Webster v. Schauble, No. 37233

CourtUnited States State Supreme Court of Washington
Writing for the CourtHILL; ROSELLINI, C.J., JOHNSON
Citation400 P.2d 292,65 Wn.2d 849
PartiesM. A. WEBSTER and Clara M. Webster, his wife, Respondents, v. Roland E. SCHAUBLE and Jane Doe Schauble, his wife, Howard E. Schauble and Jane Doe Schauble, his wife, and Albert E. Schauble and Jane Doe Schauble, his wife, Appellants. Ernest Schauble and Jane Doe Schauble, his wife, Defendants.
Decision Date11 March 1965
Docket NumberNo. 37233

Page 849

65 Wn.2d 849
400 P.2d 292
M. A. WEBSTER and Clara M. Webster, his wife, Respondents,
v.
Roland E. SCHAUBLE and Jane Doe Schauble, his wife, Howard
E. Schauble and Jane Doe Schauble, his wife, and
Albert E. Schauble and Jane Doe
Schauble, his wife, Appellants.
Ernest Schauble and Jane Doe Schauble, his wife, Defendants.
No. 37233.
Supreme Court of Washington, Department 1.
March 11, 1965.

Brown & Thayer, Robert Brown, Spokane, for appellants.

Hancox & Kimer, Grant L. Kimer, Spokane, for respondents.

HILL, Justice.

M. A. Webster 1 had an unfortunate experience as a result of probably unfair and certainly ruthless treatment by three brothers (Roland, Howard, and Albert Schauble 2). The extent, if any, to which the Schaubles are legally liable for Webster's conceded financial losses, his loss of employment, and injuries to his reputation and standing in the brokerage community [400 P.2d 293] by reason of his association and experience with them, is the crux of this appeal.

Page 850

Webster, as an employee of others, had become an experienced broker in the agricultural commodities field. Desirous of participating in the profits of such a brokerage business, he joined the Schauble brothers in opening an agricultural commodity brokerage office in Spokane on March 1, 1962, under the name of Ag-Trade, Inc. 3

The paid in capital with which the business opened was $15,000. Webster and each of the Schauble brothers put in $3,000, and their father, Ernest Schauble, put in the other $3,000. Each was issued 30 shares of stock. Webster secured his $3,000 by borrowing it from the Farmington State Bank. This extension of credit to Webster was arranged by the Schaubles, although they did not guarantee the payment. Webster and his wife signed the note, pledging their 30 shares of stock as collateral. Webster had been receiving a salary of $600 a month, and that was what he was to receive from Ag-Trade, Inc., as manager and treasurer; but an additional $50 a month was to be paid by Ag-Trade, Inc. to the bank to apply on the principal and interest on the Webster note.

The Schauble brothers were all directors of Ag-Trade, Inc. Roland was president; Howard was vice-president; Albert was secretary; and Webster was treasurer. 4 The Schauble brothers determined the policies of the company

Page 851

and put restrictions and limitations on Webster, as manager, in doing business with certain concerns which they regarded as accounts of their partnership brokerage business. They also directed him not to do business with other concerns and individuals that they had found to be poor credit risks.

Whether Ag-Trade, Inc. was making a little money or losing substantial amounts was a hotly debated issue; but, in any event, on September 27 the Schaubles, as the controlling faction in the corporation, moved in and discharged Webster as manager, closed the office in Spokane, cut off the telephone, and moved the furniture and records to their place of business in St. John. They completed all contracts and commitments which Ag-Trade, Inc. had made, but sought no new business. Concerning the closing of the office, the trial court made the following finding:

'* * * That the action of the defendants as aforesaid,...

