Como v. Rhines

                              NO. 81-405
            IN THE SUPREME COURT OF THE STATE OF MONTANA
                                  1982


GARY COMO,
                  Plaintiff and Respondent,
    VS.

JIM RHINES and SOUND WEST, INC.,
                   Defendants and Appellants.


Appeal from:    District Court of the Fourth Judicial District,
                In and for the County of Missoula
                Honorable Jack L. Green, Judge presiding.
Counsel of Record:
    For Appellants:
          Datsopoulos, MacDonald      &   Lind, Missoula, Montana
    For Respondent:
          Hirst, Dostal   &   Withrow, Missoula, Montana


                               Submitted on briefs: February 11, 1982
                                              Decided:   MAY 2 7   ma
Filed:



         &@       $ 4   y         v
                                          Clerk
Mr.   J u s t l c e Gene B.       D a l y delivered t h e O p l n i o n o f t h e C o u r t .

           This      is    an     appeal        from      a   judgment      issued     by    the

Dlstrlct       Court      of     the        Fourth     Jud~cial District,            Missoula

County,      i n which          the    District        Court     found     that appellants

breached       an     employment              contract        with     respondent.           The

Dlstrict       C o u r t awarded            damages     to    respondent       against      both

a p p e l l a n t s i n t h e amount o f $ 3 , 7 5 4 ,        including $ 1 , 0 0 0 f o r o n e

m o n t h ' s s a l a r y , $ 1 , 7 5 4 f o r t r a v e l and moving e x p e n s e s , and a

penalty      of      $1,000      as    provided         by    sectlon      39-3-206,        MCA.

Respondent        was     also        awarded        reasonable        attorney      fees    and

c o s t s u n d e r s e c t i o n 39-3-214,        MCA.

          A p p e l l a n t , J i m R h i n e s , is p r e s i d e n t and a s t o c k h o l d e r

of: Sound West,           Inc.     (Sound West).              Sound West owns a c h a i n

o f s t o r e s , o n e i n M i s s o u l a , Montana.

          Respondent,            G a r y Como,       h a s a background         in business

and   accounting.              I n 1964,        he r e c e i v e d a c o l l e g e d e g r e e i n

b u s i n e s s a d m i n i s t r a t i o n with a minor i n accounting.                He has

had    about      ten     years        of     experience        as    an   accountant        and

worked w l t h a c o m p u t e r            f o r two y e a r s o f     that   time.        From

J a n u a r y 1 9 7 7 t o March 1 9 7 8 ,         respondent         worked a s a m a n a g e r

of a family r e s t a u r a n t i n S t . Paul, Minnesota.

          D e s i r i n g t o f i n d work i n w e s t e r n Montana,             respondent

c o n t a c t e d s e v e r a l employment a g e n c i e s i n M i s s o u l a , Montana.

On A p r i l 1 8 ,    1 9 7 8 , a n employment a g e n c y n o t i f i e d r e s p o n d e n t

t h a t J i m R h i n e s a t Sound N e s t w a s l o o k i n g f o r someone w i t h

e x p e r i e n c e i n a c c o u n t i n g and c o m p u t e r programming.
          Respondent            called        Rhines.         They     briefly      discussed

respondent's         q u a l i f i c a t i o n s and s e t a d a t e f o r a n i n t e r v i e w

I n Missoula.

          R e s p o n d e n t t r a v e l e d t o M i s s o u l a b y t r a i n and m e t w i t h
Rhines on A p r i l 26,                1978.      'The D i s t r i c t C o u r t f o u n d t h a t a t

t h e f i r s t i n t e r v i e w Rhines t o l d r e s p o n d e n t t h a t he wanted a n

a c c o u n t a n t who c o u l d        use     a n IBM c o m p u t e r     to handle         inven-

tory,    a c c o u n t s p a y a b l e and bank a c c o u n t s .

