Ketcham v. Hall Syndicate, Inc.

37 Misc. 2d 693, 236 N.Y.S.2d 206, 1962 N.Y. Misc. LEXIS 2104
CourtNew York Supreme Court
DecidedDecember 19, 1962
StatusPublished
Cited by25 cases

This text of 37 Misc. 2d 693 (Ketcham v. Hall Syndicate, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ketcham v. Hall Syndicate, Inc., 37 Misc. 2d 693, 236 N.Y.S.2d 206, 1962 N.Y. Misc. LEXIS 2104 (N.Y. Super. Ct. 1962).

Opinion

Morris E. Spector, J.

On January 24,1951 the plaintiff (the creator of the cartoon panel entitled “ Dennis The Menace ”) and the defendant, then known as the Post-Hall Syndicate, Inc., [694]*694entered into an agreement for the syndication by Hall of the cartoon panels.

The contract provided that the panels were to be delivered to Hall’s office in the City of New York at least six weeks prior to the scheduled date or release.

The agreement further provided that its duration should be for the period of one year with automatic renewals from year to year without notice unless the plaintiff’s share from syndication did not equal certain minimum stipulated weekly payments, in which event either party had the right to terminate it.

There is no claim that the minimum returns have not been met. In fact, the evidence is quite to the contrary, and it is uncontradicted that the payments are now over five times the required minimum.

The parties performed under the contract from the date thereof until December 18,1961 when the plaintiff wrote a letter to the defendant in which he purported to cancel and terminate the contract as of March 11,1962. However, the plaintiff is still performing under the contract by reason of the provision in the aforesaid letter of December 18, 1961, that if the cancellation were not recognized then the plaintiff would continue to perform until such right of cancellation and termination should be established by litigation.

In answer to the plaintiff’s letter, on March 8, 1962, the defendant advised the plaintiff that by reason of the payment of the minimum provided by the terms of the contract that it would deem the contract renewed for the further period of one year and that it would also deem it renewed from year to year thereafter provided the stipulated payments had been made.

The plaintiff’s complaint seeks a declaratory judgment determining whether the plaintiff has the legal right to terminate the contract on the grounds (a) that it is for an indefinite term and that there is no mutuality; (b) that section 2855 of the Labor Code of the State of California provides that such a contract may not be enforced beyond seven years from the commencement of the services; and (c) that if the contract is governed by the laws of the State of California it may be cancelled and terminated since it is no longer enforcible under the aforesaid section of the Labor Code.

The questions of law are clearly defined and are (1) is the contract governed by the laws of the State of New York or of the State of California; (2) if the contract is governed by the laws of California, is it terminable by reason of section 2855 of the Labor Code; and (S) is the contract, which calls for automatic [695]*695renewals upon the payment of certain mínimums, voidable either by reason of indefiniteness or lack of mutuality.

The California statute (Labor Code, § 2855) provides as follows: “ § 2855. Enforcement of contract to render personal service; time limit. A contract to render personal service, other than a contract of apprenticeship as provided in Chapter 4 of this division, may not be enforced against the employee beyond seven years from the commencement of service under it. Any contract, otherwise valid, to perform or render service of a special, unique, unusual, extraordinary, or intellectual character, which gives it peculiar value and the loss of which can not be reasonably or adequately compensated in damages in an action at law, may nevertheless be enforced against the person contracting to render such service, for a term not to exceed seven years from the commencement of service under it. If the employee voluntarily continues his service under it beyond that time, the contract may be referred to as affording a presumptive measure of the compensation.”

There is no decision of the California courts which has determined whether a contract such as the one in question is governed by the above-quoted statute. Defendant contends that the contract in question established a relationship not of employer-employee but one of the status of an independent contractor and that therefore the section relied on does not apply.

Section 2750 of said code defines a contract of employment as one ‘1 by which one, who is called the employer, engages another, who is called the employee to do something for the benefit of the employer or a third person.”

Edwin S. Pillsbury, Esq., plaintiff’s expert on California law, testified on cross-examination that the contract in question ‘ ‘ does not establish, in my opinion, the relationship of employer and employee in the strict sense ’ ’; and further testified that this contract would fall within the category of “ an independent contractor relationship ”, and that Mr. Ketcham was an independent contractor by reason of the fact that there was no right of supervision, direction and control.”

Mr. Pillsbury, however, testified that section 2855 of the California Labor Code applied to independent contractors. That the second sentence" of section 2855 relating to contracts to “ render service of a special, unique, unusual, extraordinary, or intellectual character, which gives it peculiar value” had reference to independent contractors and that Mr. Ketcham’s contract was of this type. However, he never stated the basis for his opinion, except that there was a strong public policy [696]*696(in California) “ to the effect that an employee should be protected by law against improvidently contracting his services away for a longer period than seven years.”

Eeliance is also placed by plaintiff on De Haviland v. Warner Bros. (67 Cal. App. 2d 225). However, in that case the acting was performed by the employee at the direction of her employer at places designated by her employer. In this case, however, plaintiff’s performance was delivery by him at the defendant’s New York office of six daily cartoon panels per week. There was no supervision, plaintiff worked where he pleased. The provision regarding the quality of the panels is usual in certain types of sales or building contracts and does not imply supervision.

Sidney Justin, Esq., defendant’s expert witness on California law, testified that he was ‘ ‘ very intensively ’ ’ acquainted with the provisions of section 2855 by reason of his employment in the legal department of Paramount Pictures Corp. because the section involved all of the employment contracts of the studio. He testified that the contract was one “ to furnish materials ” and similar to contracts between motion picture producers and distributors, whereas the contract in the De Haviland case (supra) was “ a typical employment contract.” He testified that the sole purpose of section 2855 “ was to protect employees ” and that there were no provisions of the Labor Code which he could find which govern independent contractors. He testified that although the word “ employee ” was not used in the second sentence of section 2855 (relating to unique services) it must be read into it. Since the third sentence commences: “If the employee voluntarily continues his service under it ”, the conclusion is inescapable that the word employee must be read into the second sentence.

Furthermore, it should be noted that the first sentence of section 2855 refers to “ employee ”. “ Employee ” is defined by the same Labor Code in subdivision (b) of section 350 as follows: “ (b)

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Bluebook (online)
37 Misc. 2d 693, 236 N.Y.S.2d 206, 1962 N.Y. Misc. LEXIS 2104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ketcham-v-hall-syndicate-inc-nysupct-1962.