Kraine v. Robert E. Derecktor of Rhode Island, Inc.

528 A.2d 1094, 1987 R.I. LEXIS 537
CourtSupreme Court of Rhode Island
DecidedJuly 15, 1987
DocketNo. 85-234-Appeal
StatusPublished
Cited by2 cases

This text of 528 A.2d 1094 (Kraine v. Robert E. Derecktor of Rhode Island, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kraine v. Robert E. Derecktor of Rhode Island, Inc., 528 A.2d 1094, 1987 R.I. LEXIS 537 (R.I. 1987).

Opinion

OPINION

SHEA, Justice.

This breach-of-employment-contract case comes before us following a Superior Court jury verdict in favor of Gilbert Kraine (plaintiff). Robert E. Derecktor of Rhode Island, Inc. (defendant) appeals from the trial justice’s denial of its motion for a new trial. We affirm.

On January 21, 1983, plaintiff filed a complaint alleging that defendant breached its contract of employment and that plaintiff suffered loss of income as a result. The case was tried before a Superior Court jury on January 22 and 23,1985. On Janu[1095]*1095ary 21,1985, defendant filed a pro hac vice motion for Albert J. Gaynor, an out-of-state attorney who had “been [defendant’s] longstanding representative,” to act as trial counsel. The motion asserted that Mr. Gaynor had “extensive knowledge as to the shipbuilding business” because of his long association with defendant. The trial justice denied the motion, stating that he “[did not] see any specific expertise that is necessary in this particular case.” He also noted that there was “no indication through the course of discovery that there would be an out-of-state attorney entering an appearance.” He did, however, allow Mr. Gaynor to sit at counsel table during the trial.

The evidence presented established that in July 1982, plaintiff, who was then employed by Pennsylvania Shipbuilding Company in Chester, Pennsylvania, was contacted by an employee of defendant and asked if he “would be willing to talk to Mr. Derecktor”1 about employment. On August 6, 1982, plaintiff came to Newport where he met Derecktor, discussed the problems of running a shipyard, and toured defendant’s shipyard.

On the following day Derecktor offered plaintiff a position as general manager at a salary of $60,000 per year. The plaintiff declined the offer, however, stating that he “would have to leave a contract that ran for another eighteen months at approximately $50,000. According to plaintiff, the parties then had the following exchange:

“A. I told him I’d come up for a year for $75,000.

“Q. What did he say to you?

“A. He said, Tf I give you $75,000, don’t ask for any extras during the year.’

“Q. And did you have any further conversation regarding the terms and conditions of the contract at that time?

“A. Well, I asked him, ‘What about future increases?’ And he said, ‘We will discuss that after the year.’ ”

On August 11, 1982, plaintiff met with and attempted to persuade Derecktor to give him a three-year contract but Derecktor stated that he “preferred to go year-to-year.” On the next morning, plaintiff advised Derecktor that he would give his employer two weeks’ notice as soon as he received defendant’s offer in writing.

The plaintiff returned to Newport on August 18, 1982, where he was again offered the position. He accepted the position and was advised by Derecktor to “work out the details with John Anderson,” defendant’s industrial relations director. Shortly after his return to Pennsylvania, plaintiff received a “letter dated August 19, 1982, from [defendant] to [him], spelling out the terms of [the] agreement * * * signed by John F. Anderson.” The letter stated in pertinent part:

“Dear Gil:
I am pleased that you have accepted the position of General Manager for the WMEC Program.
Following are the items which I believe to be inclusive of the areas we discussed:
1. Annual salary of $75K.
2. Blue Cross-Blue Shield will not be paid by the company for approximately one year due to prior arrangements.”

After receiving the letter, plaintiff gave his employer two weeks’ notice.

The plaintiff started work on September 7, 1982. Throughout September and October of 1982, he stated that he “had a general reaction from [Derecktor] that he seem[ed] to be pleased with what [I] was doing and * * * was finding out about the yard.” In early November, Derecktor told plaintiff “he thought that we were holding too many [staff] meetings in the yard.” On the morning of November 9, 1982, Der-ecktor told plaintiff that “it wasn’t working, that he didn’t know how to make it work, and that he wanted [me] to leave.” The plaintiff was given his final paycheck that afternoon and left the shipyard the next day.

After its cross-examination of plaintiff, defendant moved for a directed verdict, [1096]*1096asserting that no contract had been proven. The trial justice denied the motion, stating that:

“The Court can come to the conclusion at this point that there was an agreement between the parties. The plaintiff had indicated that there was in fact an agreement, that they discussed the terms, and that it was for a period of one year. And he says ‘Don’t ask for any more during the course of the year.' Based upon that, the motion for directed verdict is hereby denied.”

John Anderson was called by defendant and testified that he told plaintiff, in response to a request for an employment contract, that “we don’t do contracts because we had had a bad experience with the former general manager over a contract.” Derecktor testified that there was no employment contract with plaintiff. He further stated that he had given an employment contract on only one occasion. He told plaintiff that he had been “badly burnt on having an employment contract” and “wouldn’t do that again.”

During his charge to the jury the trial justice stated:

“I’m going to charge you as a matter of law — because the Court has the duty to preliminarily inspect the contract and determine if it’s in accordance with the law before it submits it to a jury, that it is in fact a legal, binding contract, or whether the terms are for you to determine, or whether you are to determine whether there is a contract — and the Court charges you as a matter of law that the agreement contained in Exhibit number 1 of the plaintiff is a lawful, binding and enforceable contract between the parties at the time that they entered into it, or at the time that there was an acceptance to it.”

The trial justice further stated that:

"It’s your duty * * * to determine from all of the facts presented before you * * what the terms of the contract are, and what the duties and obligations that were imposed upon the plaintiff and the defendant by such terms that were agreed upon, whether those terms were written or oral.”

After the jury instructions, defendant objected to the “charge as to being instructed as to the contract based on — [t]he Hatch case said that the intention of the parties should be controlling; and by not putting that to the jury, you’ve taken that decision away.” Following its deliberations the jury returned a verdict for plaintiff in the amount of $61,000 that was subsequently reduced to $39,015 by what was in effect a stipulation between the parties.

The defendant later filed a motion for a judgment notwithstanding the verdict2 or, in the alternative, a motion for a new trial. The defendant objected to the trial justice’s jury instruction “that there was a contract in this matter” as well as his denial of the “pro hac vice [motion] for Mr.

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528 A.2d 1094, 1987 R.I. LEXIS 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kraine-v-robert-e-derecktor-of-rhode-island-inc-ri-1987.