Danaho Refining Company v. Dietz

398 S.W.2d 307, 62 L.R.R.M. (BNA) 2850
CourtCourt of Appeals of Texas
DecidedDecember 30, 1965
Docket141
StatusPublished
Cited by29 cases

This text of 398 S.W.2d 307 (Danaho Refining Company v. Dietz) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Danaho Refining Company v. Dietz, 398 S.W.2d 307, 62 L.R.R.M. (BNA) 2850 (Tex. Ct. App. 1965).

Opinion

GREEN, Chief Justice.

Six plaintiffs, all former employees of appellant Danaho Refining Company, joined in one petition to bring suit for breach of a contract alleged to have been made in the latter part of 1952 between appellant and its employees at its plant near Beeville, Texas, to pay annually as a part of their salary or wages a Christmas bonus equal to one month’s salary. It was plaintiffs’ contention that this contract remained a binding legal obligation of defendant for the entire period of their employment, which terminated as to each in 1962, when defendant closed its plant in Bee County, and discharged its employees. After a trial without a jury, the -court upheld plaintiffs’ contentions, and rendered judgment whereby each plaintiff recovered an amount equal to one month’s salary for each of the years 1960 and 1961, the trial court impliedly finding that recovery for prior years was barred by the two years statute of limitation. The judgment also provided for reasonable attorney fees, which the court set at 20% of the recovery. Appellant has appealed from such judgment. The opinion of this court on the venue question is reported in 378 S.W.2d 412.

Appellant’s brief presents four points of error. The first two, which will be con *309 sidered together, as they were in the briefs of appellant and appellee, are as follows:

“POINT OF ERROR NO. 1
The trial court erred in its implied finding that the parties entered into a contract in 1952 binding appellant for all material subsequent years, such implied finding being against the overwhelming weight of the evidence.
POINT OF ERROR NO. 2
The trial court erred in its implied finding that the periodic pay raises awarded to appellees after 1956 did not supersede the original contract regarding the payment of a Christmas bonus.”

Appellees, plaintiffs below, opened the testimony by reading from the oral deposition of J. F. Thomson, General Superintendent of appellant’s plant during all of the times here material. According to his testimony, he did appellant’s hiring and firing. In 1952, a general employees meeting was had, over which Thomson presided. The workers were asking for an increase in wages. While Thomson was driving Mr. Hovey, appellant’s president, to the airfield near Beeville the previous day, he told Hovey of the employees’ demands, and Hovey told him to offer them an increase of ten cents an hour, or a Christmas bonus equal to one month’s salary. As stated by Thomson, “as far as I can remember, when we called that meeting it was to decide whether to accept a ten cent raise or a bonus.” The employees chose the bonus of a month’s pay at Christmas. Thomson communicated this decision to Hovey, who gave his approval of the arrangement.

Not all of the employees at the plant attended the meeting, since some were actually at work on their job at the time. However, Thomson stated that the salary bonus arrangement covered all of the employees at the plant, and also included those who came to work there after the meeting took place. As to the latter class of employees Thomson testified:

“ ‘QUESTION: And those employees were told by you when you hired them that they would get a bonus at Christmas time in lieu of the ten cents an hour that the employees had wanted, is that correct?
“‘ANSWER: I told the boys during the — in the office at that time they weren’t all there, but as far as I am concerned, yes that is correct.’ ”

Marvin Voss, a witness for appellees, testified that he was present at the 1952 meeting, and that the employees, being given the choice by Thomson of the ten cents raise and a two week bonus, both when added together being equivalent to a month’s salary, or a bonus of a month’s wages at Christmas, chose the bonus. He testified further:

“Q All right. And did you gentlemen accept that then?
A Yes, sir.
Q The month’s pay?
A (Up and down nod.)
Q Now, did Mr. Thomson tell you that that was just for "that year, or two years—
A No.
Q What was the consensus there?
A Well, it was brought up that supposing they would quit paying that, and he said they couldn’t because that was your wages.
Q Well, was it to be a continuing thing from year to year?
A The way we understood it, it would be.
Q Now, did Mr. Thomson say, ‘Now, wait a minute, gentlemen, this is just for this year, 1952’?
A No, sir.
*310 Q Did he say it was just for ’52 or *53?
A No, sir.
Q Did he just say it was for *52, *53, *54, or for any other set period of time?
A No, sir.
Q But that it was to continue ?
A Yes, sir.
Q All right. And you were at this meeting?
A Yes, sir.
Q And participated in these negotiations ?
A Yes, sir.
Q And you heard Mr. Thomson’s deposition read this morning when I read it, didn’t you ?
A Yes, sir.
Q And you heard his testimony that this applied to all the employees in the plant; is that correct?
A That’s correct.”

Four of appellees, Schley, Wehe, Aguirre, and Gonzales, were in appellant’s employment at the time of the meeting, and each continued in such employment until 1962. Appellee Dietz went to work for appellant at its Bee County plant in April, 1954, as chief chemist, and continued in its employ until October 15, 1962. He was employed by a Mr. Sives, who acted as appellant’s superintendent during a short interval while Thomson was supervising some construction at the plant. Appellee Hagemann was first employed in November, 1953, left the employment for a few months in 1954, was re-employed early in 1955, and continued to work for appellant until 1962. Dietz testified that when he was employed, as an inducement for him to take the job, which he was reluctant to take at the salary offered, Sives, in explaining the fringe benefits explained about the Christmas bonus • of a month’s salary, and that Dietz “understood that you were to receive one month’s salary at Christmas time each year, is that true?” A. “yes, sir.”

The bonus was paid to the employees in December, 1952, and 1953. It was not paid in 1954, but a letter was received by each of the six plaintiffs signed by Hovey, appellant’s president, written on company letterhead, dated December 21, 1954, reading as follows:

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Bluebook (online)
398 S.W.2d 307, 62 L.R.R.M. (BNA) 2850, Counsel Stack Legal Research, https://law.counselstack.com/opinion/danaho-refining-company-v-dietz-texapp-1965.