           Rhines           claims       that,       in    fact,     he     wished     to    hire     a

computer         programmer,             not      an      accountant.           Rhines       admits,

however, t h a t he n e v e r t o l d r e s p o n d e n t t h i s .

           At     the       first       interview,         respondent's            qualifications

were d i s c u s s e d .          He    met     with      Sound West's          accountant,          A1

Hawley,       discussed           the     accounting           s y s t e m and was shown t h e

c o m p u t e r p r i n t o u t s o f t h e a c c o u n t i n g p r o g r a m s u s e d by Sound

West.      H e w a s t o l d by R h i n e s t o r e t u r n t h e n e x t d a y .

           At     t h e second           interview,         respondent         claims,       and    the

District         Court       found,       that       Rhines t o l d        respondent t h a t        he

would     like         to    take      him     on.        Compensation,            benefits,        and

d u t i e s of    t h e job were t h e n d i s c u s s e d and, a c c o r d i n g to t h e

t l n d l n g s o f t h e D i s t r i c t C o u r t , a g r e e d upon.

           R e s p o n d e n t made n o t e s o f t h e t e r m s o f h i s employment:

he   would        be     paid       $1,000       per      month      for     two     months;       then

$ 1 , 2 0 0 p e r month, a n d $ 1 , 5 0 0 p e r month s o m e t i m e i n t h e f a l l .

Respondent            would       work    five       days      a    week     unless     more       were

necessary.             He would h a v e s i x d a y s o f p a i d v a c a t i o n .

           The D i s t r i c t C o u r t          concluded         that,     as part        of    this

agreement,            respondent's            moving e x p e n s e s a s w e l l a s e x p e n s e s

f o r h i s i n t e r v i e w t r l p would b e r e i m b u r s e d by J i m R h i n e s and

Sound     West.             The     District           Court       also    found      that     Rhines

d g r e e d r e s p o n d e n t would n o t h a v e t o move f r o m S t . P a u l u n t i l

June     5,      so    his    c h i l d r e n could         finish        scl?ool.     Respondent

would t h e n s t a r t work a s s o o n as h e w a s s e t t l e d .

           On A p r i l       28,       1978,      respondent         went     to t h e Missoula
J o b S e r v i c e and c o m p l e t e d a n i n t e r s t a t e wage c l a i m .           On t h e

form,     respondent         s t a t e d t h a t on A p r i l 26 h e had b e e n h i r e d

by    Sound West          as    an    accountant          with       a   starting          date    of

a p p r o x i m a t e l y June 19, 1978.           H e a l s o n o t e d t h a t Sound West

was p a y i n g f o r t h e move.

            I n e a r l y J u n e r e s p o n d e n t r e n t e d a t r u c k a n d moved h i s

f a m l l y and    t h e i r b e l o n g i n g s to M i s s o u l a .       On J u n e 9 ,    1978,

r e s p o n d e n t w e n t t o t h e Sound West s t o r e and t o l d R h i n e s t h a t

h l s h o u s i n g a r r a n g e m e n t s had n o t worked o u t and he would n o t

b e a b l e t o b e g i n work f o r two w e e k s .                Respondent t e s t i f i e d ,

and t h e D i s t r i c t C o u r t f o u n d , t h a t R h i n e s a d v i s e d r e s p o n d e n t

t o d o w h a t h e had         t o d o t o s e t t l e i n and t h e n r e p o r t f o r

work l a t e r i n t h e month.

           On o r a b o u t J u n e 21, 1 9 7 8 , r e s p o n d e n t r e t u r n e d t o t h e

Sound West s t o r e and r e q u e s t e d a d a t e t o s t a r t work.                     Rhines

s e n t r e s p o n d e n t t o Sound West ' s a c c o u n t a n t .           The a c c o u n t a n t

dld not give a specific date                        f o r r e s p o n d e n t t o s t a r t work

dnd s a i d h e would c o n t a c t r e s p o n d e n t t h e f o l l o w i n g week.

