Croskey v. Kroger Co.

259 S.W.2d 408
CourtMissouri Court of Appeals
DecidedJune 15, 1953
Docket21730
StatusPublished
Cited by14 cases

This text of 259 S.W.2d 408 (Croskey v. Kroger Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Croskey v. Kroger Co., 259 S.W.2d 408 (Mo. Ct. App. 1953).

Opinion

259 S.W.2d 408 (1953)

CROSKEY
v.
KROGER CO.

No. 21730.

Kansas City Court of Appeals. Missouri.

June 15, 1953.

*409 Roscoe C. Van Valkenburgh and Bernard L. Balkin, Kansas City (Brenner, Van Valkenburgh & Wimmell, Kansas City, of counsel), for appellant.

A. J. Granoff and Paul Margolis, Jr., Kansas City, for respondent.

BOUR, Commissioner.

Lorin T. Croskey brought this action against The Kroger Company to recover a bonus of $1500, alleged to have become due and payable on January 1, 1949. Verdict and judgment were for plaintiff in the sum of $1717, including interest, and defendant has appealed.

The cause was tried upon an amended petition which alleged that defendant, an Ohio corporation, maintained a branch office in North Kansas City, Missouri; that on or about April 20, 1947, defendant agreed to employ plaintiff as real estate manager for said branch office and agreed to pay him "a salary of $75.00 per week, payable every four weeks, plus a maximum bonus of $1500.00 for each year, pursuant to its Branch Key Men's Incentive Plan," the bonus to be payable at the end of each year provided the branch merchandising profit for each year was sufficient to pay the bonus and plaintiff remained in the employ of the defendant for the full year; that said agreement for the year 1948 was confirmed by defendant in a writing dated February 12, 1948, a copy of which was attached to the petition as an exhibit; that plaintiff accepted such employment in reliance upon said agreement; that he diligently performed his duties as real estate manager until on or about December 11, 1948, when defendant arbitrarily and without just, legal and sufficient cause terminated his employment for the sole purpose of preventing him from securing the bonus for the year 1948; that the branch merchandising profit for 1948 was sufficient to enable defendant to pay the maximum bonus of $1500 pursuant to the incentive plan for 1948; that plaintiff was willing to remain in defendant's employ until the end of 1948, but was prevented from doing so by defendant. The petition further alleged that $1500 was due plaintiff as the amount of his bonus for 1948, and prayed judgment for that amount with 6% interest from January 1, 1949.

Defendant admitted in its amended answer that on or about April 20, 1947, it employed plaintiff as real estate manager for its branch office in North Kansas City and paid him a weekly salary; that "it had a Branch Key Personnel Plan for the year 1948," a copy of which was attached to the answer as an exhibit; that "its branch merchandising profit for the year 1948 was sufficient to enable it to pay bonuses to branch key personnel who qualified under said incentive plan for the year 1948"; and that plaintiff was "a branch key man under said incentive plan" and would have been "eligible for a bonus for the year 1948" if he had complied with all of the provisions of the 1948 incentive plan. Defendant denied, however, that plaintiff accepted employment with it in reliance upon any agreement to pay him a bonus; denied that plaintiff faithfully and diligently performed his duties as real estate manager until December 17, 1948; and denied that it arbitrarily and without legal and sufficient cause terminated plaintiff's employment for the sole purpose of preventing him from receiving a bonus under the 1948 incentive plan. Further answering, defendant alleged that plaintiff failed to perform his duties properly and diligently, and that he lacked initiative and failed and refused to follow instructions of his superiors in the performance of his work as real estate manager; that he was discharged on November 13, 1948, and he did not perform any services for defendant after that date.

The evidence shows that the defendant corporation operated a chain of retail grocery stores. Prior to 1947, plaintiff worked for a real estate firm in Chicago. In February, 1947, he informed Charles M. Upham of Chicago, defendant's division real estate manager, that he was interested in securing a position with defendant. Shortly thereafter he was employed by defendant and put on the payroll. In April, 1947, and after he had worked as a trainee in several of defendant's branch offices, he was elevated to the position of branch real estate manager and assigned to defendant's branch office in North Kansas City, Missouri, *410 where he worked under Lawson Harvey, the branch manager, until his employment was terminated by defendant. Concerning the terms of his employment, plaintiff testified: "Q. Was there anything said about salary? A. Yes, that was very thoroughly discussed, that I was to start at a salary of $75.00 a week, plus this bonus arrangement which had been in effect for a number of years, and I was informed probably always would be in effect. * * * At that time it was paying $1500.00 per year maximum bonus. * * * Q. Maximum, you mean by that if the branch earned—A. If the branch earnings were that high. * * * I was to receive the $75.00 plus the bonus, if and when I was assigned to a branch, and my bonus would start as of that time. * * * I asked the company at the time about the bonus arrangement in that I started during the year, and they said I would be given my bonus prorated from the day I started in one particular branch or was put on the payroll of that particular branch. * * *" Plaintiff further testified that when he came to North Kansas City, Mr. Harvey "reaffirmed" his "previous arrangements with the company" in regard to his salary and bonus.

Plaintiff was assigned to defendant's branch office in North Kansas City on April 21, 1947. At the end of 1947, he was paid a bonus of $1,038. Since he had served as branch real estate manager less than a year, he was paid a proportionate share of the maximum bonus ($1500) for the year, according to the time served. On February 12, 1948, plaintiff received a letter from Harvey, the branch manager, which reads in part as follows: "The Branch Key Men's Incentive Plan has again been approved by the Company and I am happy to inform you that you are to participate in the Plan for 1948, as follows: The Branch Merchandising Profit Base for our branch is $40,000, after deducting 38% Federal Income Taxes. You will earn maximum bonus on Branch Merchandising Profit of $209,000, after deducting 38% Federal Income Taxes. The maximum bonus for your position (full year basis) is $1500. Your bonus will be computed in accordance with the provisions of the Incentive Plan for 1948, some of the essential features of which are stated below." This is followed by a general statement of the terms and conditions of the 1948 plan.

The "Branch Key Men's Incentive Plan for 1948" reads in part: "The definition of `Branch Merchandising Profit' used for the purpose of computing these bonuses shall mean the branch profit as shown by the books of the company after deducting all branch expense * * *. The maximum bonus which will be paid for each position is as follows: * * * Real Estate Manager $1500. * * * Maximum bonuses will be paid provided the branch merchandising profit, as defined above, exceeds the base by an amount established for each Branch. Where less than maximum is earned the percent of bonus to be paid will be determined by dividing this amount into the amount by which the branch merchandising profit exceeds the base established for that branch. Bonus payments will be made from General Office as soon after the close of the year as final figures can be compiled. * * * The key man must remain in the employ of the company for the full year in order to be eligible for a bonus.

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Bluebook (online)
259 S.W.2d 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/croskey-v-kroger-co-moctapp-1953.