Post v. Merrill Lynch, Pierce, Fenner & Smith, Inc

397 N.E.2d 358 (1979)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Merrill (D) employed Post and Maney (Ps) as account executives around 1960. They elected to participate in the profit sharing and pension plan rather than take straight commissions. Both Ps were terminated in August of 1974, and both began working for Bache who competed with D. After their termination, they wanted to check on the status of their pensions and were informed by D that they have forfeited all rights because they went to work for a competing firm. The pension plan had a provision that called for forfeiture in the event that the ex-employee competed directly or indirectly. P sued D for conversion and breach of contract. They claimed that they were discharged without cause. D’s motion for summary judgment was granted, and the complaint was dismissed; Ps had the right of preserving their pension rights by refraining from competing with their former employer.