126 N.Y.S. 339 | N.Y. App. Div. | 1910
Lead Opinion
Action, to recover $2,500, alleged to be due plaintiff for. services rendered the defendant. The complaint states two causes of action —- one on an express contract to pay the plaintiff a commission of one per cent on all sales, made by him and one Keller during the time stated, with a guaranty that plaintiff’s compensation should be not less than $7,500 each year; the other on a quantum meruit
The answer put in issue the material allegations of the complaint and alleged payment, accord and satisfaction, and that the agreement referred to in the first cause of action was void under the Statute of Frauds.
At the trial the rendition of the services was not disputed,.the main question litigated being how much the defendant agreed to pay therefor. The plaintiff testified that he had an oral agreement by the terms of which he and another salesman named Keller were to have two per cent commission— divided equally between them — on all sales over $500,000, and the defendant guaranteed he should receive not less than $7,500 a year; that sometime after he entered the defendant’s employ John H. Eagle-told him that Keller wanted a written contract; that they would not guarantee to pay him over $5,0.00 a year, plus a certain commission, and for the .purpose of inducing him to sign such contract he wanted the plaintiff to also join in it; and that if he would do so the fact that he was therein only guaranteed a salary of $5,000, plus a certain commission, would have no effect whatever on their previous parol agreement by which defendant had guaranteed lie should receive not less than $7,500; that the plaintiff thereupon signed the agreement and each month thereafter was paid $416.67, making the $5,000 a year specified in the contract; that at the end of the first year Keller and the -plaintiff were each paid $1,100, commissions earned, and the plaintiff received a check drawn to the. order of J. H. Eagle, and indorsed by him for $1,400, making the total amount received $7,500; that the second year no commissions were earned and the defendant refused to pay any sum in excess of that specified in the written agreement, whereupon this action was brought.
That the plaintiff had the oral agreement testified to by him is established by the overwhelming weight of evidence. His testimony on that subject is not only uncontradicted, but he is corroborated by the witness Toepfer, the bookkeeper of the defendant, who stated that John H. Eagle, with whom the agreement was made, told him when giving directions as to certain entries to be made upon the books, that “ he had made a gentleman’s agreement
But it is said despite the fact that the evidence shows the oral-agreement was made, nevertheless' the plaintiff was not entitled to recover because his compensation was limited to that specified in the written agreement; in other words, that the evidence tending to establish the oral agreement was inadmissible inasmuch, as the effect of it was to destroy the written agreement. I think this evidence was admissible, not for the purpose of destroying the written agreement, but to show that the writing which purported to be an agreement was not, in fact, intended by the plaintiff and defendant as such. There is nothing new or startling in holding that parol evidence may be given to show that a writing purporting to be a contract was not, in fact, intended by the parties as such. There are numerous authorities to this effect, of which only a few need be cited. (Grierson v. Mason, 60 N. Y. 394; Chapin v. Dobson, 78 id. 74; Juilliard v. Chaffee, 92 id. 529; Union Trust Co. of New York v. Whiton, 97 id. 172; Schmittler v. Simon, 114 id. 176 ; Thomas v. Scutt, 127 id. 133; Baird v. Baird, 145 id. 659; Higgins v. Ridgway, 153 id. 130; Bank of Hamilton v. Klock, 73 Hun, 304.)
The question was directly passed upon in Grierson v. Mason (supra), and Judge' Milleb, who delivered' the opinion of the court, in which all of the judges concurred, holding that' such evidence vras admissible, said : “ The object of the testimony was to show that the instrument was exécuted for a specific purpose, and that purpose being accomplished, was of no effect in changing the contract previously made with the defendant. I think that it was competent evidence for this purpose. The defendant had made out a Contract. The plaintiff proved an instrument which altered the
This authority, so far as I have been able to discover, has never been questioned, but has been approved and followed many times by the Court of Appeals.
Judge Vann, in Thomas v. Scutt (supra), referring to the rule, said: “ Such proof does not recognize the contract as ever existing as a valid agreement, and is received from the necessity of the case to show that that which appears to be, is not and never was a contract. Illustrations of this class may be found in the following citations : Beecker v. Vrooman (13 J. R. 302); Hammond v. Hopping (13 Wend. 505); Johnson v. Miln (14 id. 195); Benton v. Martin (52 N. Y. 570); Grierson v. Mason (60 id. 394); 1 Greenleaf’s Ev. § 284.”
As between the original parties to a written agreement it is always permissible to show want or failure of consideration. So, one may prove by parol that the instrument sued upon was delivered to take effect only upon the happening of some future event (Seymour v. Cowing, 1 Keyes, 532; Benton v. Martin, supra) or that its purpose and object were different from what its language, if alone considered, would indicate. (Denton v. Peters, L. R. [5 Q. B.] 474; Blossom v. Griffin, 13 N. Y. 569.)
