Huebener v. Kenyon & Eckhardt, Inc.

142 A.D.2d 185, 534 N.Y.S.2d 952, 1988 N.Y. App. Div. LEXIS 12390
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 1, 1988
StatusPublished
Cited by12 cases

This text of 142 A.D.2d 185 (Huebener v. Kenyon & Eckhardt, Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huebener v. Kenyon & Eckhardt, Inc., 142 A.D.2d 185, 534 N.Y.S.2d 952, 1988 N.Y. App. Div. LEXIS 12390 (N.Y. Ct. App. 1988).

Opinion

OPINION OF THE COURT

Per Curiam.

The plaintiff, Berthold Huebener, was first employed by Kenyon & Eckhardt, Inc. (Kenyon), an advertising agency, in or about 1966, and after a brief break in his employment between 1973 and 1975, rejoined the firm in 1975 as an art director. In 1982 plaintiff received an offer of employment from another advertising agency at a higher salary. He informed his immediate superior of the offer and of his intention to accept it. Thereafter, at a meeting with Kenyon’s chief executive officer, plaintiff, according to the allegations of the complaint, which though disputed must be accepted as true on this appeal, was offered a $10,000 salary increase, a promise of continued employment "until plaintiff’s retirement”, and a consulting arrangement after plaintiff’s retirement, in exchange for his promise to continue in Kenyon’s employ until his retirement. As supplemented by plaintiff’s affidavit in opposition to the motion of the corporate defendants to dismiss, he "agreed to remain at Kenyon until retirement”.

Plaintiff was discharged in 1985. As set forth in the complaint, his dismissal occurred under the following circumstances. In the course of an assignment requiring the use of a color lab, and at the recommendation of the photo retoucher on that assignment, plaintiff directed that a certain color lab be retained. The individual defendant Kenneth Duskin, who held the position of executive vice-president, creative director, and who was in charge of the working group in which plaintiff worked, ordered plaintiff to use the service of another color lab, and directed that it be billed through the corporate defendant Kenyon.

The complaint alleges that it would not be the normal function of someone in Mr. Duskin’s position to be concerned with the designation of a color lab for a particular assignment. The complaint further alleges that all employees in [187]*187Duskin’s working group were required to use the services of this particular color lab, and that other employees in the working group "believed that Duskin was receiving remuneration from said color lab for directing the business of his working group to said color lab.” Plaintiff asserts that he objected to Duskin’s directions, that his assignments were thereafter reduced to eliminate any requiring use of a color lab, and that "[u]pon information and belief’, Duskin thereafter advised the termination of his employment.

The complaint set forth three causes of action, the first alleging breach of contract against Kenyon, the second similarly alleging breach of contract against Kenyon’s successor corporation, and the third against the individual defendant Duskin alleging tortious interference with plaintiff’s employment agreement. The corporate defendants moved to dismiss the first two causes of action pursuant to CPLR 3211 (a) (5) and (7), or alternatively, for summary judgment pursuant to CPLR 3212, on the ground that the causes of action were barred by the New York Statute of Frauds. The individual defendant Duskin separately moved for an order pursuant to CPLR 3211 (a) (5) and (7) dismissing the complaint on the ground that the pleadings failed to state a cause of action against him.

In a thoughtful opinion the IAS court granted the motion to dismiss the first two causes of action as barred by the Statute of Frauds and denied the motion to dismiss the third cause of action. We agree with that part of the court’s determination that dismissed the first two causes of action as barred by the Statute of Frauds, although, on what seems to us the more probably correct interpretation of the oral agreement alleged — an interpretation not explicitly presented by plaintiff and which the IAS court understandably did not address — an issue is presented with regard to the application of the Statute of Frauds as to which the law in this State is not entirely clear.

As to the denial of the motion to dismiss the third cause of action against the individual defendant, we are persuaded that the allegations of the complaint are insufficient to bring that cause of action within the narrow exception to the general rule that an action for tortious breach of contract does not lie against a corporate executive acting within the scope of his authority and responsibility whose actions are alleged to have resulted in a breach of contract. A fortiori we are persuaded that such a cause of action was not stated with [188]*188regard to an alleged breach of contract which, as we find, was not enforceable as barred by the Statute of Frauds.

Turning to the first two causes of action alleging a breach of an oral agreement of employment, the New York Statute of Frauds (General Obligations Law § 5-701 [a]), provides in pertinent part:

"Every agreement, promise or undertaking is void, unless it or some note or memorandum thereof be in writing, and subscribed by the party to be charged therewith, or by his lawful agent, if such agreement, promise or undertaking:

"1. By its terms is not to be performed within one year from the making thereof’.

In D & N Boening v Kirsch Beverages (63 NY2d 449), perhaps the most authoritative recent Court of Appeals statement of the guiding principles applicable to this section, the court’s opinion, following a general review of the one-year provision of the Statute of Frauds and a summary of the somewhat complicated history of its interpretation, concluded (at 454) that the courts "have limited it to those contracts only which by their very terms have absolutely no possibility in fact and law of full performance within one year.”

In determining that the oral agreement alleged in the complaint was barred by the Statute of Frauds, the IAS court interpreted the promise to employ plaintiff "until retirement” as having been intended to incorporate the relevant retirement provisions of Kenyon’s written Standard Policy and Procedure, whose stated purpose was "compliance with the Age Discrimination in Employment Act Amendments of 1978”, and provided that normal retirement age was 70, with the limited exception that certain "bona fide executives” may be retired at age 65. Since plaintiff was 51 at the time of the oral agreement, the court concluded that it was not possible for the corporate defendant to retire plaintiff within one year from the making of the agreement. We are essentially in agreement with this aspect of the court’s opinion. However, it seems to us unlikely that plaintiff’s corresponding promise to work until retirement was intended to commit the plaintiff to continue to work for Kenyon until he was 70, an agreement that would certainly be an unusual one for a 51-year-old person, and which it is doubtful that the corporate defendant intended to exact as part of the claimed arrangement. The doubtful character of such an interpretation is underlined by the allegation that the corporate defendant agreed to retain [189]*189plaintiff on a consulting basis after plaintiff’s retirement. In short, it seems to us the more probably correct interpretation of the agreement that Kenyon agreed to retain plaintiff until retirement in accordance with its written policy, and that plaintiff agreed only that he would work for Kenyon until he retired, in the more usual meaning of that term. Since it was possible, even though unlikely, for plaintiff to retire within one year, the contract to that extent was possible of performance within that period.

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Bluebook (online)
142 A.D.2d 185, 534 N.Y.S.2d 952, 1988 N.Y. App. Div. LEXIS 12390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huebener-v-kenyon-eckhardt-inc-nyappdiv-1988.