AKERS V. J.B. SEDBERRY, INC. 39 Tenn.App. 633, 286 S.W.2d 617 (1955) CASE BRIEF

AKERS V. J.B. SEDBERRY, INC.

39 Tenn.App. 633, 286 S.W.2d 617 (1955)

NATURE OF THE CASE: This was an action for damages for a breach of an employment contract. Sedberry (D) challenged a judgment, which found in favor of Akers (P) in their suit for breach of employment contract.

FACTS: Sedberry (D) entered into a written contract with Akers (P) as Chief Engineer for a term of five years at a salary of $12k per year with an escalating percentage of the net profits over five years. Mrs. Sedberry, who owned practically all the stock of D, personally guaranteed D's performance of the contract. A similar contract was entered into by D with Whitsitt (P) but at a salary of $7.2k per year. They were to perform their duties at Jay Bee Manufacturing Company. Problems developed with Jay Bee in 1950 with its bank. After the employment contracts were made, Sedberry acquired the stock of Jay Bee and installed a new manager, Sorenson. Friction developed between Sorenson and Ps. Jay Bee also owed large amounts of money to a bank and those officials were concerned the company would fail under Sorenson and talked with Ps about that issue. Ps then flew and a had a meeting with Sedberry and offered their resignations on a ninety day notice. They were refused. That meeting continued and both Ps went back to Jay Bee, but Sorenson never attended nor knew of the meeting. The next day Mrs. Sedberry stated by telegrams that the resignations were accepted. Ps contend that Mrs. Sedberry had refused their resignations and that no new offer was open. The court awarded Ps damages and D appealed

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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