Mail Advertising Systems, Inc. v. Shroka

548 S.E.2d 461, 249 Ga. App. 484, 2001 Fulton County D. Rep. 1625, 2001 Ga. App. LEXIS 535
CourtCourt of Appeals of Georgia
DecidedMay 4, 2001
DocketA01A0148
StatusPublished
Cited by5 cases

This text of 548 S.E.2d 461 (Mail Advertising Systems, Inc. v. Shroka) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mail Advertising Systems, Inc. v. Shroka, 548 S.E.2d 461, 249 Ga. App. 484, 2001 Fulton County D. Rep. 1625, 2001 Ga. App. LEXIS 535 (Ga. Ct. App. 2001).

Opinion

Ruffin, Judge.

David Shroka sued Mail Advertising Systems, Inc. (“MAS”) for breach of contract. Following a bench trial, the court entered judgment in favor of Shroka. MAS appeals, challenging several of the trial court’s findings and its damages calculation. For reasons that follow, we affirm in part and reverse in part.

We review appeals from bench trials, where the trial judge sits as trier of fact and has the opportunity to assess witness credibility, under the clearly erroneous standard. 1 Accordingly, “we will not disturb a trial court’s findings of fact if there is any evidence to support them.” 2

The record shows that Shroka signed an employment agreement with MAS on October 10, 1994. Pursuant to that agreement, Shroka became president of the company, reporting directly to principal owner Hugh Pannell. The agreement provided that “[u]nder the guidance and supervision of Hugh Pannell, Shroka will take control of all business activities and personnel decisions.” It specified a salary of $5,000 per month, or $2,308 every two weeks, and stated that “[t]his initial contract will run from October 10th, 1994 through January 10th, 1995 at which time a new salary agreement and incentive program will be drafted and agreed on by Hugh Pannell and David Shroka.” The agreement also indicated that MAS would pay “basic Medical/Dental insurance” for Shroka and his wife.

Shroka began working for the company on or about October 10, 1994. Although Pannell sometimes criticized Shroka for being too aggressive, Shroka testified that Pannell “was very pleased” with his work. Nevertheless, Pannell fired Shroka on October 21, 1994, just two weeks into his contract, and paid him for only those two weeks. Shroka subsequently sued MAS for breach of contract, seeking three months salary plus reimbursement for dental expenses incurred by Shroka’s wife on November 9, 1994.

According to Pannell, Shroka told Pannell on October 20, 1994, that he would be absent from work that day because “he was spending the day with his [stock]broker.” During Shroka’s absence, Pannell learned that Shroka planned to clean MAS’s warehouse, where the company kept materials belonging to customers. 3 This concerned Pannell because some customers paid the company to store their materials. Pannell also received complaints that day from various *485 employees, who did not like Shroka’s manner and attitude.

The next day, Shroka called MAS and told Pannell that “he was still having so much fun with his stockbroker that he was going to have to spend the day down there.” Pannell asked Shroka to come into the office, and Shroka reported to work that afternoon. When Shroka arrived, Pannell fired him. Explaining the termination at trial, Pannell noted that Shroka failed to report to work for two days, upset long-term employees, and did not consult Pannell about all of his activities, including the warehouse cleanup. On cross-examination, Pannell admitted that Shroka was a hard worker, but stated that he found Shroka’s personality “a little abrasive.”

Shroka testified that he met daily with Pannell, whom he consulted about his activities. He denied that he ignored company rules, such as the no-smoking policy in the building, and stated that he only intended to discard from the warehouse “nonuseable material” that could be disposed of legally. He also testified that his conflicts with employees arose because “people tend to resist change.” Shroka denied skipping work to spend time with his stockbroker, claiming that he performed job-related duties while out of the office. According to Shroka, he worked from early in the morning until late at night, did a good job in his new position, and was shocked by his termination.

Following the bench trial, the trial court found that the parties entered into an employment contract for a definite term of three months. It also concluded that MAS was not authorized to terminate the agreement. The trial court awarded Shroka his full salary under the three-month contract (minus the two weeks of pay that he had already received) plus expenses relating to the November 9, 1994 dental work. 4

1. MLAS argues that the trial court erred in finding that Shroka’s employment contract extended for a definite term of three months. It asserts that the contract’s two-week pay period established an employment term “terminable after two weeks.” We disagree.

Under OCGA § 34-7-1,

[i]f a contract of employment provides that wages are payable at a stipulated period, the presumption shall arise that the hiring is for such period, provided that, if anything else in the contract indicates that the hiring was for a longer *486 term, the mere reservation of wages for a lesser time will not control. 5

Although Shroka’s contract set up a two-week pay period, that provision does not define the employment term here. The contract specifically stated that it “will run from October 10th, 1994 through January 10th, 1995,” a three-month period. Since explicit language in the contract extended the employment term for three months, “the mere reservation of wages [for a two-week time period] will not control.” 6

On appeal, MAS relies heavily on Burton v. John Thurmond Constr. Co. 7 In Burton, the disputed employment contract set the employee’s salary at “$2,000.00 per month for the first six (6) months. At that time salary is to be increased to $3,000.00 per month for the next six months, at which time [the contracting parties] will reevaluate and make new decision [sic] regarding salary.” 8 The employee was terminated within the first six months and sued, claiming that the contract defined an employment term of not less than one year. We agreed with the trial court that nothing in the contract rebutted the statutory presumption that the contract’s pay schedule established a one-month term of employment, after which the employment became terminable at will. 9 We specifically noted that the contract “contained no provision setting forth a definite term of employment.” 10

Burton is clearly distinguishable from this case. The agreement between Shroka and MAS provided for a definite three-month term of employment running from October 10, 1994, through January 10, 1995. The trial court did not err. 11

2. MAS also challenges the trial court’s factual finding that the company lacked cause to terminate Shroka. We find no error.

Shroka’s employment contract contained no language governing termination.

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Bluebook (online)
548 S.E.2d 461, 249 Ga. App. 484, 2001 Fulton County D. Rep. 1625, 2001 Ga. App. LEXIS 535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mail-advertising-systems-inc-v-shroka-gactapp-2001.