Redd v. Williams Radiator Co.

California Court of Appeal Mar 6, 1931 No. Docket No. 4251.Published

Before: MR. JUSTICE PRO TEM. McDANIEL DELIVERED THE OPINION OF THE COURT.

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Holding. The court held that the employment contract, including the bonus provision, was not effectively canceled by the defendant's letter, as the letter was ambiguous and any potential notice of cancellation was waived by the parties' subsequent conduct.

Issues

Whether the defendant's letter of August 19th constituted a valid cancellation of the bonus provision in the employment contract.
Whether the trial court's findings regarding the accounting of commissions and the balance due to the plaintiff were supported by the evidence.

Disposition. affirmed

Quotations verified verbatim against the opinion

“We are satisfied the employment contract even as to the bonus clause was not canceled and that the plaintiff therefore was entitled to his bonus amounting to $1093.75.”

“The learned judge of the trial court may well have considered that if the alleged notice be regarded as a cancellation notice or one that should be given effect as altering the original contract that under all the circumstances, the notice as such was waived by the defendant.”

[354]

MR. JUSTICE Pro Tem. McDANIEL Delivered the Opinion of the Court.

This is an appeal from a judgment in favor of the plaintiff and against the defendant.This action was upon an employment contract evidenced by the following document:

“Mr. J. B. Redd, “7342 Jasmine Avenue, “Palms, California. “Dear Sir: “Confirming our conversation of Tuesday, February 19th, 1924, regarding your employment commencing March 15th, 1924: “1—-For and in consideration of your undivided time and services we will pay you a salary of $300.00 per month ($3,600.00 per year). “2—If after three months you fulfill our expectations, we further agree to pay you a bonus annually and which shall be governed by the billing of the company and computed as follows: “When billing exceeds $225,000.00 we will credit you with one-half of one per cent (% of 1%) of the total billing for our fiscal year ending January 31st and payable 50 per cent February 45th, and 50 per cent August 15th. “Example: Billing for year 1925—$250,000.00 l/2 of 1% of $250,000...............$1,250.00 Salary for year.................... 3,600.00 Total compensation................$4,850.00 “3—Bonus for the year 1924 will be computed as above less the time not employed or in other words, if billing equals $250,000 the net bonus would be $1250.00 ($104.20 per month) less $156.25 (1% months not employed) or $1093.75. Total compensation for the year would be as follows: 10% months at $300.00............$3;150.00 10% months bonus at $104.17....... 1,093.75 .Total compensation...............$4,243.75

[355]

“This agreement is subject to cancellation at any time by giving 30 days notice in advance.

“Yours very truly, “Williams Radiator Company,

“By........................

“Assistant Secretary”

Plaintiff entered upon his work under this agreement on the fifteenth day of March, 1924, and continued in said employment until on or about the first day of March, 1925. Subsequently to March 1, 1925, by mutual agreement, plaintiff continued in the employment of the* defendant corporation but under a different arrangement. Instead of a bonus and salary thereafter he worked for a commission on sales, being allowed a checking account of $200. On August 19, 1924, Mr. J. M. Williams, who was president of the defendant corporation, wrote and mailed to plaintiff the following letter:

Redd v. Williams Radiator Co.

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