Lee v. Jenkins Brothers

268 F.2d 357 (2nd Cir. 1959)

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Nature of the Case

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Facts

P was in the employ of the Crane Company. P had been with Crane for thirteen years and was its business manager, earning a salary of $4,000 per year. In 1919, Crane agreed to sell its Bridgeport plant to D, a New Jersey corporation. The transaction was consummated in 1920. This was D's first manufacturing business, and it was anxious to secure competent personnel, particularly the old Crane employees. Barrington, Vice President of D in charge of manufacturing, approached P in an attempt to induce him to join D. P was reluctant and as he had accumulated thirteen years of pension rights under Crane Company which he did not want to give up. Barrington arranged a meeting for P with the co-defendant Yardley (D), president of D, chairman of the board of directors, a substantial stockholder, son-in-law of Mr. Jenkins, and co-trustee of the Jenkins Estate. P, Yardley, Barrington and Barrington's wife. At the time of the trial in October 1957, only P was alive to describe the conversation. P claims that Yardley said D would pay that pension (and) if they didn't or, if anything came up, he would assume the liability himself he would guarantee payment of the pension. Based on this promise, P went to work for D. The pension was a maximum of $1500 a year and that would be paid when P reached the age of 60 years; regardless of what happened in the meantime, even if he were with Crane or not. P subsequently became vice president and general manager in charge of manufacturing and a director of the company. At that time, he was receiving a salary of $25,000 from D, $8,000 more from an affiliate, plus an annual 10 percent bonus. In 1945, after 25 years with D, P was discharged at the age of 55, and his pension rights under the company's established plan were settled in full. In 1950, the payments under the alleged pension agreement became due. Although nothing was paid under this agreement P waited until 1955 to institute suit against D, joining Yardley eight and one-half months later.