Motif Records Corp. v. Brummer

186 Cal. App. 2d 865, 9 Cal. Rptr. 356, 1960 Cal. App. LEXIS 1708
CourtCalifornia Court of Appeal
DecidedNovember 29, 1960
DocketCiv. No. 24666
StatusPublished

This text of 186 Cal. App. 2d 865 (Motif Records Corp. v. Brummer) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Motif Records Corp. v. Brummer, 186 Cal. App. 2d 865, 9 Cal. Rptr. 356, 1960 Cal. App. LEXIS 1708 (Cal. Ct. App. 1960).

Opinion

HERNDON, J.

The appeal herein is taken by plaintiff and cross-defendant Motif Records Corporation from a judgment entered in favor of defendant and cross-complainant Brummer for $5,545.25. The amount of the judgment was arrived at by setting off certain sums found due to plaintiff from defendant and allowing credit therefor against the sum of $6,000 which Brummer successfully claimed under his cross-complaint.

The evidence discloses that about June 1956, Milton Vedder discussed with defendant the former’s intentions of going into the recording business. Vedder was inexperienced in this business and, in getting started, sought out Brummer because of his experience. Following various preliminary negotiations, on August 7, 1956, Vedder, Brummer, Clarence D. Miller, Felix De Cola and Othmar Grimm entered into a written agreement providing, in part, that Vedder had caused plaintiff corporation to be organized and had advanced the necessary preliminary expenses therefor. It was provided that there could be issued and delivered to the contracting parties shares of the capital stock of such corporation in the following proportions: Vedder 51 per cent, Miller 22 per cent, Brummer 20 per cent, De Cola 5 per cent and Grimm 2 per cent. It was also recited that none of the parties, other than Vedder, had advanced or paid any sum for the issuance of said shares and it was provided that such shares be issued “for services performed and to be performed in the future by them for said corporation.” The four individuals, other [867]*867than Vedder each agreed, upon receipt of said shares, to immediately deposit the same with an escrow holder with the understanding that if he remained in the employ of the corporation for a period of one year after deposit thereof and performed his services to the corporation in a manner satisfactory in all respects then said shares would be returned to such stockholder and should thereafter become his separate property. The shares were to be released to each of them only upon written authorization of Vedder and none were to be sold at any time without first offering such shares to Vedder for his purchase. The evidence discloses that Vedder never thereafter approved the release of any of said shares to Brummer.

By his cross-complaint Brummer alleged that he was subsequently employed by plaintiff corporation under an oral agreement, for a weekly salary, in the capacity of vice-president in charge of artists and repertoire, which in the recording industry is known as an “A and R man.” The “A and R man” is one whose duties are to select the music, the artists who are to perform it, the orchestrators, staff conductor and the studio, and to supervise the quality of the work that goes into the recording resulting in a finished product ready for sale. He contends and introduced evidence to the effect that he was so employed for an agreed compensation of $250 per week; that he rendered such services to plaintiff for 24 weeks and that the total sum of $6,000 remains due and unpaid to him therefor.

Plaintiff denies any such oral agreement and contends that the court below erred in admitting parol testimony of Brummer and his witnesses to vary the terms and provisions of said written agreement of August 7, 1956, between Vedder, Brummer and the others. It is the further contention of plaintiff that by said written agreement the potential acquisition of stock by Brummer from Vedder was the total and exclusive compensation he was to receive for any and all services performed or to be performed in the future by him for plaintiff corporation.

It was conceded by plaintiff, however, that it did pay Brummer additional compensation for his services other than as set forth in said written agreement in that it paid $1,800 to Brummer, under an oral agreement with him, as compensation for services performed for plaintiff in the capacity of an arranger and conductor.

[868]*868The issues presented on this appeal are:

1. Whether the trial court erred in allowing parol testimony to be introduced on behalf of defendant to show the existence of an oral agreement between Brummer and plaintiff corporation providing for additional compensation to defendant for services rendered to plaintiff in the capacity of an A and R man in charge of artists and repertoire.
2. Whether or not that portion of the trial court’s finding which provided that the terms of the agreement of August 7, 1956, “did not refer to, did not cover and were not intended to cover the services rendered by defendant to plaintiff as artists and repertoire man nor as director, arranger or orehestrator” was supported by any substantial evidence.

We have concluded that under the situation here shown the trial court properly received the parol evidence concerning such independent, oral agreement and that the findings of the court are fully supported by the record herein.

Plaintiff contends that the said written agreement of August 7, 1956, is conclusive in its terms as to all future compensation to be paid to or received by defendant for any and all services which he was to render the plaintiff; that the provisions of such writing are certain and unambiguous and, under the limitations of section 1856, Code of Civil Procedure, it was error for the trial court to receive extrinsic evidence offered for the purpose of explaining a claimed ambiguity therein or to determine the intention of the parties as to what was meant by the provision “services ... to be performed in the future ...”

Brummer contends, however, that the claimed oral agreement employing him as vice-president of the plaintiff in charge of artists and repertoire was a separate and independent agreement of employment between plaintiff corporation and him to which Vedder was not a party, whereas the written agreement was with Vedder to the exclusion of plaintiff. Therefore, he argues that the parol evidence rule is not applicable in a case where the parties to a written contract were not the same as to the separate oral agreement and that plaintiff corporation may not assert such rule where it was not a party to the written agreement. In support of this argument he cites Broder v. Epstein, 101 Cal.App.2d 197, 199 [225 P.2d 10] ; Penberthy v. Vahl, 101 Cal.App.2d 1, 4 [224 P.2d 907] ; Pierce v. Nash, 126 Cal.App.2d 606, 623 [272 P.2d 938]. Plaintiff in effect concedes the legal soundness of this position in certain instances but contends that, contrary to the imnlied [869]*869finding of the court, for all purposes in this litigation, Vedder and plaintiff corporation are essentially one and the same, each being the alter ego of the other.

For additional reasons, however, the court was fully justified in receiving evidence as to the circumstances surrounding the making of the written agreement between Vedder, defendant and the others and as to the then intentions of such parties as to the meaning of the disputed provisions thereof.

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Related

Pierce v. Nash
272 P.2d 938 (California Court of Appeal, 1954)
Universal Sales Corp. v. California Press Manufacturing Co.
128 P.2d 665 (California Supreme Court, 1942)
Broder v. Epstein
225 P.2d 10 (California Court of Appeal, 1950)
Wells v. Wells
169 P.2d 23 (California Court of Appeal, 1946)
Crestview Cemetery Ass'n v. Dieden
356 P.2d 171 (California Supreme Court, 1960)
Penberthy v. Vahl
224 P.2d 907 (California Court of Appeal, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
186 Cal. App. 2d 865, 9 Cal. Rptr. 356, 1960 Cal. App. LEXIS 1708, Counsel Stack Legal Research, https://law.counselstack.com/opinion/motif-records-corp-v-brummer-calctapp-1960.