           R e s p o n d e n t c o n t i n u e d t o c a l l and p e r s o n a l l y g o t o t h e

Sound West s t o r e t o s e t a s t a r t i n g d a t e .                   R h i n e s was non-

committal.            Respondent         gave      Rhines       a     list     of    his     moving

expenses,         but Rhines refused              t o p a y them.             Finally,       on o r

about June 30,            1978, Rhines t o l d r e s p o n d e n t he d i d n o t have

a l o b a t Sound West.

           Respondent          then      began       looking          for     other      work      in

Mlssoula.          He   received        t e m p o r a r y work i n J a n u a r y 1 9 7 9 .         In

March 1 9 7 9 h e r e c e i v e d p e r m a n e n t employment a s a n a c c o u n t a n t

w i t h t h e U n i v e r s i t y o f Montana, w h e r e h e r e m a i n s e m p l o y e d .

           The     District        Court      concluded         that        under     the     above

facts      Jim    Rhines,        as    the     president         and     manager        of    Sound
West,     offered          employment         to respondent            with        express       terms

and r e s p o n d e n t     accepted the o f f e r .             The D i s t r i c t C o u r t t h e n

concluded         t h a t Rhines and            Sound West,           Inc.,        breached       this

c o n t r a c t by f a i l i n g t o p a y s a l a r y and b e n e f i t s ,         and f a i l i n g

t o a l l o w r e s p o n d e n t t o p e r f o r m h i s employment.

           The D i s t r i c t C o u r t c o n c l u d e d t h a t r e s p o n d e n t had b e e n

hired      on     a    month-to-month               basis      and     awarded        respondent

$ 1 , 0 0 0 i n o n e m o n t h ' s s a l a r y ; $ 1 , 7 5 4 i n moving e x p e n s e s w e r e

a l s o a w a r d e d a s p a r t o f t h e employment c o n t r a c t .

           Under s e c t i o n 39-3-206,              MCA,    t h e D i s t r i c t Court found

that    K h l n e s and Sound West                 a l s o owed $ 1 , 0 0 0     a s a penalty.

Flnally,         under       section        39-3-214,        MCA,      the     District          Court

dwarded         respondent           a    reasonable         attorney         fee    and     costs.

Both     Rhines            and     Sound      West      were      held       liable        for    the

1udgment     .
           A p p e l l a n t s raise t h r e e i s s u e s :

           1.         Is    there         substantial        evidence         to    support        the

Dlstrlct         Court's         f i n d i n g t h a t r e s p o n d e n t had a c o n t r a c t o f

employment w i t h Sound W e s t , I n c . ?

           2.      Did t h e D i s t r i c t       C o u r t e r r by a p p l y i n g      sectlons

39-3-206,        MCA,       and 39-3-214,           MCA,     t o respondent's breach of

contract action?

           3.      Did t h e D l s t r i c t C o u r t e r r by h o l d i n g a p p e l l a n t

J i m Rhines l i a b l e f o r r e s p o n d e n t ' s damages?

           The        District           Court's     judgment         is   affirmed         to     the

e x t e n t t h a t a c o n t r a c t w a s a g r e e d upon and b r e a c h e d and t h a t

K h l n e s 1s p e r s o n a l l y l i a b l e f o r d a m a g e s r e s u l t i n g     from t h e

breach.      The case is r e m a n d e d , h o w e v e r ,           for a redetermination

o f damages.

           Appellants             contend       under      the     first      issue     that       the
s t a t e m e n t "we would l i k e t o t a k e you o n " is n o t d e f l n i t e o r

c e r t a i n and d o e s n o t c o n s t i t u t e a n o f f e r .                They claim t h a t

Sound West had                 a n o p e n l n g f o r a c o m p u t e r programmer o n l y .

