Griffin Grocery Co. v. Thaxton

Decision Date17 December 1928
Docket Number(No. 66.)
PartiesGRIFFIN GROCERY CO. v. THAXTON.
CourtArkansas Supreme Court

Appeal from Circuit Court, Sebastian County; J. Sam Wood, Judge.

Action by B. J. Thaxton against the Griffin Grocery Company. From the judgment, defendant appeals, and plaintiff cross-appeals. Affirmed.

Malcolm E. Rosser, of St. Louis, Mo., and Daily & Woods, of Ft. Smith, for appellant.

Warner & Warner and Cravens & Cravens, all of Ft. Smith, for appellee.

McHANEY, J.

Appellee had, for many years, been in the employ of appellant, and, on October 1, 1927, at the time he was discharged, was a director, vice president, and manager of the Ft. Smith branch house of appellant company. He had been the manager of this branch house since its establishment. During the year 1926, he was paid a salary of $300 per month, and was given a bonus of $530, consisting of five shares of preferred stock in appellant company, and $30 in cash. No new contract was made with the company for his services in 1927, appellee testified, until the latter part of April, when Mr. J. T. Griffin, president of appellant, was in Ft. Smith, and agreed with him that his salary for 1927 should be the same as for 1926, except that, if the company made net earnings of $75,000 or more for that year, he would be paid an additional sum of $1,400 as salary. After returning to his home in Muskogee, Okl., and on May 3, 1927, Mr. Griffin wrote appellee the following letter confirming their agreement:

"Referring to my conversation with you last Saturday evening, it is agreed and understood that in the event the net earnings of this company for this year equal or exceed the sum of $75,000, you are to be paid an additional salary of $1,400 in cash, as soon after the 1st of January, 1928, as the statement is figured and made up.

"I am confident that the Company will earn that amount or more. If it don't I will be grievously disappointed. I know that you are going to do your full part in helping it earn all possible.

"Please file this letter away so that you will have a record of it and can refer to it in case of necessity. I am filing my copy in my personal file. None of us know what might happen to us during the year and while I hope to live a long, long time, of course life is uncertain.

                     "Yours very truly
                               Griffin Grocery Company
                                           J. T. Griffin."
                

Mr. Griffin and appellee had, for years, been the best of friends, but early in September, 1927, they became estranged, which grew out of reciprocal caustic criticisms in frequent and lengthy letters written by each to the other, finally resulting in the discharge of appellee on October 1, 1927. Appellee brought this suit to recover his salary for October, November, and December, $900, and for the bonus or additional salary of $1,400; the net earnings for the year being in excess of $75,000. There was a verdict and judgment for $1,400 only, and the case is here on an appeal and cross-appeal.

Appellant's first contention for a reversal is that the court erred in denying its request for a directed verdict on the ground that the undisputed evidence justified appellee's discharge. The undisputed evidence referred to consists very largely of the correspondence between appellee and Griffin heretofore referred to, which is too lengthy to be set out in this opinion. We have read these letters carefully, and have reached the conclusion that the letters of appellee constituting the alleged acts of insubordination and insolence were provoked in a measure by letters from appellant's president. At least we do not think the court would have been justified in directing a verdict. The court properly submitted this question to the jury under instructions not complained of, which were perhaps more favorable to appellant than the situation in this case justified. These instructions told the jury, in substance, that it was the duty of the employee to refrain from acts or conduct of insubordination and the use of disrespectful language towards his employer, and that a violation of such duty would justify his discharge, unless reasonably provoked or...

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