Roden v. Bergen Brunswig Corp.

132 Cal. Rptr. 2d 549, 107 Cal. App. 4th 620, 20 I.E.R. Cas. (BNA) 247, 2003 Cal. Daily Op. Serv. 2793, 2003 Daily Journal DAR 3531, 2003 Cal. App. LEXIS 466
CourtCalifornia Court of Appeal
DecidedMarch 28, 2003
DocketG029574
StatusPublished
Cited by25 cases

This text of 132 Cal. Rptr. 2d 549 (Roden v. Bergen Brunswig Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roden v. Bergen Brunswig Corp., 132 Cal. Rptr. 2d 549, 107 Cal. App. 4th 620, 20 I.E.R. Cas. (BNA) 247, 2003 Cal. Daily Op. Serv. 2793, 2003 Daily Journal DAR 3531, 2003 Cal. App. LEXIS 466 (Cal. Ct. App. 2003).

Opinion

*623 Opinion

MOORE, J.

The parties to a hastily drawn Code of Civil Procedure section 99 8 1 settlement agreement found themselves in litigation concerning its meaning. After numerous motions, hearings and court orders, the defendant filed an appeal from an order interpreting the judgment encapsulating the section 998 settlement agreement. The defendant requests this court to resolve once and for all just one issue out of the portly ball of wax previously at issue in this complex employment litigation: Does the lump sum payment required by the judgment include an amount for retirement benefits, or are continuing retirement benefits to be provided to the plaintiff under the judgment provision requiring the defendant to continue employment benefits? The judgment is clear and unambiguous. Paragraph 2 thereof requires the defendant to continue to provide specified employment benefits, including retirement benefits, to the plaintiff. "Consequently, the amount the defendant is required to pay as a lump sum under paragraph 1 of the judgment does not resolve the defendant’s liability with respect to the plaintiffs retirement benefits. We affirm the postjudgment order.

I

Facts

Donald R. Roden (Roden) was hired as president and chief operating officer of Bergen Brunswig Corporation (Bergen) in 1995 and he became president and chief executive officer in 1997. Roden and Bergen signed an employment agreement in 1995. It provided Bergen could not terminate Roden, except for cause, or upon three years’ notice, and provided substantial damages to Roden on termination without cause.

On November 3, 1999, Bergen terminated Roden, without cause. For some time, Bergen continued paying Roden his salary and continued his participation in company benefit plans. Roden filed suit against Bergen, for breach of contract, intentional interference with prospective economic relations, slander, intentional infliction of emotional distress, and other causes of action. Roden sought not only benefits due under his employment agreement, but also damages in connection with Bergen’s purported false communications to prospective business relations and others regarding Roden’s alleged mismanagement of Bergen.

The parties developed strained relations and were interested in resolving Bergen’s remaining financial obligations under the employment agreement *624 in less than three years. Bergen had a special incentive to resolve the matter quickly, since it was obligated to pay Roden’s attorney fees in the event of a dispute under the employment agreement, pursuant to subsection 13(d) thereof. The parties discussed reducing certain benefits to present value. After lengthy negotiations, Bergen made a section 998 settlement offer and Roden accepted it.

The rancor only increased thereafter. Bergen had dashed off a stunningly brief offer. After Roden had accepted it, Bergen realized what petty few terms were contained therein and that more needed to be said, to make certain the parties agreed as to all the points not articulated in the offer. Roden resisted any attempts at clarification and filed an application for entry of judgment. Roden prevailed on that application.

Bergen followed with a motion to set aside the judgment, which was denied. Roden later filed a motion to enforce the judgment, and the court entered an order favorable to Roden. Bergen filed a motion for reconsideration, which was denied, and then an appeal from the order interpreting the judgment.

II

Discussion

A. Principles of Interpretation and Standard of Review

We apply general contract principles to the interpretation of a section 998 judgment. (Lanyi v. Goldblum (1986) 177 Cal.App.3d 181, 184 [223 Cal.Rptr. 32].) ‘“[A] stipulation or consent judgment, being regarded as a contract between the parties, must be construed as any other contract. [Citations.] . . .’ [Citation.]” (Id. at p. 184, fn. 3.)

In the interpretation of the contract, “parol evidence is only admissible if the contract terms are ambiguous. [Citation.]” (Appleton v. Waessil (1994) 27 Cal.App.4th 551, 554 [32 Cal.Rptr.2d 676].) “The decision whether to admit parol evidence involves a two-step process. The first is to review the proffered material regarding the parties’ intent to see if the language is ‘reasonably susceptible’ of the interpretation urged by a party. [Citation.] If that question is decided in the affirmative, the extrinsic evidence is then admitted to aid in the second step, which involves actually interpreting the contract. [Citation.]” (Ibid.)

In reviewing the trial court’s construction of the contract, and thus its interpretation of the judgment, several different standards of review may *625 apply, if a party offers parol evidence to aid in interpretation. (Winet v. Price (1992) 4 Cal.App.4th 1159, 1165-1166 [6 Cal.Rptr.2d 554].) “On appellate review, the trial court’s threshold determination of ambiguity is a question of law [citation] and is thus subject to our independent review [citation].” (Appleton v. Waessil, supra, 27 Cal.App.4th at pp. 554-555.) If parol evidence is admitted and is in conflict, the substantial evidence test applies. (Id. at p. 556.) “However, when ... the competent parol evidence is not conflicting, construction of the instrument is a question of law, and the appellate court will independently construe the writing. [Citation.]” (Winet v. Price, supra, 4 Cal.App.4th at p. 1166.)

B. Analysis

1. Language of Offer and Employment Agreement

Bergen’s June 30, 2000 settlement offer, which Roden accepted, provided in relevant part, “Pursuant to California Code of Civil Procedure Section 998, Bergen Brunswig Corporation hereby offers to have judgment entered on plaintiff’s First Amended Complaint on the following terms: [f] 1. In favor of plaintiff in the amount of $5,000,000, less legally required deductions. [^|] 2. Continuation of the benefits provided in Section 5(d), (e), and (i) of his Employment Contract, ffl] 3. Reasonable attorney fees and costs in an amount to be determined by the Court.” Those three terms were reiterated in the judgment.

A number of questions arose as to the scope and interpretation of the judgment. The only issue on appeal is whether benefits payable under Bergen’s supplemental executive retirement plan (SERF) were reduced to present value and incorporated into the $5 million lump sum payment under paragraph 1 of the judgment, as Bergen contends, or whether Roden was to have continued SERF participation pursuant to paragraph 2 of the judgment, as Roden contends.

“A contract must be ‘interpreted as to give effect to the mutual intention of the parties as it existed at the time of contracting’ (Civ. Code, § 1636), and where, as here, the contract is in writing, ‘the intention . . . is to be ascertained from the writing alone, if possible . . .

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Bluebook (online)
132 Cal. Rptr. 2d 549, 107 Cal. App. 4th 620, 20 I.E.R. Cas. (BNA) 247, 2003 Cal. Daily Op. Serv. 2793, 2003 Daily Journal DAR 3531, 2003 Cal. App. LEXIS 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roden-v-bergen-brunswig-corp-calctapp-2003.