113 Wash. 566 | Wash. | 1921
The pupose of this action was to recover one-half the loss sustained in the plaintiff’s business during the time the defendant was manager thereof. The trial to the court, without a jury, resulted in findings of . fact, conclusions of law and a judgment sustaining a recovery in the sum of $456.40. From this judgment the defendant appeals, and plaintiff prosecutes a cross-appeal.
On the second day of April, 1917, the plaintiff, being then the owner of a printing business of some considerable value, by written contract, employed the appellant to become manager thereof. The contract makes
“It is further agreed that, if the net earnings of the business, after deducting monthly depreciation and bad accounts which have been contracted after the date hereof, shall exceed thirteen per cent on the amount of business done, that the party of the second part shall be entitled to receive one-half of such excess, and if there be a loss the parties hereto shall share fifty per cent each in such loss, it being understood and agreed, however, that such profit sharing arrangement shall not be construed as giving the second party any interest in the business, but only as a method of determining the salary of second party.”
By this paragraph, the net earnings of the business, “after deducting monthly depreciation and bad accounts which have been contracted after the date thereof,” were to be divided as therein specified, and if there were loss, each party should share fifty per cent thereof.
The defendant’s first point is that it was error for the trial court to include, in the amount of the judgment, interest which had been paid by it upon outstanding obligations; the argument being that, since
The question, then, arises whether, in determining net earnings, the contract not having defined what is meant thereby, interest upon obligations owing by the plaintiff should be taken into consideration and deducted from the gross receipts. What would be the rule upon this question, as a matter of law, if the parties
By the plaintiff’s cross-appeal, it is sought to have the items of interest added to the amount of the judgment, which it claims was not done. But conceding that, by the construction put upon net earnings by the parties themselves, they were to be taken into consideration, it does not follow that the judgment should be increased. The items of bad accounts and monthly depreciation are of such a character that they cannot be measured with very great exactness. Considering all the evidence upon this branch of the case, we are of the opinion that it does not justify a modification of the judgment.
The defendant’s second point is that the trial court was in error in finding that the parties, at the end of the first fiscal period, or June 30, 1917, had agreed upon an adjustment or settlement up to that time. The plaintiff insists that the business prior to June 30 should be taken into consideration in determining the amount of liability, if any. The trial court found, upon evidence which is conflicting, that the plaintiff and defendant had agreed that neither should make or have any claim against the other, either for losses or profits, accruing to the business up to the thirtieth day of
Both parties having appealed, and neither having prevailed, no costs in this court will be allowed to either party.
The judgment will be affirmed.
Holcomb, C. J., Mount, Mitchell, and Tolman, JJ., concur.