Ritchie v. Bluff City Lumber Co.

• Decision Date: 04 May 1908
• Parties: RITCHIE v. BLUFF CITY LUMBER CO.
• Court: Arkansas Supreme Court

110 S.W. 591

RITCHIE v. BLUFF CITY LUMBER CO.

Supreme Court of Arkansas.

May 4, 1908.

Appeal from Circuit Court, Jefferson County; Antonio B. Grace, Judge.

Action by the Bluff City Lumber Company against George W. Ritchie. Judgment for plaintiff, and defendant appeals. Reversed, and remanded for a new trial.

This action was brought by the Bluff City Lumber Company against George W. Ritchie to recover money claimed to have been advanced by it to him. The facts adduced by appellant are as follows: Prior to February 24, 1903, appellant was in the employ of appellee as a sales manager at a salary of $175 per month, and in addition had been loaned several thousand dollars by appellee without interest. On that day he tendered his resignation to John F. Rutherford, who was the vice president, general manager, and secretary of appellee. Rutherford desired him to remain with the company, and asked him to state upon what terms he would do so. After some discussion of the terms appellant states that an agreement was entered into between the parties whereby he was to receive $3,000 per year and the use of $10,000 without interest, the contract to be in force for five years; that a memorandum of the contract was reduced to writing, and signed by Rutherford for appellee and by himself. In addition he says that the contract provided that certain obligations, then due by him to appellee, were to be canceled, and that the written memorandum of the contract is now lost; that he entered upon the discharge of his duties under the contract; and that from that date until the institution of the present suit was paid at the rate of $3,800 per year. During the trial it was agreed between the parties that it is a fact that it was the custom of appellee, prior to a date to be made known by the evidence, that when employés were drawing in excess of $1,800 per year for their services the books would only show a salary of $150 per month, and when an employé received more than that amount it was credited to him afterwards, and charged in the books to labor or expense. This was done to prevent any one from knowing what these employés were getting. Mr. Robert York had this charged about September 1, 1906, so as to reflect the actual facts. The testimony also shows that the books of the company show a mutual account of debits and credits between it and appellant. A credit of $150 per month was given appellant each month as salary, and $2,000 additional credit was given him at the end of each year in the labor and expense account. The debit side of the account consisted of advances made from day to day to appellant.

Rutherford testified that he was representing appellee in making the contract, and that the terms of the agreement was that appellant was to receive $250 per month or $3,000 per year salary, and appellee was to let him have $10,000 without interest; that the contract was for five years, and that he thinks he signed a memorandum in writing to that effect; that he told Mr. York that he had made a proposition to appellant for $250 per month and the use of $10,000; and that...