Willson v. Niagara Duplicator Co.

198 P.2d 362, 88 Cal. App. 2d 63, 1948 Cal. App. LEXIS 1436
CourtCalifornia Court of Appeal
DecidedOctober 19, 1948
DocketCiv. 13672
StatusPublished
Cited by1 cases

This text of 198 P.2d 362 (Willson v. Niagara Duplicator Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willson v. Niagara Duplicator Co., 198 P.2d 362, 88 Cal. App. 2d 63, 1948 Cal. App. LEXIS 1436 (Cal. Ct. App. 1948).

Opinion

PETERS, P. J.

Plaintiff brought this action to recover certain commissions allegedly earned by him while employed by defendant under a written contract as sales manager and director of public relations. The main question presented is whether the written contract provided for commissions on all contracts secured by the company while plaintiff was employed, or provided for commissions on transactions only where the customer was billed during the term of the employment. Involved in the determination of this question is the problem as to whether parol evidence was properly admitted to explain the written document. The trial court determined all basic issues in favor of plaintiff, and granted him judgment in the sum of $4,142.63. Defendant appeals.

The original complaint prayed for commissions under the contract, and alleged, substantially, that defendant’s president had deceived plaintiff with respect to the meaning and effect of the contract. The amended complaint made the same essential allegations, and, in addition, set up a cause of action, for declaratory relief to have the meaning of the contract ascertained. At the trial plaintiff abandoned his cause of action for declaratory relief when it appeared that all of the trans *65 actions had been completed and were proper subjects of a money judgment. During the trial, over the objections of defendant, the plaintiff was permitted to file a second amended complaint to conform to the proof. That complaint set up the contract, the nature and extent of defendant’s business during plaintiff’s employment, and repeated, in greater detail, the charges against defendant of misrepresentation and fraud.

The facts most favorable to plaintiff are as follows: L. John Himes was the president and principal stockholder of defendant corporation. All negotiations with plaintiff on behalf of the corporation were carried on by Himes, and it is admitted that he had full authority to act. The business of the company (manufacture of stencils, etc.) was adversely affected by the war. Himes desired to get some subcontracts to manufacture or machine airplane parts. The then existing staff of the corporation was not securing this business, and it was to assist in this regard that plaintiff was employed. Plaintiff is an engineer with over 15 years’ experience in the airplane industry. He first met Himes in November, 1942, and at that time Himes told him that he wanted someone who knew the aircraft industry and who had the proper contacts to get the business. In December of 1942, plaintiff was hired as director of public relations of the defendant at a salary of $400 per month. His chief duty was to introduce the defendant’s staff to executives in the aircraft industry. Plaintiff worked under this arrangement until March, 1943, and apparently his services were most satisfactory. On March 6, 1943, plaintiff visited Himes at the latter’s home in Arizona. At that time “Himes stated that they were in great need of aircraft business; that Mr. Springer [the then sales representative of defendant in Los Angeles] had not been able to get any orders up to this time; and that if I would take on the job of getting the orders, in addition to just introducing the company to the aircraft industry, he would pay me one per cent of all the business I got as orders, and one-half per cent on all the business that Mr. Springer got with my assistance.” On March 12, 1943, Himes verified this oral arrangement by a letter to plaintiff, stating that a formal contract would be later prepared “but you can take this in meantime as fact we agree you are to receive 1% on net sales you turn in as orders.” Plaintiff worked under this arrangement until April 23, 1943, and again his services must have been most satisfactory. On this date he again conferred with *66 Himes in Los Angeles. At this conference “Himes told me that he was reorganizing his company, or making some organizational changes in the company, and that he would like to have me take the responsibility of all sales, and be the sales manager. And I asked Mr. Himes what he had in mind. And Mr. Himes said that he wanted me to be the sales manager, and that he would increase my salary $100.00 per month, and give me one-half of one per cent override on all the business done by the company.” Plaintiff was also to be elected a vice-president of the company. It was agreed that some minimum amount of business should be excepted from the commission rights of plaintiff, but at this meeting the exact amount of this minimum business was not agreed upon. Plaintiff suggested that the amount of business done between January 1st and May 1st be averaged, and that this figure be the amount to be excepted. Later Himes suggested that this figure be $40,000 per month, but this was unacceptable to plaintiff. The parties finally agreed that the figure should be $20,000 per month. Plaintiff testified that his commission was to attach to “all business” done by the company in excess of $20,000 per month. Plaintiff admitted that prior to this meeting the company had some aircraft business, but it is quite apparent that at that time such business was not very substantial.

At this point a fundamental distinction between the duplicator and the aircraft business of the company should be noted. In manufacturing stencils and other duplicators the company owned the materials, and owned the finished product. This product is sold to its customers. Thus, as to this business, an actual and legal sale took place. The aircraft business was of an entirely different nature. Defendant’s plant was equipped to do machine work, and the machinery was peculiarly adapted to machining certain gear boxes to be installed on military aircraft. The desire of Himes was to secure, from the companies constructing the aircraft, subcontracts to machine these gear boxes. As to these contracts the aircraft company or the government furnished the materials, and the subcontractors, such as defendant, merely furnished the services of machining the product. Obviously, as to this work of the company there never was a “sale” in the legal sense.

The parties agreed that the arrangement arrived at April 23, 1943, should be reduced to writing. It is admitted that ,on May 1, 1943, plaintiff assumed his new duties under this arrangement, and his increased salary was paid from that *67 date. Various office memoranda were prepared by Himes informing the organization of the new setup and telling the staff that plaintiff was in full charge of all “sales.” It is conceded that, from the time that this arrangement went into effect, until November 14, 1943, when plaintiff quit, contracts totaling over a million and a half dollars were secured from aircraft companies to machine gear boxes. Some of this work was done and some payments for such work were received by the company after plaintiff quit the employment. The basic question involved is whether plaintiff is only entitled to commissions where the work was completed and the aircraft companies billed for the work before November 14, 1943, or whether he is entitled to commissions for all work secured while he was sales manager, less $20,000 per month, even though the company did not finish the work or bill the aircraft companies until after that date. If the latter, the plaintiff has earned commissions in the amount found by the trial court.

The dispute arises because of the following facts: As already pointed out, it was agreed that the arrangement of April 23, 1943, was to be reduced to writing.

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Bluebook (online)
198 P.2d 362, 88 Cal. App. 2d 63, 1948 Cal. App. LEXIS 1436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willson-v-niagara-duplicator-co-calctapp-1948.