Walker v. Traughber

• Decision Date: 09 November 1977
• Citation: 351 So.2d 917
• Parties: Darrell WALKER, d/b/a Huntsville Employment Agency v. Bill R. TRAUGHBER. Civ. 1144.
• Court: Alabama Court of Civil Appeals

Page 917

351 So.2d 917

Darrell WALKER, d/b/a Huntsville Employment Agency v. Bill R. TRAUGHBER.

Civ. 1144.

Court of Civil Appeals of Alabama.

Nov. 9, 1977.

Douglas V. Hale and Lowell H. Becraft, Jr., Huntsville, for appellant.

No brief for appellee.

BRADLEY, Judge.

This appeal results from a judgment rendered against appellant in the Circuit Court of Madison County. Appellee, Bill Traughber, brought a civil action for breach of contract against appellant, Darrell Walker (doing business as the Huntsville Employment Agency). Traughber's lawsuit was tried before a jury and a verdict was entered in favor of Traughber awarding him damages in the sum of $882.98. From that judgment Walker appeals.

Basically, there are three issues presented to this court for review. First, Walker contends that the trial court's admission of oral testimony by Traughber concerning his employment contract with the Huntsville Employment Agency violated the "parol evidence rule." Second, Walker claims that the trial court improperly refused to permit an amended answer by his attorney in order that Walker might raise the affirmative defenses of release and full performance. Finally, Walker urges that the trial court erred in failing to grant a new trial on the basis that evidence discovered after trial disclosed that Traughber had falsified the application he submitted to the Huntsville Employment Agency.

This appeal arose out of the following facts. In September of 1975 Traughber read a newspaper advertisement which stated that the Huntsville Employment Agency was seeking applicants for the position of sheet metal worker at an unspecified firm. Traughber went to the agency to apply for the position advertised. After some preliminary discussions with Mrs. Gail Snow (an agency employee) about the terms of the standard contract used by the agency, Traughber signed a written agreement with the Huntsville Employment Agency. Upon signing the contract provided by the agency, Traughber was sent to interview for the sheet metal worker's position with Vernon Hutchens, owner of the Hutchens Company. After the two men had discussed the position available, Hutchens offered Traughber a job and the latter accepted the offer.

Traughber began his employment with the Hutchens Company on September 18, 1975. A few weeks after beginning his job, Traughber returned to the Huntsville Employment Agency and signed an acceptance slip provided by the agency. In addition, Traughber paid a $1,000.00 fee to the agency for its services.

On November 13, 1975 approximately fifty-five days after he had begun work Traughber's employment with the Hutchens Company was terminated because the company lacked sufficient work for him. The following day, Traughber telephoned the Huntsville Employment Agency and informed Mrs. Snow that he had lost his job at the Hutchens Company. He then explained to her why he had been terminated. Nothing was done to resolve Traughber's dilemma at this time; however, on subsequent occasions Truaghber made inquiries to the agency in an effort to determine if the agency had found him new employment. Nonetheless, Traughber never obtained a new position through the services of the Huntsville Employment Agency.

As a consequence of these events, Bill Traughber brought a civil action for breach of contract against Darrell Walker and his firm, the Huntsville Employment Agency.

The first issue presented on this appeal is based on Traughber's claim that Walker's employee promised Traughber that any employment secured for him by the employment agency would be of a permanent nature. And since Traughber paid the prescribed fee to the agency but was employed for a period of only approximately fifty-five days, he submits that the agency breached its contract by not providing him with "permanent" employment. Traughber also argues that the employment agency failed to find him a new position as it had agreed to do.

On the other hand, Walker asserts that the contract between his employment agency and Traughber was not breached since express provisions of the employment agreement provide that the agency "only handles permanent positions." Thus, Walker contends that Traughber's employment with the Hutchens Company constituted a "trial job" which was not covered by the contract between Traughber and the Huntsville Employment Agency and therefore the agency was under no legal obligation to obtain alternative employment for Traughber.

