Schultz v. Los Angeles Dons, Inc.
107 Cal. App. 2d 718, 1951 Cal. App. LEXIS 1971, 238 P.2d 73 (1951)
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Rule of Law:
An employer waives a contractual requirement for an employee to provide formal written notice of an injury when the employer has actual, immediate knowledge of the injury's details and acts upon that knowledge.
Facts:
- Schultz, a professional football player, signed a one-season contract with the Los Angeles Dons football club for $8,000.
- Before the season, the club's physicians examined Schultz and certified him to be in excellent physical condition.
- Shortly after training camp began, Schultz participated in two vigorous scrimmages.
- On July 18, 1948, following the scrimmages, Schultz developed a pain in his leg and numbness in his foot which interfered with his ability to run.
- Schultz immediately reported his condition to the team's head coach and trainer.
- The club's trainer treated Schultz and sent full written reports of his condition to the club's insurance carrier.
- The club had Schultz examined by three different orthopaedic specialists, who all reported back to the club that he had a herniated disc and could not safely play.
- On August 12, 1948, the club terminated Schultz's contract, citing his physical condition as the reason.
Procedural Posture:
- Schultz filed a complaint against the defendant corporation in the trial court for breach of contract, seeking $7,500.
- The defendant answered, admitting the contract and discharge, but denying the discharge was without cause and raising several affirmative defenses.
- The trial court found in favor of Schultz, holding that the discharge was without good cause and that Schultz had fulfilled his contractual obligations.
- The defendant corporation (appellant) appealed the trial court's judgment to the District Court of Appeal.
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Issue:
Does an employer waive a contractual requirement for formal written notice of an injury when it has actual knowledge of the injury, investigates it with its own doctors, and its agents make written reports about it?
Opinions:
Majority - Vickers, J. pro tem.
No. An employer waives a contractual requirement for formal written notice where the employer has actual knowledge of the employee's injury and the surrounding circumstances. The purpose of the notice requirement was to ensure the club was promptly and fully informed of any injury. Here, Schultz immediately gave the club's trainer and coach all the information he possessed. The club then took full advantage of this information by having him treated by its trainer and examined by multiple specialists who made written reports to the club. Since the club was as fully protected as if formal written notice had been given, requiring it would be an 'idle act,' and the club's actions constituted a waiver of the formal notice provision. Furthermore, because Schultz's disability resulted from an injury sustained while performing services for the club, it was a risk the club assumed under the contract and was not a valid cause for termination.
Concurring - Shinn, P. J.
No. Although the trial court's findings of fact were 'ill-considered, contradictory and obviously false' on several points, the judgment should be affirmed. The central question was whether Schultz suffered his disability while performing services for the club. While the trial court failed to make a specific finding on this crucial issue, such a finding can be implied from the finding that Schultz was physically able when he began practice. Given that there was no evidence he was injured anywhere else, a contrary finding would not be logical. Therefore, by a 'narrow margin,' the inadequate findings do not justify a reversal of the judgment.
Analysis:
This decision solidifies the application of the waiver doctrine to formal notice requirements in employment contracts. It stands for the principle that a party's conduct demonstrating full awareness and acknowledgment of a situation can override a technical contract provision, preventing that provision from being used inequitably. The court prioritizes substance (actual knowledge and action) over form (a written document). This precedent impacts future contract disputes by limiting a party's ability to enforce a notice clause as a technicality to escape liability when they were, in fact, fully aware of the circumstances the notice was intended to convey.
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