Ullmann v. May

72 N.E.2d 63, 147 Ohio St. 468, 147 Ohio St. (N.S.) 468, 34 Ohio Op. 384, 1947 Ohio LEXIS 425
CourtOhio Supreme Court
DecidedFebruary 28, 1947
Docket30767
StatusPublished
Cited by122 cases

This text of 72 N.E.2d 63 (Ullmann v. May) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ullmann v. May, 72 N.E.2d 63, 147 Ohio St. 468, 147 Ohio St. (N.S.) 468, 34 Ohio Op. 384, 1947 Ohio LEXIS 425 (Ohio 1947).

Opinion

Turner, J.

The decision of this case rests upon whether there is any unlawfulness or ambiguity in the provision of the agreement to the effect that commissions were to be paid only during the time that the agreement remained in full force and effect.

It is to be observed at the outset that the agreement here under review does not contemplate the sale of merchandise. It does involve the “sale” of the employer’s services to be performed for clients obtained by the salesman and paid for by such clients as billed by the employer and collected from the clients. Items (5) and (6) leave no doubt that the practice did not *474 differ from the terms of the agreement that .appellant’s commissions were to be paid only on such sums of money as were billed to and collected from each individual client personally procured by appellant.

The agreement provided:

“(c) In addition to payment due under provisions above [about which there is no dispute], commissions will be paid employee as shown below on all sums of money billed to, and collected from each individual client personally procured by the employee; said commissions to be paid only during the time this agreement remains in full force and effect.”

The agreement contained the further provision that:

“This contract of employment may be terminated by either of the parties, hereto upon giving to the other ■party not less than seven days’ written notice of the intention to cancel this "agreement. ’ ’

There was no breach of the contract unless the failure to pay appellant a commission on billings and collections made subsequent to the termination of the contract constitutes such breach.

The trial court found that there was a termination of the agreement ás of the 26th of December 1944. Subsequent to the termination of the agreement, $79,000 of additional collections were made from clients procured by appellant.

Appellant claims to be entitled to the sum of $4,000 as commissions on such last mentioned collections. Appellant’s claims'and our conclusions thereon may be summarized as follows:

Appellant claims: ‘ That the commissions were payable absolutely.” We are of the opinion that the commissions were payable conditionally and that such condition was not fulfilled.

Appellant claims: “That the discharge was in bad *475 faith and wrongful.” There is no proof to support this claim.

Appellant claims: £ £ That under quantum meruit and unjust enrichment theories plaintiff was entitled to recovery.” Neither of these theories applies for the reason that there is an express contract which has not been breached, and no fraud or bad faith necessary to support the theory of unjust enrichment has been shown.

It is to be noted that the provision for the payment of commissions is contained in a single sentence which we do not find to be either unlawful or ambiguous. Appellant argues for a ££fair and reasonable construction rather than a harsh or unreasonable one; an equitable construction rather than one giving a party an advantage over the other; one that would make the contract i’air, customary and one which pz-udezzt mezz would naturally execute as contrasted to inequitable, unusual, hard, and such as one would not likely enter izzto.” The “construction” contended for by appellant would not be a construction at all but would amount to the making of a new contract for the parties, which is not the function of a court.

Appellant argues that ££ commissions belong to the salesman upon «procuring the client or order. They are payable absolutely.”

This claim is contrary to the plaizz provisiozz that commissions would be paid on all sums of money billed to and collected from each client procured by the employee with the clear limitation that such commissions are to be paid only during the time the agreement remains in full force and effect. The stipulations and the agreement indicate that the' salesmazz’s service to the clients which he procured followed through during the period appellant’s employer was employed by such client unless the agreement between appellant and his employer were terminated.

*476 That the terms of the agreement appear (and may work out to be), harsh may be admitted, but unless there is fraud or other unlawfulness involved, courts are powerless to save a competent person from the effects of his own voluntary agreement. In other words, courts do not relieve competent parties from an improvident agreement.

In the per curiam opinion in Ohio Crane Co. v. Hicks, 110 Ohio St., 168, 172, 143 N. E., 388, it is said:

“We recognize the fact that, where a contract is plain and unambiguous, it does not become ambiguous by reason of the fact that in its operation it will work a hardship upon one of the parties thereto and a corresponding advantage to the other, that it is not the province of courts to relieve parties of improvident contracts * *

In 12 American Jurisprudence, 641, Section 149, it is said:

. “It is the inherent and inalienable right of every man freely to deal or refuse to deal with his fellow men. Competent persons ordinarily have the utmost liberty of contracting, and their agreements voluntarily and fairly made will be held valid and enforced in the courts. Parties 'may incorporate in their agreements any provisions that are not illegal, or violative of public policy. ’ ’

While the. appellant alleged bad faith and fraud on the part of May in his petition, we are unable to’ find any proof thereof in the stipulation of facts which contains all the evidence upon which this case was tried. To establish fraud or bad faith, clear and con.vincing proof is required.

We cannot deduce fraud or bad faith from the fact that the employer followed the terms of the agreement which plainly states the personal service nature of the employer’s business. Unless a salesman is able *477 to produce business,' the employer cannot keep bis force of accountants and engineers busy which, of course, results in a loss to the employer. In item (5) of the stipulation set out above in the statement of facts the only business procured by appellant had been “procured by plaintiff many weeks prior to December 23, 1944.” It was stated in the employer’s letter of December 19, 1944: “We regret that our association did not prove to be mutually profitable, * * * however we do have must performance standards. * * * ” In appellant’s letter of December 24,1944, appellant gives his version of why these “must” standards have not been met. (Appellant was not advised of such standards.)

In 26 Ohio Jurisprudence, 222, Section 91, it is said:

“If an employment is at will, the employer may discharge the employee at any time without incurring any liability as for breach of contract. ’ ’

In the dissenting opinion in the Court of Appeals it is said:

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Cite This Page — Counsel Stack

Bluebook (online)
72 N.E.2d 63, 147 Ohio St. 468, 147 Ohio St. (N.S.) 468, 34 Ohio Op. 384, 1947 Ohio LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ullmann-v-may-ohio-1947.