Heuvelman v. Triplett Electrical Instrument Co.

161 N.E.2d 875, 23 Ill. App. 2d 231
CourtAppellate Court of Illinois
DecidedNovember 18, 1959
DocketGen. 47,702
StatusPublished
Cited by50 cases

This text of 161 N.E.2d 875 (Heuvelman v. Triplett Electrical Instrument Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heuvelman v. Triplett Electrical Instrument Co., 161 N.E.2d 875, 23 Ill. App. 2d 231 (Ill. Ct. App. 1959).

Opinion

JUSTICE SCHWARTZ

delivered the opinion of the court.

The trial court sustained both defendant’s motion for a summary judgment and its motion to strike the amended complaint, and thereupon dismissed the suit with prejudice. From these orders plaintiff has appealed. The principal issue involved turns on an alleged oral agreement for permanent employment.

The amended complaint consists of three counts. Count I seeks a declaratory judgment finding that plaintiff and defendant entered into a contract for the permanent employment of plaintiff as a sales representative for the sale of electrical and radio equipment; that the contract was breached; and that plaintiff suffered damages in the sum of $250,000. Counts II and III are alternatives to Count I. Count n alleges that plaintiff prior to his alleged discharge procured the listing of defendant’s products in various catalogs and was entitled to commission on sales obtained through publication and distribution of such catalogs, amounting to a sum in excess of $75,000. Count III alleges that plaintiff although informed that his services were terminated as of November 30, 1955, was called upon for services until the appointment of a new representative in February, 1956; tbat in tbe interval be serviced tbe accounts and tbat bis commissions on orders placed with defendant during tbat time amounted to in excess of $50,000.

Tbe motion for summary judgment was supported by affidavits and depositions of tbe respective parties. In addition, defendant used tbe averments of tbe original complaint wbicb bad been sworn to by plaintiff. Tbe amended complaint was not verified. Tbe pertinent facts extracted from these documents follow. From 1925 to January, 1933, plaintiff was employed by an agency wbicb served as defendant’s sales representative in tbe midwest. In January, 1933, defendant hired plaintiff as its sole sales representative for tbe territory previously covered by tbe agency. Tbe agreement specified no definite time of employment. In April, 1933, defendant desired to secure the services of another sales representative, Jerome T. Keeney, employed by a competitor of defendant, and defendant brought plaintiff and Keeney together for tbe purpose of having them become associated as joint representatives for tbe sale of defendant’s products. At tbat meeting, as plaintiff alleges, defendant agreed tbat plaintiff’s employment would continue as long as defendant manufactured and sold electrical equipment and as long as plaintiff acted as sales representative in tbat field. Plaintiff charges tbat it was on tbe basis of tbat agreement tbat be consented to enter into a partnership with Keeney. Instead of a partnership, however, a corporation was formed, tbe Instrument Sales Corporation, in wbicb plaintiff and Keeney owned stock.

Tbe business association between plaintiff and Keeney continued until 1940, when Keeney left plaintiff to join tbe Simpson Electric Company, a competitor of defendant. At tbat time Simpson also made plaintiff an offer. Plaintiff orally discussed with defendant the matter of his leaving and, as stated by plaintiff but denied by defendant, Triplett, president of defendant company, told plaintiff as they walked down State Street in Chicago, that their arrangement was a permanent one. It continued until October, 1955, when defendant notified plaintiff that it terminated the relationship effective November 30,1955.

We will first consider the motion for summary judgment as it applies to Count I. Oral contracts for “permanent employment” (meaning that as long as defendant was engaged in the prescribed work and as long as plaintiff was able to do his work satisfactorily, defendant would employ him) have been sustained, provided such contracts are supported by a consideration other than the obligation of services to be performed on the one hand and wages to be paid on the other. Molitor v. Chicago Title & Trust Co., 325 Ill. App. 124, 132-3, 59 N.E.2d 695-8 (1945); Carnig v. Carr, 167 Mass. 544, 46 N. E. 117 (1897); Riefkin v. E. I. DuPont De Nemours & Co., 290 Fed. 286 (1923); Eggers v. Armour & Co., 129 F.2d 729 (1942); Roxana Petroleum Co. v. Rice, 235 Pac. 502 (Okla.), (1924). In the Molitor case the consideration was the giving up by the employee of a profitable law practice in New York in order to move to Chicago in reliance on a promise of permanent employment. The Molitor case was supported and approved, but distinguished, in Goodman v. Motor Products Corp., 9 Ill.App.2d 57, 77, 132 N.E.2d 356, 366 (1950). In Carnig v. Carr, supra, the plaintiff gave up a going and competitive venture to go with his employer. In Riefkin v. E. I. DuPont De Nemours & Co., supra, the employee gave up his position in government, a position of security and prestige. The case of Roxana Petroleum Co. v. Rice, supra, concerned a firm’s giving up its whole law practice in order to represent a single client. Where there is no particular detriment to the employee, the act of terminating other employment is not a sufficient consideration to make the new contract binding. Edwards v. Kentucky Utilities Co., 286 Ky. 341, 150 S.W.2d 916 (1941).

In the instant case the time of the first alleged conversation on which permanent employment is based is April, 1933. At that time plaintiff was already employed by defendant and the formation of a partnership with Keeney, terminable at will, so far as appears from anything in the record, cannot be considered a detriment but an advantage, Keeney being a man of considerable experience and competence, as was plaintiff, in this business. The alleged renewal of the offer in 1940, when plaintiff was being solicited to join Simpson, is presented in such a vague, indefinite way that it is impossible to consider it as an obligation. Plaintiff says Simpson offered him a 25% interest in a new business venture. It does not appear whether this was a gift or a capital contribution. It is not sufficient consideration for a contract of permanent employment to forego another employment opportunity. Lewis v. Minnesota Mut. Life Ins. Co., 240 Iowa 1249, 37 N.W.2d 316 (1949); Skagerberg v. Blandin Paper Co., 197 Minn. 291, 266 N. W. 872 (1936).

It is our further conclusion that considered in the light of the averments under oath in the complaint and not specifically retracted in the amended complaint, and further considering the deposition of plaintiff, no contract for permanent employment was made, nor was any adequate consideration to support one shown. Such contracts extending for a long duration and resting entirely on parol should have for their basis definite and certain mutual promises. The words and the manner of their utterance should not be of that informal character which expresses only long continuing good will and hopes for eternal association.

We will proceed now to a consideration of the second count, in which plaintiff alleges he was entitled to commission on those sales to distributors induced by the listing of defendant’s products in distributors’ catalogs.

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Bluebook (online)
161 N.E.2d 875, 23 Ill. App. 2d 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heuvelman-v-triplett-electrical-instrument-co-illappct-1959.