Harrison v. Commander Mills, Inc.

1956 OK 125, 298 P.2d 749, 1956 Okla. LEXIS 500
CourtSupreme Court of Oklahoma
DecidedApril 10, 1956
Docket36883
StatusPublished
Cited by10 cases

This text of 1956 OK 125 (Harrison v. Commander Mills, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrison v. Commander Mills, Inc., 1956 OK 125, 298 P.2d 749, 1956 Okla. LEXIS 500 (Okla. 1956).

Opinion

HUNT, Justice.

The plaintiff in error, John P. Harrison, instituted this action in the District Court of Tulsa County against Commander Mills, Inc., a corporation, to recover a sum on a quantum meruit basis for services performed under -an alleged oral contract of employment. A general demurrer was sustained to plaintiff’s amended petition. The plaintiff elected to stand on his petition and judgment was rendered for defendant, and the plaintiff has perfected an appeal to this Court. The parties will be referred to as they appeared in the District Court.

The plaintiff alleges in his amended petition that H. B. Dowell, president and agent of the defendant corporation, informed him that the defendant desired to employ a manager for its cotton mill at *750 Sand Springs, starting at a salary of $10;-000, and also employ a competent engineer to take charge of a rehabilitation and replacement program and complete reorganization of its plant, anticipated to be accomplished within two years, but if plaintiff would accept the employment and perform the ordinary duties, as well as the extraordinary duties called for by the- rehabilitation and replacement program that he would be employed by the defendant corporation in the same or comparable position with the company on a permanent basis; that plaintiff would be elected vice-president of the corporation; that it was thereupon orally agreed between the plaintiff and H. B. Dowell, president and agent of the defendant corporation, and within the scope of his employment, that the defendant corporation would employ plaintiff as manager of its Sand Springs mill and as vice-president of the corporation at a starting salary of $10,000 a year; that if plaintiff would, in addition to his duties as manager, undertake as engineer the extraordinary additional and further duties of reorganizing the mill and accomplishing the anticipated rehabilitation and replacement program that the plaintiff would be employed by the defendant corporation in a comparable or superior position on a permanent basis.

The plaintiff further alleges that, pursuant to the oral agreement, in June, 1947, he commenced his employment with the defendant corporation as the manager of its Sand Springs plant; that he was elected by the Board of Directors as its Vice-President ; that pursuant to the terms and conditions of his employment as a textile engineer he undertook the actual work of rehabilitating, expanding and reorganizing defendant corporation’s cotton mill, that the work progressed continuously until it was substantially 'and successfully completed about September, 1949; that he performed all the terms and conditions of his employment in a competent manner, but that the defendant, without-just'cause, discharged the plaintiff effective September 1, 1949.

Plaintiff further alleges that he was at all times ready, willing and able to perform his duties, in accordance with the oral-agreement between the parties and that he tendered his services to the defendant, who prevented further performance thereof, which constituted a breach by the defendant of its contract of employment of plaintiff upon a permanent -basis, the consideration for which it had already received.

Plaintiff further alleges that because of the wrongful discharge by the defendant corporation he is entitled to recover on a quantum meruit basis reasonable compensation in a sum equal to the difference between the salary actually paid plaintiff and the value of the services, both ordinary and extraordinary, actually rendered by plaintiff to the defendant corporation, which plaintiff alleges to be of the reasonable value of $100,000; aiid prayed judgment for said sum. The plaintiff, in his brief, states his theory as follows:

“In brief, it is the plaintiff’s theory that irrespective of whether or not the oral agreement for permanent employment which he had with the defendant corporation was enforceable or unenforceable, that he may, nevertheless, upon being wrongfully discharged from his employment, recover the rea-. sonable value of the services which he rendered to the defendant corporation in compliance with the oral agreement, less the salary actually paid to him, otherwise the defendant corporation would be placed in the position of having been unjustly enriched by accepting the plaintiff’s valuable extraordinary services and by paying to the plaintiff only a fraction of their value.”

Plaintiff’s theory would have legal merit if the alleged facts in plaintiff’s petition supported the same. The plaintiff, in support of his theory, first cites the case of Davidson v. Laughlin, 138 Cal. 320, 71 P. 345, 5 L.R.A.,N.S., 579, wherein it was held that the plaintiff was entitled to recover an additional sum based on the reasonable value of his services rendered in the construction of a building where the defendant owner had orally agreed to give the plaintiff permanent employment as manager of the building when it was completed, but failed to do so. The case of Morris Plan Co. v. Campbell, 180 Okl. 11, 67 P.2d 52, is also cited, in which it was held that the *751 oral agreement of employment at an increased salary for a period in excess of one year was unenforceable because of the Statute of Frauds, but held that the plaintiff was entitled to recover the reasonable value of the extra services actually rendered, less the amount previously paid. The sybabus reads:

“1. An action on quantum meruit may be maintained for the reasonable value of services actually rendered under an unenforceable oral contract.
“2. The measure of recovery for services actually rendered under an unenforceable oral contract is the value of such services less the sum, if any, which has been paid for the same.”

Dicks v. Clarence L. Boyd Co., 205 Okl. 383, 238 P.2d 315, 316, 28 A.L.R.2d 870, holds:

“1. Án oral contract of employment to continue 'so long as plaintiff was able to continue actively in said work* is invalid under the provisions of the statute of frauds. 15 O.S.A. § 136, Par. 1.
“2. When cause of action is based on oral contract of employment invalid under tire provisions of the statute of frauds, trial court did not err in sustaining defendant’s demurrer to plaintiff’s petition.”
“ ‘Permanent employment’ ordinarily means employment for an indefinite period which, in the absence of some special consideration, may be arbitrarily severed at any time by either party.” McKelvy v. Choctaw Cotton Oil Co., 52 Okl. 81, 152 P. 414.

Plaintiff’s theory and basis of recovery in the present action is founded on the erroneous assumption that his petition alleges facts sufficient to show and establish an oral contract with the plaintiff which comes within the rule announced in the case of Morris Plan Co. v. Campbell, supra, and that such contract was violated by the defendant. Plaintiff calls our attention to the rule that in considering a demurrer to a petition the allegations thereof must be taken as true. We here call attention to the applicable and equally well established rule stated in the syllabus of the case of Francis v. Branson, 168 Okl. 24, 31 P.2d 870, as follows:

“3.

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Bluebook (online)
1956 OK 125, 298 P.2d 749, 1956 Okla. LEXIS 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrison-v-commander-mills-inc-okla-1956.