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Contracts Keyed to Summers
Akers v. J.B. Sedberry, Inc.
Citation:39 Tenn. App. 633, 286 S.W.2d 617
Mrs. M.B. Sedberry (co-defendant) was the president and principal stockholder of J.B. Sedberry, Inc. (co-defendant), a corporation that distributed hammer mills. J.B. Sedberry employed Charles Akers and William Whitsitt (plaintiffs) as Chief Engineer and Assistant Chief Engineer, respectively, pursuant to written contracts for five-year terms. J.B. Sedberry later began experiencing financial difficulties. Mrs. Sedberry held a conference with Akers and Whitsitt to discuss the company. At the conference, Akers and Whitsitt offered their resignations on a ninety-day notice provided that they were paid according to the contract for that period. Mrs. Sedberry, however, refused to accept their resignations and brushed the matter aside. A few days later, Mrs. Sedberry sent via telegram notice that Akers and Whitsitt’s resignations were accepted, effective immediately. Akers and Whitsitt each individually sued Mrs. Sedberry and J.B. Sedberry for breach of their employment contracts.
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