95 N.Y.S. 125 | N.Y. App. Div. | 1905
Lead Opinion
This is an appeal from a judgment of the trial court in favor of the plaintiff, entered upon the direction of a verdict at the close of plaintiff’s case and from an order denying defendant’s motion for a new trial. Prior to November, 1888, William H. Appleton, Daniel Sidney Appleton, William W. Appleton and Daniel Appleton were engaged in business as copartners under the- firm name and style of D Appleton & Co., and the plaintiff, who had been the manager of the business of the copartnership at Chicago, Ill., was, on the 16th
It is the well-settled law of this State that when a verdict is directed by the court, after both parties have requested such direction, and the unsuccessful party has not asked to go to the jury, the decision of the trial justice upon the facts has the same conclusive effect upon appeal as if the verdict had been found by the jury upon submission of the case to them. (Adams v. Roscoe Lumber Co., 159 N. Y. 176.) All facts and inferences necessary to support the judgment, which could fairly have been derived from the proof given, must be deemed to have been found in favor of plaintiff, and our inquiry is limited, on this branch of the case, to the determination of whether such findings are justified by the evidence to an extent sufficient to support the judgment. (Davis v. True, 89 App. Div. 319.)
If the action were between the plaintiff and the firm of D. Appleton & Co. there would be no ground for contention, but it is claimed that, granting this, the evidence is insufficient to charge the defendant with the knowledge imputable to the firm, and does not furnish a sufficient or proper foundation for such conclusions of law or fact as is necessary to establish the liability of defendant in this action, and the question thus presented for our consideration is whether the evidence justified the conclusion reached by the trial justice that there was an existing yearly contract between the first corporation of D. Appleton & Co. and the plaintiff, which was renewed yearly during the existence of such corporation and operative and in force at the time of plaintiff’s discharge, and if so, whether the damages sustained by plaintiff by its breach were assumed by defendant when it succeeded the first corporation.
As between the plaintiff and the firm the latter were chargeable with knowledge of the contract made by the plaintiff with one of its members, to the extent of fixing the liability of the firm for damages resulting from its breach. Although the question presented is a close one and not entirely free from doubt, we are of the opinion that the liability assumed by the corporation was not limited to the payment of the existing indebtedness of the firm it succeeded. A fair construction of the instrument under which the property of the firm was transferred to the corporation charges the corporation,
The corporation became charged with knowledge of the plaintiff’s original contract; that it had been renewed from year to year ; that he was then in the employ of the firm under a yearly contract expiring on December 1, 1897, at an annual salary of $5,000, and his retention after that date, under the circumstances disclosed by the evidence, renewed the existing yearly contract which became operative and binding upon both parties until December 1, 1898.
. The contract was on each December first thereafter renewed by the retention of plaintiff at the same rate of compensation, and at the time of his discharge was an existing valid contract by the- provisions of which he was entitled to employment by the corporation until December 1, 1900, and to compensation for his services during that period of time at the rate of $5,000 per year.
It necessarily follows that his discharge without justifiable cause-on March 21, 1900, was a breach of the contract, and for the damages resulting therefrom the first corporation was liable. This obligation and liability the defendant assumed when it succeeded the first corporation.
The learned trial justice was justified in directing a verdict for the plaintiff; the judgment is supported by the evidence, and the order appealed from .must be affirmed, with costs.
Bartlett and Woodward, JJ., concurred; Jerks, J., not voting.
Concurrence Opinion
I concur in the view of this case which has been adopted by Mr. Justice Rich. The leading cases in the Court of Appeals on the duration of an indefinite contract of hiring are Adams v. Fitzpatrick (125 N. Y. 124) and Martin v. Insurance Co. (148 id. 117). In the Martin case it was held that an original hiring where no time was specified was only a hiring at will notwithstanding the agreement was for the payment of compensation at a
It is conceded that the corporation in March, .1897, on taking over the property and business of the firm, duly assumed its business obligations. The form of the assumption is not disclosed by the record, the parties having stipulated on the trial in general terms that the transaction was accomplished in this way: '' The firm of D Appleton & Company wrote a letter to the corporation offering to sell and transfer to that corporation all its assets, business and property subject to the payment of the business indebtedness of said firm, and the corporation passed a resolution agreeing to purchase the assets, business and so forth of the firm subject to such indebtedness of said firm to be assumed by the corporation.” The corporation retained the plaintiff for the year 1897 without any agreement between him and it, and credited him upon their boobs at the end of the year the precise sum which the firm had agreéd to pay him as annual salary and credited it to him as “ salary for the year.” In view of the nature of the plaintiff’s services, and the importance to both parties of an engagement for some definite period; in view of
If the corporation thus acquired and assumed the plaintiff’s contract with the firm to complete the employment for the year 1897 (as it certainly did carry it out in fact) I cannot see why, at the end of that year, the corporation was not in the same position logically as if it had made the bargain with the plaintiff for that year’s work. It assumed his contract whatever the terms may have been, and could not, without inquiry, deny knowledge of the nature and extent of the terms. It was chargeable, in any event, with the knowledge of such facts as inquiry would have disclosed. ( Williamson v. Brown, 15 N. Y. 354; Reed v. Gannon, 50 id. 345 ; Ellis v. Horrman, 90 id. 466; Fruhauf v. Bendheim, 127 id. 587.) If at the end of the year 1897, the corporation desired that the plaintiff should continue his services at will instead of under an annual contract, good faith required that some notice or announcement should have been given or made of the change, but he was kept until the receivership in 1900, credited on the books each year with
That the defendant corporation was created for the purpose of reorganizing the business of the first corporation and that on the purchase of the property of that corporation from the receiver it expressly assumed all its liabilities of whatever nature, is beyond dispute. The facts are so set forth in the complaint and, not being denied in the answer, are to be regarded as admitted.
Bartlett and Woodward, JJ., concurred.
Judgment and order affirmed, with costs;