Hager v. Reilly

Citations

• 241 Pa. 297
• 88 A. 492
• 1913 Pa. LEXIS 780

Syllabus

<p>Contracts — Master and servant — Payment in profits — Construction.</p> <p>Where defendant, a contractor, engaged plaintiff, a carpenter, to give his entire time in connection with defendant’s business, for a period of one year, with a proviso that the contract should be renewed from year to year until either party should give the other a specified notice, plaintiff to receive a' definite sum as wages and in addition ten per cent, of the net profits, to be ascertained on or about the 31st day of December of each year, no uncompleted building, however, to be considered in any way whatever in the ascertainment of profits for the year until the contract for the same should be fully completed and ended, the contract is a severable one and the profits are to be ascertained in each year separately. There being nothing in the contract indicating that plaintiff was to share losses, but on the contrary there being an express provision that the contract was not to be construed as entitling him to any interest in the business, he is not responsible for losses, and in determining plaintiff’s compensation the losses in one year cannot be deducted in ascertaining the percentage of profits due plaintiff for the business of the following year. In making the calculation of net profits, the buildings completed in fact are to be included, although by agreement between the owner and the contractor, the payment therefor may be postponed. Where, at the termination of the contract, certain structures were uncompleted, plaintiff’s compensation should be measured and determined as of the 31st of December preceding, apportioning the time required for the completion of the work and allowing plaintiff such proportion as would be due him for the time of his employment thereon.</p>