~ a s t l y , R h i n e s c l a i m s h e t o l d t h e r e s p o n d e n t t h a t h e would

b e h i r e d i n J u n e 1 9 7 b o n l y i f h e were n e e d e d .

           Where t h e e x i s t e n c e o f a n o r a l c o n t r a c t i s c o n t e s t e d

and     the        evidence            is    conflicting,           the      existence           of     the

contract           is    a     question        for     the     trier      of       fact.         Keil    v.

Glacler Park,                Inc.      (1980),               Mont.                 ,    614 P.2d       502,

505,     37 St.Kep.               1151,      1154.      The c r e d i b i l i t y o f       witnesses

and t h e w e i g h t g i v e n t h e i r t e s t i m o n y a r e matters e x c l u s i v e l y

w i t h i n t h e province of t h e D i s t r i c t Court i n a nonjury c a s e .

h a r r i s v . Harrls ( 1 9 8 0 ) ,          - Mont.           ,
                                                               - 616 P.2d                  1099, 1102,

37 S t . R e p .    1696, 1699.               T h i s Court w i l l not d i s t u r b a judg-

ment     on     a p p e a l where           substantial           evidence         to     support       the

j u d g m e n t a p p e a r s on t h e r e c o r d .         See, K e i l ,    614 P.2d          a t 505,

and c a s e s c i t e d t h e r e i n .

           Here, t h e e v i d e n c e s u p p o r t s t h e D i s t r i c t C o u r t ' s con-

c l u s i o n t h a t an a g r e e m e n t w a s r e a c h e d b e t w e e n r e s p o n d e n t a n d

R h i n e s . The D i s t r i c t C o u r t was i n t h e b e s t p o s l t i o n t o w e i g h

the    credibility              of     the    testimony           and   it     chose       to believe

respondent.               Respondent's            a c t i o n s were         totally       consistent

w i t h t h o s e o f a p e r s o n who,             i n good f a i t h ,      t h o u g h t h e had a

job.       He      took notes of               the     terms o f        h i s employment.                He

f i l l e d o u t a J o b S e r v i c e form s t a t i n g t h a t h e had a j o b a s

an     accountant            at      Sound     West.         He    moved       himself        and       his

family t o Missoula a t a g r e a t expense.

           Most         importantly,           however,         are the        admitted a c t i o n s

of     Khines       and        Sound        West's     accountant,            A1       Hawley.        When

respondent              went      to    the    Sound      West       store         in    early        June,
R h i n e s was t o t a l l y n o n c o m m i t t a l .   He d i d not t e l l respondent

a t t h a t t i m e he d i d n o t h a v e a j o b .          I n s t e a d , Rhines r e f e r r e d

r e s p o n d e n t t o Bawley, who t e s t i f i e d t h a t h e remembered t h a t

t h e c o n v e r s a t i o n t o o k p l a c e b u t c o u l d n o t remember what w a s

said.         Respondent's            uncontradicted             testimony            is     t-hat he

a s k e d Hawley a b o u t a          s t - a r t i n g d a t e and Hawley a s k e d him t o

return later.

            The     above       f a c t s amply s u p p o r t      the        District       Court's

c o n c l u s i o n t h a t a c o n t r a c t was e n t e r e d i n t o b e t w e e n r e s p o n -

d e n t and m i n e s .

            Appellants          cont-end       in    their      second         issue        that   the

District         Court     e r r e d by     applying        the     statutory          provisions

found      i n T i t l e 39,       Chapter 3,         P a r t 2,    of    t h e Mont-ana Code

Annotated.          Appellants'          c o n t e n t i o n is w e l l - taken.

            In    sect.ion        39-3-201,          MCA,      "employ,"           "employee,"

" e m p l o y e r " and " w a g e s " a r e d e f i n e d f o r t h i s p a r t . :

            " ( 2 ) 'Employ' means p e r m i t o r s u f f e r t o work.

