Dudley Gleason v. Avon Products, Inc. And James Preston, President of Avon Division of Avon Products, Inc.

850 F.2d 413, 1988 U.S. App. LEXIS 8629, 1988 WL 63258
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 24, 1988
Docket87-1554
StatusPublished

This text of 850 F.2d 413 (Dudley Gleason v. Avon Products, Inc. And James Preston, President of Avon Division of Avon Products, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dudley Gleason v. Avon Products, Inc. And James Preston, President of Avon Division of Avon Products, Inc., 850 F.2d 413, 1988 U.S. App. LEXIS 8629, 1988 WL 63258 (8th Cir. 1988).

Opinion

JOHN R. GIBSON, Circuit Judge.

Dudley Gleason brought this diversity action against his longtime employer, Avon Products, claiming that he was forced to retire and thus was wrongfully discharged, and that promissory estoppel barred his termination. The district court, looking particularly to a letter agreement which Gleason signed and his acceptance of the substantial benefits set forth in the letter, granted Avon’s motion for summary judgment, ruling that the parties had reached an accord and satisfaction. Gleason appeals and argues that a genuine issue of material fact exists regarding his intentions in retiring from Avon on August 31, 1983, and accepting retirement benefits thereafter, barring entry of summary judgment in favor of Avon. Fed.R.Civ.P. 56(c). We are satisfied that the district court did not err in ruling that Gleason’s intent to settle his dispute with Avon should be inferred as a matter of law, and we accordingly affirm the judgment of the district court.

*414 As this is an appeal from summary judgment, we state the facts as we glean them from the affidavits, documents, and depositions in the record before the district court in the light most favorable to Gleason, giving him the benefit of all inferences which may reasonably be drawn from the facts. See Mandel v. United States, 719 F.2d 963, 965 (8th Cir.1983).

Gleason began working for Avon in 1956, and when he retired in 1983 Gleason had been General Manager of Avon’s Kansas City branch for approximately ten years. Early in 1978, Gleason informally began to discuss his retirement plans with higher-level Avon management, as he would soon qualify for full retirement benefits and would reach age 65 in November, 1983. Sixty-five was then the standard age for retirement from Avon.

In September of 1978, Avon distributed a memorandum from J.A. Wakefield, Vice President of Personnel Services, to all general managers, including Gleason. The memorandum outlined changes in Avon’s retirement policy and requested the general managers to inform their management employees of these changes. The memorandum stated that “[s]tarting with employees whose normal retirement would begin on or after 1/1/79, the date of retirement will be at the employee’s option.” The memorandum further stated that Avon “will have no mandatory retirement age,” but will assume that employees “will continue to retire by age 65 unless they indicate a desire to retire later.” Subsequent bulletins set out procedures for implementing these changes.

Through late 1982, Gleason continued to discuss his retirement plans informally with various Avon officers and directors, including Paul Markovits, Vice President for Branch Operations, and William Chaney, President. On several occasions, Gleason informed Markovits and others that he did not believe he would be financially able to retire at age 65, and that he would probably need to work for several years beyond that age to retire comfortably. Gleason claims that none of the Avon officers and directors he spoke with during this period suggested or implied that he could not work beyond age 65, and that in November, 1981, Chaney specifically told Gleason “you can work as long as you want to.” Gleason alleges that in reliance upon Chaney’s statement and the representations contained in the Wakefield memorandum, he did not change his investments or restrict his expenditures to account for an early retirement.

In 1982, at Markovits’ suggestion and Avon’s expense, Gleason consulted a financial advisor who informed him that he should continue working beyond age 65 to obtain the retirement benefits he desired. Following this consultation, in late 1982 or early 1983, Gleason informed Markovits in writing that subject to senior management approval, he wanted to continue working until June 30, 1987, when he would reach the age of 68V2 years. Markovits communicated Gleason’s request to James Preston, who had succeeded Chaney as President of Avon.

On February 11, 1983, Markovits and Preston met with Gleason and informed him that Avon “would not be able to honor [his] request * * * for extending his career beyond the end of 1983.” Gleason has alleged that Preston also told him this decision was irrevocable.

Avon later informed Gleason that he could choose to stop working in August rather than December, 1983, without loss of pay through December, and Gleason then decided to retire effective August 31, 1983. On June 24, 1983, Markovits sent Gleason a letter confirming “the arrangement we recently discussed.” Markovits’ letter stated that Gleason would retire on August 31, 1983, and outlined the benefits he would receive: a lump-sum pension payment; regular pay through December, 1983; a supplemental payment for six additional months’ salary, a five-week vacation, and a 1983 incentive bonus; medical insurance; and $10,000 life insurance.

Further discussions about Gleason’s retirement benefits ensued. On August 25, 1983, Markovits sent Gleason a second letter to confirm “the arrangement we recently discussed.” This letter again recited *415 that Gleason would retire on August 31, 1983, and outlined a revised and substantially enhanced package of retirement benefits. In addition to Gleason’s pension, medical insurance and $10,000 life insurance, Gleason would receive a $127,300 interest-free, seven-year loan representing the balance of his 1983 salary, 85% of his 1983 incentive bonus, a portion of his 1983 Christmas gift, and 31 weeks’ salary for 1984, including vacation. Avon would also provide a separate check for $25,418 so that Gleason could discharge a loan incurred to purchase Avon stock; pay the balance of Gleason’s home mortgage, $40,-776.88, which Gleason was to reimburse upon sale of the house; and provide an additional $250,000 whole life insurance, contingent upon a physical examination.

The letter requested that Gleason “[p]lease sign and return the duplicate copy * * * to indicate your agreement to the points set forth above.” The letter further stated that “our intent is to insure that we live up to each element of this agreement to the fullest extent.” Gleason signed and returned the letter, adding: “The retirement provisions outlined in this letter are in total agreement with those outlined to me by the management of Avon.” Gleason retired on August 31, 1983, and Avon has paid all benefits outlined in Markovits’ August 25, 1983 letter.

On June 18, 1985, Gleason filed this diversity action, alleging that Avon had wrongfully discharged him and that the doctrine of promissory estoppel barred his discharge under Missouri law. 1 Gleason’s claims were based primarily on the Wake-field memorandum and then-President Chaney’s statement that Gleason could work as long as he chose. Avon moved for summary judgment, primarily arguing that the parties had reached an accord and satisfaction of Gleason’s claims. Gleason filed a response and cross-motion for summary judgment, arguing that Avon’s retirement policies, particularly as set forth in the Wakefield memorandum, constituted an enforceable employment contract.

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Bluebook (online)
850 F.2d 413, 1988 U.S. App. LEXIS 8629, 1988 WL 63258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dudley-gleason-v-avon-products-inc-and-james-preston-president-of-avon-ca8-1988.