Sharman v. Longo

249 Cal. App. 2d 948, 58 Cal. Rptr. 79, 1967 Cal. App. LEXIS 2303
CourtCalifornia Court of Appeal
DecidedApril 5, 1967
DocketCiv. No. 29710
StatusPublished
Cited by1 cases

This text of 249 Cal. App. 2d 948 (Sharman v. Longo) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharman v. Longo, 249 Cal. App. 2d 948, 58 Cal. Rptr. 79, 1967 Cal. App. LEXIS 2303 (Cal. Ct. App. 1967).

Opinion

JEFFERSON, J.

In this appeal we are called upon to decide whether the trial court was justified in granting plaintiff ’s motion for a summary judgment against defendant.

Plaintiff, William Sharman, brought action to enforce an agreement signed by defendant Frank Longo and one Vito Guarino guaranteeing plaintiff’s salary under an employment contract. According to plaintiff’s complaint, by the terms of the employment contract, plaintiff, a professional basketball player and coach, was to serve as a player-coach for a newly formed corporation, the Los Angeles Professional Basketball Club, a professional basketball team known as the “Los Angeles Jets.” When the corporation became insolvent, plaintiff sought recourse under the surety agreement.

Three documents form the basis for plaintiff’s action, Exhibits “A,” “B” and “C” which were attached to the complaint. It is alleged in the complaint that Exhibit “A” is an agreement of employment between plaintiff and the Los Angeles Jets, wherein plaintiff agreed to utilize his basketball talents for the Jets and in return the corporation agreed to pay him a salary of $20,000 per year for two years. Exhibit “B” is an addenda to Exhibit “A” which reduced in certain particulars plaintiff’s duties and, in addition, provided that the corporation promised to post a bond to guarantee plaintiff’s salary. When it was thereafter discovered the cost of securing the bond would be prohibitively high, it was agreed that the corporation could substitute in its place a surety agreement signed by two men. Exhibit “C, ” [950]*950in which Longo and Guarino agreed to serve as personal sureties for the promised salary, was then executed. Although Exhibits “A,” “B” and “C” were respectively dated April 11, April 28 and May 27, 1961, they were part of one single contractual transaction.

Defendant answered denying that he was a party either to the original contract (Exhibit “A”) or to the addenda (Exhibit “B”). While admitting that he executed the surety agreement (Exhibit “0”), he denied that there was consideration to support it. He alleged that the three documents were not a part of one transaction; that they were executed and became effective on the separate dates indicated on the documents; that consequently, since the addenda and the surety agreement were executed after the original employment contract, the consideration supporting the latter did not support the guaranty.

An affidavit in support of his motion for summary judgment was filed by plaintiff, and a counteraffidavit was filed by defendant. In addition, the court had before it the depositions of plaintiff and defendant, together with the depositions of Guarino, Henry Clark and Leonard Corbosiero (the latter were officers of the Jet).1 After a hearing, the court rendered a judgment against both defendant and Guarino for the unpaid salary due plaintiff in the sum of $17,682.90. Guarino admitted his liability on the surety agreement to the extent of one-half the unpaid salary and does not appeal from the judgment.

In plaintiff’s affidavit he alleges these facts: In January 1961 he was contacted by Len Corbosiero (the president of the Jets) with regard to a coaching and managerial position with the newly formed professional basketball team; at the time he was employed by the Boston Celtics basketball team at a salary of $20,000 a year; he informed Corbosiero that before he would even consider the job he would have to receive a guaranty of at least $20,000 a year to move to California; while he understood that the documents he signed accepting the job (Exhibits “A” and “B”) bear different dates, he recalled signing the documents simultaneously; part of the agreement was the guaranty of his salary of $20,000 a year for a period of two years; he came to Los Angeles on the basis of that guaranty, which he first thought would be cash in the bank, then a bond, but that it later turned out to be the [951]*951guaranty signed by defendant and Guarino (Exhibit “C”) ; prior to January 16, 1962, he had performed all the terms and conditions of the agreement; on that date his services were terminated when the league failed; he had been paid $15,000.03 by the Jets; after the termination of his employment he demanded payment from defendant and Guarino on the contract of guaranty; while Guarino offered to pay his half, defendant refused; from January 16, 1962 through April of 1963, the termination date of his two-year contract with the Jets, he worked at other jobs and made a total of $7,317.07; the salaries earned during the contract period totaled $22,317.10; the guaranty for the two years being $40,000, he was damaged in the amount of $17,682.90, or $40,000 less the $22,317.10 he earned.

Guarino, in his deposition, stated that the guaranty provision of the contract was required by plaintiff during the original negotiations and was a part of the original obligation undertaken by the Jets. When they were not able to get the surety bond initially provided for, as a substitute, he and defendant signed the guaranty. Defendant participated in some of the negotiations leading up to the execution of the employment contract and was kept fully informed at all times of the negotiations that went on. Guarino had discussed with defendant the fact that if there was no guaranty plaintiff would not play for the Jets.

Corbosiero’s deposition contains the statement that he had explained to defendant, at a meeting prior to his (Corbosiero’s) departure for Boston to conduct negotiations with plaintiff, how important it was that they hire plaintiff; that without him they had no club. At the meetings in Boston with plaintiff’s attorney, there were no negotiations in regard to plaintiff’s salary, as it was already agreed upon. What was discussed was the guaranty; plaintiff’s attorney did not want plaintiff to sign a contract “unless there was some kind of a guarantee.” It was his understanding that plaintiff would not go to work for the Jets without it. He personally did not have any conversation with defendant regarding the guaranty.

Defendant’s affidavit filed in opposition to the motion for summary judgment contains the following statements: Contrary to Corbosiero’s statement in his deposition, defendant did not have any knowledge that plaintiff desired a surety agreement until after April 11, 1961; he found out plaintiff wished a surety bond in the latter part of April 1961, and, at the request of Guarino, he sought to obtain a bond; when [952]*952he could not get the bond, Guarino asked him to execute Exhibit “C”; Guarino assured him that signing the guaranty was merely a formality and that he would incur no liability thereon; lie signed it on the basis of this representation; he was a member of the board of directors of the Jets but took no active part in the corporation’s affairs and had no voice in hiring or firing of coaches or players; he was not aware of the negotiations which took place prior to the signing of plaintiff by the Jets but only knew that they were attempting to hire plaintiff; the first time he saw Exhibits “A” and “B” was after the filing of this suit.

In his deposition defendant indicated that Guarino and the “office” had told him that unless Sharman received the guaranty they could not get him to leave Boston.

Defendant maintains that the trial court improperly granted the motion for summary judgment, because an issue of fact was raised of whether or not there was consideration to support his promise of guaranty.

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Bluebook (online)
249 Cal. App. 2d 948, 58 Cal. Rptr. 79, 1967 Cal. App. LEXIS 2303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharman-v-longo-calctapp-1967.