Pitman v. J. C. Pitman & Sons, Inc.

12 Mass. App. Div. 139
CourtMassachusetts District Court, Appellate Division
DecidedOctober 31, 1947
StatusPublished

This text of 12 Mass. App. Div. 139 (Pitman v. J. C. Pitman & Sons, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pitman v. J. C. Pitman & Sons, Inc., 12 Mass. App. Div. 139 (Mass. Ct. App. 1947).

Opinion

Eno, J.

This is an action of contract in which the plaintiff seeks to recover in Count 1 a balance of $14,000 together with interest due upon a promissory note made by the defendant and payable to the plaintiff, and, in Count 2, the sum of $14,000, together with interest due, “. . . the balance found to be due the plaintiff by the parties on an accounting together ’ ’. The Declaration contained a statement that “Both counts are for the same cause of action”.

The Defendant’s Answer was a general denial, and further that ‘ ‘ The plaintiff was a former employee of the defendant corporation; that he and other former employees of the said corporation, all of whom have since been removed, entered into a conspiracy to withdraw funds unlawfully from the corporation; that this conspiracy included the [140]*140issuance of promissory notes of the corporation, without consideration; that said conspiracy included the unlawful issuance of the note declared upon by the plaintiff; that said note is void; wherefore the defendant owes the plaintiff nothing”.

'The defendant filed a Declaration in Set-Off alleging “That on or about September 21, 194h, the plaintiff, as defendant in set-off, was then an employee of the plaintiff in set-off, and did, in collusion with other employees, unlawfully withdraw funds of the plaintiff in set-off in the amount of $5,000; wherefore the defendant in set-off owes the plaintiff in set-off the said sum of $5,000, together with interest for money received by the defendant in set-off to the use of the plaintiff in set-off”.

The plaintiff filed a general denial to the defendant’s Declaration in Set-Off.

The reported evidence is as follows:

“At the trial, there was evidence tending to show that the plaintiff had been employed by the defendant for some years prior to 1940- as Field Manager. His duties were to assist in contacting and schooling the sales representatives of the defendant and endeavor to increase the amount of business they were doing, and to secure business for the defendant.
•On February 6, 1940, one James F. Pitman, who was a stockholder, director, president, and sales manager in charge of all sales for the defendant, outlined in a communication to the plaintiff a new method of payment to the plaintiff for his services. The plaintiff was to be paid as a salary $45.00 a week, and traveling expenses $7'5.00 a week, and was to receive annually not in excess of $350.00 towards the purchase of a new car. He was to receive 2% of the net amount of the net sales of the defendant for the year 1940' in excess of $325.00. The communication ended: ‘We sincerely hope that this arrangement is satisfactory, and that it may be continued for the years to come. ’
[141]*141On February 9, 1940, the above arrangement, as a result of a conversation between the plaintiff and J ames F. Pitman, was voided by a communication providing for $10.00 a week increase in salary; 2% on all net sales for the year 1940 above $276,000; an additional $500.00 in the event that the sales for 1940 arrived at a net invoicing figure of $325,502.55. The plaintiff worked under this arrangement and duly received payment of the amounts designated.
On April 8,1941, by a communication to the plaintiff from Mr. James F. Pitman, the reimbursement that the plaintiff was to receive in the year 1941 as General Field Manager was established. Salary was to remain the same; bonus of 2% on the net invoicing above $275,000; commission of 5% on the list price of all Piteo Fryalators (machines manufactured by the defendant) sold to the War Department. Provision was made to exclude sales to Joe Lowe from the net sales in computing bonus.
On September 30,1941, a change was made to reduce the commission on War Department business to 5% of the net invoicing; otherwise the arrangement was not altered. The plaintiff worked under this arrangement and received payment of all amounts designated. The plaintiff continued to work for the defendant during the years 1942, 1943, 1944, and until he was discharged on April 27,1945. During this time, he secured substantial contracts for the defendant with the Navy Department for the manufacture of torpedo handle cradles and switch boxes. He also procured sub-contracts on Government work, and a contract for the manufacture and sale to the Government of dishwashers. He was also instrumental in the sale of fryalators, the peacetime production unit of the defendant, to the Army.
During all this time he was subject to the call of the defendant, and there was no evidence that he at any time refused or failed to do anything that the officers or persons of authority with the defendant requested him to do.
There was no new designation for the method of payment to the plaintiff for his services during the years 1942,1943, and 1944.
[142]*142During the years 1942, 1943, and 1944 the plaintiff was not paid for the services rendered by him except that he received the 5 % of the net invoicing of all f ryalators sold to the War Department. .
The net sales of the defendant-for the year 1942 were $588,915.91; for the year 1943, $1,007,318.08, and for the seven months of 1944, $887,554.68; The Joe Lowe sales for the year 1942 were $22,781.40; for the year 1943, $12,618.10, and for the seven months of 1944, $3,087.77.
The plaintiff was a stockholder, director, and president of a corporation known as the Associated Manufacturers, Inc., which had its home office in Washington, D. C. This corporation employed various salesmen who handled sales of various and sundry items to the general trade.
Because of the limitations imposed on -civilian production and -sales due to the War, the defendant determined that it was not economically sound for it to maintain its salesmen in the field. 'Consequently, in ¡September of 1942, it made an arrangement with the Associated Manufacturers, Inc. that its salesmen would cover the territory formerly covered by the defendant’s salesmen, and that, as compensation therefor, the Associated Manufacturers, Inc. would receive an override of 50% of the established dealers’ price list ;of the defendant: that the jobber’s discount to whom sales of the defendant’s fryalators were to be made would be deducted from the 50%, and a commission for the override between the jobber’s discount up to the 50% would be paid Associated Manufacturers, Inc.
The salesmen of Associated Manufacturers, Inc., in accordance with this arrangement, covered the territory designated, and made sales up to February 25, 1944, when the arrangement was terminated by the defendant. Associated Manufacturers1, Inc. received payment of all amounts due it.
At the time of the termination of the arrangement with Associated Manufacturers, Inc., James F. Pit-man, in notifying the plaintiff of the termination of the arrangement, said in a written communication sent in [143]*143Ms official capacity as President of the defendant that ‘As far as the sales of Piteo Pryalators- are concerned . . .we will revert back to our original plan. That of course maintains you as Field Manager.
‘We hope that you will accept the continuance of this position which has never been broken.

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Bluebook (online)
12 Mass. App. Div. 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pitman-v-j-c-pitman-sons-inc-massdistctapp-1947.