Warner v. Channell Chemical Co.

208 P. 1104, 121 Wash. 237, 1922 Wash. LEXIS 1002
Washington Supreme Court·Decided September 11, 1922·No. No. 17088·Published·Cited by 22 cases

Opinion

Tolman, J.

Respondent, as plaintiff, brought this action to recover from appellant upon two causes of action; first, for commissions earned under a written contract of employment; and second, for damages flowing from the alleged breach of the contract. The cause was tried to the court without a jury, resulting in findings and judgment in respondent’s favor for $2,313.42, and interest, on the first cause of action, and $11,260 on the second cause of action.

In presenting the case here on this appeal, the appellant does not question the recovery on the first cause of action, hut raises six questions, all going to the right of recovery upon the second cause of action. All of these will he considered, bnt grouped somewhat in the interest of brevity.

[239] It appears that respondent, then being an employee of appellant’s in Chicago, on June 12, 1918, entered into the following contract with appellant:

“An agreement made the 12th day of Jnne, 1918, between the Channel! Chemical Company, a corporation organized and existing under the Laws of the state of Illinois (hereinafter called the company), of the one part, and Walter H. Warner (hereinafter called the salesman), of the other part.
“Whereby It Is Agreed as Follows:
“1. The company will employ the salesman and the salesman will act as salesman for the company from June 15th, 1918, until December 31st, 1919, and thereafter until this agreement shall be determined in the manner hereinafter provided.
“2. During the continuance of this agreement the salesman shall devote the whole of his time to the business of the company and shall use his best endeavors to promote its interest and welfare. He shall not without permission of a proper officer directly or indirectly deal in any shares of any other company carrying on a similar business, and shall exercise and carry out all orders and duties and shall observe all such directions and restrictions as the officers or any of them may from time to time impose upon him. He shall be entitled to take two weeks consecutive holidays in each year at a period to be approved by the proper officer and such other holidays not exceeding a total of ten days in any one year as may be approved.
“3. The salesman shall be entitled by way of remuneration for his services to a commission of 7% on the net amount of goods shipped to his territory, which shall be the states of Oregon and Washington.
“4. The salesman undertakes and agrees to sell during the remaining months of 1918 an amount equal to the corresponding months in 1917, and to seli during 1919 a total of $120,000 net shipments. All orders or business received from said territory during the life of this contract shall be credited to the salesman. And all orders are subject to acceptance by the company. The salesman further undertakes to increase the busi[240] ness 10% net in 1920 over 1919 business and 10% each year over the preceding year, and this contract shall continue in full force and effect provided the salesman makes the agreed sales. In default of such increase it is agreed that the company may dispense with the services of the salesman upon two weeks’ written notice, but the absence of such action on the part of the company shall not operate as a waiver of this paragraph but the company may exercise such right at any time thereafter, unless subsequent sales bring up totals to required amount.
“5. The salesman shall be allowed a drawing account of $150 per week, and all expenses of travel, hotel, etc., shall be borne by the salesman. This drawing account to be charged to the salesman against his commission account, and final settlement to be made at the end of the year.
“6. If the salesman shall at any time be incapacitated by illness or otherwise from performing his duties as such for three consecutive months this contract to be void at the option of the company or if he shall in the option of the board of directors be or become in any way unfit either morally or physically to act as salesman the company may by three calendar months’ notice in writing put an end to this agreement notwithstanding anything hereinbefore contained.
“7. The salesman shall send in daily reports, route cards and other data as requested. The company reserves the right to cancel this contract at the end of any six months’ period in each year should the net sales be less than the corresponding period of the previous year.
“8. The salesman shall come to the home office once each year at a time set by the company and the railroad fare for such trip to Chicago shall be borne by the company.
“9. All agreements, contracts, understandings, or arrangements which may have been heretofore made or had with reference to the employment of the said party of the second part by the party of the first part, [241] or with reference to the compensation of the said party of the second part, for or in respect to such employment, are hereby wholly abrogated, discharged, and annulled; it being hereby agreed that this writing constitutes and express the whole agreement of the parties with reference to the employment, and compensation for or in respect to such employment, of the party of the second part by the party of the first part, all promises, undertakings, representations, agreements, understandings, and .arrangements with reference to such employment and compensation being herein merged.”

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Warner v. Channell Chemical Co., 208 P. 1104, 121 Wash. 237, 1922 Wash. LEXIS 1002 (Wash. 1922).

208 P. 1104 (Warner v. Channell Chemical Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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