Sharman v. Longo

JEFFERSON, J. In this appeal we are called upon to decide whether the trial court was justified in granting plaintiff ’s motion for a summary judgment against defendant.

Plaintiff, William Sharman, brought action to enforce an agreement signed by defendant Frank Longo and one Vito Guarino guaranteeing plaintiff’s salary under an employment contract. According to plaintiff’s complaint, by the terms of the employment contract, plaintiff, a professional basketball player and coach, was to serve as a player-coach for a newly formed corporation, the Los Angeles Professional Basketball Club, a professional basketball team known as the “Los Angeles Jets.” When the corporation became insolvent, plaintiff sought recourse under the surety agreement.

Three documents form the basis for plaintiff’s action, Exhibits “A,” “B” and “C” which were attached to the complaint. It is alleged in the complaint that Exhibit “A” is an agreement of employment between plaintiff and the Los Angeles Jets, wherein plaintiff agreed to utilize his basketball talents for the Jets and in return the corporation agreed to pay him a salary of $20,000 per year for two years. Exhibit “B” is an addenda to Exhibit “A” which reduced in certain particulars plaintiff’s duties and, in addition, provided that the corporation promised to post a bond to guarantee plaintiff’s salary. When it was thereafter discovered the cost of securing the bond would be prohibitively high, it was agreed that the corporation could substitute in its place a surety agreement signed by two men. Exhibit “C, ” [950]in which Longo and Guarino agreed to serve as personal sureties for the promised salary, was then executed. Although Exhibits “A,” “B” and “C” were respectively dated April 11, April 28 and May 27, 1961, they were part of one single contractual transaction.

Defendant answered denying that he was a party either to the original contract (Exhibit “A”) or to the addenda (Exhibit “B”). While admitting that he executed the surety agreement (Exhibit “0”), he denied that there was consideration to support it. He alleged that the three documents were not a part of one transaction; that they were executed and became effective on the separate dates indicated on the documents; that consequently, since the addenda and the surety agreement were executed after the original employment contract, the consideration supporting the latter did not support the guaranty.

An affidavit in support of his motion for summary judgment was filed by plaintiff, and a counteraffidavit was filed by defendant. In addition, the court had before it the depositions of plaintiff and defendant, together with the depositions of Guarino, Henry Clark and Leonard Corbosiero (the latter were officers of the Jet).1 After a hearing, the court rendered a judgment against both defendant and Guarino for the unpaid salary due plaintiff in the sum of $17,682.90. Guarino admitted his liability on the surety agreement to the extent of one-half the unpaid salary and does not appeal from the judgment.