Fitts v. Mission Health & Beauty Shop

CRAIG, J.

In this action the plaintiff brought suit upon seven alleged causes of action. She was made defendant in a cross-complaint. The court rendered judgment in her favor on all except the last count of the complaint and gave her judgment on the issue tendered by the cross-complaint. The appeal is taken from the whole judgment but appellant only urges a reversal of that part of the judgment which was rendered by the court against her on the seventh cause of action alleged in the complaint.

A written agreement was entered into between Stephen Innes, party of the first part, and Lela May Fitts and Isola Vassar, parties of the second part. This writing was dated February 24, 1920, and by its terms it was provided that it should last for a period of two years. In a general way the party of the first part was to finance and manage the beauty shop whose conduct was contemplated, and the parties of the second part were to supply their expert services in connection with the same. The memoranda of agreement is a long one and we will only set forth excerpts therefrom which are necessary to be construed.

After the stipulation to the effect that the contract shall endure for a period of two years, there follows this paragraph:

“It is hereby stipulated and agreed by all the parties hereto that in the event of annulment or cancellation of this contract, that in such event, all the assets, furnishings, equipment, utensils, belongings of any and every sort whatsoever, used in connection with this business during the period of operating same, shall be, and are hereby declared to be, the sole and exclusive property, title to all of which to alone vest in the party of the first part hereto. Both and each of the parties hereto, making the parties of the second part to this agreement, renouncing and disclaiming, as they now hereby do renounce and disclaim, any right, title or interest whatever in these said assets. Further declaring and stipulating at this time that all the claim interest or right whatever said second parties either have or claim to have in this said enterprise is solely that of

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the payment to each one of them respectively of the remuneration on the percentage basis as named and set forth above in this document for services, etc., rendered this enterprise as above. It being hereby further stipulated and agreed that in the event of dissolution of this co-operation, settlement with the parties of the second part hereto on the terms of this agreement shall have and is by stipulation hereby given prior claim.”