Hurst v. Davis

• Decision Date: 19 November 1963
• Docket Number: No. 3092,3092
• Citation: 386 P.2d 943
• Parties: Loren C. HURST and M. Judyth Hurst, Appellants (Plaintiffs below), v. Joseph M. DAVIS and Lucille M. Davis, Appellees (Defendants below). Loren C. HURST and M. Judyth Hurst, Appellants (Defendants below), v. Joseph M. DAVIS and Lucille M. Davis, Appellees (Plaintiffs below).
• Court: Wyoming Supreme Court

Page 943

386 P.2d 943

Loren C. HURST and M. Judyth Hurst, Appellants (Plaintiffs below), v. Joseph M. DAVIS and Lucille M. Davis, Appellees (Defendants below).

Loren C. HURST and M. Judyth Hurst, Appellants (Defendants below), v. Joseph M. DAVIS and Lucille M. Davis, Appellees (Plaintiffs below).

No. 3092.

Supreme Court of Wyoming.

Nov. 19, 1963.

Pence & Millett and John E. Stanfield, Laramie, for appellants.

John F. Sullivan, Laramie, for appellees.

Before PARKER, C. J., and HARNSBERGER, GRAY, and McINTYRE, JJ.

Mr. Justice HARNSBERGER delivered the opinion of the court.

The district court consolidated for trial two separate actions. One of these originated in a justice court upon Davises' complaint against Hursts alleging unlawful detainer of property after nonpayment of rent. Restitution of the property to Davises was ordered, and a judgment against Davises of $200 was awarded Hursts on a counterclaim. No finding of the amount of rent due Davises was made and no judgment was given Davises for any rent at all. The other action was brought by Hursts in the district court against Davises, in ten separate counts for: (1) Goods sold and delivered; (2) money paid by mistake; (3) wages paid to another; (4) money converted; (5) damages for loss of employment by reason of false representation; (6) damages for expenses incurred by reason of false representation; (7) reasonable value of services of Loren C. Hurst; (8) reasonable value for services of M. Judyth Hurst; (9) reasonable value for services of M. Judyth Hurst as postal clerk; and (10) for goods and services in decorating and installing equipment, Hursts conceding as a credit to Davises the $200 awarded Hursts in the justice court.

Davises traversed and counterclaimed Hursts owed them: (1) Rent for use of their equipment and licenses; (2) rent for an apartment owned by Davises and occupied by Hursts; (3) wages for Mrs. Davis' services to Hursts; (4) the amount of Hursts' telephone bill paid by Davises; and also claiming Davises were entitled to credit of $300 for wages paid the Hursts.

Trial being to the court without jury, it decreed Hursts were entitled to $617.49 for goods sold to Davises; $26 for money paid Davises by mistake; $50 for money belonging to Hursts and converted by Davises; and $1,050 for services of both the Hursts for three months at the rate of $350 per month. This made a total of $1,743.49 allowed the Hursts. The court then awarded Davises on their counterclaim $600 rent for their equipment and licenses; $125 rent for Hursts' use of the Davis apartment; $125 wages for Mrs. Davis' services to Hursts while Hursts were attending the funeral of a relative; $72.24 telephone bill paid by Davises for Hursts; and a credit of $330 for money paid by Davises to Hursts, thus making a total award to Davises of $1,252.24. The court decreed Hursts were entitled to recover the difference, or a total of $491.25 from the Davises, but because the Davises had already paid Hursts $200 in settlement of the justice of the peace judgment against them, that sum was deducted from the $491.25, and judgment was rendered in favor of Hursts and against Davises for the remaining sum of $291.25. Hursts appealed to this court.

A substantial resume of the situation which gave rise to these litigations is as follows.

