Shelton V. Globe Construction Co.

7 La. App. 673, 1928 La. App. LEXIS 89
CourtLouisiana Court of Appeal
DecidedJanuary 16, 1928
DocketNo. 10,054
StatusPublished

This text of 7 La. App. 673 (Shelton V. Globe Construction Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelton V. Globe Construction Co., 7 La. App. 673, 1928 La. App. LEXIS 89 (La. Ct. App. 1928).

Opinion

JONES, J.

Plaintiff sued for nine hundred eighty-five and 50-100 ($985.50) dollars, alleging that he had made a verbal contract with defendant in August, 1922, to sell its stock on a commission basis, as follows: Twenty-five per cent on all stock sold personally by petitioner and ten per cent on all stock sold through sub-agents employed by petitioner; that he personally sold stock aggregating nine hundred ($900.00) dollars on which he is due a commission of two hundred twenty-five ($225.00) dollars, less a credit of thirty-five ($35.00) dollars (amount already paid by defendant); that he sold through his agents stock aggregating twelve thousand forty and 00-100 ($12,040.00) dollars on which he is owed ten per cent commission, amounting to one thousand two hundred four and 00-100 ($1,204.00) dollars, less a credit of four hundred .eight and 50-100 ($408.50) dollars, the total amount due being the amount claimed.

Plaintiff attached to and made part of his petition carbon copy of his letter to defendant, dated May 23rd, 1923, in which he sets forth, according to defendant’s figures, the various sales made by him personally and those made by his sub-agents, hired by him with approval of defendant’s president. In this letter plaintiff gives the names of various stock purchasers, -the amounts purchased, the credits allowed, the letter showing the balance due him the exact amount claimed.

Defendant filed a general denial to this petition.

On the first trial of the case the trial judge refused to admit any evidence tending to show a contract different from the one sued on and gave judgment for plaintiff as prayed.

As defendant .quoted in his petition for a new trial various decisions of the Supreme Court tending to show that the rejected evidence was admissible under a general denial, a new trial was granted, which resulted in a like decision below. From this decision defendant has appealed suspensively to this court.

On the trial (plaintiff, through- its president, E. J. Kelly, sought to show that plaintiff had made a verbal contract in August, 1922, for fifteen per cent commission on amounts collected on sales and that the president, who owned fifty-one per cent of the stock of the company, had later at a time not fixed definitely, verbally agreed to pay plaintiff an additional ten per cent on all his sales for supervising the work of sub-agents to be employed by plaintiff and for soliciting by plaintiff of signatures to certain petitions for paving on various streets.

Although plaintiff took out a writ of subpoena duces tecum for all the books of defendant, the only books brought into court were the check books and the stock book of defendant, which seems to have handled the entire matter in a loose, unbusinesslike way. Several paid checks were filed in evidence by both plaintiff and defendant and some of these bear notations referring to certain stock sales, others are blank as to all explanatory details. As might be expected where all important contracts are made verbally and no detailed books were kept, there is much conflicting evidence as to all important items and as to all payments. From the mass of contradictions and confused statements, which this long record contains, we think the following facts are clear:

[675]*675(1) Plaintiff was attracted by tbe following advertisements, wbicb appeared in tbe Times-Picayune on Sunday, August 6th, 1922:

“SALESMAN — Security, $50 weekly guarantee with highest commission, 100 per cent co-operation. Red hot leads, proposition talk of town. Here is the psychological moment you’ve been waiting for. Grasp it now and forget your financial troubles-. What I can do you can do, I am no wizard, yet I get gratifying results with this proposition. See me Monday from 10 to 3. Mr. R. Kelly, 301 Louisiana Building.”

(2) Plaintiff made a verbal contract on August 8th with defendant’s then sales manager, R. E. Kelly, a brother of the president and then a director of the company.

(3) On February 25th, 1923, plaintiff with defendant’s approval inserted in the Times-Picayune the following advertisement:

“THREE REAL STOCK SALESMEN to call upon direct leads closing out small issue in going local concern. Highest commissions. See Mr. Shelton, 10 a. m. to 12 a. m., Monday. 301* Louisiana Bldg.”

(4) In answer, to this advertisement and possibly' before plaintiff employed with defendant’s approval several sub-agents, among them, Mazur, Barnett and Doty, and these sub-agents were paid immediately for their individual stock sales by plaintiff by check for which plaintiff was. later reimbursed by the check of the defendant. Defendant’s president explains this roundabout method of payment by stating that he did not know these sub-agents and preferred plaintiff’s checks because they were so prepared as to make it difficult, if not impossible, to raise the amount, a statement corroborated by plaintiff’s paid checks, filed in the record.

(5) Although plaintiff, apparently both from the checks in evidence and also from the testimony of both plaintiff’s and defendant’s witnesses, began work at once and continued until the last of March to devote much time and effort to the business, being especially active in February and March, 1923, he did not secure a permit to sell stock from the Louisiana Securities Commission until December 19th, 1922. This permit contains the following notation:

“This stock must be sold at a price not to exceed its par value. The total expense of disposing of this stock must not exceed fifteen per cent of the par value of the stock sold.”

Mr. Luther Hall, clerk for the commission, testified that if a violation of these clauses was brought to the attention of the commission, the permit of the violating agent would be recalled, but that the commission did not exact reports from the agents showing amounts and prices of sales nor did it take any steps to find out whether these requirements were carried out as written. It was shown by other witnesses that expenses greater than fifteen per cent for sale of stock were sometimes charged to promotion account.

(6) On March 10th, 1923, the president of defendant company wrote a letter to plaintiff reading as follows:

“March 10th, 1923.
“Mr. B. E. Shelton,
“Sales Manager,
“Office.
“Dear Sir:
“Your request for a statement and a settlement of your commission accounts shows the following:
[676]*676“Commissions earned by you since March 3rd to; date _______________________$623.00
“Less advance for expenses'._______________ 285.00
“Leaving balance due you on this business ______________________________________________$368.00
“Commissions also are due you on notes uncollected ____________________________ 225.00
“Total amount due you to date____________$593.00
“While all the business turned in is good business as the notes are all signed by property owners and will be paid as they mature, you will recall our understanding that you were to be paid when collections are made.

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Related

Globe Construction Co. v. Huhner
3 La. App. 259 (Louisiana Court of Appeal, 1925)

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7 La. App. 673, 1928 La. App. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelton-v-globe-construction-co-lactapp-1928.