Van Horn Drug Company v. Noland

1958 OK 51, 323 P.2d 366, 1958 Okla. LEXIS 353
CourtSupreme Court of Oklahoma
DecidedFebruary 25, 1958
Docket37884
StatusPublished
Cited by12 cases

This text of 1958 OK 51 (Van Horn Drug Company v. Noland) 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
Van Horn Drug Company v. Noland, 1958 OK 51, 323 P.2d 366, 1958 Okla. LEXIS 353 (Okla. 1958).

Opinion

CARLILE, Justice.

Thomas V. Noland, hereinafter called plaintiff, filed his action against the defendant, Van Horn Drug Company, a corporation, to recover damages for breach of a contract to operate a cafe as manager. Judgment was entered on the verdict of a jury for the plaintiff against the defendant for $428.56, and defendant appeals.

The record discloses that on the 1st day of February, 1956, plaintiff and defendant entered into a written contract, by virtue of which plaintiff was to operate the College Steak House, an eating establishment located in Stillwater, Oklahoma, hereinafter called cafe. The plaintiff commenced operating the cafe on the 3rd day of February, 1956. He was discharged March 15, 1956.

Under the terms of the contract he was to receive $100 per week and twenty-five percent of the profits, and further provided that the cost of the merchandise and the *368 cost of labor should not exceed a certain percent of the gross volume of the business, and that every six months there should be a determination or review of the business to determine such percentages. The contract also provided that plaintiff should devote his best efforts to the business under the direction and control of the employer. It also contained the following clauses:

“It is mutually agreed that the term of this contract, and the period of time for which second party is hired and employed hereunder, shall be the period from February 1, 1956, to and including the 31st day of January, 1957, provided that said business shall operate at a profit and in a manner satisfactory to both parties.
“It is further agreed by and between the parties hereto that this contract may be cancelled and terminated by either or both parties hereto at any time, and with or without just cause and both parties released from any future or further liability or obligation thereafter to the other party by either or both parties hereto giving written notice to the other providing for the termination and cancellation of this agreement at the end of thirty (30) days from the date of giving such written notice to the other party.”

This action was filed to recover salary for the thirty days following March 15, 1956, it being the position of plaintiff that he was entitled to the thirty days notice provided for in said contract.

Plaintiff testified at the trial that he was operating a cafe in Stillwater, Oklahoma, and Mr. Van Horn, Manager of defendant, came to him and asked him to become manager of the cafe to be located in a business rented by defendant; that he first went to the drug store operated by defendant and worked there until the building was conditioned for the cafe; that on February 1, 1956 he entered into the contract referred to above and operated under it until he was discharged on the morning of March 15, 1956, when he went to the cafe and found that defendant had placed another party as manager in charge, and on March 17th he received a registered letter from defendant advising him that he was realeased as of March 15th.

G. C. Van Horn, Manager of defendant company, was the only other witness. His testimony was to the effect that he was dissatisfied with plaintiff, and mentioned some instances in which he thought plaintiff did not properly operate the cafe, among them being that the plaintiff did not devote his entire time to the business, and that the expenses for labor ran in excess of the percentages fixed by the contract. He also testified that the business lost money during the period plaintiff was manager. He admitted that he had agreed about March 1st to lease the cafe to a Mr. Munsell and did not inform the plaintiff thereof. The defendant, in its answer, alleged that it did not cancel or terminate the contract under the thirty days notice clause, but that plaintiff was discharged by reason of the defendant’s dissatisfaction with plaintiff’s services by reason of his conduct, disloyalty, negligence and inefficient management of the business. The plaintiff, in his reply, denied generally the allegations of the answer and alleged that the primary reason defendant discharged plaintiff was in order that it might effect a lucrative lease on its premises with a third party.

It is argued by plaintiff in error, as its first proposition, that the court erred in not sustaining its demurrer to plaintiff’s evidence, and in denying its motion for a directed verdict. Defendant, in support of its first proposition, asserts that the contract of employment was to continue for one year, provided the business operated at a profit and in a manner satisfactory to both parties; that the business was not operated at a profit, and that defendant was dissatisfied with the manner in which it was operated, and likewise, was dissatisfied with plaintiff’s services, and asserts that to require the giving of thirty days written notice under the circumstances shown would completely destroy the provisions of the *369 contract providing for termination of the employment in the event of dissatisfaction by defendant and failure of the business to operate at a profit.

We are unable to agree with the defendant, and fail to see wherein there is any conflict in the provisions of the contract of employment, or that the enforcing of one provision would nullify the other. At one point in its brief defendant states that there is no conflict between the provisions in the contract. The defendant quotes from 35 Am.Jur. 463 on “Master and Servant”, which states that where one agrees to employ another as long as the services are satisfactory, the employer may, when actually dissatisfied and acting in good faith, discharge the employee. TJie text further states that it is proper to submit to a jury, when the evidence is conflicting, the question of whether the expressed dissatisfaction is genuine or merely feigned. The text and the rule there stated has little application to a contract such as the one now before us, which contains a provision that either party to the contract may terminate the same, with or without just cause, upon giving the specified thirty days written notice.

Under the contract in the case at bar the right of either party to terminate the contract does not depend upon the good faith or dissatisfaction of either party, but specifically provides that the contract may be terminated, with or without just cause, upon giving the required notice.

The defendant cites the case of Roxana Petroleum Co. v. Rice, 109 Okl. 161, 235 P. 502, which opinion follows a similar rule to that referred to and found in 35 Am.Jur. 463, supra. Defendant also cites the California case of Tiffany v. Pacific Sewer Pipe Co., 180 Cal. 700, 182 P. 428, 6 A.L.R. 1493, which involved a contract which required the employee to turn out a product satisfactory to the employer. The court there held that the employer’s decision that he was not satisfied was conclusive on the employee. That contract apparently contained no provision for cancellation of the contract prior to its term, and the case is without application, as we view it, to the facts and circumstances of the case at bar.

Defendant calls attention to 15 O.S.1951 § 157, which is as follows:

“The whole of a contract is to be taken together, so as to give effect to every part, if reasonably practicable, each clause helping to interpret the others.”

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Bluebook (online)
1958 OK 51, 323 P.2d 366, 1958 Okla. LEXIS 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-horn-drug-company-v-noland-okla-1958.