In re Sawyer

31 Abb. N. Cas. 342
Procedural entryThis page is a short order in In re Sawyer. Read the opinion of the Court — 29 N.Y.S. 1097
New York Court of Common Pleas·Decided May 15, 1894·Published

Opinion

Pryor, J.

Obviously, the percentage of profits was as essentially a portion of Muller’s “ wages ” or “ salary ” as-the five thousand dollars. Of this percentage the referee finds that, at the date of the assignment, Muller had earned $658.18. By the act of the assignors in terminating the contract, they prevented the contingency which might have made Muller’s percentage more, 'or less, or nothing, and fixed it at this sum. By the act of the. assignors in terminating the contract, which would have postponed payment till the end of the year, this sum instantly became due and payable, and is recoverable by-action, with interest from the date of the assignment. In every sense of the word, it was actually owing to Muller. The statute is “ a. beneficent as well as a remedial provision, and should be liberally construed so as to meet a wrong, and advance the remedy which the Legislature had in mind ” (Matter of Heath, 46 Hun, 114)

Motion denied, with costs.

[348]*348Note on Wages, and Prospective Damages for Wrongful Discharge from Employment.

There is some difference of opinion on the question whether one wrongfully discharged from employment and bringing an action for damages therefor before the expiration of the term of employment, can rely on the stipulated compensation up to the end of the term as a measure of damages, or whether the jury should consider only what he would have received on performance of the contract up to the time of the commencement of the action, or up to the time of trial. In other words, if vve are about to bring an action for an employee thus discharged, is there any reason why we should, in order to get full redress, wait until the expiration of the term, before commencing action (continuing of course, meanwhile, his efforts to get other employment).

In respect to wages, sued for as such, the servant who is wrongfully discharged may either (i) treat the contract of ■employment as rescinded by the employer, and sue for a quantum meruit as if there had been no contract (cases i, etc.) ; or (2) sue on the contract for wages accrued and payable up to the time of the discharge (cases 4-6).

But one wrongfully discharged before the expiration of •the term for which he was engaged, thus preventing him from earning wages not yet accrued, has a right of action sounding in damages for the injury done him by that discharge (cases 11, 12). This right is a distinct cause of action separate from his right to recover wages in arrear.

It was once held that the remedy for the period during which service was prevented by the discharge was an action for the wages in' respect to the service which the servant was ready and willing but not allowed to render. But this ground of recovery, known as the theory of “ constructive service,” has been abandoned. Howard v. Daly, 61 N. Y. 362; s. c., 19 Am. R. 285.

If wages actually accrued before the discharge remain unpaid, they may be sued for upon the contract, either in ■the same action as a separate cause of action, or in a separate action (cases 13, 14).

If separate actions are brought it matters not which is brought first, neither bars the other (cases 13, 14).

But if a single action is brought for both, a judgment, though erroneously refusing to allow a recovery for more than one of the grounds, is, so long as unreversed, a bar to .a new action for the ground not recovered on (case 15).

[349]*349In respect to damages for preventing him from earning more, there is no doubt that if he waits till the expiration of the entire term of engagement, the measure of damages, on his proving that he was ready and willing to perform up to the end of that term, is the entire wages which he lost the opportunity to earn, less whatever plaintiff shows- he did earn elsewhere, or might by reasonable effort have earned in a like employment.

If he brings his action for damages before the expiration of the term for which he was engaged, he invites a serious question as to whether he can rely on the same measure of damages, or is limited to recovering what he might have earned had he been permitted to go on up to the time of suing, or, at the utmost, up to the time of trial.

The cases are conflicting as to whether, in such an action for the damages caused by discharge, the uncertainty of what plaintiff might earn, which results from the uncertainty of life and health, etc., does not make the recovery of prospective damages (that is, the less that may accrue to plaintiff for the balance of the term of employment subsequent to the time of the commencement of the action or time of trial) so uncertain or speculative as to preclude recovery.

The conflict seems to result from a difference of opinion as to what effect on the measure of damages the difficulty of proof should have. The recovery of damages for the loss of power to earn in the future, which is constantly allowed in an action for personal injuries, is, clearly, equally uncertain.

The better opinion seems to be that the jury may consider what might have been earned under the contract but for the discharge, in connection with defendant’s evidence as to other employment or neglect to seek it, and any evidence tending to show that plaintiff cannot reasonably be expected to be able to make complete performance (cases 16-24, compared with 25-30).

Going into business for one’s self because of failing to find other employment like that from which he was dismissed, is not an abandonment of the claim (case 31).

Notes of Cases.

1. Brett v. Hayes, 21 Ga. 157. Where one employed for a definite period is wrongfully discharged, he may treat the express contract of employment as rescinded and bring an action for quantum meruit upon the services rendered before discharge.

To the same effect. Knutson v. Knapp, 35 Wis. 86; Clark v. [350]*350Manchester, 51 N. H. 594; Olmstead v. Bach, Md. 1893, 27 Atl. Rep. 301.

2. Jones v. Judd, 4 N. Y. 411. If completion of performance is prevented by an act of the law, such as an intervening statute, he may in this case also recover upon a quantum meruit.

3. Wolfe v. Howes, 20 N. Y. 197, holds that the same rule applies where completion of performance is prevented by act of God, as in the case of illness or death of the servant.

4. Ryan v. Dayton, 25 Conn. 188. Where a contract of employment is terminated by the servant’s illness, he may recover for service previously rendered without waiting for the expiration of the ■ time fixed in the agreement for its performance.

5. Hamlin v. Race, 78 Ill. 422. Where suit is brought for in■stallment of wages, there can be no recovery of other installments falling due before trial. Here a plaintiff had been employed by defendant for one year at a specified salary payable in monthly installments, and before the year expired he was discharged, and afterwards and before the end of his term he brought suit, claiming that the contract was still in force, and that he was and had been willing and ready to perform,—held,

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In re Sawyer, 31 Abb. N. Cas. 342 (N.Y. Super. Ct. 1894).

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