Ragsdale v. Tom-Boy, Inc.

317 S.W.2d 679, 1958 Mo. App. LEXIS 475
CourtMissouri Court of Appeals
DecidedNovember 5, 1958
Docket29857
StatusPublished
Cited by9 cases

This text of 317 S.W.2d 679 (Ragsdale v. Tom-Boy, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ragsdale v. Tom-Boy, Inc., 317 S.W.2d 679, 1958 Mo. App. LEXIS 475 (Mo. Ct. App. 1958).

Opinion

DOERNER, Commissioner.

This is an action begun in the Circuit Court of the City of St. Louis, in which plaintiff sought the recovery of $30,273.13 upon an alleged contract of employment. Judgment below was for plaintiff in the sum of $5,321.00, from which, after the overruling of its timely motions, defendant has duly prosecuted its appeal to this court.

Defendant, Tom Boy, Inc., is a wholesale food company, owned in part by grocers, butchers, and other retailers of food. Its primary purpose is to act as a buying organization for its members, to whom it sells at a very small mark-up, so that they may in turn sell more cheaply, and meet the competition of chain stores. In addition, the defendant operates a warehouse and runs an advertising campaign for its members’ stores.

Prior to June, 1951 plaintiff was employed as a consulting engineer by the United Fresh Fruit and Vegetable Association. His work consisted of analyzing the business operation of the members of the Association and of offering them advice as to how they could increase their sales and reduce their costs. In connection with his *682 work he had occasion to call on the defendant three or four times, and on one or more of such visits the men in charge of defendant’s produce department asked him if he would be willing to join their organization. Following discussions with Mr. L. A. Dauer defendant’s then vice-president, plaintiff wrote out a letter in long hand addressed to Dauer advising him that he would accept the position offered him with the defendant, and setting forth the terms of the employment. Plaintiff’s wife typed this letter, which was dated May 8, 1951, and mailed it. Plaintiff testified Dauer had asked him to send such a letter, for “internal reasons within the organization,” and to avoid any misunderstanding. The following day plaintiff discovered that his wife had overlooked sending a copy to Mr. Krekeler, the president of defendant, as had been requested, and she typed another letter dated May 9, 1951, similarly addressed to Dauer, which was mailed to Krekeler. The defendant denied ever having received the letter of May 8, but admitted having received the one dated May 9, which read:

“1225 Appleton Ave.
Independence, Mo.
May 9, 1951.
“Mr. L. A. Dauer, Vice President Tom Boy Stores. Inc.
4353 Clayton, Ave.
St. Louis, Mo.
“Dear Mr. Dauer:
“I am writing in connection with our telephone conversation today, wherein I reported I could accept the position you have offered with your organization, effective at the latest by July 1, 1951, or as soon before that date as possible. There is a good possibility the effective date can be as early as June 15, 1951. There will be no delays beyond July 1, 1951. I regret that special commitments make some delay necessary.
“We briefly discussed the recent 'meeting between you and Mr. Krekeler and myself in St. Louis. You commented it might be a good idea to cover some of the details in writing. As I understood our conversation, these basic points were a part of our verbal agreement:
“1. The position you have offered is considered by you as a permanent position in your organization.
“2. The title of the position will be Assistant Vice President in Charge of Perishables.
“3. The initial duties will first be in connection with getting the produce department into a profitable position, after which responsibilities in other departments may be assigned.
“4. The position will carry complete responsibility for all phases of operation in the produce department. All personnel will report to me and I will report to you.
“5. The basic salary will be $8500 per year. We will attempt to make 2% net profit. The amount in excess of 1% net profit for the fiscal year will be added to this basic salary. For example, if the yearly sales are $1,200,000 and the net profit is 2%, the salary for the year will be $12,000. Mr. Krekeler mentioned an addition might even be considered if the department was taken only out of a losing position.
“I will appreciate you confirming, or correcting the above understanding and effective date at your earliest convenience. After receiving that confirmation, the necessary final arrangements will be started.
“Your offer is a promising opportunity. I consider it as a real compliment to me and I am looking forward to a long and profitable relationship with you and your organization.
“Thank you again for your patience.
“Sincerely Yours, /s/ Steve Ragsdale”

*683 The letter of May 8 was exactly the same, except that instead of the word “the” preceding the words “salary for the year will he $12,000” in sub-paragraph 5, the word “that” was used, -so that that sub-paragraph in the letter of May 8 read:

“5. The basic salary will be $8500 per year. We will attempt to make 2% net profit. The amount in excess of 1% net profit for the fiscal year will be added to this basic salary. For example, if the yearly sales are $1,-200,000 and the net profit is 2%, that salary for the year will be $12,000. Mr. Krekeler mentioned an addition might even be considered if the department was taken only out of a losing position.”

Shortly thereafter plaintiff received the following letter from defendant:

“May 11, 1951
“Mr. Steve Ragsdale
1225 Appleton Avenue
Independence, Missouri
“Dear Steve:
“Glad to hear from Mr. Dauer that you will be with us sometime prior to July 1. We have a grand opportunity in our produce department and I personally feel confident you can get the job done.
“Your letter is pér all agreements excepting you forgot to mention we agreed to pay your moving expense to St. Louis, Steve, we won’t have any trouble on salary. We want men with ' ability to make money for the Company. The 'Company wants to make at least 1% net on produce and any excess will be shared with the person responsible for the success.
“All points covered by your -letter is as we agreed upon. We will be happy to have you associated with Tom Boy and will give you every assistance possible to help' you get things
on the right track in the shortest time possible.
“Yours very cordially,
“Tom Boy, Incorporated
/s/ Clem Krekeler
“Clemens G. Krekeler President”

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Bluebook (online)
317 S.W.2d 679, 1958 Mo. App. LEXIS 475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ragsdale-v-tom-boy-inc-moctapp-1958.