Oehme v. Whittemore-Wright Co.

181 N.E. 733, 279 Mass. 558, 1932 Mass. LEXIS 963
CourtMassachusetts Supreme Judicial Court
DecidedJune 28, 1932
StatusPublished
Cited by9 cases

This text of 181 N.E. 733 (Oehme v. Whittemore-Wright Co.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oehme v. Whittemore-Wright Co., 181 N.E. 733, 279 Mass. 558, 1932 Mass. LEXIS 963 (Mass. 1932).

Opinion

By the Court.

The subjoined opinion was prepared by Mr. Justice Sanderson, and was adopted as the opinion of the court after his death by the justices who sat with him in the consideration of the case.

This is an action of contract in which the plaintiff in his declaration alleged that in consideration of his entering into the defendant’s employment and manufacturing for the defendant certain oils according to his formulas, the defend[560]*560ant agreed, about 1924, to pay the plaintiff a yearly salary together with a commission on all of a certain oil manufactured by the defendant, and in addition twenty-five per cent of the net profits of the oil department, with a stipulation that in the event of the plaintiff’s death his widow was to receive the proceeds of the arrangement; that in lieu of said original agreement, in the year 1927 the defendant agreed to pay the plaintiff "a flat sum at the rate of $5,000 per annum; that since about the first of August, 1927, the defendant has refused and declined to make such payment although the plaintiff has at all times been ready and willing to carry out his part of the agreement. The answer was a general denial, plea of payment, that the employment of the plaintiff was terminated for good and sufficient reasons without fault on the part of the defendant, and, further answering, that the employment was terminated by mutual consent.

After the plaintiff rested and shortly before the close of the evidence, the plaintiff, subject to the defendant’s exception, was allowed to amend his declaration by adding a count stating, in substance, that in April, 1924, the board of directors, who were substantially all the stockholders of the defendant, entered into an agreement with the plaintiff, a copy of which is annexed to the declaration, and thereafter, in October, 1924, in consideration of the plaintiff’s suspending the operation of that agreement, the directors caused the defendant to issue ten shares of the stock of the company in lieu of additional salary for the year 1924; that later, in consideration of the plaintiff’s postponing the operation of the agreement and continuing in the employ of the defendant, the plaintiff’s salary was increased by vote of the directors of the corporation in January, 1925, January, 1926, and January, 1927, at which date the salary was fixed at $5,000 per annum, to be paid in the event of the death of the plaintiff to his widow; that the salary was paid in monthly instalments, and since August 1, 1927, the defendant has refused and declined to make payments in accordance with the agreement, although the plaintiff has.at all times been ready and willing to perform [561]*561his part of the agreement. The proposed agreement attached to the amended count in the declaration is as follows: “We will pay you in July next half the net profits on Olive Oil for the first six months of this year after settling up our books at that time, and again in January next after our books are balanced and profits determined. If the Oil business has shown a reasonable profit after the books are balanced in January, we will form a separate Oil Company, in which you are to be given one-quarter interest gratis, and also be President and a Director. When this is done, no further profits are to be paid you from the Olive Oil except those which would be included in your 25% of the profits of the Oil Company. We will also pay an increase of salary annually to be determined by the profits of the Oil business for the preceding year.” This was signed by the three men who are respectively the president, the treasurer, and the factory superintendent, and who also at the time were the board of directors. The question whether the declaration should have been amended by adding this second count was in the discretion of the trial judge and on the record no abuse of discretion is shown.

The defendant contends that a verdict should have been directed for the reasons, among others, that the plaintiff was guilty of wilful default and general insubordination and because he voluntarily left the defendant’s employment.

At a directors’ meeting held in August, 1927, and attended by the plaintiff and other directors, on motion of one Wright, the superintendent of the factory, and seconded by one Whittemore, the president, “it was voted to ask for the resignation of Mr. Oehme, to take effect at once.” After the vote was passed the plaintiff left the meeting and has done no work for the defendant since. The contention of the plaintiff is that he was then discharged; the defendant contends that the vote was merely an invitation to resign — an invitation accepted by the plaintiff and approved by the defendant. We are of opinion that, when all the circumstances are considered, the questions whether the defendant intended by the vote to discharge the plaintiff, and whether the plaintiff was warranted in so understand[562]*562ing the vote, were for the jury. We think the defendant’s rights were protected by the charge in which the jury were told, in substance, that if the plaintiff resigned he had no right of action against the defendant. The jury must have found, as they had a right to do, that the plaintiff was discharged. See Shugg v. American Shoe & Leather Association, 192 Mass. 167; Jones v. Graham & Morton Transportation Co. 51 Mich. 539.

The next question is whether the plaintiff had so conducted himself that the defendant had a right to discharge him. The principal contention of the defendant on this issue seems to be that the plaintiff had acted in such an insubordinate manner that he had forfeited his right to continue in the employment. The jury were instructed, in substance, that if the plaintiff was not loyal and faithful to the interests of the company, using his best ability to promote those interests, then a discharge would be justified and the plaintiff would be entitled to no compensation for his services. The trial judge in his charge defined insubordination and left it to the jury to decide whether there had been such insubordination on the part of the plaintiff as to justify the defendant in terminating the employment. Inasmuch as the jury have found that the termination of the employment was not justified, the question for our consideration is whether, on the admitted facts, the defendant was warranted as matter of law in discharging the plaintiff.

The plaintiff testified that there were occasions in 1927 when Whittemore, as president of the company, requested information which he declined to give; that he had declined to give the president information in regard to the cost of certain oils in his department after the plaintiff had told bim several times; that on one occasion when the president asked him for information as to the amount of grape seed oil on hand he declined to tell him, and on various other occasions he declined to give information as to the amount of oil on hand. He also testified that there were times when he had been absent from the office and upon his return had refused to tell the president or the superintendent where he had been; [563]*563that he declined to recognize any authority of Whittemore over his department; that in 1926 he was engaged as manager of the oil department for that year, and that Whittemore then said he would not interfere any more with that department. The relationship of employer and employee “imposes upon each . . . the duty to be reasonably respectful to the other both in words and behavior, and to refrain from insolent or imperious conduct ...

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Bluebook (online)
181 N.E. 733, 279 Mass. 558, 1932 Mass. LEXIS 963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oehme-v-whittemore-wright-co-mass-1932.