts that are also pertinent to the first issue presented to the jury.

Appellee had been engaged in various phases of the automobile business in and around Stuttgart, Arkansas, for 20 years in the latter part of 1945. At that time appellant, Jimmie Hanson, who operated a farm near Hazen, Arkansas, wanted to enter the automobile business if he could obtain an agency but was without previous experience and approached appellee with the proposition of securing his assistance in obtaining the Willys agency at Stuttgart and with the view of appellee’s future employment in the operation of the business in the event the agency could be obtained. Hanson and appellee went to Little Eock, Arkansas, where they conferred with the managers of the Little Eock Willys Motor Company about the matter. Hanson told them that he was inexperienced in the automobile business but that appellee “knew all about the business.” After another trip or two to Little Rock by Hanson and appellee, the agency was obtained. After considerable negotiations it was orally agreed that appellee should receive $50 per week and 3% of the gross sales to be paid every 6 months. Appellee and his wife, who was employed as an abstractor, located vacant lots which the appellants purchased and upon which they erected a building in which the business was operated.

Appellee began work in May, 1946, and did general sales and all other kinds of work connected with the operation of the business except mechanical labor and the keeping of the books. At the expiration of the first period of six months, and upon several occasions thereafter, appellee made demand for the commission of 3% on the gross sales, but Hanson gave various excuses and definite promises of future payment. The last of these promises was made in May, 1948, when the commissions amounted to $10,000. In the operation of the business it became necessary to execute numerous sales and other contracts and both appellee and Hanson adopted the custom of having each other sign and witness the signature of others to various papers without reading them. On June 2, 1948, Hanson came to the parts room where appellee was working and told him he had a paper he wanted appellee to sign when he had time. When appellee went to the office, Hanson presented appellee with a paper that was folded, pointed to the bottom of the second page, and said, “Put your name right there.” Appellee, in pursuance of their regular custom, signed the paper without reading it and without knowledge of its contents, thinking it was a sales contract of the kind that he frequently signed in this manner. This was the employment contract introduced by appellants which provided that appellee, as party of the second part, acknowledged that his past and future employment by appellants was at a salary of $50 per week, which had been fully paid to date. The contract also provided: “Said weekly salary was agreed upon by and between the parties in lieu of a 3% of the gross sales, a straight commission basis, due to lack of saleable merchandise which existed at the time of employment.” The contract was never signed by Hanson and the typewritten words, “Party of the First Part,” under the line for his signature were marked through with ink. Appellee was never furnished with a copy of the instrument.

The foregoing account of the facts as related by appellee and his wife were sharply disputed by the testimony offered by appellants. According to appellants’ proof, there was never any agreement to pay appellee a commission or percentage of the gross sales and appellee duly executed the contract of June 2, 1948, after he had read it and fully agreed to its terms. Appellants insist that even if this testimony is disregarded, the evidence offered by appellee is insufficient to warrant the submission of the question of fraud in the procurement of the written instrument to the jury. They rely on such cases as Colonial and United States Mortgage Company v. Jeter, 71 Ark. 185, 71 S. W. 945, and Mitchell Mfg. Co. v. Kempner, 84 Ark. 349, 105 S. W. 880, which hold that one who signs a contract after opportunity to examine it cannot be heard to say that when he signed it he did not know what it contained. In those cases there was no evidence that the signature of one of the parties to the contract was procured by fraud, trickery or other inequitable conduct. The rule announced in these cases is inapplicable, and they are to be distinguished from one where there is evidence tending to show that the fraud or inequitable conduct of one of the parties caused the other party to sign the contract under a mistake of fact, without reading the contract. Hence, the rule applicable here is that one who signs a contract, after opportunity to examine it, cannot say that he did not know what it contained in the absence of fraud or other inequitable conduct of the other party which caused him to sign the contract under a mistake of fact, without reading it. Galloway v. Russ, 175 Ark. 659, 300 S. W. 390; Dodson v. Abercrombie, 212 Ark. 918, 208 S. W. 2d 433.

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Hanson Motor Co. v. Young
265 S.W.2d 501 (Supreme Court of Arkansas, 1954)

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Bluebook (online)
265 S.W.2d 501, 223 Ark. 191, 1954 Ark. LEXIS 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanson-motor-co-v-young-ark-1954.