Lead Opinion
This appeal involves an action for breach of contract brought
The plaintiff worked for the city under the contract for over two years and received two 10% increases of his annual fee so that it became $1,915.83 per month. On September 20, 1983, the city sent a letter to plaintiff: “You are hereby notified that, because of certain material breaches by you of the referenced agreement [of August 20, 1981], your services thereunder are no longer desired, effective upon your receipt of this notice.”
By suit, Hildebrand sought damages for loss of his annual fee and for loss in stock which he contended he was forced to sell.
The two contractual provisions as to which there was alleged noncompliance are: 1) a portion of paragraph 7 which recites that plaintiff “agrees that he will at all times keep the Community Development Director knowledgeable of his whereabouts and how he may
After a hearing, the trial court found that the plaintiff should have been given ninety days notice prior to termination of the contract and thus was entitled to damages equalling compensation for ninety days under the contract. Summary judgment was granted to plaintiff and judgment entered in the amount of $5,747.49 plus interest and costs. The defendant appealed.
1. The city argues that the termination provisions applied only to a “no just cause” termination and would not prevent the city’s rescission or more properly termination,
Assuming the city could repudiate the contract without giving ninety days notice, the requirement for such termination must be based on a material breach, a substantial failure to perform. A breach which is “incidental and subordinate to the main purpose of the contract, and which may be compensated in damages, does not warrant a rescission . . .” or termination nor does “a mere breach of contract not so substantial and fundamental as to defeat the object of the parties in making the agreement.” In order to trigger the right to rescission, “the act failed to be performed must go to the root of the contract. . . .” 17 AmJur2d 983, Contracts, § 504.
Our courts have followed these basic principles. In Sinclair Refining Co. v. Davis,
Here there were broad conclusions in the affidavit for the city as to plaintiff’s “continuous failure to comply” with the contractual terms. Since mere legal conclusions and allegations present no issue of fact on motion for summary judgment, Benefield v. Malone,
2. Because our ruling disposes of the case without reference to plaintiff’s affidavit filed on the day of the hearing we need not consider the propriety of that action.
3. A wrongful discharge in violation of a contract right to continued employment gives an employee the right to recover damages. Even though there is a repudiation of the promise of future earnings, the injured party is not necessarily entitled to the sum for the complete contract term. 22 AmJur2d 104, Damages, § 70. “Where a contract of employment expressly empowers an employer to terminate the contract upon giving notice, recovery for wrongful breach is limited to the notice period.” Odell v. Humble Oil &c. Co., 201 F2d 123, 128 (10th Cir. 1953). Here plaintiff is limited to 90 days, to his actual contractual loss, as a measure of liquidated damages.
The amount claimed in this regard is not challenged by a counter affidavit. Consequently, there are no issues remaining, as the trial court struck the damages claimed for loss of stock and appellee did not cross-appeal.
Judgment affirmed.
Notes
This issue as to a stock loss was eliminated by the trial court and is not before this court.
While one party to a contract may rescind the contract for nonperformance by the other party to a contract, such rescission is technically the proper remedy “only when both parties can be restored to the condition in which they were before the contract was made.” OCGA § 13-4-62. Thus, although the terms “rescind” and “rescission” are often used, the more accurate terms where the contract has been substantially carried out or is ongoing are “abrogation,” “termination,” “repudiation” or “renunciation.” Where there is a wrongful repudiation or renunciation by one party to a contract, the other party is discharged from his duties and may enforce his remedial rights to damages. 17 AmJur2d 906, 979 & 985, Contracts, §§ 446, 503 and 505. Plaintiff seeks to do just that and the question here concerns whether there was a wrongful termination by the city.
Concurrence Opinion
concurring specially.
In my view, appellee’s failure to comply with the contract provisions requiring (1) that hé keep the Community Development Director knowledgeable of his whereabouts and (2) that he attend necessary meetings would constitute material breaches of the contract. Proof of same would authorize the City to terminate the contract without incurring any liability to appellee under the ninety-day notice provision. However, in response to appellee’s prima facie case, the City offers nothing more than vague and conclusory allegations of appellee’s alleged contract noncompliance, rather than specific adverse facts. See Hyman v. Horwitz,