Williams v. Schalk Chemical Co.

ROTH, J.,

pro

tem.

Respondent, plaintiff in this action, was employed by appellant as its sales manager under a written contract of employment for a term of one year from January 1, 1930, to December 31, 1930, at a fixed monthly salary plus a bonus. In December, 1930, a change was made by the corporation in its executive personnel, and a Mr. Col-year, vice-president of the corporation, was apparently substituted as its active executive head. In that month, respondent inquired of Colyear as to a renewal of the contract and was told: “I am really not in direct charge here now, but the only thing I can see we can do is to continue the contracts as they are.” Respondent continued to work and was compensated pursuant to said contract for the whole of the year 1931 and up to April 14, 1932, on which latter date he was discharged. Nothing was said in 1931 or at any other time about a renewal of the contract for the year 1932. On December 9, 1932, plaintiff filed a complaint in the instant case seeking judgment for $4,000, which represented his salary at

the rate of

$500 per month

for the

remaining eight months of his alleged contract for the year 1932, and in addition for a bonus of 3 per cent of the net profits of appellant for the years 1931-1932. The trial court found there were no net profits, but rendered judgment in favor of respondent for $4,000. The appeal is from that judgment.

The decisive question presented on this appeal is whether, under the provisions of section 2012 of the Civil Code, a written contract of employment for a definite term is upon its expiration renewed periodically for the same term, in the absence of a provision in the contract to the contrary, or an affirmative showing that there was no intention to renew the same. This question has been answered in the affirmative.

[398]

(Henkel

v.

J. J. Henkel Co.,

212 Cal. 288 [298 Pac. 28, 30] ;