Weber v. Perry

• Decision Date: 09 July 1942
• Docket Number: 15442.
• Parties: WEBER v. PERRY.
• Court: South Carolina Supreme Court

21 S.E.2d 193

201 S.C. 8

WEBER v. PERRY.

No. 15442.

Supreme Court of South Carolina

July 9, 1942

Appeal from Common Pleas Court, of Orangeburg County; G. B. Greene Judge.

Action by G. L. Weber against W. E. Perry to recover damages for alleged breach of an oral contract of employment. From a judgment overruling a demurrer to the complaint, defendant appeals.

Order of Judge Greene:

This action was commenced on or about the 28th day of August 1941, to recover damages for the alleged breach of an oral contract of employment. In due time, the defendant filed a demurrer to the complaint which came on to be heard before me at the October Term of the Court. At that time, I took the questions presented under advisement.

In brief, the complaint alleges the following facts pertinent to the issues before me:

In the fall of 1938, plaintiff, who is an expert in farm management was induced by the defendant to abandon an established business in the State of Michigan and to move with his family to the State of South Carolina, there to undertake the management and development of a large plantation for the defendant. The terms of the contract under which this was done are set forth in the complaint as follows:

"(1) That plaintiff should abandon his business in the State of Michigan and move with his family to South Carolina.

"(2) That plaintiff should undertake the development and operation of defendant's farm, having full authority and responsibility for the erection of suitable buildings and improvements, the selection of proper animals, the upbuilding and improvement of the soil, the establishment and execution of breeding and rotation programs and, in general, the scientific conversion of the predominantly cotton farm into a predominantly dairy and stock farm, and that defendant should furnish all necessary capital.

"(3) That plaintiff should be discharged only if he failed to properly perform his duties and obligations under the contract, and that if it became necessary for defendant to discharge him, he should be given such notice as would be reasonable and proper under the circumstances.

"(4) That if plaintiff's family should become dissatisfied with its new home, or if plaintiff should have an opportunity to improve his position by accepting new employment, he should have the right to terminate the contract upon giving thirty days' notice to the defendant.

"(5) That plaintiff should receive as compensation for his services the sum of $2500.00 per annum and after November 1 1941, if the contract had not been sooner terminated under the aforementioned provisions thereof, he should, in addition to his salary, receive 50% of the net profits of the enterprise, after allowing 4% interest on defendant's investment.

"(6) That plaintiff and his family should reside on the farm in a house to be furnished by the defendant and should receive such sustenance as the farm should afford."

According to the allegations of the complaint, the plaintiff fully performed the contract on his part and successfully managed and developed the farm; but, on or about the 5th day of August, 1941, he was notified by the defendant that his employment would not be continued after September 1, 1941.

The grounds of the demurrer are as follows:

"1. Because such contract as is alleged in the complaint is void under the Statute of Frauds in that the same is not capable of being performed within one year, as appears upon the face of the complaint.

"2. Because the contract sued on and set forth in the complaint reserves an absolute right to cancel and terminate the same at any time by the plaintiff but does not grant the same right to the defendant."

The First Ground.

There can be no dispute as to the well established principle that the statute applies only to those contracts which are impossible of performance within a year and that a contract on a contingency which may occur within the year need not be supported by a writing.

This rule has a particular application to contracts of employment for an indefinite term or on a contingency.

"Where under the terms of an oral agreement an employment is to cease upon a contingency which may happen within a year, the oral agreement is not within the statute of frauds. Thus the statute does not apply to an oral agreement to give employment so long as the employee does...