Pittsburgh Pipe Cleaner Co. of Maryland, Inc. v. Sloan

73 S.E.2d 273, 194 Va. 447, 1952 Va. LEXIS 250
CourtSupreme Court of Virginia
DecidedDecember 1, 1952
DocketRecord No. 3991
StatusPublished

This text of 73 S.E.2d 273 (Pittsburgh Pipe Cleaner Co. of Maryland, Inc. v. Sloan) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pittsburgh Pipe Cleaner Co. of Maryland, Inc. v. Sloan, 73 S.E.2d 273, 194 Va. 447, 1952 Va. LEXIS 250 (Va. 1952).

Opinion

Eggleston, J.,

delivered the opinion of the court.

In December, 1949, George J. Sloan filed a bill in equity in the court below to require an accounting by the defendant, Pittsburgh Pipe Cleaner Company of Maryland, Incorporated, of commissions earned by the plaintiff while employed by the defendant. It was alleged that the defendant, a foreign corporation qualified to do business in Virginia, “sells machinery, equipment and service in connection with the operation of a pipe cleaner business;” that from January 1, 1944 to July 1, 1948 the plaintiff had been employed to solicit contracts for the defendant; that it was agreed between the parties that for the period from January 1, 1944 to September 15, 1945, the plaintiff was to be paid as compensation for his services 15% of the “actual cost to the customer of all sales and service work procured by him” for the defendant; that on September 15, 1945 the terms of the contract were changed and it was agreed that from that date until the termination of his employment he was to be paid a stipulated salary plus “a commission amounting to 2% on all sales made by him in excess of $2,500 gross per month;” that it was further agreed that the amounts of the contracts procured by the plaintiff for the defendant were to be “subject to final audit and billing by the defendant corporation to the customer; ” that the defendant had terminated the contract on July 1, 1948, and since that date had refused to disclose to the plaintiff “the final amounts” of certain sales contracts procured by him subsequent to May 31, 1946, and that hence the plaintiff was “unable to ascertain the exact amount” of the commissions earned by and due to him.

The prayer of the bill was that the defendant be required to account to the plaintiff for the amount of the commissions, earned by him “from May 31, 1946 to the present,” and to produce its books, papers and records in order that the correct amount due the plaintiff might be ascertained, and that the [449]*449defendant be required to pay tbe plaintiff the amount found to be due to him.

The defendant filed a motion for a bill of particulars, asking among other things that the plaintiff be required to show “what period the account requested is to cover.” In a bill of particulars the plaintiff alleged that the commissions due him covered the period “from September, 1945, to the time of the termination of his contract by defendant.”

In its answer the defendant admitted the employment of the plaintiff during the period and for the purposes alleged in the bill. While it admitted that the parties had entered into a new contract beginning September 15, 1945, under which the plaintiff was to be paid, in addition to a stipulated salary, a commission on sales negotiated by him, it denied that the agreed commission was to be computed on a monthly basis. It averred that the agreement was that the commission was to be computed on all “net sales” in excess of $30,000 a year, or an average of $2,500 per month; and that in no year, between September 15, 1945 and the date of the termination of the contract, did the plaintiff’s yearly net sales exceed the stipulated amount. Hence, it alleged, no commissions were earned by and due to the plaintiff for this period..

The answer further averred that during the period from January 1, 1944 to September 15, 1945, when the plaintiff was employed on a straight commission basis, the defendant had made to him advance payments of $250 per month, which exceeded by $2,878.93 the amount of the commissions earned in that period. Therefore, it averred, for the total period of the employment the defendant owed the plaintiff nothing, and the plaintiff instead was indebted to it in the sum of $2,878.93.

With its answer the defendant filed a schedule of invoices showing the amounts of the various contracts procured by the plaintiff from September 15,1945 to the date of the termination of the employment, the period for which the accounting had been sought, and a statement of the commissions earned by and advances to the plaintiff during the period from January 1,1944 to September 15, 1945.

The evidence on behalf of the plaintiff was heard in open court and supported the allegations of the bill. The plaintiff filed and verified the accuracy of an itemized account, based on the invoices disclosed in the schedule attached to the defendant’s [450]*450answer, which, showed that the defendant was indebted to him for commissions on sales made between September 15, 1945 and the date of the termination of his employment in the snm of $1,350.28. As to the agreement between the parties, the testimony of the plaintiff was corroborated by that of Lawrence E. Eobinson, who had been president of the defendant corporation from 1938 to 1947.

The defendant offered the deposition of Kyle I. Eobinson, its then vice-president, taken shortly before the trial, which supported the allegations of the answer and confirmed the accuracy of the attached schedule and statement.

Upon this evidence the trial court held and decreed that the plaintiff was entitled to recover of the defendant the sum of $1,290.12 with interest, and from that decree the present appeal has been taken.

The first assignment of error is that the lower court “erred in ruling that the account between the parties should cover only the period from September 15,1945 to July 30,1948, and should not include the period from January 1, 1944 to September 15, 1945.”

We find nothing in the record to support the assertion in this assignment that the court held or ruled that the accounting should be limited to the period first mentioned. At the taking of the deposition of Kyle I. Eobinson the defendant introduced evidence which supported the averment in the answer that during the period from January 1,1944 to September 15,1945, when the plaintiff was employed on a straight commission basis, the amount of advances to him exceeded by $2,878.93 the total sum of the commissions earned. The plaintiff objected to this evidence on the ground that it did not relate to the period for which the accounting had been asked. At the trial the objection was again pressed as to this and other evidence of a similar purport, and the matter was fully argued. The final ruling of the lower court is shown by this colloquy:

“Mr. Gasson (counsel for defendant): Your Honor, I would simply like to make this statement for the record at this time. I haven’t gone into anything prior to September 15, 1945, and I wish to have the record show that I reserve my right to contend and to submit authorities that we are entitled to have the account between the parties here extend from January 1, 1944 to the termination of Mr. Sloan’s employment.
[451]*451“The court: Let me see, Mr. G-asson, if that is exactly what our understanding was. You now want the right to introduce these items back to 1944. That is not exactly what I held. I held if you will submit authorities that will sustain your point, then you may go into matters prior to September 15, 1945. If you don’t maintain that position you cannot go any further back than that.
“Mr. Gasson: That is what I understand. I thought that is what I said.
“The court: In the event that you maintain that position, then you will ask permission.
“Mr. Gasson: Yes, sir.
“The court: That is all right.”

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73 S.E.2d 273, 194 Va. 447, 1952 Va. LEXIS 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pittsburgh-pipe-cleaner-co-of-maryland-inc-v-sloan-va-1952.