Appellee initiated an action to recover for appellant’s alleged breach of a “franchised contractual relationship.” At trial, appellant moved unsuccessfully for a directed verdict and the case was submit
1. The evidence admitted at trial, construed most favorably for appellee, showed that the “franchised contractual relationship” consisted of an oral agreement whereby appellee was to serve as the distributor for appellant’s dairy products in a designated geographic area. Although appellee contends that his distributorship was exclusive and “permanent,” it is clear that, as a matter of law, it was for an indefinite period and terminable at will and that appellee therefore had no viable claim for appellant’s alleged “wrongful termination” of the relationship. The Statute of Frauds would render appellee’s alleged oral contract for a “permanent” distributorship unenforceable. “Such a contract must be in writing.”
American Standard v. Jessee,
Appellee had “no written contract of employment and was, thus, an employee terminable at will. In the case of an employee terminable at will, there can be no cause of action for wrongful termination. [Cit.]”
Shannon v. Huntley’s Jiffy Stores,
2. However, simply because appellee had no viable “wrongful termination” claim, it does not necessarily follow that he had no viable claim whatsoever based upon his oral contractual relationship with appellant. A writing would be a threshold requirement to the enforceability of any executory elements of appellee’s alleged distributorship relationship, but not as to any of the executed portions. “The provisions of [the Statute of Frauds] do not extend to . . . cases: Where there has been performance on one side, accepted by the other in accordance with the contract.” OCGA § 13-5-31 (2). See also OCGA §
In addition to his non-viable claim for wrongful termination, appellee was apparently also advancing a claim for unpaid consideration that was due him under the contract as it had been executed. Appellee presented evidence that, in the course of the relationship, appellant orally agreed that the price at which it had made its dairy products available to him in the past had been too high and that, as the result, appellee would be afforded a “credit” against his future purchases. Appellant’s Statute of Frauds defense would not be viable as against enforcement of the alleged oral “modification.” See generally
Dan Gurney Indus. v. Southeastern Wheels,
3. For the reasons discussed in Division 1, the trial court erred in failing to grant appellant’s motion for a directed verdict or for judgment n.o.v. as to appellee’s “wrongful termination” claim. For the reasons discussed in Division 2, the trial court correctly denied appellant’s motions for a directed verdict as to appellee’s “modification” claim. However, the verdict returned by the jury does not indicate whether it was based upon the viable or the nonviable claim. Under these circumstances, the denial of the motion for judgment n.o.v. as to appellee’s “wrongful termination” claim is reversed with direction
Judgment reversed with direction.