            " ( 3 ) ' E m p l o y e e ' i n c l u d e s a n y p e r s o n who w o r k s
            f o r another f o r hire.

           " ( 4 ) 'Employer'              includes any i n d i v i d u a l ,
           partnership,                association,                  corporation,
           b u s i n e s s t r u s t , l e g a l r e s p r e s e n t a t i v e , o r any
           o r g a n i z e d g r o u p of p e r s o n s a c t i n g d i r e c t l y or
           i n d i r e c t l y i n t-he i n t e r e s t o f a n e m p l o y e r i n
           r e l a t i o n to an employee b u t s h a l l n o t i n c l u d e
           t h e United S t a t e s .

           "(5) ' W a g e s '         i n c l u d e s a n y money d u e a n
           employee from t h e employer o r employers,
           w h e t h e r t o b e p a i d by t h e h o u r , d a y , week,
           s e m i m o n t h l y , m o n t h l y , o r y e a r l y and s h a l l
           include              bonus,        piecework,          t-ips,  and
           y r a t u i t - i e s of any k i n d . "    (Emphasis added. )

           Respondent w a s n o t a n employee w i t h i n t h e meaning o f

the    statutes.           He    n e v e r a c t u a l l y p e r f o r m e d work          f o r Sound

West.

            Further,         t.he g e n e r a l      provision           of     sect i o n     39-3-
       ,
204 (1) MCA, p r o v i d e s :

           "Every employer o f l a b o r i n t h e s t a t e of
           Montana s h a l l p a y t o e a c h e m p l o y e e t h e wages
           e a r n e d by s u c h e m p l o y e e      .. .   and no p e r s o n
                                                                   ..
           f o r whom l a b o r h a s b e e n p e r f o r m e d may wit-h-
                                                   L



           h o l d f r o m a n y e m-p l o- e e a n y wages e a r n e d o r
                                            y
           u n p a i d f o r a - l o n g e r p e r i o d t.han 1 0 b u s i n e s s
           d a y s a f t e r t h e same a r e d u e        . . ."
           Here,      respondent. n e i t h e r earned,                nor performed,               any

w o r k f o r Sound West.              Respondent,            by d e f i n i t i o n ,       does not

come     under      t-he p r o t e c t i o n s   of      these       sections,            including

section        39-3-206,       MCA,     which      permits          the     imposition             of   a

p e n a l t y and s e c t i o n 39-3-214,        MCA,      w h i c h a l l o w s t.he award o f

a r e a s o n a b l e a t t o r n e y f e e and c o s t s .

           Further,         respondent's         position           i s not. s u p p o r t - e d by

t h e p o l i c y u n d e r l y i n g t h e wage claim s t a t - u t e s .              The O r e g o n

Supreme C o u r t h a s s t a t e d :

           "The p o l i c y o f t - h e [wage c l a i m ] s t a t u t e i s t o
           a i d an employe i n t h e prompt c o l l e c t i o n o f
           c o m p e n s a t i o n d u e him and t o d i s c o u r a g e a n
           employer from u s i n g a p o s i t i o n o f economic
           s u p e r i o r i t y as a l e v e r t o d i s s u a d e a n e m p l o y e
           from p r o m p t l y c o l l e c t i n g h i s a g r e e d upon
           compensation.            ..   " S t a t e ex rel. Nilsen v.
           Oregon S t a t e Motor Assoc. ( 1 9 6 7 ) , 248 O r .
           1 3 3 , 432 P.2d 5 1 2 , 515.

           The     District       Court      erred,        therefore,            by    imposing         a

$1,000      penalty         under     section       39-3-206,           MCA,      and        awarding

a t t o r n e y f e e s a n d c o s t s u n d e r s e c t i o n 39-3-214,             MCA.

