Winand v. Case

154 F. Supp. 529, 1957 U.S. Dist. LEXIS 3122
CourtDistrict Court, D. Maryland
DecidedAugust 26, 1957
DocketCiv. 8219
StatusPublished
Cited by15 cases

This text of 154 F. Supp. 529 (Winand v. Case) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winand v. Case, 154 F. Supp. 529, 1957 U.S. Dist. LEXIS 3122 (D. Md. 1957).

Opinion

R. DORSEY WATKINS, District Judge.

This is a diversity suit instituted April 7, 1955, for damages arising out of an alleged breach of a written contract to employ the plaintiff for life. 1 The plaintiff’s cause of action is framed in three alternative ways, the complaint alleging: (1) that the individual defendant’s decedent, R. R. Trubey, as equitable sole owner of the Baltimore Enamel & Novelty Company (Baltimore Enamel), one of the present corporate defendant’s predecessor corporations, acted for and on behalf of said predecessor corporation and executed a binding contract of employment between the plaintiff and Baltimore Enamel, which contract was wrongfully breached by the original defendant successor corporation; or (2) that R. R. Trubey entered into an agreement between himself and the plaintiff wherein Trubey bound himself to provide lifetime employment for the plaintiff either *532 personally or by causing the original defendant corporation or its predecessor to enter into a formal contract of employment, which undertaking was breached by Trubey’s failure to perform; or (3) that R. R. Trubey entered into an agreement with the plaintiff which was both a personal contract and a contract of Baltimore Enamel, to be performed jointly by both Trubey and the said corporation, and that the original defendant corporation’s discharge of the plaintiff constituted a breach by both Trubey and the original defendant 2 corporation. After the filing of answers, the filing of interrogatories and answers thereto by both sides, the taking of depositions by both sides, and the plaintiff’s request for the admission of certain facts and the genuineness of certain documents, 3 both the individual defendant and the corporate defendant moved pursuant to Rule 56(b) of the Federal Rules of Civil Procedure, 28 U.S.C.A., for summary judgment.

As grounds for the motion for summary judgment the individual defendant alleges that no contract of employment ever existed between Trubey and the plaintiff; that no contract of lifetime employment ever existed between Trubey and the plaintiff or the defendant corporation and the plaintiff; and that the action is barred by the Maryland Statute of Limitations. The corporate defendant asserts as its grounds in addition to limitations and failure to comply with the Statute of Frauds that it never executed or agreed to be bound by the alleged agreement; that there was no consideration to it for the agreement; that the agreement would have been an unauthorized and illegal exercise of corporate powers; that the plaintiff voluntarily left and refused to continue employment with the defendant corporation ; 4 that the agreement, if such existed, was not for lifetime employment; and that the defendant corporation never entered into a contract for lifetime employment with the plaintiff or any other employee.

The following facts are not in dispute.

On June 9, 1944, R. R. Trubey over the signature of Clyde Porcelain Steel Corp. (Clyde), and indicating that he was acting on behalf of that corporation' as its president, addressed a letter to the stockholders of Baltimore Enamel proposing to do the following:

“Having reference to your March 31, 1944 balance sheet and operating statement, and subsequent representations made by your officers as to operations during April and May, 1944, and your desire to secure management and additional working capital, we propose the following.
“1. We will furnish at least $100,000 additional working capital on as secure a basis to us as possible.
“2. Your present common stock holders will agree to exchange their entire holdings, in a manner most advantageous taxwise to all concerned, into $200,000 worth of 6 per cent cumulative preferred stock; it is agreeable to us that a provision will be incorporated in the preferred stock that the fixed assets of the Company will not be further en *533 ■cumbered without the consent of the preferred stock holders; it is also agreeable to us that the first year’s ■dividends of $12,000 will be guaranteed to be paid within one year from the time we acquire control. Any •other reasonable provisions for the protection of preferred stock holders will be agreeable to us.
“8. It will be desirable to us that your present president, Mr. Henry A. Brehm, become Chairman of the Board and be paid a salary of $2,500 per year so long as the operations justify; also that Mr. H. B. Little may either remain active in the business at his present or a reduced, salary, to be mutually agreed upon, or he may retire on a pension or income of not less than $100 per month and not more than $250 per month; that one of our organization will become President of the Company and will be the directing head; that George Blome will remain as Vice-President in charge of sales, subject to our direction; that William Winant [sic] wiU become Vice-President and will execute such duties as may be required of him by the President; that the salaries being paid William Winant [sic] and George Blome will remain the same as they are now so long as they properly carry out their duties as determined by the new President and his associates; it is also our desire to have both William Winant [sic] •and George Blome remain active in the business indefinitely, and it is cur intention that, if they show the ability and application required to make the business successful under reasonable direction of our organization, they shall have a reasonable amount of the new common stock, which will be issued exclusively to members of our organization, and distributed among those individuals who contribute materially to the success of this new set-up or company.” (Emphasis supplied.)

On June 16, 1944, the stockholders’ attorney wrote Mr. Trubey in care of Clyde requesting clarification of certain details of the offer to which Mr. Trubey responded on June 22, 1944, again signing as president of Clyde. On July 5, 1944, the stockholders’ attorney, having been advised of a proposed conference of stockholders to consider Trubey’s proposal, wrote the plaintiff who at that time, although not a stockholder, was the Secretary, Treasurer and General Manager of Baltimore Enamel receiving a salary of $8,840 per annum, in part as follows:

“As the matter now stands, it would seem to me that the situation with respect to the claims above referred to [a contingent liability of Baltimore Enamel known as the “smoke pipe claims”] must constitute a highly important consideration in the mind of Mr. Trubey and that you are not free to look on Mr. Trubey’s letter of June 9th as constituting a firm continuing offer subject now to acceptance or rejection by the stockholders.
“About the best you can do at the meeting on Friday would be to pass a resolution accepting, in principle, the proposition discussed in Mr. Trubey’s letter of June 9th, Mr. Cook’s reply of June 16th, and Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Goode v. American Veterans, Inc.
874 F. Supp. 2d 430 (D. Maryland, 2012)
Nesbit v. Cribbs
692 S.E.2d 194 (Court of Appeals of North Carolina, 2010)
Lubore v. RPM Associates, Inc.
674 A.2d 547 (Court of Special Appeals of Maryland, 1996)
Yost v. Early
589 A.2d 1291 (Court of Special Appeals of Maryland, 1991)
Humphrey v. Hill
285 S.E.2d 293 (Court of Appeals of North Carolina, 1982)
Estate of Bogley v. United States
514 F.2d 1027 (Court of Claims, 1975)
Spates v. Spates
296 A.2d 581 (Court of Appeals of Maryland, 1972)
Quinn v. Quinn
276 A.2d 425 (Court of Special Appeals of Maryland, 1971)
Lopez v. Lopez
243 A.2d 588 (Court of Appeals of Maryland, 1968)
Brack v. Evans
187 A.2d 880 (Court of Appeals of Maryland, 1963)
Tow v. Miners Memorial Hospital Ass'n
199 F. Supp. 926 (S.D. West Virginia, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
154 F. Supp. 529, 1957 U.S. Dist. LEXIS 3122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winand-v-case-mdd-1957.