Kavner v. Akers

661 S.W.2d 72
CourtMissouri Court of Appeals
DecidedNovember 22, 1983
DocketNo. 45355
StatusPublished
Cited by1 cases

This text of 661 S.W.2d 72 (Kavner v. Akers) 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
Kavner v. Akers, 661 S.W.2d 72 (Mo. Ct. App. 1983).

Opinion

DOWD, Chief Judge.

Defendants’ appeal from a judgment entered in favor of the plaintiff on Counts I and II of his petition in a suit for breach of deferred compensation and delayed retirement agreements. Defendants also appeal from the court’s verdict in favor of the plaintiff on defendants’ counterclaim that plaintiff had also breached the agreements.

Pursuant to both agreements entered into by Richard Kavner (hereinafter plaintiff) and representatives of Teamsters Local Union 688 (hereinafter defendants), the local was obligated to pay plaintiff upon his retirement $220.00 monthly for a period of months equal to the number of months plaintiff was employed after August 1, 1967. The agreements also obligated the local to pay the plaintiff $500.00 a month from the date of his retirement until December 31,1987. Both agreements required the plaintiff to make himself available to the union as a consultant and prohibited him from working as a consultant for any union with interests adverse to Local 688. Plaintiff was further prohibited from acting on behalf of any company with which Local 688 had a collective bargaining agreement.1

After his retirement, plaintiff acted as consultant for Wholesale-Retail Department Store Employees Union Local 102. He was also a consultant for Labor Management Services, Inc. (LMSI) and performed in numerous capacities for Local 688. Subsequent to this, defendants discontinued plaintiff’s pension benefits under the agreements claiming he had submitted a false retirement date on his pension application thereby perpetrating a fraud and breaching his fiduciary duty to Local 688. [74]*74In an action tried in Federal District Court, plaintiff sued to recover these benefits. Defendants alleged as previously stated, that plaintiff breached the agreements by perpetrating a fraud on the union in his pension application. The court specifically found that plaintiff’s monthly pension benefits should be eliminated. Saffo v. Occidental Life Insurance Company, 602 F.2d 1265 (8th Cir.1978). In the instant case, defendants claimed they discontinued plaintiff’s deferred compensation not only because his actions as a consultant for Local 102 were in breach of the agreements since Local 102’s interest were adverse to those of the union, but also because he had failed to retire according to the agreement. Finally, defendants claimed they were entitled to discontinue plaintiff’s payments since LMSI, for which plaintiff worked and a company known as Labor Management Consultants (LMC) which had a collective bargaining agreement with Local 688, were commonly owned and that both companies effectively operated as one. The court found in favor of the plaintiff holding he did not breach the agreements by rendering services to Local 102 or LMSI. It also found that plaintiff did not commit a fraud on the union in his pension application or by his service after January 1,1972. The court noted the determination in Saffo did not constitute collateral estoppel. Finally, having found that plaintiff did not breach the agreements, the court found for plaintiff on defendants’ counterclaim.

Defendants make four allegations of error. Specifically, defendants contend (1) the trial court erred in not applying the doctrines of collateral estoppel and res judi-cata, (2) the trial court erred in not granting defendants’ motion for a directed verdict since plaintiffs had failed to make a submissible case, (3) the judgment on Counts I and III is against the weight of the evidence and (4) the judgment on their counterclaim is against the weight of the evidence and is not supported by substantial evidence.

As this is a court tried case, we note the judgment will not be set aside unless it is against the weight of the evidence, it is not supported by substantial evidence, or it erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976).

In their first point, defendants assert that due to the holding in Saffo, plaintiff is prohibited under the principles of res judi-cata and collateral estoppel from relitigat-ing the question of whether he committed a fraud in his pension application and that the trial court erroneously applied the law in not so finding. We disagree.

Inasmuch as the doctrine of res judicata precludes the same parties or their privies from relitigating the same cause of action, it is not applicable in this case. Griffith v. Hammer, 595 S.W.2d 292, 294 (Mo.App.1979). The subject matter of the previous case was the termination of the plaintiff’s pension benefits whereas the subject matter of the cause before this court is the termination of two deferred compensation agreements.

We also find inapplicable to this case the doctrine of collateral estoppel which precludes the same parties or their privies from relitigating issues previously decided. Potter v. Desloge, 625 S.W.2d 927, 929 (Mo.App.1981). Plaintiff’s alleged fraud on the pension plan was at issue in the previous litigation. The court, however, also determined that plaintiff had suffered an unauthorized break in service and then ordered plaintiff’s pension benefits eliminated. Saffo v. Occidental Life Insurance Company, 602 F.2d at 1279. The issue therefore is whether a finding of fraud was necessary to the court’s ruling. Haynes v. Hawkeye Security Insurance Co., 579 S.W.2d 693, 696 (Mo.App.1979). As stated, the court determined plaintiff’s pension benefits should be eliminated because of his break in service and not because he had claimed excessive years of service. Furthermore, the court totally eliminated plaintiff’s pension benefits while only reducing Gibbon’s2 monthly [75]*75benefits because of his decrease in years of credited service. If the court had only found plaintiff had claimed an excessive number of years of credited service, it would have reduced plaintiff’s benefits instead of eliminating them. Arguably, the break in service was the finding necessary to eliminate plaintiffs pension benefits. As a result, the “finding” of fraud, as to plaintiff, was unnecessary and added nothing to the judgment. Accordingly, the trial court did not erroneously apply the law in refusing to apply the doctrines of collateral estoppel and res judicata. Defendants’ first point is denied.

In their second point, defendants contend their motion for a directed verdict should have been granted because plaintiff failed to make a submissible case. The issue therefore, is whether the evidence showed that plaintiff breached the agreements by defrauding the union, acting as a consultant for Local 102 and LMSI, and fraudulently pretending to retire. The granting of a directed verdict at the close of plaintiff’s evidence is a drastic measure and should only be done when all of plaintiff’s evidence and reasonable inferences to be drawn therefrom are so strongly against plaintiff that there is no room for reasonable minds to differ. Teachenor v. DePriest, 600 S.W.2d 122, 124 (Mo.App.1980). Such is not the case here.

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Bluebook (online)
661 S.W.2d 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kavner-v-akers-moctapp-1983.