Lowery v. Love

378 S.E.2d 815, 93 N.C. App. 568, 1989 N.C. App. LEXIS 245
CourtCourt of Appeals of North Carolina
DecidedMay 2, 1989
DocketNo. 8820SC750
StatusPublished
Cited by3 cases

This text of 378 S.E.2d 815 (Lowery v. Love) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lowery v. Love, 378 S.E.2d 815, 93 N.C. App. 568, 1989 N.C. App. LEXIS 245 (N.C. Ct. App. 1989).

Opinion

JOHNSON, Judge.

This civil action was instituted by plaintiff-employee, James E. Lowery, on 16 December 1985 seeking damages for the alleged breach of his employment contract by defendant-employers James F. Love, III (Love), Lowery Chevrolet, Inc. (Lowery Chevrolet), and Elmer Moore Chevrolet, Inc. (Elmer Moore Chevrolet). Defendants answered on 5 February 1986 and moved the court to dismiss plaintiff’s action for failure to state a claim pursuant to G.S. sec. 1A-1, Rule 12(b)(6). On 20 February, defendants amended their answer to assert a counterclaim against plaintiff for his alleged use of corporate assets. Defendant denied the allegations of the counterclaim in his reply of 3 March.

At the close of all the evidence at the jury trial of this matter, the parties stipulated that the defendants were entitled to recover $1,145.00 on their counterclaim.

These issues were submitted to the jury and answered as follows:

1. Did the Plaintiff voluntarily resign from his employment?
ANSWER: No.
2. Was the discharge of James E. Lowery by Elmer Moore Chevrolet, Inc. without just cause?
ANSWER: Yes.
3. What amount of damages, if any, is James E. Lowery entitled to recover?
ANSWER: $38,872.00.

The damage figure arrived at by the jury credited defendants for amounts already paid under the contract and amounts earned by plaintiff in mitigation of his damages. Judgment was entered on the verdict on 19 February 1988 for $37,727.00, taking into account defendants’ counterclaim and interest on the judgment. Defendants gave notice of appeal in open court.

[570]*570In 1985, plaintiff owned twenty-five percent of the stock in defendant Lowery Chevrolet, an automobile dealership, and also personally held the General Motors franchise. This franchise gave plaintiff the exclusive right to purchase new General Motors products in the area. The remaining seventy-five percent of Lowery Chevrolet was owned by plaintiff’s father-in-law, Frank LaPointe. When plaintiff and his wife separated, LaPointe withdrew his financial support and plaintiff found it necessary to seek another investor to purchase Lowery Chevrolet. This need was met when defendant Love purchased LaPointe’s interest in the corporation. Plaintiff and defendants, Love and Lowery Chevrolet, also entered into a separate contract on 8 March 1985, which is the subject of this action. In this agreement plaintiff agreed to transfer his twenty-five percent interest in the corporation to Love, and further to resign as owner of the General Motors franchise. In consideration, defendant Love agreed, as majority stockholder, to cause the corporation to hire plaintiff as general manager for a term of eighteen months at a salary of $4,000.00 per month. Subsequent to the signing of this agreement, ownership of the corporation was transferred to Elmer Moore who renamed the dealership Elmer Moore Chevrolet. Elmer Moore Chevrolet admitted in its answer that it assumed the employment contract in question.

Plaintiff testified that he worked as general manager of the car dealership under his employment contract with no problems until 16 July 1985. After that date, transfer of the corporation to Elmer Moore was complete, and plaintiff’s relation with him became strained. The new owner made changes in the management of the dealership and, although plaintiff received no complaints on his job performance, he soon found himself stripped of his authority and the duties which he had previously performed as general manager.

In September of 1985, plaintiff received a letter from defendants’ attorney terminating his employment with the dealership and requesting a letter of resignation from plaintiff. Plaintiff ignored this letter, but received a second such letter dated 9 October 1985. After this letter, Elmer Moore personally told plaintiff to clear out his desk and leave. Plaintiff did so and upon reaching his home, wrote the following letter dated 24 October 1985 to defendants Love and Elmer Moore Chevrolet:

Reference to a letter dated October 9, 1985, asking for my letter terminating my employment with your corporation, I [571]*571hereby do said. I do, however, feel that I was not given the chance to perform as to the agreement. I would request that my group insurance be kept enforced [sic] until such time as I can acquire coverage for myself and my family.

Moore informed the plaintiff that the above-quoted letter was unacceptable, and presented plaintiff with a document which purported to completely release defendants from liability. Plaintiff refused to sign the release. He received his last salary payment pursuant to his employment agreement on 15 October 1985 and brought this action for breach of the remainder of his contract.

By their first Assignment of Error, defendants contend that the trial court erred in refusing to admit evidence regarding plaintiff’s assets which they argue related to mitigation of damages and loss of income. Specifically, defendants refer to statements made by plaintiff on voir dire concerning details surrounding his 1987 plea of no contest to a charge of possession of a stolen vehicle and also statements of what particular vehicles he owned during that time. All this information was held inadmissible by the trial court. The fact of plaintiff’s conviction of the charge, however, was elicited from him by defense counsel in the presence of the jury.

Defendants are correct in asserting that if an employment contract is breached by an employer, the maximum amount recoverable by the wronged employee is the difference between the amount to be paid under the contract and the amount the employee earned or by reasonable effort could have earned during the period of the contract. Thomas v. College, 248 N.C. 609, 104 S.E. 2d 175 (1958). However, the burden is upon the defendant to prove the plaintiff has failed to mitigate his damages. Distributing Corp. v. Seawell, 205 N.C. 359, 171 S.E. 354 (1933).

At trial of this matter, plaintiff testified on direct at great length about the businesses at which he sought employment after discharge by the defendants, stating specifically the names of the establishments and the dates on which he applied to them. He also stated the exact amounts of the small sums he earned during the unexpired term of his contract and the approximate amount of unemployment insurance he collected. Plaintiff also explained in detail how he borrowed money on various lines of credit in order to meet his living expenses.

Defense counsel was permitted to cross-examine plaintiff at length about his education, work history, and efforts to minimize his [572]*572damages by seeking other employment. Nonetheless, defendants argue that they were deprived of their right to fully cross-examine plaintiff concerning his mitigation of damages and also for purposes of impeaching his credibility by the exclusion of the details surrounding his 1987 conviction. We do not agree.

Not all relevant evidence is admissible. State v. Knox, 78 N.C. App. 493, 337 S.E. 2d 154 (1985). Although the details may have had some relevance to plaintiff’s financial circumstances, or for impeaching plaintiff’s ■ credibility, they were clearly inadmissible under G.S. sec.

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Cite This Page — Counsel Stack

Bluebook (online)
378 S.E.2d 815, 93 N.C. App. 568, 1989 N.C. App. LEXIS 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowery-v-love-ncctapp-1989.