Burnett S. Tremlett v. Bassett Mirror Company, Incorporated

956 F.2d 1163
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 11, 1992
Docket91-2002
StatusUnpublished

This text of 956 F.2d 1163 (Burnett S. Tremlett v. Bassett Mirror Company, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burnett S. Tremlett v. Bassett Mirror Company, Incorporated, 956 F.2d 1163 (4th Cir. 1992).

Opinion

956 F.2d 1163

NOTICE: Fourth Circuit I.O.P. 36.6 states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Fourth Circuit.
Burnett S. TREMLETT, Plaintiff-Appellee,
v.
BASSETT MIRROR COMPANY, INCORPORATED, Defendant-Appellant.

No. 91-2002.

United States Court of Appeals, Fourth Circuit.

Argued May 8, 1991.
Decided Feb. 26, 1992.
As Amended May 11, 1992.

Appeal from the United States District Court for the Western District of Virginia, at Danville. Jackson L. Kiser, District Judge. (CA-90-18-D).

Argued: James Patrick McElligott, Jr., McGuire, Woods, Battle & Boothe, Richmond, Va., for appellant.

Norman A. Kinnier, Fralin, Freeman & Kinnier, P.C., Lynchburg, Va., for appellee.

On Brief: Dana L. Rust, McQuire, Woods, Battle & Boothe, Richmond, Va., for appellant.

Gary M. Coates, Fralin, Freeman & Kinnier, P.C., Lynchburg, Va., for appellee.

W.D.Va.

REVERSED AND REMANDED.

Before DONALD RUSSELL, Circuit Judge, STAKER, United States District Judge for the Southern District of West Virginia, sitting by designation, and KAUFMAN, Senior United States District Judge for the District of Maryland, sitting by designation.

Reversed and remanded by unpublished opinion. Judge Staker wrote the majority opinion, in which Judge Russell joined. Senior Judge Kaufman wrote a dissenting opinion.

OPINION

STAKER, District Judge:

Appellant Bassett Mirror Company (Bassett) appeals from a judgment against it and in favor of appellee Burnett S. Tremlett (Tremlett) for $225,000, entered upon a jury verdict in the district court,1 and as grounds therefor claims that court erred. We reverse.

It was undisputed that on June 1, 1988, Tremlett entered into a written employment agreement (agreement) with Bassett by which Bassett employed him to act as its President and Chief Operating Officer for a period of three years, beginning on that date, and agreed to pay him an annual salary, in equal monthly installments, of $125,000 during each of the first two years, and $100,000 during the third and last year, of that period. That agreement provided that its terms could be changed "only by an agreement in writing signed by both" Bassett and Tremlett.

Tremlett's complaint alleged that pursuant to the agreement, he entered upon his duties as Bassett's President and Chief Operating Officer on June 1, 1988, and continued to perform them until April 21, 1989, when Bassett wrongfully and without just cause discharged him from that employment, and that Bassett had paid to him the salary it had agreed to pay him thereunder through May 31, 1989, the end of the first year of that three-year period, and still owed to him the sum of $225,000 that it had agreed to pay to him during the last two years thereof, which sum he demanded in damages.

In its answer, Bassett denied that it had discharged Tremlett, as he alleged, and defensively asserted that he was not entitled to recover in the action because he had committed a material breach of the agreement prior to April 21, 1989, and on that date had quit the employ of Bassett, and that, in any event, he was not entitled to recover from Bassett because he had failed to mitigate any damages to which he otherwise might have been entitled to recover.

The issues are those raised by Bassett's assigning as error the trial court's (1) overruling its motion made at the trial that the court direct a verdict in Bassett's favor and against Tremlett, on the ground that the undisputed evidence showed that Tremlett had committed a material breach of the agreement, (2) overruling its post-trial motion for the entry of judgment in its favor notwithstanding the verdict, on the same ground, (3) overruling its post-trial motion to set the verdict aside for Tremlett's asserted failure to mitigate his damages, and (4) improperly instructing the jury.

Except as otherwise indicated below, the following facts established by the evidence were not disputed:

For many years prior to June 1, 1988, Bassett operated a furniture manufacturing plant located in Bassett, Virginia (Virginia plant), which manufactured wooden furniture. For some time before and shortly after that date Bassett also operated Bassett Mirror Canada and Roy Industries, both located in Canada (Canada plants), at which metal furniture was manufactured.

Bassett's officials based at its Virginia plant exercised executive control and management over the operations of both the Virginia and the Canada plants.

In early 1988, Tremlett was 66 years old and had been employed in the furniture industry for most of his adult life, having filled top executive and managerial positions with different furniture manufacturers, particularly in the design and marketing aspects of the industry,2 and was well known therein.

For about ten years next preceding June 1, 1988, Tremlett had operated his own concern, Tremlett Associates, Inc., in High Point, North Carolina, which designed items of furniture and sold them to manufacturers, including Bassett. After he commenced his duties at Bassett on June 1, 1988, he devoted all of his time to his duties there and ceased to work at or for Tremlett Associates, Inc.

The furniture manufacturing business is a highly competitive one. Stiff competition in the industry, together with consumer demand in the marketplace for ever-changing styles and designs of furniture, impose upon furniture manufacturers inflexible business and economic constraints within which they are necessarily required to operate if they are to continue in business.

Bassett and other furniture manufacturers traditionally present their new lines and designs of furniture for sale to prospective buyers at furniture markets or shows held in High Point in April and October of each year. Buyers attend those shows and there order from the manufacturers such quantities thereof as they believe consumers will purchase, and if there is continued consumer demand therefor, continue thereafter to place orders with them therefor, all such orders being called "backorders" in the trade. Obviously, and as the evidence showed, the optimum number of a given item of furniture that should be produced by a manufacturer should equal the number thereof that it knows it can profitably sell, the best measurement of which being the number thereof for which buyers of the item have placed backorders with the manufacturer.3 After such a show, the manufacturer commences and thereafter continues to produce that number of a given item of furniture that equals the total backorders it has therefor.

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Bluebook (online)
956 F.2d 1163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burnett-s-tremlett-v-bassett-mirror-company-incorporated-ca4-1992.