These contentions by the parties initiated the events out of which the dispute over the "parol evidence rule" actually arose. During his case-in-chief, Traughber's attorney sought to introduce oral testimony by Traughber that an employee (or employees) of the agency had informed Traughber that the agency guaranteed employment for a minimum of ninety days. The lawyer who represented Walker immediately objected to such testimony on the grounds that its admission would violate the "parol evidence rule." Both parties then presented arguments concerning the proffered testimony. After the attorneys for both litigants concluded their debate on the issue, the trial court overruled the objection which had been made by Walker's attorney and the following exchange occurred:

"Q. Butch, (Traughber) on September 11, 1975, when you were at this employment agency did you have additional conversations with Mrs. Gail Snow (agency employee)?

"A. Yes, sir.

"Q. What additional conversation did you have with her?

"A. We were discussing the contract in general, the fee to be paid and the guarantee of employment and she stated that all we offer is full time employment service, but if in fact you get laid off or work ceases on your job within a ninety day period we will guarantee you another job in the same pay scale that you are making there."

On appeal, Walker claims that the trial court erred in permitting the above quoted testimony. Specifically, Walker asserts that the effect of the oral evidence which was introduced was to modify or vary the express terms of the written contract between Traughber and the Huntsville Employment Agency. Therefore, Walker submits that Traughber's testimony violated the rule against parol evidence. ¹ We disagree.

The "parol evidence rule" is generally considered to be a rule of substantive law rather than a rule of evidence. Restatement of Contracts, § 237, comment a (1932). But regardless of whether it is considered to be a rule of substantive law or a rule of evidence, the rule against parol evidence is subject to numerous exceptions. Moreover, a strict, formal and technical interpretation of the rule has generally been abandoned. Young v. United States, 327 F.2d 933 (5th Cir.); Parker v. McGaha, 294 Ala. 702, 321 So.2d 182.

Simply stated, the "parol evidence rule" forbids the parties to a written contract to supplement the terms of the contract by extrinsic evidence. The rule does not, however, forbid the admission of extrinsic evidence to explain the meaning of words contained in the writing. Riegel Fiber Corp. v. Anderson Gin Co., 512 F.2d 784 (5th Cir.). Indeed, such evidence is often necessary for the purpose of ascertaining the circumstances under which a contract was made; the relationships between the parties to the contract; and any facts which may be deemed to be within the mutual knowledge of the parties. Coley v. W. P. Brown & Sons Lumber Co., 251 Ala. 235, 37 So.2d 125. And the admission of extrinsic evidence to clarify these matters or explain ambiguous terms contained in the contract is not an infringement of the rule that parol evidence is inadmissible to contradict, add to, or vary a contract in writing. See Parker v. McGaha, supra; Coley v. W. P. Brown & Sons Lumber Co., supra.

In the instant case Walker objected to oral testimony which involved preliminary discussions leading to the written agreement which was actually entered into between Traughber and the Huntsville Employment Agency. The basis of his objection was that Traughber's statement that Mrs. Snow informed him that the employment agency guaranteed him a minimum of ninety days' work ² violated the express provisions of the contract that the agency "only handled permanent positions" and that the agency would not recognize verbal agreements between agency employees and applicants.

However, we view the testimony given by Traughber to have been for the purpose of clarifying the circumstances under which the contract was made and to explain what was meant by the contract term "permanent" employment. In other words, this testimony was not introduced to modify, vary or contradict either of the contract provisions relied upon by Walker. Instead, it was offered to show that prior to entering into the written agreement, Traughber sought to have the agency define its obligation to provide him with alternative employment should his initial assignment cease. Accordingly, Mrs. Snow informed him that the agency offered only full time employment, but if he was laid off or his job ceased within a ninety day period, the agency would guarantee him another job. Since the contract which the agency furnished stated that the agency provided only "permanent positions," Mrs. Snow's efforts to explain to Traughber what was meant by this term that is, whether the failure to obtain a "permanent position" (presumably anything over ninety days would be deemed "permanent") precluded the latter's right to...