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Contracts Keyed to Templin
Akers v. J.B. Sedberry, Inc.
Citation:
286 S.W.2d 617 (Tenn. Ct. App. 1955)Facts
J.B. Sedberry, Inc., a Tennessee corporation primarily owned and managed by Mrs. M.B. Sedberry, employed Charles William Akers as Chief Engineer and William Gambill Whitsitt as Assistant Chief Engineer under separate five-year contracts beginning in 1947. Both contracts included base salaries plus increasing percentages of company profits. The employees worked at the manufacturing plant in Tyler, Texas, where tensions developed with the plant manager. On September 29, 1950, Akers and Whitsitt met with Mrs. Sedberry and, at the beginning of their meeting, offered to resign with ninety days’ notice if paid according to their contracts for that period. Mrs. Sedberry did not accept their offers but proceeded to discuss business plans. On October 2, 1950, Mrs. Sedberry sent telegrams to both employees stating she accepted their “resignations” effective immediately. The employees protested, stating no resignation offers were outstanding when she sent the telegrams.
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