Sieck v. Hall

34 P.2d 844, 139 Cal. App. 279, 1934 Cal. App. LEXIS 531
CourtCalifornia Court of Appeal
DecidedJune 14, 1934
DocketCiv. No. 1040
StatusPublished
Cited by11 cases

This text of 34 P.2d 844 (Sieck v. Hall) 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
Sieck v. Hall, 34 P.2d 844, 139 Cal. App. 279, 1934 Cal. App. LEXIS 531 (Cal. Ct. App. 1934).

Opinion

HAINES, J., pro tem.

This action was brought to recover compensation additional to his regular salary as a salesman of gasoline, oils and grease, claimed to be due to the plaintiff and respondent Charles A. Sieck from the defendants and appellants under two several arrangements made ill the early months of 1928. Judgment was given in favor of plaintiff and respondent against all the defendants and appellants, but respondent now concedes that it cannot be supported by the evidence as against any of the defendants and appellants other than the Star & Crescent Oil Co., so that our discussion of the case need only go to the controversy between Sieck and that corporation.

During the years 1927 and 1928 appellant Star & Crescent Oil Co. was engaged in handling and selling at San Diego, California, the gasolines, oils and greases manufactured by the Associated Oil Company, and was allowed to retain as compensation for so doing certain “differentials”, which, for the purposes of this decision, may be [282]*282taken to mean the difference between the prices at which the products were sold by appellant on the market and-the prices at which they were furnished by the Associated Oil Company to this appellant. The basis on which these differentials were fixed is not disclosed by the evidence but it does appear that the basis was more liberal during the first ten months of 1927 than it was in the last two months of that year or through any part of 1928. During all this time the appellant Oakley J. Hall, referred to in the record as “Capt. Hall”, was president and manager of appellant Star & Crescent Oil Co., and at the end of 1927 and in the earlier part of 1928 it had five salesmen, that is one Miller, its sales manager, and his subordinates Hagan, Murray, Eckles, and plaintiff Sieck, engaged in selling the products referred to to the public. Each of the latter four salesmen had assigned to him a portion of the local territory in which Miller had general oversight of the sales. All five salesmen were paid regular monthly salaries, which included certain allowances for gas and oils consumed by them in covering the territory involved. Miller and Sieck had been so employed throughout 1927, Eckles from the first of March of that year, Hagan and Murray from some time in July and from some time in November of that year respectively, while during the first three months of 1927 another salesman named Clark had also been so employed. Besides these regular salesmen other employees were more or less engaged in making sales, that is, one Bruington and one Johnson made sales for marine purposes and one Captain Spielman was utilized as a salesman “chiefly for stove distillate”, but also “drummed up some oil and gasoline business”. One Collins, -a truck driver, and certain other truck drivers, all working on regular salaries, made certain sales.

It is, in the original complaint filed by plaintiff and respondent, asserted that while “on or about January 20, 192'8, ” respondent, “together with four other like sales representatives”, thereby referring to Miller, Hagan, Murray and Eckles, were in the employ of defendants (appellants here) engaged in the sale of said products, “the said defendants . . . stated to plaintiff and the other said sales representatives that in order to induce plaintiff and the other said sales representatives to expend additional efforts in increasing the sales of the said oil products of the [283]*283said defendants during the ensuing year, that if the plaintiff and the other said sales representatives by their efforts should bring an increase in the gross amount of sales of the said oil products during the said year over the gross sales made in the preceding year of 1927, that the amount of increase in such gross sales over the preceding year would be divided into two portions, one of which was to be retained by the defendants, and the other portion was to be divided equally, share and share alike, among the plaintiff and the other said sales representatives, it being provided, however, that if any additional sales force were employed, that the salary of such additional sales force should be deducted from the amount of the gross sales before division was made. ’ ’

The further arrangement counted on by respondent is set out by allegations in his original complaint:

“That on or about April 1, 1928, one of the other said sales representatives quit his employment, to wit, Laurie Eckles, and that thereupon, the said defendants and their said agents called the plaintiff and the other three representatives together and stated that if they would divide among themselves the territory and duties of the said Eckles and carry on his work themselves, that the original agreement of January 20, 1928, would continue, and that the net salary of Eckles for the remainder of said year, to wit, nine months, would be held in a separate fund, to be divided in four equal parts among the plaintiff and the other three said sales representatives at the end of the year, irrespective of whether or not an increase in the gross sales was produced ...”

The complaint goes on to allege the occurrence of the conditions entitling the plaintiff to compensation additional to his salary under each of the two arrangements set up. The .answer traverses the allegations of the complaint concerning each of the arrangements for additional compensation asserted, and, contrariwise, avers that “all salary, wages, commission and compensation of every kind earned by the plaintiff . . . have been paid to him by defendant, Star & Crescent Oil Co.” It is on these pleadings that the trial was had.

Before the trial respondent Sieck’s deposition was taken, in course of which he claimed that at the meeting when the [284]*284bonus arrangement with the five salesmen was made, Capt. Hall, acting for the Star & Crescent Oil Co., had made and the salesmen had accepted a proposition described in the deposition as follows:

“That the gross income of 1927 was about $136,000.00; that any income over that — provided we increased the business and there was a larger income — would be divided,— half of it to be withheld by him, the other half to be equally divided among we five salesmen; provided that, if he had to hire any additional salesmen, that the sales expense would first be deducted from the total increase, then the division made. Also, that if any salesman of we five, were to resign before December 31st, he waived all claim to any bonus which might accrue.”
Sieck was asked: “Do I understand you correctly, now, that he said the gross amount of business done in excess of the year previous would be divided in two, and half divided amongst the salesmen?” He answered: “As I outlined it there a moment ago. Yes.” He was asked further: “Well, as I understand it, then, your bonus was to be figured on the sale price of these products without any reference to what the cost to the company might be?” His reply was “Correct.”

Such an arrangement, of course, would be most unlikely, since; in promising the salesmen half of the gross increase in the return from sales to be made, the Star & Crescent Oil Co. would be promising to pay them not only half of any profits to be made by it on the additional products to be sold, but half also of the actual cost to it of such additional products to be resold by it.

At the opening of the trial itself respondent called Capt. Hall to the stand under section 2055 of the Code of Civil Procedure and elicited from him his account of the proposition made by him.

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Bluebook (online)
34 P.2d 844, 139 Cal. App. 279, 1934 Cal. App. LEXIS 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sieck-v-hall-calctapp-1934.