Modern Motors, Inc. v. Elkins

1941 OK 123, 113 P.2d 969, 189 Okla. 134, 1941 Okla. LEXIS 167
CourtSupreme Court of Oklahoma
DecidedApril 8, 1941
DocketNo. 29667.
StatusPublished
Cited by18 cases

This text of 1941 OK 123 (Modern Motors, Inc. v. Elkins) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Modern Motors, Inc. v. Elkins, 1941 OK 123, 113 P.2d 969, 189 Okla. 134, 1941 Okla. LEXIS 167 (Okla. 1941).

Opinion

RILEY, J.

This is an action commenced by C. D. Elkins, administrator of the estate of Homer W. Elkins, deceased, against Modern Motors, Inc., a corporation, Ned Parry, and H. I. Miller, to recover damages for the wrongful death of said Homer W. Elkins.

The petition charged that defendant Modern Motors, Inc., was dealing in the sale of automobiles in the city of Shawnee and vicinity; that defendant Ned Parry was, at the time of the injury and death of deceased, the agent of defendant Modern Motors, Inc., and was acting within the scope of his employment; that on the 18th day of March, 1939, while defendant Parry was so employed, he was driving a Ford automobile owned by Modern Motors, Inc., south on North Union street in *135 •Shawnee, Okla.; that he negligently and carelessly drove said automobile in such a way that at the intersection of said 'North Union street and Dewey avenue it collided with an automobile being driven by defendant H. I. Miller, in an easterly direction along Dewey avenue, so as to cause the car being driven by defendant Parry to swerve across the street and run against and over Homer W. Elkins, causing his injury and death.

There were appropriate allegations of negligence on the part of defendant H. I. Miller so as to allege that the death of Homer W. Elkins was caused by the .joint and .concurring negligence of defendants Parry and Miller.

Defendant Parry by separate answer denied generally the allegations of the petition, and specifically denied that, at the time alleged, he was in the discharge of his duty as an employee for Modern Motors, Inc., or that he was at the time acting in the scope of his employment as of said company or that said company owned the automobile he was operating at the time.

Defendant Modern Motors, Inc., answered to the same general effect.

Defendant Miller made no defense. No judgment was taken against him.

The cause was tried to a jury, resulting in a verdict and judgment for plaintiff and against Ned Parry and 'Modern Motors, Inc., and they appeal.

There is ample evidence to sustain the judgment as to defendant Ned Parry. There is no effort to show reversible error as to him.

Defendant Modern Motors, Inc., contends that under the evidence Parry was •shown to be an independent contractor, and not its servant.

Parry was, and had been, for more than six months, in the employ of Modern Motors, Inc., as a salesman, mostly of new automobiles; he also sold used cars. He was compensated solely by payment of commissions. In making his sales he went where and when he pleased, seeking his own customers. However, he could make no final sale without the approval of Modern Motors, Inc., where credit was to be extended to the proposed purchaser or where a used car was to be traded in as a part of the purchase price. Where a used car was taken in as part payment on a new car, the used car would be appraised by Modern Motors, Inc. In all cases the instruments necessary to close the deal were drawn in the office of Modern Motors, Inc.

As to who owned the automobile that Parry was operating at the time of the accident, the evidence is in conflict.

R. J. Wissinger, president and manager of Modern Motors, Inc., testified on behalf of defendants that Parry was working for Modern Motors, Inc., in the capacity of a salesman and was hired solely upon a commission basis; that his duties consisted of finding his own prospective buyers, pursuing his own course; that Modern Motors, Inc., did not direct where he should go, or the time of day he should work; in short, that it had no control whatever over Parry as to the details of his work; that no one directed him, and at the time of the accident Parry was not under the direction of the company, and Modern Motors, Inc., did not know that he was driving on the highway at the time, and that the automobile which Parry was driving was owned by Parry. He also testified that there was no written employment agreement. Later, however, he admitted that there was on file with the company memorandum agreements between Modern Motors, Inc., and salesmen employed for the 1939 model year, one of which was signed by Parry.

Parry was a witness on his own behalf and for the company with respect to the relation between himself and Modern Motors, Inc. His testimony was substantially the same as that of Wis-singer.

The memorandum of working agreement was introduced in evidence. Among other things, it provides:

*136 “The management reserves the privilege of altering or rescinding this agreement at any time.
“All deals and appraisals must be made at our office and properly accepted by the person in charge of such procedure.
“Three $5.00 gasoline books, or equivalent credit, will be furnished by the company to each new car salesman each month. Salesmen selling more than six (6) new units per month will receive an additional $5.00 gasoline credit for each car sold in excess of this amount. Fleet deals are excepted from the provision.
“Regular daily reports of salesman’s activities and demonstrator’s mileage are to be furnished the company.
“Saving of $1.00 per new car and 50c per used car will be held and credited to salesman’s Special Account; this amount to be paid salesman on December 20 of each year. In the event of salesman leaving our employ his sales-savings account, of course, will be paid to him at that time.”

There was evidence to the effect that, aside from the written agreement, all salesmen were required to report at a meeting in the .office of the company at 8 o’clock each morning; at that time they held a short sales meeting and also at that time they turned in reports of work done the day before and outlined the work they were to do that day; that salesmen were under the direction of the company to a certain extent; the sales manager always outlined some of the work for salesmen to do during the day.

The general rule is that where an automobile salesman is employed on a commission basis, where the employer exercises no control over him in the details of his salesmanship, allowing him to find his own customers and make sales without any control over his action, the salesman is not a servant of the person for whom he sells, but is regarded as an employee in the nature of an independent contractor, and the employer is not liable for the negligence of the salesman in the operation of an automobile in the course of his efforts to make sales. Barton v. Studebaker Corp., 46 Cal. App. 707, 189 P. 1025; McCraner v. Nunn, 129 Kan. 802, 284 P. 603. To the same effect is Nettleship v. Shipman et al., 161 Wash. 292, 296 P. 1056, and Mitchell v. Maytag-Pacific-Intermountain Co. et al., 184 Wash. 342, 51 P. 2d 393. In the latter two cases the salesmen sold washing machines but used automobiles in course of their work; see, also, Ashley v. Safeway Stores, Inc., et al., 100 Mont. 312, 47 P. 2d 53.

On the other hand, if the relation is that of principal and agent, or master and servant, the principal or master, as the case may be, is liable for the negligence of the agent or servant, if at the time the agent or servant is using the car in the principal’s or master’s service. Borah v.

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Bluebook (online)
1941 OK 123, 113 P.2d 969, 189 Okla. 134, 1941 Okla. LEXIS 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/modern-motors-inc-v-elkins-okla-1941.