Waldman v. Englishtown Sportswear, Ltd.

92 A.D.2d 833, 460 N.Y.S.2d 552, 1983 N.Y. App. Div. LEXIS 17211
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 29, 1983
StatusPublished
Cited by59 cases

This text of 92 A.D.2d 833 (Waldman v. Englishtown Sportswear, Ltd.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waldman v. Englishtown Sportswear, Ltd., 92 A.D.2d 833, 460 N.Y.S.2d 552, 1983 N.Y. App. Div. LEXIS 17211 (N.Y. Ct. App. 1983).

Opinion

— Order of the Supreme Court, New York County (Tierney, J.), entered November 17, 1981, denying defendants’ motion for summary judgment dismissing the complaint, granting plaintiffs leave to amend the complaint and denying plaintiffs’ cross motion for partial summary judgment on the second cause of action in the amended complaint, is modified, on the law, to the extent of dismissing the second, third, fifth, sixth, eighth and ninth causes of action of the original complaint as to all defendants and dismissing the first, fourth and seventh causes of action of the original complaint as to the individual defendants, denying plaintiffs’ motion for leave to amend the complaint with respect to the proposed second cause of action, and otherwise affirmed, without costs. Defendant Englishtown Sportswear, Ltd. (Englishtown) is a manufacturer of clothing. Defendants Martin and Isidore Heinfling are officers of Englishtown. Plaintiff Martin Waldman is an independent sales representative who acts as a salesman for various companies. In November, 1980, Waldman formed plaintiff Waldman Sales Associates, Inc. (Waldman Sales) for the purpose of carrying on his independent sales activity. In late December, 1979 or early January, 1980, English-town employed Waldman as its sales representative for its “Sergio Valente” line of jeans on a 6% sales commission basis with a weekly draw of $750 to be credited against commissions earned. The oral employment agreement between the parties was terminable at will. In June of 1980, Waldman was advised by Englishtown that his commission for future sales would be reduced to 4%. The reason given for this reduction was that Englishtown’s substantial advertising expenses had resulted in the “Sergio Valente” line selling itself. Although plaintiff expressed his indignation at the change in commission rate, he elected to remain as a sales representative. In October, 1980, Englishtown decided to curtail its commission program since its television advertising campaign had largely reduced the work of its sales representatives to clerical “order taking.” Plaintiff, along with others, was invited to stay on as a salaried [834]*834employee of Englishtown. Waldman refused the offered salary of $86,000 per year and continued as an independent sales representative. No commissions, however, were paid to plaintiff subsequent to October, 1980 although he continued to receive his weekly draw of $750. In January of 1981, Englishtown had a trade show and Waldman advised defendants that he would not write orders at that show unless Englishtown either paid him or acknowledged in writing that commissions were due him at the rate of 6%. Englishtown rejected this ultimatum and terminated Waldman’s representation on or about January 8, 1981. Defendants contend that plaintiff was fired for cause due to his refusal to take orders at the January, 1981 trade show. While acknowledging that his employment agreement was terminable at will, plaintiff Waldman asserts that defendants at the inception of the agreement assured him that his commission rate would not be reduced as long as he represented them with respect to the “Sergio Valente” line. In addition, plaintiff submitted an affidavit from an officer of a national organization of sales representatives asserting that it is usual in the industry to give a 60-day notice of termination when there is a termination without cause. The original complaint contains nine causes of action as follows: The first cause of action alleges breach of contract in that defendants have failed to pay plaintiff Waldman 6% commission for the entire period of employment from January, 1980 to January 7, 1981 (the same relief is sought in respect of the corporate plaintiff Waldman’s sales for the period November, 1980 — when the corporation was set up — to January 7,1981); the second cause of action alleges an open book account, i.e., that defendants’ open book record shows open orders for which plaintiff should receive credit when such orders are filled; the third cause of action alleges fraud and the tort of intentional misrepresentation in that at the time the agreement was entered into, the defendants represented that plaintiff Wald-man would receive 6% commission as long as he was employed by them, which representation they knew to be false; the fourth cause of action seeks to recover for services rendered on the basis of quantum meruit; the fifth cause of action alleges wrongful discharge; the sixth cause of action alleges that discharge without cause could be effected only upon 90 days’ notice of termination and that failure to give such notice was wrongful; the seventh cause of action pleads unjust enrichment; the eighth cause of action seeks an accounting and the ninth cause seeks to impose a constructive trust. Defendants served an answer alleging, inter alla, as affirmative defenses estoppel and the Statute of Frauds. Defendants moved for summary judgment pursuant to CPLR 3212 dismissing the nine causes of action set forth in the complaint. Plaintiffs cross-moved for an order permitting them to serve an amended complaint which differed from the original complaint only in that the second cause of action was amended to plead an account stated, and for partial summary judgment on the second cause of action, as so amended, in the sum of $33,909.18. Special Term granted plaintiffs’ cross motion to the extent that it sought “leave to amend the second cause of action, to delete the claim entitled openbook account and to replace same with a new cause of action for an account stated for commissions due and owing [based on] various invoices and salesmen commission reports”, but denied summary judgment relief on the proposed new cause of action because “certain of the invoices contain material errors and omissions” and the issue of whether these materials amount to an account stated or an open order book is disputed. While recognizing that the oral employment agreement was terminable at will, Special Term denied defendants’ motion for summary judgment on the ground that material issues of fact are raised respecting defendants’ alleged “fraudulent misrepresentation” and the “reasonable value of Waldman’s services as well as the amount of commissions alleged to be due [835]*835and owing under the agreement”. The general rule governing an employment contract having no definite time as to duration is as follows: “Where the contract does not in express terms or by fair implication fix the duration thereof and it does not appear that a reasonable time is intended, the contract is subject to be terminated at the will or pleasure of either of the parties, upon giving a reasonable notice to the other” (22 NY Jur 2d, Contracts, § 424). Plaintiff Waldman admits that “[t]here was no specific understanding regarding the duration of my employment by [defendants]. There was an implicit understanding between us, consistent with the practice in the trade, that my employment was terminable at will upon reasonable notice. (This is not to say that notice would have been required had I committed some serious infraction which would have justified immediate termination for 'cause’).” In Horowitz v La France Inds. (274 App Div 46), this court was confronted by a similar situation. The plaintiff salesman employed on a commission basis under an oral contract of indefinite duration was informed by the defendant during the course of the agreement that the rate of compensation would be prospectively reduced by 10%. Plaintiff continued in the employment and upon termination sought to recover as commissions, the difference between the rate as originally set and the subsequent reduced rate. The court observed (p 47): “Plaintiff was engaged by defendant under an oral agreement without any specified duration.

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Bluebook (online)
92 A.D.2d 833, 460 N.Y.S.2d 552, 1983 N.Y. App. Div. LEXIS 17211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waldman-v-englishtown-sportswear-ltd-nyappdiv-1983.