## Facts

- Eberle Schultz, a professional football player, signed a 1948 season contract with the Los Angeles Dons for $8,000 and reported to training camp.
- Before and shortly after signing, the Dons’ physicians examined Schultz and reported he was in excellent physical condition with no symptoms of prior back injury.
- During training, Schultz developed leg pain and foot numbness that impaired running; he promptly reported the condition to the team trainer and head coach.
- The Dons arranged orthopedic examinations; specialists advised the club that Schultz had a serious back condition and that playing would be dangerous.
- Schultz continued reporting for practice in uniform but could not participate in strenuous activity; the Dons did not take him to an out-of-town game.
- The Dons terminated Schultz’s contract on August 12, 1948, asserting he was not in proper physical condition.
- Schultz later obtained a contrary medical opinion, improved with treatment, and was medically released to resume football; he then tendered performance through counsel, stating he was ready, able, and willing to perform.
- The Dons refused reinstatement and paid only $500; Schultz sought the remaining salary as damages.
- After a bench trial, the court found the discharge lacked good and sufficient cause, Schultz performed or was excused by an on-the-job injury, notice was sufficient, and Schultz was ready to perform after recovery; it awarded $7,500.

## Issues

1. Whether the Dons breached the player contract by terminating Schultz without good and sufficient cause.
2. Whether Schultz’s reduced participation during training constituted nonperformance justifying discharge, or whether his condition excused performance as an injury incurred in the club’s service.
3. Whether failure to provide contract-required written notice and a physician’s certificate barred recovery despite the club’s actual knowledge and investigation of the injury.
4. Whether Schultz failed to mitigate damages by not obtaining other comparable employment or by not adequately tendering performance after medical clearance.

## Decision

- The Court of Appeal affirmed the judgment for Schultz.
- Substantial evidence supported the finding that the Dons terminated the contract without good and sufficient cause.
- Schultz’s inability to practice fully was treated as a temporary incapacity from an injury incurred while performing contractual services, not a breach justifying termination.
- The Dons could not rely on written-notice and medical-certificate requirements where Schultz promptly reported the injury, the club had actual knowledge, and it acted on that knowledge.
- The damages award was supported by evidence that Schultz attempted to obtain comparable employment and the Dons failed to show suitable alternative work was available.

## Legal Principles

- An appellate court will uphold contract and wrongful-discharge findings when supported by substantial evidence, resolving evidentiary conflicts in favor of the judgment.
- A party prevented from performing by the other party’s refusal to permit performance may treat performance as excused and recover contract damages if ready and willing to perform.
- Contractual notice and proof-of-injury requirements may be waived, or deemed unavailable as defenses, when the obligated party has actual knowledge of the condition and conducts an investigation or takes action based on that knowledge.
- Mitigation requires reasonable diligence to seek comparable employment; the breaching party bears the burden to show that suitable alternative employment was available and unreasonably rejected.

## Conclusion

The court affirmed a salary award to a professional football player discharged after an in-camp injury, holding the club lacked cause to terminate, could not defeat liability by insisting on technical written-notice requirements it effectively waived through actual knowledge and investigation, and remained liable for the unpaid contract balance because the player tendered performance after medical clearance and reasonably sought other employment.


Schultz v. Los Angeles Dons, Inc., 107 Cal. App. 2d 718 (Ct. App. 1951)