Reed v. Chaffin

473 P.2d 102, 205 Kan. 815, 1970 Kan. LEXIS 354
CourtSupreme Court of Kansas
DecidedJuly 17, 1970
Docket45,825
StatusPublished
Cited by6 cases

This text of 473 P.2d 102 (Reed v. Chaffin) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. Chaffin, 473 P.2d 102, 205 Kan. 815, 1970 Kan. LEXIS 354 (kan 1970).

Opinion

The opinion of the court was delivered by

Fatzer, J.:

The plaintiff-appellee, Carl F. Reed, alleged in his petition three causes of action: The first was for an accounting and dissolution of the Carl F. Reed and Company, a partnership; the second was for wrongful ouster from the partnership and damages for loss of profits, and the third was for wrongful ouster from the management of the partnership, and damages for loss of salary.

The accounting and dissolution of the partnership has been completed and is not now in issue. The jury by special verdict found in favor of the plaintiff with respect to the second cause of action, and the plaintiff was awarded damages in the amount of $78,286. The jury’s special verdict was unfavorable to plaintiff with respect to the third cause of action.

The plaintiff is a licensed pharmacist. Prior to October, 1966, he and defendant Jim Wright were partners and owned and operated a prescription center in Dodge City. Also, he and K. E. Paxton, Kiowa, Kansas, were partners and owned and operated the Garden Pharmacy in Garden City. In October, 1966, the above-mentioned partnerships were dissolved, and the plaintiff and the defendants entered into an oral agreement to form a partnership to operate prescription centers in the Gibson Discount Stores owned by the *816 defendants Chaffin, in Garden City, Dodge City, and Liberal, Kansas, and other locations where there were Gibson Discount Stores. The partnership was known as Carl F. Reed and Company, and was formed to conduct the business of prescription centers and was to continue for an indefinite time. It was agreed the plaintiff would act as general manager of the partnership. In May, 1967, Carl F. Reed and Company opened a prescription center in a Gibson Discount Store in El Dorado, Kansas. Through the efforts of the plaintiff, the partnership was financially successful and the four pharmacies owned by the partnership increased in volume of business and profits.

The plaintiff alleged that during the first part of March, 1968, the defendants wrongfully and forcefully ousted him from the partnership and refused to complete their oral contract. He alleged the partnership had inventory and capital assets in excess of $75,000, and that he would lose profits from the partnership by reason of his wrongful ouster in the amount of $200,000. He further alleged he was making a salary of $1,400 per month when he was wrongfully ousted as general manager and from the partnership, and sought damages for ouster as general manager, and for loss of salary.

The defendants’ answer and cross petition alleged that while four prescription centers were in operation by the partnership, the plaintiff breached the partnership agreement by entering into competition with the partnership when he opened a prescription center in Emporia which other members of the partnership had voted not to establish. It was further alleged the plaintiff was negligent as general manager for failure to comply with pertinent regulations of the State Board of Pharmacy, which resulted in the closing of three prescription centers for approximately two weeks.

On January 28, 1968, prior to the opening of the Emporia center by the plaintiff, he notified the defendants that he could not employ a pharmacist to work in Emporia for the partnership, giving as a reason that pharmacists he approached either wanted a higher salary than the partnership was willing to pay, or did not want to work for an organization controlled by non-pharmacists. At the January 28 meeting, defendant, Owen Chaffin, told plaintiff if anyone opened a center at Emporia he would be let out of the partnership.

On February 27, 1968, after plaintiff and two other persons opened the Emporia Center, a partnership meeting was held and *817 it was voted to remove plaintiff as general manager. Later, and on March 26, 1968, all partners except plaintiff voted to dissolve the partnership. The district court appointed a receiver and all the assets were sold at book value to a corporation owned by the defendants and one Hatfield.

Based on the jury’s special verdict, the district court entered judgment in favor of plaintiff in the amount of $78,286. A motion for a new trial was overruled, and the defendants perfected this appeal.

The defendants claim many errors occurring during the trial of the case. One contention is the district court erred in refusing to sustain their motion to set aside the findings and answers of the jury to special questions 1 and 2, because such answers were inconsistent with the answers to special questions 7 and 8.

The special questions and the jury’s answers read:
“1. Was the oral partnership agreement between the plaintiff and the defendants breached or broken?
Answer: Yes (X) No ( )
2. If your answer to No. 1 is ‘Yes’, state who breached or broke it and in what manner.
Answer: Defendants present at the Feb. 28, 1968, meeting. They fired the manager, Carl F. Reed, who was the manager in the oral agreement.
3. Did the oral partnership have a provision that it was to run for a length of time?
Answer: Yes (X) No ( )
4. If your answer to No. 3 is ‘Yes’, please state the length of time.
Answer: 5 to 10 years.
5. If you find the defendants breached or broke the oral partnership contract, state what award of money you think should be awarded to the Plaintiff to properly compensate him for his damages.
Answer: $78,636.00
6. If you find that the Plaintiff breached or broke the oral partnership contract, state what award of money you think should be awarded to the Defendants to properly compensate them for their damages.
Answer: $ None
7. Was the plaintiff unlawfully ousted by the defendants from his employment as manager of the pharmacies operated by the partnership?
Answer: Yes ( ) No (X)
8. If your answer to No. 7 is ‘yes’, please state the amount of money, you believe, should be awarded the plaintiff for loss of wages as manager.
Answer: $ None
9. Do you find that the plaintiff is entitled to vacation pay upon his employment as manager being terminated? If so, also state amount of vacation pay to which he is entitled?
*818 Answer: Yes (X) No ( )
$1,057.00
10. Did the plaintiff advise and disclose to the defendants all of the essential facts surrounding the Emporia store opening?
Answer: Yes (X) No ( )
11. If the plaintiff did not disclose all the essential facts, in what particulars did the plaintiff fail to disclose the facts to the defendants?

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Cite This Page — Counsel Stack

Bluebook (online)
473 P.2d 102, 205 Kan. 815, 1970 Kan. LEXIS 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-chaffin-kan-1970.