Addis v Gramophone Co Ltd

The House took time for consideration.

July 26.

LORD LOREBURN L.C.

The plaintiff was employed by the defendants as manager of their business at Calcutta at 15 l. per week as salary, and a commission on the trade done. He could be dismissed by six months' notice.

In October, 1905, the defendants gave him six months' notice, but at the same time they appointed Mr. Gilpin to act as his successor, and took steps to prevent the plaintiff from acting any longer as manager. In December, 1905, the plaintiff came back to England.

The plaintiff brought this action in 1906, claiming an account and damages for breach of contract. That there was a breach of contract is quite clear. If what happened in October, 1905, did not amount to a wrongful dismissal, it was, at all events, a breach of the plaintiff's right to act as manager during the six months and to earn the best commission he could make.

When the action came to trial it was agreed to refer the matters of account to arbitration. The causes of action for breach of contract were tried by Darling J. and a jury. The jury found for the plaintiff in respect of wrongful dismissal 600 l. , and 340 l. in respect of excess commission over and above what was earned by the plaintiff's successor between October, 1905, and April, 1906.

The Court of Appeal by a majority held that upon their view of the facts there was (apart from the account which must be taken) no cause of action, and they entered judgment for the defendants.

As to the damages of 600 l. for wrongful dismissal a variety of controversies arose. Did what happened entitle the plaintiff to treat the breach of contract as a wrongful dismissal? If yes, then did he elect to treat the contract of service as still continuing? Was it open to the defendants to raise the point having regard to the pleadings and the amendments to the pleadings, and the way the case was conducted al the trial, and the contents of the notice of appeal to the Court of Appeal? A subsidiary dispute was raised as to the way in which the case had been in fact conducted at the trial, as to which eminent counsel did not agree. A further controversy ensued, whether the 600 l. was intended to include salary for the six months, or merely damages because of the abrupt and oppressive way in which the plaintiff's services were discontinued, and the loss he sustained from the discredit thus thrown upon him. And, finally, a question of law was argued, whether or not such damages could be recovered in law.

My Lords, it is difficult to imagine a better illustration of the way in…