The Davises periodically leased a tract of land from the Union Pacific Railroad Company and erected thereon certain improvements which became known as the Buford Store. There they dealt in groceries, operated a filling station, and sold beer under license from the State of Wyoming. Mrs. Davis was also the postmistress of Buford, and the post office was established in a portion of the building devoted exclusively to that purpose. After some previous contacts and correspondence between the Davises and Hursts, the latter moved to Buford and, according to Mrs. Hurst, on June 25, 1960, took charge of the abovementioned business. There ensued intermittent discussions between the parties relative to executing a written lease of the Davis properties and business to the Hursts, and possibly including in such a lease an option to buy. Although attempts were made to agree upon the terms of a written lease, they failed, and no written lease was ever executed. However, an oral lease from Davises to Hursts resulted. This provided the Hursts were to lease the business and pay therefore a rental of $200 per month, paying during the months from May through October $250 per month, and paying during the months from November through April $150 per month. This arrangement was to make the monthly payments less burdensome during the winter season when business was dull and yet maintain the $200 per month rate by requiring the $50 per month deferred payments be added to the normal $200 per month payments during the period when business was better. The agreement also contemplated that an inventory of Davises' stock would be taken and Hursts would pay the amount shown. Under this oral agreement Hursts took possession of the premises and business as lessees on September 26, 1960. They also used and occupied a residence on the premises consisting of four rooms and bath, but no amount as rent for this use was specified. The post office was retained by the postmistress, Mrs. Davis, although the Hursts were upon occasion sworn in as assistants and received pay for those services directly from the Government. During the period of this oral leasing, Mrs. Davis ran the business for the Hursts while they were absent due to a death in their family. Hursts paid the agreed rentals in the manner provided by the oral lease until December 1960, when differences arose between the parties, and, although they retained the business and continued to occupy the properties, the Hursts refused to make further payment of rent.

About April 27, 1961, Davises brought their action in a justice court against Hursts for unlawful detainer of the properties after Hursts' failure and refusal to pay rent. Following trial, restitution of the properties to Davises was ordered, but a judgment against Davises for $200 was rendered on a counterclaim interposed by Hursts, who appealed to the district court from only the portion of the judgment granting restitution of the properties to Davises.

A principal contention of appellants is that the amount awarded them as wages for their services from June 25, 1960, to September 25, 1960, offends Wyoming law, §§ 27-207, 27-208, 27-209, and 27-210, W.S.1957, which establishes 75 cents per hour as the minimum hourly wage which may lawfully be paid certain employees in this State. To reach this conclusion, appellants say, 'It is perfectly clear that the services rendered by Mr. and Mrs. Hurst at the Buford Store do not fall within any of the exclusions from the definition of 'employee." Among those exclusions are persons employed in a bona fide executive or administrative capacity. The character of the Hursts' employment during this period is therefore of crucial importance. Although the court termed its allowance to the Hursts as 'wages,' that terminology does not necessarily mean that the amount awarded the Hursts was computed on the basis of hourly wage, or that the nature of the employment was in a capacity covered by the wage-hour law. From the record it appears the Hursts' employment, during the three-month period, was that of operators or managers of the business owned by the Davises. The Davises did not control their employment, prescribe the hours of their service, nor direct their activities in any manner. The fact that accounting was made to the Davises of receipts and disbursements does not alter the fact that the Hursts' management and operation of the business was administrative and, in part at least, executive, in that they had exercised powers of decision--when to work, how to work--and many other related activities. This is apparent from Mrs. Hurst's testimony that after June 25, 1960, Mrs. Davis only came to the store for a few minutes and then did nothing in the store but went into the post office. It therefore appears the Hursts were within classes excluded from the wage-hour restriction of the statute. Webster (1961) defines 'manage' as meaning to conduct and direct, to administer, to carry on business or affairs. This definition places the Hursts, during the mentioned three-month period, squarely within the administrative and executive category which is expressly excluded from purview of the wage-hour law. The court did not allow the Hursts anything on an hourly basis. The award to the Hursts was on a joint salary basis. Where the employee is not directed or controlled by an employer who prescribes the hours of work, their number, or the manner or nature of services required, it would offend reason to hold such employees may say they worked 24 hours or any other excessive number of hours each day and then claim a minimum per hour wage. The court was not required to accept the Hursts' theory of the nature of their employment when the record is replete with evidence that from June 25, to September 26, a period of three months, they were in complete charge, control, and management of the business owned by the Davises. Viewing the evidence as a whole, the court was privileged to determine that the collective services of Mr. and Mrs. Hurst in managing the business was of the reasonable value of $350 per month during the period here discussed. There was no error in the court's determination in this respect. This disposes of appellants' complaint based on failure to contradict Hursts' evidence of the number of hours they worked and the relevance of the wage-hour law.

Appellants object to the exclusion of a witness' testimony which was offered to show the reasonable value of services in the selling of oil and gasoline at the Buford Store. To qualify himself, the witness testified he was a service station operator in the City of Laramie and acquainted...