National School Studios, Inc. v. Mealey

126 A.2d 588, 211 Md. 116
CourtCourt of Appeals of Maryland
DecidedOctober 1, 1999
Docket[No. 99, October Term, 1956.]
StatusPublished
Cited by18 cases

This text of 126 A.2d 588 (National School Studios, Inc. v. Mealey) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National School Studios, Inc. v. Mealey, 126 A.2d 588, 211 Md. 116 (Md. 1999).

Opinion

Collins, J.,

delivered the opinion of the Court.

This is an appeal from an order dismissing appellant’s bill of complaint.

*119 On October 10, 1955, National School Studios, Inc., (National), appellant, filed a bill of complaint asking that Joseph R. Mealey, appellee, be enjoined for a period of thirty months from engaging in school or commercial photography and from soliciting accounts from said schools. On February 10, 1956, an answer, under oath, was filed to that bill by Mealey, in which he gave as his reasons for terminating the contract that National breached the conditions therein by not satisfactorily developing the pictures, and in spite of repeated complaints by him, National refused to improve the quality of pictures and failed to deliver said pictures to him in time to honor the commitments which he had made and, therefore, he was forced to terminate the contract. On March 12, 1956, a temporary injunction was granted by the chancellor covering the territory of Maryland and the District of Columbia, with the understanding that the case was to be heard at once. Interrogatories were filed and answers to interrogatories. Testimony was taken before the chancellor from March 7, 1956, with interruptions, through April 23, 1956. Upon petition filed on March 14, 1956, by leave of court, National’s petition for injunction was very slightly amended so that it alleged that the contract relied on “was entered into by and between the parties hereto dated 24 August, 1951,” instead of “that on or about the 24th day of August, 1951, a certain contract was entered into by and between the parties hereto” as in the original petition.

On March 29, 1956, an amended answer was filed by Mealey to the amended petition in which he alleged that National did not provide him with the territory set forth in the contract; that National took part of the territory actually assigned him; that he was not permitted to take group pictures; that National had not furnished him with an accurate accounting of salary or commissions earned as well as charges made against earnings since the date of the contract; that National failed to pay him in accordance with the terms of the contract since August 24, 1951; that National failed to supply the equipment, facilities, supervision, sales aids and instructions as called for in the contract; that in spite of advice of the poor quality of the finished pictures National failed and *120 refused to improve said quality and failed to deliver said pictures promptly; that National refused to permit him to compete with other firms in the same field of endeavor in reference to commissions paid to schools; that National abrogated the contract by abandoning it on or about March 1, 1955; and that National abrogated said contract by requiring him to go to Virginia. In said answer he admitted that he was then engaged in competition with National but did not so compete while he considered said contract in full force and effect. On March 23, 1956, the chancellor dissolved the temporary injunction and on June 13, 1956, dismissed the amended bill of complaint. The appellant appeals here.

National in Minneapolis, a Minnesota corporation, is engaged in the nationwide business of school photography. In order to conduct its business the nation is divided into regional districts which contain one or more states. A regional manager is assigned under a written contract to each region. In order to promote the business of taking photographs of individual students in public and private schools, the prime duty of that manager is to solicit contracts through the principals or headmasters of the schools. Harold W. Orth was the regional manager of the district including Maryland and the District of Columbia at the time of the employment of the appellee, Joseph R. Mealey. As the manager alone could not handle this business he was authorized by the appellant to hire as many assistants as he deemed necessary who were called third party employees. In October, 1946, Orth employed one assistant, Russell Thomas. During September, 1950, it became apparent that the business in Thomas' district was too large to be handled by one employee. Thomas, who objected to the employment of another assistant, was told by Orth that if he did not get someone to assist him, he, Orth, was going to send someone to help him.

Thomas testified that he selected Mealey, twenty-three years of age with no prior experience in this work, who was employed by National in September, 1950, at $75.00 per week with certain allowances for his automobile and other things, which salary was charged to Thomas by Orth. Thomas was given credit for all the pictures taken in Maryland and in the *121 District of Columbia. Mealey’s employment was approved by Orth. Thomas said: “We had a contract and Mealey signed the same kind of contract that I had.” That contract is not before us here. Mealey’s duties consisted of calling on principals of schools; soliciting contracts for the taking of pictures in the schools; the taking of individual pictures of the students; mailing the films to Minneapolis for processing; returning to the schools again; collecting the money for the pictures which had been paid for, the normal price of which was $2.00; and collecting the undelivered pictures which had not been sold. Ordinarily the schools received a percentage of the sale price which was an inducement to participate in National’s plan. Mealey collected the balance and forwarded it to the office in Minneapolis.

In February, 1951, Mealey’s salary was raised to $85.00 per week. He testified that he was also to receive in addition a commission of three cents for each “shot” retroactive to September, 1950. Mealey testified that he never received these commissions and that in August or September, 1951, for the first time he signed a written agreement. That agreement is not before us here. He said Orth told him it was the contract that all his men signed. The rate of pay in that contract was greater than that which Mealey was receiving. Mealey said Orth told him at that time that he would think about paying him at that rate of pay later, but he ordered him to sign it because it was a protection for National. Orth had full power to hire and discharge all employees. Mealey said he received no copy of the contract and received no additional duties or compensation. He said he complained frequently to Thomas about National’s failure to pay him a bonus amounting to $227.00, which he had won, and the three cents each for all the pictures he had taken since October, 1950. He also complained about these things to Orth whenever he had an opportunity.

In March, 1953, Thomas and Orth invited Mealey to meet with them at Thomas’ home to discuss the disagreements and complaints. At that meeting Orth took a memorandum of the terms and Mealey said Orth promised to have a contract written up and a copy sent to him. Mealey said that he never *122 received a copy. Orth agreed to put him on a salary of $125.00 per week retroactive to September, 1952, so that from that date Mealey would work for $6,000.00 per year, plus five cents for each picture taken up to 40,000 “shots” and ten cents per picture over 40,000. He said that Orth also agreed to account to him for the commissions due him in his first year of work and the prize money.

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Bluebook (online)
126 A.2d 588, 211 Md. 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-school-studios-inc-v-mealey-md-1999.