Not only this but' the issue submitted to the jury, to which-defendant’s counsel did not except in any way, was whether plaintiff was to be compensated at the rate of $7,500 a-year, as - he claimed, or $5,000 a year, as claimed by defendant. The jury found in favor of the plaintiff and the verdict is sustained by the evidence.
For the foregoing reasons I think the judgment and order appealed from-should be affirmed, with costs.
Laughlin and Milleb, . JJ., concurred; Ingbaham, .P. J., and Dowling, J., dissented.
Dissenting Opinion
(dissenting)-:
The complaint in this action contains, two causes of action. . The first alleges a contract made between the plaintiff and the defendant on the 5th of October, 1905, by which it was- agreed that the plaintiff should work for the defendant as a silk salesman for a term of two years, from January 1, 1906, and' that the defendant agreed to to pay the plaintiff for his services a commission of one per cent on all sales made during the said period by either the plaintiff or one Keller, another salesman employed by the defendant, but that in no event was the commission or compensation so to be paid to the plaintiff to be less than $7,500 in each year; that the plaintiff
The answer, after denying the allegations of the making of the contract, alleges as a separate defense that on or about the 15tli of October, 1905, an agreement in writing was entered into, a copy of which is attached to and made a part of the answer, which is the only agreement ever made between-the parties hereto, and -that the defendant had paid the plaintiff, the full sum required to be paid by the agreement: The agreement thus annexed to the answer is dated October 15, 1905, and provides that it was entered into between the defendant, party of the' first part, and J. H. Keller and William Nightingale, parties of the second part; that the party of the first part “ does hereby engage the parties of the second part for the term of two years from January 1st, as salesmen on a guaranteed salary of $5,000 per annum, each; ” that “ should the sales of the parties of the second part run over the sum of $500,000 per annum, the party of the first part is to pay to the parties of the second part 2% on all such amount in excess of the aforesaid figure. The 2% to be divided equally. The party of the first part is to turn over, to the said parties of the second part their entire business with the dry goods trade of the United States.' The parties of the second part agree to devote all their time and, attention of every business day to the service and interest of the party of the first part.” This was signed by the defendant, the plaintiff and.Keller.
Upon the trial the plaintiff was called as a witness, and when his
At the end of the case the defendant moved to dismiss the complaint on the ground that the plaintiff had not' established a cause of action, which motion was denied and to which the defendant excepted. The court then submitted the question to the jury, stating that the substantial question which they were called upon to decide was, whether or not the plaintiff was to be compensated at the rate of $7,500 per annum, as claimed by him, or at the rate of $5,000, as claimed by the defendant; and, at the end of the charge, stated : “ If you believe that the only compensation that the plaintiff was to receive was to be at the rate of $5,000 a year, you will find for the defendant. On the other hand, if you believe that the
Now, it is clear that this cause of action, based upon this contract to pay to the plaintiff $7,500 a year, was void by the Statute of Frauds, and that the defendant was entitled to have that cause of action dismissed upon the trial; and, therefore, the only cause of action upon which the plaintiff ..at the trial sought to recover was one which was not enforcible. .
Upon this appeal counsel for the plaintiff apparently concedes that this cause of ■ action would not sustain a recovery and now attempts to shift his ground and claim to recover upon the second cause of action based upon quantum, meruit. It is quite true that in a cause of action based upon a quantum meruit an unenforcible verbal contract as to the compensation that t,he employee was to receive is competent evidence as to the value of the services rendered and will sustain a recovery for the amount that was to be paid by the verbal contract; but,-in-such a case, I think it for the jury to say what the value of the services rendered was, using the agreement of the parties as evidence of such value. The plaintiff on the trial, however, based his right to recover solely upon the. verbal contract, and the court held, as a matter of law, that the only question for the jury was as to the terms of this oral contract, charging that if such oral contract was made the plaintiff was entitled asa matter of law to recover for the amount to be paid under the oral contract. I do not think that a recovery can be sustained because if the real' question at issue had been submitted to the jury their verdict for the amount would have been justified. If no objection is made the parties on the trial are at liberty to disregard the pleadings and by agreement try the case upon any theory which is justified by the.evidence; but in this case the defendant objected to proof of this oral contract and it should have' been excluded as unenforcible under the Statute of Frauds. The evidence was not at the trial claimed to have been
I think, therefore, the parties were bound by the contract into which they formally entered, which was the only enforcible contract made by the parties; that evidence of parol agreements made prior to or at the time of the execution of this contract could not be
I think the judgment should be reversed and a new trial ordered,' with costs to the appellant to abide the event. ' "
Dowling, J., concurred.
Judgment and order affirmed, with costs. .