           A    redetermination            of    damages          must      be    made        by    the

District        Court.         In     redetermining             damages,          the        District

Court      should      be    guided       by     the      general         rule        for     damages

r e s u l t i n g from a b r e a c h o f c o n t r a c t .         T h i s g e n e r a l r u l e is

found i n s e c t i o n 27-1-311,           MCA,       which p r o v i d e s :

           "For t h e b r e a c h o f a n o b l i g a t i o n a r i s i n g from
           c o n t r a c t , t.he m e a s u r e o f d a m a g e s , e x c e p t when
           o t h e r w i s e e x p r e s s l y provided by t h i s code, i s
           t h e amount w h i c h w i l l c o m p e n s a t e t h e p a r t y
           a g g r i e v e d f o r a l l t h e d e t - r i m e n t w h i c h was
           p r o x i m a t e i y c a u s e d t h e r e b y or i n t.he o r d i n a r y
              c o u r s e o f t h i n g s would b e l i k e l y t o r e s u l t
              therefrom.               Damages w h i c h a r e n o t c l e a r l y
              a s c e r t a i n a b l e i n b o t h t h e i r n a t u r e and o r i g i n
              cannot            be     recovered          for       a    breach      of
              contract       ."
              In     construing           the     above       section,           this      Court       has

emphasized            that      its purpose           is to compensate an a g g r i e v e d

party         for        the     loss      he     has      sustained,              and     that       the

n o n b r e a c h i n g p a r t y s h o u l d r e c e i v e a sum w h i c h w i l l g i v e him

a n economic             status       identical         t.o t - h a t w h i c h    he     would       have

enjoyed         had      t h e c o n t r a c t been performed.                   Wyatt v.        School

District           No.    104,     F e r g u s County         (1966),      1 4 8 Mont.          83,    89,

417     P.2d        221,       224;      and    see     also,      Laas     v.      Montana        St-ate

Highway Commission ( 1 9 7 1 ) , 1 5 7 Mont.. 1 2 1 , 483 P.2d                              699; and

W h i t n e y v.      B a i l s ( 1 9 7 7 ) , 1 7 2 Mont.         121,    560 P.2d         1344.       We

a c k n o w l e d g e d i n Wyatt. t h a t t h e m e a s u r e o f d a m a g e s f o r b r e a c h

of    a n employment c o n t r a c t b y a n e m p l o y e r i s p r i m a f a c i e t-he

sum     stipulated             t.o b e    paid     for      the     services.            More    impor-

tantly,        however,         we also noted t h a t ot-her expenses, such a s
those         incurred         while      seeking        alt.ernative             employment.,        may

a l s o be a l l o w a b l e i f s u c h a c t i v i t y i s c o n s i d e r e d t.he n a t u r a l

c o n s e q u e n c e o f t.he b r e a c h .      Wyat-t, 417 P. 2d a t 224-225.

              Appellants'             last      cont.ention        is     that       the     District

C o u r t e r r e d by h o l d i n g R h i n e s p e r s o n a l l y l i a b l e f o r r e s p o n -

d e n t ' s damages.            The D i s t . r i c t C o u r t c o n c l u d e d a s a m a t t e r o f

l a w t h a t " J i m R h i n e s as t h e p r e s i d e n t a n d m a n a g e r o f               Sound

West,      Inc.,         did    offer        employment t o Gary              Como        f o r an ac-

c o u n t i n g p o s i t i o n w i t h e x p r e s s t.erms."            (Conclusion of               Law

No.     2.)        The D i s t r i c t C o u r t t.hen w e n t o n t o c o n c l u d e t h a t

Jim     Rhines           - Sound
                         and              West,       Inc.,     breached           the     employment

c o n t r a c t and t h a t b o t h R h i n e s and Sound West w e r e l i a b l e f o r

t h e damages a r i s i n g o u t o f t h i s b r e a c h .
            This Court has recognized                         the     general rule                that    an

a g e n t is n o t p e r s o n a l l y l i a b l e on a c o n t r a c t e n t e r e d i n t o by

him on b e h a l f o f h i s p r i n c i p a l i f              it a p p e a r s ,    in fact,          that.

