Holland v. Perrault

1957 OK 138, 312 P.2d 976, 1957 Okla. LEXIS 472
CourtSupreme Court of Oklahoma
DecidedJune 4, 1957
Docket37424
StatusPublished
Cited by6 cases

This text of 1957 OK 138 (Holland v. Perrault) 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
Holland v. Perrault, 1957 OK 138, 312 P.2d 976, 1957 Okla. LEXIS 472 (Okla. 1957).

Opinion

BLACKBIRD, Justice.

For several years, the defendants in error, Ainslee Perrault and Lewis Per-rault, d/b/a Perrault Bros., have operated a manufacturing plant at Sand Springs, Oklahoma. In 1950, plaintiff in error and one P. Madigliani owned a majority of the stock in the Oklahoma Glass Fiber Corp., hereinafter referred to merely as “Og”, or as the “Og Corporation”, which manufactured glass fiber and products, made therefrom, including one commonly referred to as “pipe wrap.” Plaintiff in error was also in the construction business, under the name of Holland Construction Company, to which, among others, Og was *977 indebted in the sum of $42,319.01, in addition to owing Holland, individually, the sum of $12,581.40.

On December 29, 1950, Perrault Brothers purchased all of Holland’s stock in Og and 25% of Madigliani’s; and entered into separate agreements with them to do certain things. Upon acquiring said stock, the Perrault Brothers became officers and directors of Og, and by the terms of the oral agreement entered into that day between Og and Holland, Og would execute a promissory note to him, due July 1,1951, for the $12,581.40 said corporation owed him, and execute another such note to Holland Construction Company, payable in December, 1951, for the indebtedness Og owed said company. By another provision of said agreement, the Perrault Brothers were to cause Og to employ Holland. This oral agreement was fulfilled when Og, by its new President, Lewis Perrault, executed a written agreement containing, among others, provisions for the fulfillment of its terms. The part of the written agreement, with reference to Og’s employment of Holland, provided that it would pay him, beginning July 1, 1951, $15,000 per year for a period of twenty years for “engineering and other related services” and that Holland would “not undertake any similar employment or engage in any similar business” during said period. The Og corporation paid Holland the $15,000 for each of the first two years of the specified 20-year period, and when, during the third year of said period, it defaulted in said payment, Holland, as plaintiff, instituted, in the District Court of Tulsa County, said Court’s Cause No. 84453, naming- as defendants, the Perrault Brothers, both as individuals and as partners doing business as Perrault Brothers, (as they appear herein) and a corporation referred to as Per-rault Bros., Inc.

In one cause of action, Holland alleged, in substance, that said defendants fraudulently induced him to enter into the above-described -contract, and, by that means, deprived him of his Og stock to his actual damage in the sum of $270,000. In another cause of action, he sought the same sum (which is identical to the unpaid balance he would have earned @ $15,000 per year as an employee of Og under said contract) as damages for defendants’ alleged interference with the performance of said contract.

At a pre-trial conference, and a preliminary hearing, preceding the trial of said cause, the trial judge concluded, in substance, that these two alleged causes of action were inconsistent in that plaintiff’s recovery, if any, on the first, for being deprived of his stock in the Og Corporation, by being fraudulently induced, through the medium of the above-described contract, to sell it to the Perrault Bros., had to be grounded on the theory that the contract was one for the sale, or transfer, of stock; while his second cause of action for being deprived, through defendants’ wrongful interference with the performance of said contract, of $15,000 per year salary for 18 of the 20 years prescribed therein, had to be grounded on the theory that the contract was one of employment, rather than for the sale of corporate stock. On the basis of this conclusion, and of his announced view that plaintiff’s counsel, by oral statements he had made at the pretrial conference, had committed plaintiff to the position that the contract was one for the sale of stock, the trial judge ordered the allegations, concerning the second cause of action, stricken from his second amended petition. When later, at a hearing upon a motion by plaintiff to reinstate said allegations in said pleading, his counsel, by an alternative motion, in effect acceded to the judge’s aforesaid view, by requesting permission to dismiss, without prejudice, the action as to said second cause, said judge granted said request.

After the case was tried on what was then said plaintiff’s only alleged cause of action, viz., defendants’ alleged fraudulent inducement of him to enter into the contract, and the trial court directed a verdict for defendants thereon, and entered judg *978 ment for them in accord with such verdict, we affirmed said judgment. See Holland v. Perrault Bros., Inc., Old., 311 P.2d 795. In said appeal, we did not regard as reversible error, the method, referred to above, by which plaintiff’s second alleged cause of action was prevented from trial in that action. However, after the issues as to that alleged cause of action were removed from that action by the. aforementioned dismissal, plaintiff made it the basis for a new action he thereafter instituted in the same court, against the same defendants, except the corporate one, Perrault Bros., Inc. That case is the only one directly involved in this appeal.

In his petition in this new action, plaintiff in error, Holland, hereinafter referred to as plaintiff, apparently attempted to charge that, by their acts and conduct, the defendants in error, hereinafter referred to as defendants, caused the Og Corporation to become so financially distressed that it was unable to continue the performance, and thus caused the breach, of the aforesaid contract to pay the $15,000 per year for the 18 years remaining of the 20-year period described therein. For reasons which will hereinafter appear, we deem it unnecessary to further describe plaintiff’s petition at this point. Among the affirmative defenses defendants pleaded in their answer to said petition, and based upon what occurred in Cause No. 84453, were those of estoppel and res judicata. In support of these defenses, they attached as exhibits (referred to therein) the second amended petition in said cause, together with a transcript of the proceedings at the aforementioned pre-trial conference and of the trial judge’s remarks at the time he directed the verdict for defendants in that case, hereinbefore referred to.

In his reply to defendant’s answer, plaintiff included a general denial, and, among other things, specifically denied, in substance, that the issues in this case had been decided in Cause No. 84453, and that any occurrences therein, or facts there proved, estopped him from maintaining this new action, or constituted an election of remedies.

Thereafter, defendants filed a motion for judgment on the pleadings which was sustained by the trial court. From said ruling and judgment, plaintiff has perfected the present appeal.

The issues joined by the briefs filed herein, all pertain to the general one of: What effect, if any, the things that occurred in the previous action (Cause No. 84453, supra) have upon the question of the correctness of the trial court’s judgment in this case? Both parties seem to agree that defendants’ motion for judgment on the pleadings was sustained on the theory that plaintiff was barred from maintaining the present action either because of the position he took in that case, or because of some determination by the court therein, or both.

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Bluebook (online)
1957 OK 138, 312 P.2d 976, 1957 Okla. LEXIS 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holland-v-perrault-okla-1957.