St. Louis Trading Co. v. Barr

1934 OK 273, 32 P.2d 293, 168 Okla. 184, 1934 Okla. LEXIS 113
CourtSupreme Court of Oklahoma
DecidedMay 1, 1934
Docket21785
StatusPublished
Cited by18 cases

This text of 1934 OK 273 (St. Louis Trading Co. v. Barr) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis Trading Co. v. Barr, 1934 OK 273, 32 P.2d 293, 168 Okla. 184, 1934 Okla. LEXIS 113 (Okla. 1934).

Opinion

BUSBY, J.

This action was commenced on November 18, 1928, in the district court of Washington county by Hattie Barr as plaintiff, against the St. Louis Trading Company, a partnership composed of Nathan Greenberg and Phillip Levine, and against such partners individually, as defendants.

The plaintiff seeks to recover damages for the alleged breach of an oral contract to employ her for a period of 22 months. Counsel for the plaintiff concede that the contract falls within the statute of frauds. They contend, however, that the defendants are estopped to assert the statute of frauds as a defense under the facts in this case.

The trial of the case to a jury in the lower court resulted in a judgment for the plaintiff. The defendants appear herein as plaintiffs in error. Ear convenience the parties will be referred to in this opinion as (hey appeared in the trial court.

An examination of the record discloses that the evidence of the plaintiff tends to establish the following facts: In January of 1928, the plaintiff, Hattie Barr, was the owner of a general merchandise store at Nowata, Okla. She offered to sell her stock and fixtures to the defendant, St. Louis Trading Company, for $7,000. The defendant refused to pay that sum, but ora1l5r offered to pay $5,000 and to employ the plaintiff as clerk for a period of 22 months at a salary of $30 per week. This offer was orally accepted.

The $5,000 was paid to plaintiff and the stock of merchandise and fixtures were delivered to the defendants, together with aD executed bill of sale thereto. The defendants continued in business at Nowata for a period of two weeks, at the end of which time they sold out. During the two weeks that defendants operated their business at Nowata they employed plaintiff at the salary agreed upon. After they had disposed of their store they refused and failed to give plaintiff further employment.

The plaintiff in her petition pleads the oral contract and breach thereof. The defendants in their answer denied making any agreement to employ the plaintiff for any definite length of time, and as an additional defense asserted that such a contract, if made, was in violation of the statute of frauds and therefore unenforceable. The plaintiff filed a reply in which she asserted that by reason of the “facts pleaded herein” (apparently referring to the statements contained in her petition) the defendants were estopped to plead the statute of frauds.

The plaintiff neither alleged in her pleadings nor established by her evidence that the value of the stock of goods which she parted with was greater than $5,000, the amount which she received for the same. Neither did she plead or prove that she was deriving a fixed income from the operation of the store nor did she establish that she could not re-enter a similar business with equal chances of financial success. In other words, the plaintiff’s evidence tended to establish that, by reason of defendants’ promise to employ her for a period of 22 months, she was induced to alter her position, but it wholly fails to establish that this change of position resulted in any detriment to the plaintiff. The importance of this failure of proof will become obvious as we proceed to apply the law to the facts involved.

The sufficiency of the plaintiff’s evidence was challenged at the close thereof by a demurrer interposed by the defendants. It was again questioned at the close of all of the evidence by a motion fori a directed verdict. Both the demurrer to the evidence and motion for directed verdict were overruled by the trial court, to which rulings of the trial court the defendants excepted.

Subdivision one of section 9455, O. S. 1931, provides:

“The following contracts are invalid, unless the same, or some note or memorandum thereof, be in writing and subscribed by the party to be charged, or by his agent:
“Eirst: An agreement that, by its terms, *186 is not to be performed within a year from the making thereof.”

A contract of employment which cannot be performed within one year falls within the above-quoted section of the statute of frauds. 27 O. J. 186, par. 112. Contracts which are not to be performed within a year are not taken out of the statute by part performance. It is conceded by the parties that the contract of employment involved in this case, being impossible of performance within a year, is within tlib statute and that it is not removed therefrom by part performance. It is the contention of the plaintiff, in support of the judgment of the trial court, that, under the facts as pleaded and proved, the defendants were estopped from claiming the benefit of the statute above referred to.

In support of her position the plaintiff relies principally upon the case of Seymour v. Oelrichs, 156 Cal. 782, 106 P. 88, 134 Am. St. Rep. 154. A careful examination of that case- discloses that it is clearly distinguishable from the case at bar. In the cited ease the plaintiff,' Seymour, had a life position as captain of detectives in the city of San Francisco at a monthly salary of $250. On the strength of an oral promise made by an agent of the defendant to employ him for a period of ten years at a monthly salary of $300 per month, Seymour was induced to resign his lifetime job. The defendants breached the contract of employment, and when sued by Seymour for breach of contract pleaded the statute of frauds. In passing upon the ease, the California court held that the defendant was estopped to plead the statute of frauds for the reason that the plaintiff had altered his position to such an extent by reason of the oral promise that a, plea of the statute of frauds would result in an unjust and unconscientious injury to the plaintiff. In that case the court said:

“* * * n wag thg change of position caused by his resignation from the police department upon which his claim wholly rests * * *”
—and also:
“The injury done plaintiff by a repudiation of the promise by the defendants under these circumstances would certainly appear to be unjust and unconscientious. * * *”

As we have previously observed, the plaintiff in the case at bar did not establish that her change of position resulted in an “unjust or unconscientious” injury, or in fact any injury at all. As far as the record is concerned she may have received all that her store was worth or may have succeeded in disposing of an unprofitable business.

Unquestionably, in a proper case, a party may be estopped to plead the stat-, ute of frauds. Pomeroy’s Equity Jurisprudence (2d Ed.) pars. 2253, 1293, 859, 921, and 421. Estoppel to claim the statute as a defense in such cases is based upon equitable principles. The statute of frauds is designed as an instrument to prevent frauds, and a court of equity may prevent a party from taking advantage of the statute to perpetrate a fraud. The very essence of equitable estoppel is the resulting prejudice to the party who invokes the doctrine. Spencer v. First National Bank of Alva, 116 Okla. 178, 243 P. 943; Tidal Oil Co. v. Flanagan, 87 Okla. 231, 209 P. 729; Producers Supply Co. v. Render, 95 Okla. 212, 218 P. 304.

In the case of Bahnsen v. Walker, 89 Okla. 143, 214 P. 732, this court, in an opinion prepared by Mr. Justice Kane, quoted with approval the rule stated by the Iowa court in the case of Burden v.

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Cite This Page — Counsel Stack

Bluebook (online)
1934 OK 273, 32 P.2d 293, 168 Okla. 184, 1934 Okla. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-trading-co-v-barr-okla-1934.