Rollinger v. Dairyland Creamery Co.

287 N.W. 333, 66 S.D. 592, 1939 S.D. LEXIS 46
CourtSouth Dakota Supreme Court
DecidedAugust 16, 1939
DocketFile No. 8259.
StatusPublished
Cited by2 cases

This text of 287 N.W. 333 (Rollinger v. Dairyland Creamery Co.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rollinger v. Dairyland Creamery Co., 287 N.W. 333, 66 S.D. 592, 1939 S.D. LEXIS 46 (S.D. 1939).

Opinion

SMITH, J.

This appeal is from an order of the trial court overruling a demurrer of defendant to plaintiff’s complaint. The demurrer challenged the complaint upon the ground that it failed *593 .to state facts sufficient to constitute a cause of action in favor of plaintiff against the defendant.

The complaint reads as follows:

“First: That he is and has 'been since on or about October 12, 1938, by order of the County Court within and for Minnehaha County,- South Dakota, the duly appointed, qualified and acting Guardian of the estate of Emil E. Skoug, an incompetent.

“Second: That -the defendant is a corporation duly organized, existing and doing business as such, and having its principal place of business at Sioux Falls, South Dakota.

“Third: That for approximately eleven years prior to the month of May, 1935, Emil E. Skoug and Anton E. Skoug, his brother, were the principal officers of and in the active management of and the owners of a controlling proportion of the stock of the Skoug Candy Company, a 'South Dakota corporation, having its principal place of business at 'Sioux Falls, South Dakota, engaged in the business of the manufacture and sale at wholesale of ice cream and frozen dessert products and confectionery and of confectioner)' jobbing, and for a number of years, prior to May, 1935, the said Skoug Candy Company was engaged in the general dairy and creamery business in the said City of Sioux Falls, processing and selling at wholesale and retail a general or complete line of dairy products.

“Fourth: That for approximately seventeen years before the formation of the said Skoug Candy Company as a corporation, the said Emil E. Skoug and Anton E. Skoug as partners under the trade name of Skoug Candy Company at Sioux Falls, South 'Dakota had been engaged in the manufacture and sale at wholesale and retail of ice cream and frozen dessert products and confectionery; that the said Emil E. Skoug and Anton E. Skoug had been prominently and favorably known in the wholesale ice cream and confectionery business in Sioux Falls and adjacent trade territory for a period of approximately twenty-eight years prior to May, 1935-

*594 1935, a branch and substantial place of business at Sioux Falls, South Dakota, where it was engaged in the manufacture and salé in said city and throughout its trade territory at wholesale of ice cream and frozen dessert products and was engaged in the general dairy and creamery business, selling at wholesale and retail in said Sioux Falls milk and a general or complete line of dairy products.

“Sixth: That in April, 1935, or prior thereto, negotiations were begun between the said Bridgeman-Russell Company and the said Skoug Candy Company and the officers and stockholders of the latter company, working toward a consolidation of said two' businesses under and by virtue of a single corporate body and management, which new corporation was to be owned upon a basis of interest in the prior organizations, and the said Emil E. Skoug and the said Anton E. Skoug would receive stock of the new company in the face amount of approximately '.Sixteen Thousand Dollars ($16,000.00) each, and the total of the stock of the said two brothers would be a minority of the stock of the new company and would of itself assure them no continuation of control or continuation of employment or income from the business they had built up during the preceding twenty-eight years, and before they would consider relinquishing or relinquish control and management of the Skoug Candy Company and abandon the income from the business they had during a life time of effort so built and created they insisted upon an agreement 'by which the new company would pay each of them a fixed income for a definite period of years; that in the course of such negotiations the attorneys for the BridgemanRussell Company, which would under the plans of such negotiations and does hold a controlling proportion of the stock of the new company, prepared and submitted a proposed contract for such merger which contained the following paragraph with reference to Emil E. Skoug, to-wit:

“ ‘Third Párty, E. E. Skoug, shall be employed by said...... Corporation for the term of five (5) years following the performance of this agreement at a salary of Two Hundred Dollars ($200.00) per month payable at the end of each month upon condition that said Third Party devote his whole time to the business of said........Corporation and render loyal and diligent service to said Corporation reasonably within the limits of his ability, pro *595 vided that if he becomes disabled for any considerable period he shall draw no pay for the period of his* disability.’

“That such proposed provision was not satisfactory because of the last clause above quoted, and said proposal was rejected by Emil E. Skoug, and since it did not express the intent and purpose in' prior and subsequent negotiations and contracts that the said Emil E. Skoug was to be paid during such period a monthly amount for services to be rendered reasonably within the limits of his ability and during disability if he was not able to perform any services.

“Seventh: That arrangements were made by the said two companies and their stockholders, including Emil E. Skoug, for the formation of the new company to be known as the Dairyland Creamery 'Company, defendant herein, to take, over the assets and business of each of the two previously mentioned concerns in Sioux Falls and surrounding trade territory, and in consideration of the execution of contracts for the transfer of the asests of the Skoug Candy Company to the Dairyland' 'Creamery Company and to accomplish the purpose of providing an income for the said Emil E. Skoug for a period of five years after the Dairyland Creamery Company commenced its active business, irrespective of what if any services the said Emil E. Skoug was able to render during said term, the said Dairyland Creamery Company agreed to pay the said Emil E. Skoug Two Hundred Dollars ($200.00) per month the first year and One Hundred Fifty Dollars ($150.00) per month the next four 3'ears, and a contract to that effect and intended to carry that purpose into effect was made and entered into ,a copy of which contract marked Exhibit ‘A’ is hereto attached and hereby referred to.'

“Eighth: That the provisions of said contract, Exhibit ‘A,’ when applied to the subject matter of this litigation are uncertain, but the intent of the parties at the time of execution of Exhibit ‘A’ was, and the second paragraph thereof should be construed as though it were written as follows:

“For and in consideration of the sum of One Dollar and other valuable considerations, and as part of the consideration for the execution of contracts for the transfer of the assets of the Skoug Candy Company to party of the first part, party of the first part does hereby employ the party of the second part, for a term of *596

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Bluebook (online)
287 N.W. 333, 66 S.D. 592, 1939 S.D. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rollinger-v-dairyland-creamery-co-sd-1939.