Lee v. Jenkins Bros.

156 F. Supp. 858, 1957 U.S. Dist. LEXIS 2874
CourtDistrict Court, D. Connecticut
DecidedNovember 1, 1957
DocketCiv. Nos. 5729, 6197
StatusPublished

This text of 156 F. Supp. 858 (Lee v. Jenkins Bros.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee v. Jenkins Bros., 156 F. Supp. 858, 1957 U.S. Dist. LEXIS 2874 (D. Conn. 1957).

Opinion

LUMBARD, Circuit Judge.

Plaintiff brings this action seeking recovery of pension payments on the basis of two alleged oral contracts made in 1920, one being an agreement by Jenkins Brothers, made through its then president Farnham Yardley, to pay the plaintiff a pension of stipulated amount, and the other an agreement by Farnham Yardley to pay the pension if Jenkins Brothers did not. Because the alleged contracts violate the Connecticut Statute of Frauds, § 8293 General Statutes,' and because Farnham Yardley had no apparent or implied authority to bind the defendant Jenkins Brothers, the complaint is dismissed.

On the basis of plaintiff’s testimony, it appears that the plaintiff was business manager of a plant of the Crane Company, a well known manufacturer of valves, fittings, and plumbing supplies, in Bridgeport, Conn., in 1920. At that time the Bridgeport plant was sold by Crane to Jenkins Brothers, the latter taking possession on June 1, 1920.

According to the plaintiff, Jenkins Brothers was interested in retaining members of the staff and work force of the plant, and, with this end in view, Farnham Yardley of Jenkins met with the plaintiff sometime in the first half of 1920. The meeting took place in Charles Barrington's hotel suite in Bridgeport, Barrington being the prospective vice-president in charge of manufacturing. At this meeting, where plaintiff, Farnham Yardley, Barrington and the latter’s wife, were present, the plaintiff was reluctant to terminate his association with Crane. At least part of plaintiff’s reluctance was due to his fear of losing 13 years of equity in a Crane pension plan which had been established in the form of a gratuity by that company.

Plaintiff testified that to overcome this reluctance, Farnham Yardley, on behalf of the corporation and on his own-behalf, promised the plaintiff that if he switched jobs, that when he, Lee, became 60 years of age, a pension not to exceed $1,500 per annum would be paid him, based upon two percent of his annual earnings and including the 13 years of service he had with Crane. Yardley promised that if Jenkins did not pay the pension, then he would. It is Lee’s contention that he had fully performed his part of the contract by transferring his employment to Jenkins Brothers, and hence that even if he had been discharged the following week he-would be entitled to his pension from age 60 until his death.

On taking possession in 1920 Jenkins-" Brothers inaugurated a plant-wide pension plan roughly similar to the Crane-plan and analogous in many respects to the alleged oral agreement between plaintiff and Jenkins Brothers. The pertinent difference from the oral agreement was that the employee had to be. employed by Jenkins when he reached 60 in order to qualify under the plan. This plan, which covered Lee and credited service with Crane, was replaced or supplemented in 1932 by a contributory service pension plan, which the plaintiff accepted in writing. Its features were, basically similar to the prior plan, except that the voluntary retirement age was raised to 65,

[861]*861At the time plaintiff became assistant to Barrington in 1920, he was 30 years old and had been earning about $4,000 annually. He was discharged by Jenkins Brothers in 1945, when he was 55. At that time he was vice-president and general manager of manufacturing, a director of the company and a member of the executive committee. He was receiving $25,000 yearly salary, a 10 percent bonus, and $8,000 annually from a Jenkins affiliate.

Barred from recovering on the company pension plan because he was not in the employ of Jenkins Brothers when he attained the age of 60, plaintiff seeks to recover on the alleged earlier agreement which did not require such service. Both Mr. and Mrs. Barrington are dead. Farnham Yardley, 87 years of age and blind when the complaint was filed, died early in 1957. Thus the plaintiff is the only witness to an oral contract allegedly made 37 years ago.

It is of course axiomatic that a federal court in a diversity action, although following federal procedure, otherwise acts as a forum of the state. In attaching legal consequences to an oral contract allegedly made in Connecticut and to be performed in Connecticut, the statute of frauds of that state as enacted and construed by the highest and intermediate courts is controlling on this court. See Robles v. Folsom, 2 Cir., 1956, 239 F.2d 562, 564.

The applicable section of the Connecticut Statute of Frauds is § 8293 General Statutes:

“No civil action shall be maintained * * * against any person upon any special promise to answer for the debt, default or miscarriage of another * * * or upon any agreement that is not to be performed within one year from the making thereof, unless such agreement, or some memorandum thereof be made in writing, and signed by the party to be charged therewith, or his agent; * *

The first clause in effect requires that suretyship agreements be in writing. Throughout his testimony Lee reiterated that Farnham Yardley had guaranteed that Jenkins Brothers would pay the pension, stating that if it did not, he would. No interpretation is possible other than that Farnham Yardley engaged himself to be surety to the obligation of Jenkins Brothers. Since this agreement is not in writing, the contract of suretyship is unenforceable, by the express terms of the Connecticut Statute of Frauds. See 2 Corbin, Contracts, § 347 et seq.

Another clause of this section is likewise applicable to the issues before the court. If the agreement is not one which can be performed within a year, the contract must be in writing. The fact that the agreement may possibly terminate within the year due to the death of a party does not cause the contract to be enforceable, since termination is not performance. Burkle v. Superflow Mfg. Co., 1950, 137 Conn. 488, 78 A.2d 698. Here plaintiff could not call for performance of the alleged contract by the company or Yardley until he reached 60, thirty years after the transaction took place.

Plaintiff contends, however, that he fully performed the contract and hence removed it from the operation of the statute. The doctrine that full performance by one party to a contract takes it out of the statute is law in the majority of jurisdictions in the United States, 2 Williston, Contracts (Rev.Ed.) p. 1471, and it is accepted in Connecticut. See Strang v. Witkowski, 1951, 138 Conn. 94, 82 A.2d 624. Further, it would seem that the performance need not take place within one year, so long as it has been wholly completed by the time that action is brought. See Blakeslee v. Board of Water Commissioners of City of Hartford, 1936, 121 Conn. 163, 183 A. 887.

To recognize a duty in this court to follow a general rule of law in Connecticut does not, however, necessarily provide a solution here. The factual context in which that rule is enunciated must be considered, in view of the statutory prohibition against the enforce[862]*862xnent of oral contracts not to be performed within a year, in order that we may understand the limits to which that rule is subject.

The cases to which the court has been referred, which carve out a judicial exception to the statute of frauds, are not inconsistent with its aims and policy. For instance, in Blakeslee v.

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Related

Strang v. Witkowski
82 A.2d 624 (Supreme Court of Connecticut, 1951)
Burkle v. Superflow Manufacturing Co.
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Blakeslee v. Board of Water Commissioners
183 A. 887 (Supreme Court of Connecticut, 1936)
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Sleeth v. . Sampson
142 N.E. 355 (New York Court of Appeals, 1923)
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Bluebook (online)
156 F. Supp. 858, 1957 U.S. Dist. LEXIS 2874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-jenkins-bros-ctd-1957.