Crescent Horseshoe & Iron Co v. Eynon

• Decision Date: 16 September 1897
• Citation: 95 Va. 151,27 S.E. 935
• Court: Virginia Supreme Court
• Parties: CRESCENT HORSESHOE & IRON CO. v. EYNON.

27 S.E. 935

95 Va. 151

CRESCENT HORSESHOE & IRON CO.

v.EYNON.

Supreme Court of Appeals of Virginia.

Sept. 16, 1897.

Employment—Breach of Contract—Discharge —Damages—Instructions.

1. A contract to which the C. Co. was the party of the first part, and E. was one of the parties of the third part, provided that there should be issued to a trustee for the benefit of E. a certain amount of full-paid stock of the company, said issue being in consideration of the assignment of patents to the company by the parties of the third part, and of their covenants and agreements; that in consideration of said issue of stock the parties of the third part covenanted and agreed with the company that E. should remain in the employ of the company five years, and should during said time assign to the company any patents taken out or applied for by him, bearing on the patents already assigned, or the business of the company; and that E., in consideration of the issue of stock to the trustee, agreed to remain in the employ of the company five years at a certain salary, and should he, during said time, leave the employ of said company without its consent, he should forfeit all claims to the stock, but, should he comply with all the terms of the contract, the stock should be transferred to him absolutely at the end of the five years. Held, that for breach of the contract by the company, in discharging E., he could not recover the value of the patents assigned to the company, nor the value of the stock provided for in the contract.

2. There is no evidence on which to base an instruction that a good cause for discharging a servant, existing when he was discharged, but not then known by the master, could be availed of by the latter as a defense, where the facts furnishing the cause for discharge were known at the time by the master, but a different cause was assigned.

3. Failure of the servant to perform his work in an absolutely skillful and satisfactory manner does not, in the absence of a special contract, au thorize his discharge, but only failure to perform it in a reasonably skillful manner.

4. A servant's right to recover because of his discharge is not affected by the motive of the master in discharging him.

5. A jury, instead of being instructed that, if they believed an employe was discharged without sufficient cause, they should assess his damages at such sum as might seem right to them from all the evidence in the case, should be instructed that he was entitled to recover the actual damages sustained by him in consequence of such illegal discharge.

Error to circuit court, Wythe county.

Action by William Eynon against the Crescent Horseshoe & Iron Company for breach of a contract to which defendant was party of the first part, and plaintiff was one of the two parties of the third part. Judgment for plaintiff, and defendant brings error. Reversed.

Boiling & Stanley, for plaintiff in error.

Walker & Caldwell, for defendant in error.

BUCHANAN, J. The first error assigned in the petition was abandoned in the oral argument.

The second and third assignments of error are to the action of the court in allowing certain questions to be asked and answered.

The defendant in error insists that these assignments of error cannot be considered because the bill of exceptions fails to show what the answers to the questions complained of were. As the judgment will have to be reversed on other grounds, it is unnecessary to pass upon this objection. But, as the same questions may arise upon the next trial, it will be proper to determine whether or not the character of evidence sought to be elicited by the questions was proper.

The action was brought to recover damages for an alleged breach of a contract which contained, among others, the following provisions:

"Second. There shall be issued to the estate of the said William Seeman fifteen thousand dollars ($15,000.00) in full-paid common stock of the said company, and to a trustee for the benefit of the said William Eynon fifteen thousand dollars ($15,000) in full-paid common stock of the said company; said stock being issued in consideration of the assignment hereinafter made by the third parties to the said company, and of covenants and agreements hereinafter made by the said third parties, or either of them.

"Third. In consideration of the said issues of common stock, the third parties covenant and agree with the said company that the said Eynon shall remain in the employ of the said company for a term of five years from the date of this agreement, and shall and will during said period of five years and one year thereafter, or during his connection with the operations of the company, and within —— thereafter, should said period extend beyond five years from said date, assign, transfer, and set over to the said company any patents made or taken out or applied forby him bearing directly or indirectly upon the manufacturing operation of the said company, or the patents hereinafter assigned.

"Third parties hereby assign and transfer to the said Crescent Horseshoe and Iron Company the following patents:

"406, 711. Roll for rolling horseshoe blanks.

"406, 712. Plants of machinery for the manufacture of horseshoes.

"406, 713. Horseshoe bending machines.

"441, 474. Manufacture of blooms.

"Fourth. The said William Eynon, In consideration of the said issue of common stock to a trustee for his benefit, agrees to remain in the employ of the said Crescent Horseshoe and Iron Company for a period of five years from the date hereof, at a salary to be agreed upon by the said company, not less than one hundred and fifty dollars a month, and to give his whole time and attention to the affairs of the said company during that period, and should the said William Eynon leave the employ of the said company without its consent, or engage in any competitive business, before the expiration of said period of five years, such action shall operate as a forfeiture of any and all claims of the said William Eynon to the said common stock and the dividends and profits thereof issued to a trustee for his benefit; and said common stock shall belong to the said company, and be transferred and delivered to it by the said trustee for cancellation. During said period of five years the said trustee shall hold said stock, and collect any dividends thereon, and pay over the same to the said William Eynon. At the expiration of...