Marks v. Cowdin

175 A.D. 700, 162 N.Y.S. 567, 1916 N.Y. App. Div. LEXIS 9040

This text of 175 A.D. 700 (Marks v. Cowdin) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marks v. Cowdin, 175 A.D. 700, 162 N.Y.S. 567, 1916 N.Y. App. Div. LEXIS 9040 (N.Y. Ct. App. 1916).

Opinion

Laughlin, J.:

The complaint contains two counts, one for a balance claimed to be owing to the plaintiff for salary under a contract of employment for three years from January 1, 1913, and the other for damages for a wrongful discharge on the 17th day of August, 1914. On the first trial of the action the jury disagreed. Prior to the second trial the defendants paid the plaintiff the balance owing for services rendered which consisted of a balance -under the agreement for a percentage of the profits. On the trial now under review the court was of opinion that there was a question of fact as to whether the defendants had not breached the contract of employment by assigning to another employee a large part of the important duties assigned to the plaintiff during upwards of three years of his employment. The principal contentions of the learned counsel for the appellants on the appeal are that the court erred in not dismissing the complaint and in the .reception of evidence and in instructing the jury.

The defendants were copartners engaged in the business of manufacturing and importing silk ribbons, and in selling the same to manufacturers of ladies’ wearing apparel, and to retail and department stores throughout the United States, and in [702]*702their selling department they employed thirteen or fourteen traveling salesmen.

In December, 1905, the plaintiff entered the employ of Litt Bros., who conducted a department store in Philadelphia. He was their buyer and manager for the departments selling ribbons, ladies’ neckwear, muslin, underwear, cloaks, infants’ wear, children’s wear, sweaters and waists. He was so engaged when, in the spring of 1910, the defendant Herzog sent for him to come to New York for an interview.

At that time the defendants had in their employ one Dinkelspiel who, under the supervision of the defendant Herzog, had had charge of defendants’ foreign department, involving trips abroad to purchase goods; and when Herzog was abroad Dinkelspiel with defendant Cowdin and another employee assisted in making up the orders for the factory and in looking after the manufacturing work, and he was considered the head of the sales department. Dinkelspiel’s services were unsatisfactory, and defendants were about to terminate his contract of employment by a six months’ notice. The vacancy thus contemplated rendered it necessary for them to obtain the services of another.

The plaintiff came to New York city and had an interview with Herzog; and on the 13th of April, 1910, the defendants wrote him, confirming the verbal arrangement made between him and Herzog, saying: “ It was agreed that you should come into our employ for two years beginning January 1st, 1911, at an annual salary of $15,000 00/100 Dollars. Furthermore if at the end of this agreement we are mutually satisfied you are then to become a partner in our firm when a new arrangement will naturally have to be made. As regards your coming to us on September 1st if you wish to do so on August 1st it will be perfectly agreeable to us, so as to enable you to get a grasp of our business on the lines we outlined in our last two meetings.”

The defendants then contemplated giving Dinkelspiel the six months’ notice about the first of July, and that he would remain with them until the end of the year, but on receiving the notice he left.

On the 6th of July, 1910, the defendants notified their travel[703]*703ing salesmen in writing that the plaintiff would join their “ force permanently as soon as possible. He will become our sales manager. You, no doubt, know him personally and know his record; we feel confident that with him in command we will not only keep up our business but will increase it to the largest dimensions.” The plaintiff entered the employ of the defendants in the month of July, 1910, instead of on January 1, 1911. He was given a private office, and desk and a telephone in his own name. There is evidence, some of which, however, is controverted, tending to show that he took charge of the selling of defendants’ merchandise, selected and passed upon the designs of ribbons, directed the character of goods to be manufactured, made numerous trips to Europe to purchase goods and to obtain ideas with respect to styles and designs, assigned the traveling salesmen and rearranged their territory, and under the supervision of the defendants renewed contracts with salesmen and engaged salesmen and employed and discharged stockroom help, visited the trade for the purpose of introducing salesmen and obtaining customers, called upon Marshall Field & Go. at Chicago, which was defendants’ largest customer, installed new systems of records and correspondence, attended to the firm mail, and represented defendants in attending meetings of ribbon manufacturers. The defendant Oowdin, however, personally attended to matters of finance and purchased all raw material required. Herzog had charge of the practical conduct of the business.

The defendants having pleaded the Statute of Frauds, evidence with respect to a verbal agreement for a new employment for three years from January 1, 1913, was excluded. It was shown, however, that the plaintiff continued in the employ of the defendants without having become a partner and without any written contract of employment, performing like duties, receiving the same annual salary and five per cent of the profits, which was credited to his account monthly.

Shortly after January 1, 1913, the defendant Herzog became ill and was absent from the business until the latter part of October or fore part of November that year. During his absence the plaintiff performed part of the duties that had been theretofore performed by him.

[704]*704According to the testimony of the plaintiff several of the traveling salesmen were dissatisfied with the manner in which they were treated hy him; hut he claimed that this was owing to a feeling of resentment on their part against his employment in a position to which they thought one of them should have been advanced; and at the end of 1912 two of them left the defendants’ employ and engaged in business for themselves. About the end of November, 1913, on the plaintiff’s return from a ten days’ trip for his health, the defendant Cowdin informed him that the salesmen had entered complaint against him, and that it looked very much as if he would have to leave; and according to the testimony of plaintiff it was then agreed that he should receive a check for the amount owing him and $20,000 in addition thereto, and leave the employ of the defendants.

During the controversy arising out of the complaint of the salesmen the plaintiff consulted an attorney and evidently was advised that his verbal contract for employment for three years was invalid.

The defendant Cowdin, according to the testimony of the plaintiff, before this arrangement for his leaving was consummated, stated that he was wrong in asking plaintiff to leave; and requested plaintiff to continue as before, to which plaintiff assented; but plaintiff suggested that he should have a written contract, and stated that he had not requested it before on account of Herzog’s illness. Plaintiff says that Cow-din thereupon agreed to have the contract reduced to writing; and at plaintiff’s suggestion consented that plaintiff draft it, whereupon the plaintiff wrote on the billhead of the defendants, under date of December 22, 1913, the following: It is understood between Johnson, Cowdin & Co.

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Cite This Page — Counsel Stack

Bluebook (online)
175 A.D. 700, 162 N.Y.S. 567, 1916 N.Y. App. Div. LEXIS 9040, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-v-cowdin-nyappdiv-1916.