Tompkins v. Schering Corp.

441 So. 2d 455
CourtLouisiana Court of Appeal
DecidedNovember 29, 1983
Docket15812-CA
StatusPublished
Cited by10 cases

This text of 441 So. 2d 455 (Tompkins v. Schering Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tompkins v. Schering Corp., 441 So. 2d 455 (La. Ct. App. 1983).

Opinion

441 So.2d 455 (1983)

Carl E. TOMPKINS, Plaintiff-Appellant,
v.
The SCHERING CORPORATION, D/B/A U.S. Animal Health Products, Defendant-Appellee.

No. 15812-CA.

Court of Appeal of Louisiana, Second Circuit.

November 29, 1983.

*456 Thompson & Harp by George E. Harp, Shreveport, for plaintiff-appellant.

Blanchard, Walker, O'Quin & Roberts by John T. Cox, Jr., Shreveport, for defendant-appellee.

Before PRICE, HALL and NORRIS, JJ.

NORRIS, Judge.

Carl E. Tompkins appeals a judgment rejecting his demands for certain commissions and vacation pay which he claimed to be due and owing to him from Schering Corporation after he was terminated.

Tompkins was employed by Schering Corporation on August 24,1981 to sell its veterinary products in a three state area. It was the agreement between the parties that Tompkins would be paid a straight salary plus additional bonuses in lieu of commissions through 1981 and thereafter he would continue to receive a salary plus additional compensation in accord with Schering's commission or incentive program. His employment was subject to all employee policies as described in the Employee Handbook, sales manuals, and other company communications. During the first week of January, 1982, Schering introduced an "Incentive and Awards Program" to its sales personnel at its annual sales meeting in Chicago. The plan specifically noted significant changes in the method of determining incentive payouts for 1982. The total incentive payout was to consist of commissions and "push programs" (money and premiums). The commissions were to be paid at varying rates depending on the category of products sold. The plan provided for three commission periods during the year and that any representative leaving Schering for any reason during a commission period would be ineligible for any incentive payment during that period.

Tompkins was present at the annual sales meeting when this new incentive program was introduced and was aware of its provisions. This program was equally applicable to all of Schering's sales representatives. On March 15,1982, during the first commission period under the plan, Tompkins was terminated for unsatisfactory job performance. After his termination, Tompkins demanded his accrued vacation pay and the commissions which he contended were due him for the period from January 1, 1982 through his date of termination.

Schering contended that the only sum owed to Tompkins at the time of his termination was five days' vacation pay. This amount was tendered to Tompkins in the form of a check dated March 19,1982. Sent with the check but not made a part of it, was a form which was entitled "Certification Receipt and Release". Tompkins refused to sign the form or cash the check. Thereafter, his attorney contacted the company demanding that Tompkins be paid an additional week of vacation pay, reimbursement for long distance calls, five sick days, commissions and a premium award. Because Schering disputed that these amounts were owed [with the exception of the phone bill which was promptly paid], this suit followed. At trial, Tompkins conceded that the only sums actually in dispute were the vacation pay and the bonuses or commissions due under the incentive plan. The trial court concluded that Schering had paid Tompkins all the sums which he was due; and Tompkins appeals.

The two pivotal issues presented by this appeal are (1) whether or not the tender of the check for the vacation pay was a conditional tender, and (2) whether or not the eligibility provisions of the incentive and award plan are ambiguous and/or constitute a forfeiture of wages under La.R.S. 23:634.

La.R.S. 23:631 provides:
*457 A. Upon the discharge or resignation of any laborer or other employee of any kind whatever, it shall be the duty of the person employing such laborer or other employee to pay the amount then due under the terms of employment, whether the employment is by the hour, day, week, or month, not later than three days following the date of discharge or resignation. Said payment shall be made at the place and in the manner which has been customary during the employment, except that payment may be made via United States mail to the laborer or other employee, provided postage has been prepaid and the envelope properly addressed with the employee's or laborer's current address as shown in the employer's records. In the event payment is made by mail the employer shall be deemed to have made such payment when it is mailed. The timeliness of the mailing may be shown by an official United States postmark or other official documentation from the United States Postal Service.
B. In the event of a dispute as to the amount due under this Section, the employer shall pay the undisputed portion of the amount due as provided for in Subsection A of this Section.
C. With respect to interstate common carriers by rail, a legal holiday shall not be considered in computing the three day period provided for in Subsection A of this Section.

A conditional tender of a check in final payment of a claim for wages does not constitute compliance with La.R.S. 23:631(B) and does not absolve the employer from the penal provisions of the statute. Haywood v. Salter, 421 So.2d 1190 (La.App. 2d Cir.1982); Rush v. Ryan Chevrolet, Inc., 408 So.2d 984 (La.App. 2d Cir.1981). Thus, in order to comply with La.R.S. 23:631, Schering's tender of the check for the vacation pay[1] must have been unconditional and not contingent upon Tompkins' execution of a release or compromise settlement. Hess v. Pembo, 422 So.2d 503 (La.App. 4th Cir. 1982).

It is significant that the check which was received by Tompkins was devoid of any restrictive or settlement language. The notation on the ledger simply stated that it was for five days vacation pay. The release[2] was simply included with the check with no instructions. Certainly, under these particular facts and circumstances, the cashing of the check without signing the release form and returning it to Schering would not have constituted an accord and satisfaction or a release in favor of Schering for other amounts alleged to be due and owing. Furthermore, in a letter dated April 20, 1982, written by Tompkins' attorney to Schering demanding payment of amounts contended to be owed, we find the following language:

... Mr. Tompkins was paid his regular salary (less commission) through March 15, 1982, and five days vacation pay. However, the following remuneration was not paid ... [Emphasis added.]

Thus, by Tompkins' own admission it is obvious that he did not consider this to be a conditional tender at the time that the letter was written and in fact acknowledged that this amount had been paid. Therefore, *458 we conclude that under the particular facts and circumstances of this case, that the check issued by Schering for the vacation pay was not a conditional tender because it was not delivered to Tompkins conditioned upon his signing the release. Therefore, we conclude that Schering adequately complied with La.R.S. 23:631(B).

A more serious issue is raised by the eligibility provision of the incentive program which states:

As in the past, our incentive programs are designed to reward sales performance, while merit salary increases reward the territory management of your job.
In 1982, we will implement the trimester commission payout plan.

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