he    disclosed         the      identity        of       his      principal          and       made     the

e n g a g e m e n t f o r him.       F a r r v . S t e i n ( 1 9 1 8 ) , 54 Mont.. 529, 1 7 2

P.    135; Budget I n s .          &    Finance v.           Leight.y ( 1 9 8 0 ) ,                    Mont.

       ,   607 P.2d        1125,       37 S t . R e p .      411.         In Farr,         t - h i s Court.

also       recognized         that      the    existence of               the     agency must             be

disclosed          i n a p p r o p r i a t e terms,          including          the       name o f       the

principal          f o r whom      the      a g e n t is a c t i n g .          Farr,       1 7 2 P.      at

136.        Moreover,         merely        because          the      agent,         in    making        the

contract for his principal,                          u s e s t h e t r a d e name u n d e r w h i c h

his     principal           transacts           business             is     not       of        itself     a

sufficient          i d e n t i f i c a t i o n of     the      principal         t o protect            the

agent       from     liability.             Myers-Leiber               Sign     Co.        v.     Weirich



            This      general          rule    of       agency        also      applies           to     the

corporate setting:

            "'The r u l e t h a t where an a g e n t e n t e r s i n t o a
            c o n t r a c t i n h i s own name f o r a n u n d i s c l o s e d
            principal, the other party to the contract
            may h o l d t h e a g e n t p e r s o n a l l y l i a b l e , a p p l i e s
            equally w e l l t o corporate o f f i c e r s o r agents.
            It h a s been h e l d t h a t t h e managing o f f i c e r o f
            a c o r p o r a t i o n , even though a c t i n g f o r t h e
            company, becomes l i a b l e a s a p r i n c i p a l w h e r e
            he d e a l s w i t h one i g n o r a n t o f t h e company's
            e x i s t e n c e and o f h i s r e l a t i o n t o i t , and
            f a i l s t o inform t h e l a t t e r of t h e f a c t s . '             3
            F l e t c h e r ' s C y c l o p e d i a on C o r p o r a t i o n s , S1120,
            p. 762 ( 1 9 6 5 )       ."       McCluskey Commissary, I n c .
            v. S u l l i v a n ( 1 9 7 4 ) , 96 I d a h o 9 1 , 524 P.2d
            1063, 1065.

            Here,      t h e record does n o t i n d i c a t e that. Rhines t o l d

respondent          h e would          be   working          for     Sound West,                Inc.      In

f a c t , t h i s l a w s u i t . was i n i t i a t e d b y r e s p o n d e n t a g a i n s t " J i m

Rhines,       d/b/a      ( d o i n g b u s i n e s s a s ) Sound West."                     While        the
a g e n c y was d i s c l o s e d d u r i n g t h e c o u r s e o f       this litigation,

the     disclosure          of     the    principal           after      the        contract     is
e x e c u t e d w i l l n o t r e l i e v e t h e agent. from l i a b i l i t y .        Myers-

L e i b e r S i g n Co.,    s u p r a , 410 P.2d       a t 493.

           In    the       absence       of    a      showing       by    appellant-s          that

respondent        u n d e r s t o o d R h i n e s was a c t i n g a s a n a g e n t f o r t h e

corporation,           Sound      West,       Inc.,     and    not       as    an    individual

d o i n g b u s i n e s s as Sound West, i t c a n n o t be s a i d t-he D i s t r i c t

Court.    erred      by     holding       Rhines        personally            liable     on     the

contract.

           W therefore affirm the
            e                                          Dist.rict      Court's conclusion

that.    appellants              breached       an     employment             contract        with

respondent.          We     remand,       however,       for    a     redetermination of

damages i n a c c o r d a n c e w i t h t h i s o p i n i o n .




W e concur :




      Chief J u s t i c e




 I would a f f i r m t h e D i s t r i c t