Jones & Guerrero Company, Inc., Town House, Inc., and J. & G. Motor Company, Inc. v. James P. Smith, Jr.

292 F.2d 815, 1961 U.S. App. LEXIS 3946
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 10, 1961
Docket17025
StatusPublished
Cited by4 cases

This text of 292 F.2d 815 (Jones & Guerrero Company, Inc., Town House, Inc., and J. & G. Motor Company, Inc. v. James P. Smith, Jr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones & Guerrero Company, Inc., Town House, Inc., and J. & G. Motor Company, Inc. v. James P. Smith, Jr., 292 F.2d 815, 1961 U.S. App. LEXIS 3946 (9th Cir. 1961).

Opinion

JERTBERG, Circuit Judge.

Before us is an appeal by appellants from a judgment entered in favor of appellee in the amount of $1,481.07, for breach of an oral contract of employment.

The district court’s jurisdiction was based on Title 48 U.S.C.A. § 1424. This Court has jurisdiction under Title 28 U.S.C.A. §§ 1291 and 1294.

In his complaint filed in the district court appellee alleged: That on or about the 15th day of August, 1958 the appellant Jones & Guerrero Company, Inc. and the appellee entered into an employment agreement in San Francisco, California, under which it was agreed that appellee was to be employed as a salesman by the appellants in Guam for a period of two years; that appellee was to be employed upon commission with a drawing account *816 of $200 per month against commissions, except that appellee was to receive a fixed salary of $200 during the first month of employment; that appellee was to be furnished suitable housing in Guam during his employment at a reasonable rental; that upon completion by appellee of two years employment appellants would furnish to appellee return transportation to the continental United States and would pay to appellee a bonus equal to one month’s income based upon his average earnings while employed by appellants; and that in the event appellee should terminate his employment within the two-year period without the consent of appellants he would waive his right to return transportation and to the bonus above described.

The complaint further alleged: that on or about the 6th day of September, 1958, appellee arrived in Guam and entered upon his employment as an appliance salesman with appellant Town House, Inc.; that shortly thereafter it was agreed that, in consideration for extra work to be performed by appellee, appellee would receive his housing furnished with no additional cost to appellee ; that appellee worked as an appliance salesman, averaging $400 per month in commission through the end of January 1949; that on or about the first day of February 1959 appellee was transferred from his employment as an appliance salesman to the appellant J. & G. Motor Company, Inc., automobile sales department ; that appellee continued as an automobile salesman to the 17th day of October, 1959, when his employment was terminated without cause by the appellants as of the first day of November, 1959; that upon termination of employment appellee received payroll check in the sum of $299.07, marked “final check”, which appellee refused to endorse; that appellee demanded restoration to his employment, or in lieu thereof that he be furnished return transportation to the continental United States, both of which demands were refused by appellants; and that as a result of the breach of contract appellee suffered damages in the sum of $4,299.07 for loss of earnings and $432 for return transportation.

Appellee prayed for judgment against appellants in the sum of $4,731.07, with interest from the first day of November 1959, and costs.

In response to appellee’s complaint appellants filed an answer in which they denied the existence of the oral contract for employment, and as a separate defense alleged that neither the alleged oral agreement nor any note or memorandum thereof was ever in writing subscribed by the appellants, or any of them. Appellant also filed a counter-claim in the amount of $900.00 as the agreed rental value of the housing which appellee occupied from February 1, 1959 to November 1,1959.

Upon the issues thus made the ease was tried by the district judge sitting without a jury. Following trial, the district court found, in his findings of fact: that appellee and appellant Jones & Guerrero Company, Inc., on or about the 15th day of August, 1958, at San Francisco, California, entered into an oral contract of employment whereby appellee accepted employment with appellant Town House, Inc. in Guam as an appliance salesman; that said appellant Jones & Guerrero Company, Inc. agreed to furnish appellee transportation to Guam, and to pay appellee the sum of $200 per month guarantee against commissions earned by him, and that said last named appellant agreed that it would furnish appellee return transportation to the continental United States upon completion of two years’ service in Guam; that effective February 1, 1959 appellee was transferred from the position of appliance salesman for the Town House, Inc., to the position of automobile salesman for appellant J. & G. Motor Company, Inc., and on which date his monthly guarantee salary against commission was increased from $200 to $300 per month; that appellee was to receive the housing furnished to him in consideration of extra duties performed by appellee; that appellee’s services were terminated on the .first day of November, 1959; that appel *817 lee made reasonable efforts to find other employment; that appellee is entitled to the guarantee of $300 per month from November 1, 1959 to April 1, I960, or $1,500; that appellants are entitled to an offset in the sum of $750, the amount earned by appellee following the termination of his employment by appellants; that appellee is entitled to return transportation in the sum of $432; that appellee is further entitled to the proceeds of the final commission check in the sum of $299.07.

Judgment was accordingly entered in favor of appellee and against the appellants in the sum of $1,481.07, together with interest at the rate of six per cent per annum from the first day of November 1959, and the counterclaim of appellants was dismissed.

Appellee concedes that “Under the agreement, appellee was to work for appellants for a two-year period,” at the end of which time his return transportation to California was promised him. Appellee makes no contention that the agreement of employment, or any note or memorandum thereof, was in writing signed or subscribed by the appellants, or any of them, or their agent.

Section 1973 of the Code of Civil Procedure of the Territory of Guam provides :

“In the following cases the agreement is invalid, unless the same or some note or memorandum thereof be in writing, and subscribed by the party charged, or by his agent. Evidence, therefore, of the agreement, cannot be received without the writing or secondary evidence of its contents:
“1. An agreement that by its terms is not to be performed within a year from the making thereof; * * *»

Section 1624 of the Civil Code of the Territory of Guam provides:

“The following contracts are invalid, unless the same, or some note or memorandum thereof, is in writing and subscribed by the party to be charged, or by his agent:
“1. An agreement that by its terms is not to be performed within a year from the making thereof;

The fact that the oral contract was made in California and was to be performed in Guam offers no problem as to which law governs since the statutory law relating to the statute of frauds is the same in both jurisdictions. 1

Clearly, the contract of employment sued upon is an agreement that by its terms is not to be performed within a year from the making thereof. By the

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292 F.2d 815, 1961 U.S. App. LEXIS 3946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-guerrero-company-inc-town-house-inc-and-j-g-motor-ca9-1961.