Snearly v. Hockett

352 P.2d 230, 1960 Wyo. LEXIS 61
CourtWyoming Supreme Court
DecidedMay 31, 1960
Docket2924, 2925
StatusPublished
Cited by8 cases

This text of 352 P.2d 230 (Snearly v. Hockett) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snearly v. Hockett, 352 P.2d 230, 1960 Wyo. LEXIS 61 (Wyo. 1960).

Opinion

Mr. Chief Justice BLUME

delivered the opinion of the court.

Two actions were consolidated for trial in the District Court of Campbell County, Wyoming, one against Dale B. Snearly and one against Amy Wolf. The appeals were also consolidated for hearing in this court. Plaintiffs in their petition against Snearly claimed that the latter wilfully and wrongfully misappropriated the funds of the plaintiffs and was overpaid in the sum of $21,565 and asked judgment for that amount against him. In the petition against Amy Wolf plaintiffs claimed that the latter was overpaid the amount of $3,182.50 and asked judgment against her for that amount. The court awarded judgment against Snearly for the amount of $13,565 and judgment against Amy Wolf for $1,982.50. The defendants have both appealed. The parties will be referred to herein as in the court below or by name or by other proper identification.

Plaintiffs Hockett were operating as the Gillette Livestock Exchange, acquiring livestock, collecting it at or near Gillette and selling it at auction. Their business is referred to in the record as one engaged in a sales ring. Their business amounted to some three and a half to four million dollars a year. When making sales they employed an auctioneer and also a man who “clerked the sales”. Defendant Snearly was employed to clerk the sales on behalf of the plaintiffs and was given authority to sign checks payable out of the bank account of the plaintiffs at Gillette. The business of clerking sales is described by defendant Snearly as follows (Q. 1168) : “My duties at the Livestock Exchange were to supervise the office procedure and to write the checks in payment to the consignors for their livestock and, after the sale was finished, to reconcile the consignors and purchasers of accounts as far as correctness of the sale was concerned.” The agreement between the parties, concerning which there is no dispute, was that Snearly was to receive the sum of $25 for each sale except that after September 1, 1956, he was to be paid $30 per sale. Plaintiffs testified that that was the only agreement between the parties and that Snearly was entitled only to the compensation for these sales, namely $4,750 for 190 sales at $25 per sale and $930 for 31 sales at the rate of $30 per sale, a total of $5,680. The original complaint of the plaintiffs was based on that theory, although the complaint was somewhat amended later, the particulars of which need not be mentioned herein.

The defendant Snearly paid himself the total sum of $27,245. He claimed he was entitled to this amount by reason of extra duties over and above that for clerking sales. This extra duty he described as follows (Q. 1170) : “Those duties were to do their bookkeeping service for the general account, to write checks in payment of their bills and their salaries of their employees and to take care of some of their correspondence and do other duties as they would ask me to do, and also to be of *232 assistance to them in any way that I could.” The trial court allowed the sum of $5,680 for clerking the sales and also allowed compensation for extra duties, namely $6,000 computed at the rate of $125 per month for 48 months for accounting and bookkeeping services and the further sum of $2,000 computed at the .rate of $500 per year for business consultations, preparation of income tax returns and other miscellaneous services. Adding these amounts makes $13,680 and. deducting that sum from $27,245 leaves $13,565 for which judgment was entered against Snearly in favor of the plaintiffs.

The testimony shows that Amy Wolf was employed by plaintiffs as a clerk at the agreed salary of $150 per month until June 1, 1956, and for the agreed sum of $250 during the balance of the year of 1956. The court found this to be true. This amounted to $6,830. The court allowed her $1,200 for extra services, making a total of $8,030. She was in fact paid by Snearly the sum of $10,012.50, making an excessive payment of $1,982.50, for which the trial court awarded judgment against her in favor of the plaintiffs.

Snearly attempted to justify the payment of $27,245 to himself. He .recapitulated the amounts due him by plaintiffs’ Exhibit 8 which was introduced in evidence. This exhibit is based in the main on his recollection as to the number of hours which he spent at bookkeeping and other miscellaneous work at $7.50 per hour. He testified that he kept account as to the number of hours on calendars but that these calendars were destroyed after the first of each year. While he computed all the work at $7.50 per hour as shown by Exhibit 8, he admitted in his testimony that part of his work was done by his clerks at $3 per hour and that these clerks did some 30 to 50 percent of the work, later changing that percentage to 20 percent of the work. We have examined all the exhibits introduced in evidence. We find some of the discrepancies in Exhibit 8 as follows: What appears to be the income tax return of the Gillette Livestock Exchange for 1954 (Exhibit 2) states the amount for “accounting” to be $4,206.72 while Exhibit 8 shows the amount earned by services rendered to be $4,875. Exhibit 3, which purports to be the income tax return of the Gillette Livestock Exchange for the year 1955, shows for “accounting and clerking” the sum of $5,130. Exhibit 8 shows the amount for clerking that year to be $1,350, which would actually leave for bookkeeping and so forth the sum of $3,780 while on the contrary Exhibit 8 shows for bookkeeping and so forth (aside from the amount for clerking) the sum of $7,650 or a difference of nearly $4,000. Exhibit 4, which purports to be an income tax return for 1956, shows “accounting expense” $3,070, while Exhibit 8 shows a charge for the same year for the same work to be $6,265 or a difference of over $3,000. It is quite apparent from this that the attempt of Snearly to justify his claim for $27,245 has utterly failed.

The witness Mountain, a certified accountant in the State of Montana, testified that he was familiar with matters connected with sales rings in and about Miles City, Montana, and that the sum of $125 per month over and above the amount paid for clerking the sales would be a generous compensation for the work involved.

Counsel for the defendants has made no attempt to justify the amounts claimed by the defendants and sets out no figures in his brief to justify the charges which were made by them. He contents himself by pleading and asserting that the payments made to the defendants must be regarded as voluntary payments and that plaintiffs are estopped to make the claims which they make herein and cannot recover them herein. He contends that if the plaintiffs did not actually know of these payments they should have known of them, so we shall turn our attention to these assertions.

The evidence shows that the plaintiffs had absolute confidence in the honesty and integrity of Snearly. They authorized him to write all the checks in connection with *233 their business including checks to himself. The financial affairs of the plaintiffs were conducted in the main by H. F. Hockett who had but an eighth grade education and whose eyesight had been bad for some five years, making it difficult for him to read. Both plaintiffs testified that they knew little about bookkeeping. They further testified, and the trial court found, that they did not know of the overcharges made by Snearly and the payments made to Amy Wolf until they had the books audited in the spring of 1957 by Mr.

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Bluebook (online)
352 P.2d 230, 1960 Wyo. LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snearly-v-hockett-wyo-1960.