V. Schwan & Co. v. Clausen

2 Teiss. 116, 1905 La. App. LEXIS 11
CourtLouisiana Court of Appeal
DecidedFebruary 6, 1905
DocketNo. 3619
StatusPublished

This text of 2 Teiss. 116 (V. Schwan & Co. v. Clausen) 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
V. Schwan & Co. v. Clausen, 2 Teiss. 116, 1905 La. App. LEXIS 11 (La. Ct. App. 1905).

Opinion

MiOOjRE, J.

This was a suit on fourteen promissory notes made by the defendant, dated April 1st, 1900, payable monthly and aggregating the sum of $333.39.

The defense was want of consideration.

There was judgment for the plaintiff as prayed for, and defendant appeals.

The evidence, as we appreciate it, discloses the following facts.

The plaintiff corporation was organized under the limited-[117]*117liability act and was engaged in the wholesale grocery business. The sole holders and owners of the capital stock were V. Shwan, Geo. A. Villere and a Mr. White.

Villere was the vice-president and general manager of the concern, and as such, and especially by authority of a resolution of the board of directors, had full and sole authority to employ and discharge all the employees and to fix their respective salaries.

Among the employees of the establishment was George H. Clausen, defendant. He was employed as t'he head of the sales department and had been in plaintiff’s employ for about five years. He was employed by Mr. Villere and originally at a salary of $75.00 per month; within two months thereafter, his ability and integrity, and proficiency, influenced Villere to increase the salary to $100.00 a month, and subsequently, and up to the 1st day of September, 1898, to $125.00 a month.

About the month of August of that year defendant was offered a larger salary elsewhere and so informing Villere, .he expressed his intention of leaving the firm. Villere protested against losing an employee in whom, as he testified, he “had a great deal of confidence” and whom he regarded not only as “really the only valuable clerk in that store,” but at once “one of the best grocery-men in the City of New Orleans”; and as an inducement to his remaining offered to raise defendant’s salary to $1-7*5.00 per month beginning on the 1st day of September, 1899. The offer' was accepted and Clausen remained. Mr. Villere, however, stated to Clausen, that he did not wish the other clerks in the house to know of this increase of salary as they would, in that event, annoy him with demands for an increase of their salaries, and it was then suggested by Villere that in order to prevent the knowledge of the increase being knowing to the clerks Clausen’s salary account on the ’books of the concern would continue to show a monthly credit of only $125.00; but that he, defendant, could, nevertheless, overdraw that amount at the rate of fifty dollars [118]*118per month for the insuing year, and that upon balancing of the books and Clausen’s account at the end of the year, the extra allowance of $50.00 per month would be charged off to salary ■account.

Under this agreement, which was known to all the three stockholders of the corporation, and to the bookkeeper and cashier, Clausen drew his regular salary, and from the 1st day of September, 1898 to the Tst day of May, 1899, he also drew some four hundred dollars on account of this extra allowance, which, it appears, was charged up to expense account as each'sum was drawn.

In the month of April, 1899, V. Schwan, who was the principal stockholder in the concern, died and his heirs, who were all of age, succeeded to his interest in the company.

About this time Villere and White became dissatisfied with the conditions then existing- in the affairs of the company and sold their stock to the Schwan heirs and retired from the concern.

The Schwan heirs were fully advised by Villere, prior to his retirement from the business of the arrangement he had made with Clausen as to his salary and was also so informed by Clausen himself as soon as these new parties came into control.

No objection of any kind whatsoever was raised by them at the time as to this arrangement. It was not suggested that Villere had exceeded his authority or that Clausen did not decline the increase; nor was there any protest, suggestion or intimation that the extra allowance of $50.00 per month for the past 8 months was not just and proper and should not stand as covenanted between the parties. It was urged, however, by the new management/that for the future, (from the 1st of May, 1899, on to ^ie •end of employment) it would be impossible to allow Clausen a salary of more than $125.00 per month. When this was suggested to Clausen he requested that two or three days be given him to reflect over the proposition, which delay was granted. [119]*119Subsequently, when -he discovered that he could not better himself elsewhere at that season of the year, he consented to remain at his old salary of $125.00 a month.

Pie continued in plaintiff’s employ nearly thirteen months after this, and during this period not the slightest mention was made of the extra $50.00 per month which he had been drawing for the eight months preceding this new management, nor was any suggestion made or intimation given that the amount so drawn was considered in the light of an “overdraft” for which Clausen was responsible, until the month of April, 1900, when 'Clausen informed the company that he had been offered, and had accepted, employment with J. & M. S'chwabacker, who were engaged in the same line of business as that -conducted by plaintiff, at a larger salary than what he was then receiving.

Then it was that he was informed by -his employees that the plaintiff regarded the amount which he had drawn on account of the increase of salary as an “overdraft” which must be reimbursed, adding that he could not secure any employment from the Schwabachers until that matter had been settled as the Schwa-bachers had informed plaintiff that they would not take 'Clausen in their employ until he had made arrangements to settle that "overdraft.”

Fearing to lose the opportunity thus offered him by the Schwa-bachers for the bettering of his position through what he believed to have been the report of his house to the Schwabachers that he had improperly overdrawn his account and had failed to make it good; and not doubting his employer’s statement that the Schwa-bachers had declared that they would not give him employment unless 'he provided for the liquidation of the alleged overdraft, he yielded to the demands of plaintiff and executed the notes sued on and instantly severed -his connection with the plaintiff and accepted employment with the Schwabachers where he is still employed.

[120]*120Tt subsequently developed that the reported declaration of the Schwabachers was false. They had made no such statement to plaintiff or to any one else. They did not even know of the transaction at all when they took Clausen into their service and never learned of the matter until some few months prior to the institution of the present suit which was filed on the 15th day^of May, 1901, (thirteen months after the notes had been obtained), at which time 'Clausen informed them of all the facts and they then advised him to resist suit to the end.

Comment on the conduct of the plaintiff company in this particular is unnecessary.

The testimony of the defendant as to his right to what the plaintiff calls the ''overdraft”, is clear, direct and positive. It bears upon its face the stamp of truth and besides is fully corroborated by Villere, the vice-president and general manager, and by the then cashier, who testified that the sums thus drawn by defendant were ai once charged to “expense account” which is the proper account to which all expense shown by salary accounts are finally carried.

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Bluebook (online)
2 Teiss. 116, 1905 La. App. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/v-schwan-co-v-clausen-lactapp-1905.