Hendricks v. Clements

195 A.D. 144, 186 N.Y.S. 378, 1921 N.Y. App. Div. LEXIS 4711
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 4, 1921
StatusPublished
Cited by5 cases

This text of 195 A.D. 144 (Hendricks v. Clements) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hendricks v. Clements, 195 A.D. 144, 186 N.Y.S. 378, 1921 N.Y. App. Div. LEXIS 4711 (N.Y. Ct. App. 1921).

Opinion

Merrell, J.:

This action is brought by the plaintiff to recover damages which he claims to have sustained by reason of his wrongful [145]*145discharge by defendant, his employer. Plaintiff claims under a written contract which he alleges he entered into with the defendant on or about June 16,1917. At that time the defendant, a resident of Philadelphia, in the State of Pennsylvania, was engaged in the sale of linseed oil, representing a large producer of that commodity. Defendant was also the American representative of the Dutch East India Company, acting as its sole agent for the sale in America of cocoanut oil and other products of said company. Owing to the European war then in progress the output of the Dutch East India Company was largely diverted to the United States, via the Pacific coast ports and the Panama canal. The defendant was desirous of obtaining the services of a representative in the city of New York to take charge of defendant’s linseed oil and other business at New York. Defendant, early in the year 1917, entered into negotiations with the plaintiff with a view of securing the latter’s services as such New York representative. Plaintiff, at that time, resided at San Francisco, Cal., and occupied a position of responsibility as traffic manager of the Western Pacific Railway Company. At defendant’s request and upon his suggestion to the plaintiff that a business arrangement might be made to plaintiff’s substantial advantage, plaintiff came east and negotiations followed with respect to plaintiff’s entering defendant’s service. After some considerable negotiations, on June 8, 1917, the plaintiff, who was then at Philadelphia, Penn., made a Written proposition to the defendant in effect offering to act as defendant’s representative with reference to the business of the Dutch East India Company in the United States, and that plaintiff would also act as defendant’s employee in defendant’s other general oil brokerage and commercial business at a compensation of $15,000 per annum, payable monthly, plus ten per centum of the net profits of the business, payable quarterly. In his proposition the plaintiff specified that the arrangement should be for the period of five years, unless by further agreement between the parties the same might be canceled and either a copartnership formed or a corporation organized to handle and continue defendant’s said business, in which partnership or corporation plaintiff would expect to participate. The defendant did not [146]*146accept such proposition of the plaintiff, but three days later, on June 11, 1917, made a counter-proposition to the plaintiff, in. writing, as follows:

« nr t m tt “ Philadelphia, June 11th, 1917. “ Mr. J. T. Hendricks, ’ ’
“ San Francisco, Cal. :
“ Dear Sir.— Referring to our conversation of today, we will be very glad to enter into a business arrangement with you on the following basis:
“We will pay you a salary of $12,000 per annum, and give you an interest of 10% in the net profits of our business at New York and Philadelphia, payable quarterly each year.
“ On the Linseed Oil business in New York, instead of paying you 10% profit, we will pay you 50% of the net profits of the Linseed Oil business in the New York territory. We will also enter into a contract with you making this agreement binding for three years.
“We would like very much to have a reply from you prior to July First, 1917. „ Touts very tmly
“ CLEMENTS & SON,
“ H. M. Clement.”

This written proposition was either delivered to the plaintiff personally by the defendant or was mailed to and received by the plaintiff at San Francisco. On June 16, 1917, the plaintiff, in writing, accepted defendant’s proposition. Plaintiff’s written acceptance was embodied in the following letter, which was received by the defendant:

“ J. T. Hendricks,
“ San Francisco.
“ Messrs. Clements & Son, une ’
“ 1040 Widener Building,
“ Philadelphia, Pa.:
“ Gentlemen.— Referring to yours of June 11th, by Mr. H. M. Clements, I beg to advise that after reflection I will be glad to accept the proposition which you set forth and you may consider this letter as my acceptance and approval thereof. Very truly yours,
“ J. T. HENDRICKS.”

[147]*147Upon receipt thereof the defendant, on June 23, 1917, wrote the plaintiff expressing great happiness that the latter had decided to join the defendant in business, and expressing in the most sanguine terms defendant’s confidence in the possibilities and future success of their enterprises. Defendant, in this letter, stated that he would be very happy if the plaintiff could make arrangements to come east by the fifteenth of August and familiarize himself with the details of the business. Plaintiff soon after in the latter part of July, severed his business connections in the west and, accompanied by his wife, came east to take up his new duties.

Defendant testified that he saw plaintiff at Atlantic City, where the plaintiff had taken his wife to recuperate, the latter part of July, and then told the plaintiff that as he had gone through a good deal with his wife and the weather was very hot, if he did not want to he need not come to New York immediately, but to take a few days’ rest. Defendant testified that the plaintiff did not, in fact, report to New York until the sixth or seventh of August, but that his salary dated from August first.

Plaintiff at once took up his duties at the New York office, but the evidence would seem to indicate that under plaintiff’s direction defendant’s business in the city of New York did not prosper satisfactorily to the defendant. Considerable criticism of the plaintiff was indulged by the defendant, culminating in written communications and telephonic conversations wherein defendant severely took the plaintiff to task for failure to put the business upon a paying basis. Finally, upon December 28, 1917, the defendant wrote plaintiff at length criticising his work and the manner in which he discharged his duties as defendant’s New York representative. On February 4, 1918, defendant again wrote plaintiff of his disappointment in the existing conditions. On February 8, 1918, plaintiff replied by letter stating to the defendant that he certainly would be unwilling to continue for any protracted period a relation with the defendant which was not mutually satisfactory, and that he would endeavor as soon as practicable to make other connections and to relieve the defendant from his obligations under their contract. Following plaintiff’s entry upon defendant’s service under said contract he was paid [148]*148a salary of $1,000 for the months of August, September, October, November and December, 1917, and January, 1918.

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Bluebook (online)
195 A.D. 144, 186 N.Y.S. 378, 1921 N.Y. App. Div. LEXIS 4711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hendricks-v-clements-nyappdiv-1921.