Herendeen v. Champion International Corp.

525 F.2d 130 (2d Cir. 1975)

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Nature of the Case

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Facts

P was an employee of Champion (D). P voluntarily resigned his position and took new employment with a competitor of D. P then sued Ds in state court charging that Ds acted fraudulently by inducing him to leave the paper business in order to deprive him of his employee and pension benefits by promising him that he would receive a new written employment contract and would continue to receive all of his employment benefits; but that after he relied on the promise he did not obtain a new contract. P sought damages of $200,000 for the loss of his commissions in the paper industry, and $75,000 in lost pension benefits. Ds got the verdict. The complaint alleged only an oral 'agreement to agree,' rather than an enforceable contract and as such P failed to state a claim upon which relief could be granted. The issue of damages was never reached by the state court. P then commenced the present diversity action in the District Court. P seeks to obtain payments he alleges Ds owe him under the Pension Plan and have withheld from him. P claims that having regularly paid the required contributions into the Plan fund while employed by D, he is entitled pursuant to the Plan's eligibility rules to receive benefits under it now that he is no longer an employee of the corporation. P seeks $100,000 for the wrongful loss of benefits due him under the Plan, injunctive relief, and $785,000 in exemplary and punitive damages. The complaint was dismissed for res judicata. P appealed.