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12 practice notes
  • Snyder v. Medical Service Corp., No. 69091-0.
    • United States
    • United States State Supreme Court of Washington
    • December 13, 2001
    ...period of time." Roberts v. Atl. Richfield Co., 88 Wash.2d 887, 891, 568 P.2d 764 (1977) (citing Webster v. Schauble, 65 Wash.2d 849, 400 P.2d 292 (1965)). We recognize an exception to the terminable-at-will doctrine by permitting a cause of action for wrongful discharge only "where the dis......
  • Thompson v. St. Regis Paper Co., 49592-1
    • United States
    • United States State Supreme Court of Washington
    • July 5, 1984
    ...appellant's interrogatories directed at ascertaining the reasons for appellant's dismissal. Citing Webster v. Schauble, 65 Wash.2d 849, 400 P.2d 292 (1965), St. Regis argued that because appellant's employment was terminable at will, the inquiries were not relevant and would not lead to rel......
  • Labriola v. Pollard Group, Inc., No. 74002-0.
    • United States
    • United States State Supreme Court of Washington
    • November 10, 2004
    ...685 P.2d 1081 (1984); Roberts v. Atl. Richfield Co., 88 Wash.2d 887, 891, 568 P.2d 764 (1977); Webster v. Schauble, 65 Wash.2d 849, 852, 400 P.2d 292 7. While Knight suggests that three years of continued employment may be sufficient, our decision today does not establish what a reasonable ......
  • Greaves v. Medical Imaging Systems, Inc., No. 61233-1
    • United States
    • United States State Supreme Court of Washington
    • August 25, 1994
    ...548 n. 3, 859 P.2d 51 (1993)). 6 Roberts v. ARCO, 88 Wash.2d 887, 891, 568 P.2d 764 (1977) (citing Webster v. Schauble, 65 Wash.2d 849, 400 P.2d 292 (1965)); accord Lasser v. Grunbaum Bros. Furniture Co., 46 Wash.2d 408, 281 P.2d 832 (1955). 7 In Perry v. Sindermann, 408 U.S. 593, 92 S.Ct. ......
  • Request a trial to view additional results
12 cases
  • Snyder v. Medical Service Corp., No. 69091-0.
    • United States
    • United States State Supreme Court of Washington
    • December 13, 2001
    ...period of time." Roberts v. Atl. Richfield Co., 88 Wash.2d 887, 891, 568 P.2d 764 (1977) (citing Webster v. Schauble, 65 Wash.2d 849, 400 P.2d 292 (1965)). We recognize an exception to the terminable-at-will doctrine by permitting a cause of action for wrongful discharge only "where the dis......
  • Thompson v. St. Regis Paper Co., 49592-1
    • United States
    • United States State Supreme Court of Washington
    • July 5, 1984
    ...appellant's interrogatories directed at ascertaining the reasons for appellant's dismissal. Citing Webster v. Schauble, 65 Wash.2d 849, 400 P.2d 292 (1965), St. Regis argued that because appellant's employment was terminable at will, the inquiries were not relevant and would not lead to rel......
  • Labriola v. Pollard Group, Inc., No. 74002-0.
    • United States
    • United States State Supreme Court of Washington
    • November 10, 2004
    ...685 P.2d 1081 (1984); Roberts v. Atl. Richfield Co., 88 Wash.2d 887, 891, 568 P.2d 764 (1977); Webster v. Schauble, 65 Wash.2d 849, 852, 400 P.2d 292 7. While Knight suggests that three years of continued employment may be sufficient, our decision today does not establish what a reasonable ......
  • Greaves v. Medical Imaging Systems, Inc., No. 61233-1
    • United States
    • United States State Supreme Court of Washington
    • August 25, 1994
    ...548 n. 3, 859 P.2d 51 (1993)). 6 Roberts v. ARCO, 88 Wash.2d 887, 891, 568 P.2d 764 (1977) (citing Webster v. Schauble, 65 Wash.2d 849, 400 P.2d 292 (1965)); accord Lasser v. Grunbaum Bros. Furniture Co., 46 Wash.2d 408, 281 P.2d 832 (1955). 7 In Perry v. Sindermann, 408 U.S. 593, 92 S.Ct. ......
  • Request a trial to view additional results

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