Gray v. Lurie
Opinion of the Court
Appeal from a judgment of the Supreme Court, Schenectady County in favor of the plaintiff, entered upon a decision of the court after trial without a jury. The action was brought for a balance alleged to be owing for compensation under a contract of employment. The plaintiff was Originally employed on March 1, 1952, to manage a department of the defendants’ business, at the total salary of $10,000 per year, it being agreed that the plaintiff was to receive $100 per week, with additional advances as needed from time to time, the final adjustment to be made at the end of the fiscal year of the employer, the following February 1. This arrangement was continued for three years. On or before February 1, 1955, the plaintiff was advised by the managing partner of the defendant firm that, because of the decline of business, the old arrangement could not be continued but that the drawing account of $100 per week would be continued and that the payment of any additional amount would depend upon the volume of business transacted in the department under the plaintiff’s supervision. According to the defendants’ proof, the plaintiff accepted this new arrangement. Despite slight differences, the plaintiff’s own testimony on the whole supported the defendants’ version of the conversation. The only material addition by the plaintiff was that he told the defendants that, if he found that the amount which he was earning was insufficient, he reserved the right to leave at any time on 30 days’ notice. About July 31, 1955, the managing partner of the defendants told the plaintiff that, judging by the volume of business to that date, the plaintiff would be paid a total of about $8,500 for the fiscal year ending February 1, 1956. Shortly thereafter, the plaintiff gave notice that he would leave and he accordingly left on August 27, 1955. Up to that date, he had received $3,000 at the rate of $100 per week, and advances in the amount of $1,600, and he had purchased merchandise in the amount of $275, making a total of $4,875. At the rate of $10,000 per year, he would have received about $5,800 up to the time he left and he sued for the difference between that amount and the amount which he had received. The trial court gave judgment for the plaintiff, taking the view that the new arrangement was too indefinite to be enforcible and hence that it could not operate to extinguish the prior agreement. The new arrangement undoubtedly was too indefinite and uncertain to be enforcible as a contract (Varney v. Ditmars, 217 N. Y. 223; Von Reitzenstein v. Tomlinson, 249 N. Y. 60). However, it does not follow that the old contract for $10,000 per year remained in effect. It was not essential to an effective termination of the old contract that there be a new contract in definite and enforcible terms. The plaintiff contends that the original contract of employment was one at will (citing Martin v. New York Life Ins. Co., 148 N. Y. 117 and Watson V. Ghigino, 204 N. Y. 535) but in view of the plaintiff’s own testimony that the original hiring was “for at least a year”, we are of the opinion that the defendants are right in their contention that the contract of employment was for a definite term of one year, renewable by mutual consent from year to year (Cuppy v. Stollwerck Bros., 216 1ST. Y. 591; Gressing V. Musical Instrument Sales Co., 222 ÍT. Y. 215; 1 Williston on Contracts [Rev. ed.], §39). But this point of difference is not a material one in this case. Whichever construction is adopted, the contract was terminable on February 1,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.