Peake v. International Harvester Co.

489 N.E.2d 102, 1986 Ind. App. LEXIS 2330
CourtIndiana Court of Appeals
DecidedFebruary 18, 1986
Docket4-385A76
StatusPublished
Cited by7 cases

This text of 489 N.E.2d 102 (Peake v. International Harvester Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peake v. International Harvester Co., 489 N.E.2d 102, 1986 Ind. App. LEXIS 2330 (Ind. Ct. App. 1986).

Opinion

CONOVER, Judge.

Plaintiff-Appellant Richard L. Peake (Peake) appeals the entry of summary judgment in favor of defendant-appellee International Harvester Company (International Harvester) determining Peake's elaims for wrongful appropriation of Peake's suggestion box idea for improving the efficiency of a truck production line were barred by the applicable statute of limitations.

Affirmed.

ISSUES

This appeal presents the following issues:

1. Whether the existence of a collective bargaining agreement constitutes a written contract of employment between a union member-employee and the employer.

2. Whether a suggestion plan for new ideas from plant employees is a "privilege" of such employment.

3. Whether Peake's claims were barred by a two year statute of limitations applicable to claims arising out of the employer-employee relationship. FACTS

While employed by International Harvester, Peake submitted a new idea in writ *104 ing to the company for placing truck cabs on the truck assembly line, using a New Ideas Suggestion Blank as he was required to do in such cases. International Harvester's New Ideas Suggestion Program was open to all eligible non-managerial employees. Peake was eligible at the time. Under the plan, any idea so submitted was kept on file by the company for one year after rejection. The submitting employee during that time retained his claim to it, but then only had 80 days to resubmit the idea to retain further claim to it. Peake never received written notice his idea had been rejected.

On October 26, 1977, four months after Peake left International Harvester's employ, Peake's then attorney wrote International Harvester about Peake's cab handling suggestion. His letter said Peake had been informed his idea was shelved by the company in 1974 because it was too costly, but a recent article indicated his idea later had been implemented. The letter ended with a demand for compensation.

An answering letter from the company said Peake did not make a timely resubmission of his suggestion as required by the suggestion plan; and, even if Peake's idea had been used, he was barred from collect ing a reward.

Peake filed a complaint for compensatory and punitive damages against International Harvester on July 15, 1981.

DISCUSSION AND DECISION

Our standard of review in summary judgment cases is well known. Under Ind. Rules of Procedure, Trial Rule 56, summary judgment is appropriate only where there are no issues of material fact and the moving party is entitled to judgment as a matter of law. When we review the grant of a motion for summary judgment we stand in the shoes of the trial court. We must determine whether any genuine issue of material fact exists and whether the law was correctly applied by the trial court. We must liberally construe all the evidence and reasonable inferences arising therefrom in favor of the non-movant and resolve any doubt as to the existence of a genuine issue against the proponent of the motion. A fact is material if it facilitates resolution of any of the issues involved. On appeal, the trial court's judgment will be affirmed on any theory or basis found in the record which supports the trial court's judgment, even if it was originally grounded upon an erroneous theory of law. A fact is "material" for summary judgment purposes, if its resolution is decisive of the action or of a relevant secondary issue. Penwell v. Western & Southern Life Ins. Co. (1985), Ind.App., 474 N.E.2d 1042, 1043-1044.

I.

In reaching its determination, the trial court applied the provisions of IND.CODE 34-1-2-1.5 which became effective on August 29, 1977. It reads as follows:

Employment Agreement not in writing. -All actions relating to the terms, conditions, and privileges of employment except actions based upon a written contract (including, but not limited to, hiring or the failure to hire, suspension, discharge, discipline, promotion, demotion, retirement, wages, or salary) shall be brought within two (2) years of the date of the act or omission complained of.

The trial court determined Peake's idea had been rejected by the company as early as April 1, 1975, 1 and further found "[Peake] knew that his idea was rejected long before October 26, 1977," without finding the precise date upon which the company rejected his idea about truck body placement on the assembly line. Finally, the trial court found Peake's complaint had been filed "more than two (2) years later" and was thus barred by the limitation contained in 1.C. 84-1-2-1.5.

Peake first argues that statute is inapplicable in this case because the terms, *105 conditions, and privileges of his employment were governed by the written collective bargaining agreement between his union, the U.A.W. and International Harvester. We disagree. It is uncontested Peake was an hourly employee hired under an oral contract.

A collective bargaining agreement is not a "written contract" when the applicability of a statute of limitations to the claims of an employee hired under an oral contract of employment is being considered. International Union, U.A.A. & A.I. Workers of America (UAW), AFL-CIO v. Hoosier Cardinal Corp. (1965, C.A. 7) 346 F.2d 242, aff'd., 383 U.S. 696, 86 S.Ct. 1107, 16 LEd.2d 192. In that case, the U.A.W. sought to recover vacation pay for the company's employees. Rejecting the union's argument a 20 year statute of limitations for actions on written contracts rather than Indiana's 6 year statute regarding accounts and contracts not in writing applied to those facts, the Seventh Circuit said

... plaintiff's action in the district court was based upon the contract of employment between the individual employees and defendant. There is no evidence or contention that these employment contracts were ever reduced to writing. It was for wages due under these employment contracts that the present action was brought....

Hoosier Cardinal, 346 F.2d at 245. In affirming the United States Supreme Court said

Proof of the breach and of the measure of damages, however, both depend upon proof of the existence and duration of separate employment contracts between the employer and each of the agreed employees.

Hoosier Cardinal, 383 U.S. at 706, 86 S.Ct. at 1113. In other words, although the provision concerning the company's payment of vacation pay to its employeemembers was embodied within the provisions of the written collective bargaining agreement, the determination of which statute of limitations applied was to be determined by whether each employee's contract of hiring was oral or written. Because all such contracts were oral in nature, all claims were barred because the shorter statute of limitations applied.

The same principle applies here. Because Peake's employment contract was oral, 1.C. 84-1i-2-1.5 applies in this case.

IL.

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Cite This Page — Counsel Stack

Bluebook (online)
489 N.E.2d 102, 1986 Ind. App. LEXIS 2330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peake-v-international-harvester-co-indctapp-1986.