Blacik v. Canco Division-American Can Company, DIVISION-AMERICAN

• Citation: 279 Minn. 266,156 N.W.2d 239
• Decision Date: 16 February 1968
• Docket Number: No. 39775,DIVISION-AMERICAN,39775
• Parties: Frank Bernard BLACIK, Appellant, v. CANCOCAN COMPANY, Respondent.
• Court: Supreme Court of Minnesota (US)

Page 239

156 N.W.2d 239

279 Minn. 266

Frank Bernard BLACIK, Appellant, v. CANCO DIVISION-AMERICAN CAN COMPANY, Respondent.

No. 39775.

Supreme Court of Minnesota.

Feb. 16, 1968.

Syllabus by the court

1. In the absence of evidence that a proposed retirement plan had become effective or that plaintiff was eligible to receive benefits under the conditions of the plan as proposed, Held that the trial court was correct in ruling that plaintiff failed to make out a prima facie case for recovery of such benefits and in directing a verdict for the defendant.

2. Where the evidence as a whole preponderated in defendant's favor, and plaintiff's evidence viewed alone failed to contain all of the elements necessary to establish a prima facie case for recovery of vacation pay, Held that the trial court did not err in directing a verdict for the defendant on that issue at the close of all of the evidence.

Firestone, Fink, Krawetz, Miley & O'Neill, and James Noonan, St. Paul, for appellant.

A. Laurence Davis and Samuel L. Hanson, Briggs & Morgan, St. Paul, of counsel, for respondent.

OPINION

FRANK T. GALLAGHER, Justice.

Appeal from an order of the municipal court of St. Paul denying plaintiff's motion for a new trial or judgment notwithstanding the verdict.

Plaintiff, Frank Bernard Blacik, entered the employment of defendant, Canco Division-American Can Company, on or about June 14, 1933, at St. Paul. He testified that at that time there was a discussion between an agent of defendant and himself regarding certain employee benefits; that vacation plans were discussed; that it was explained that employees were to work a certain time before becoming eligible for a vacation; and that it was plaintiff's understanding that vacations were deferred for a year. He did not recall that he received any vacation between the time he commenced work in June 1933 and June 1934 but said he received some vacation after he had been with defendant a year.

In 1949 plaintiff was transferred by defendant to St. Louis, where he remained until 1955. He worked at an hourly rate from 1933, except as interrupted by military service, until April 1, 1950, when he was promoted to assistant foreman and became a salaried, supervisory employee. Sometime after plaintiff was employed in 1933 he became a union member, but as a supervisory employee he withdrew from the union.

In 1955, plaintiff was transferred back to St. Paul and in 1960 was transferred to Indianapolis. He remained a supervisory employee until he voluntarily terminated his employment in July 1963, effective August 2, 1963. ¹

In this action plaintiff claims benefits of two kinds: (1) An additional retirement benefit equal to 2 months' pay, claimed to be payable to certain employees who retired between October 1, 1962, and December 31, 1963; and (2) vacation pay.

At the close of plaintiff's evidence the trial court directed a verdict in favor of the defendant on plaintiff's retirement-benefit claim, and at the close of all the evidence it directed a verdict for defendant on the vacation-pay claim.

1. Plaintiff argues that the trial court erred in directing a verdict for the defendant on the issue of separation pay or additional retirement benefits. He contends that the question of whether or not he was entitled to the 2 months' leave pay should have been submitted to the jury.

It is apparent that plaintiff bases his claim for additional retirement benefits upon two letters or memoranda directed to all salaried employees, one of which was received by plaintiff prior to the termination of his employment. It is his position that the plan was under consideration while he was still employed by the defendant. The first memorandum (plaintiff's exhibit B), dated September 28, 1962, contained a general description of a proposed expansion in salaried employees' benefits. The memorandum indicated that the information was preliminary, incomplete, and unofficial since the benefits were subject to government approval. It described in general terms a proposed leave-of-absence benefit to those employees who had 15 years or more of accredited service as of January 1, 1964. Plaintiff has made no claim here that he was entitled to any leave-of-absence benefits.

The second memorandum (plaintiff's exhibit C), dated August 7, 1963, indicated that the proposed expanded benefit plan for salaried employees was not yet approved, but went on to describe the additional retirement benefits included in that plan. It stated in part that those employees who were retired on or after October 1, 1962, but prior to December 31, 1963, who have not received leave or leave allowance prior to their retirement and who were otherwise eligible would receive 2 months' pay at their salary level at the time of their retirement, which would be paid during the first pay period of 1964. It is plaintiff's claim that he is entitled to this 2 months' retirement pay.

Plaintiff testified that the benefits available to salaried supervisory employees generally corresponded with those made available to production workers through union negotiations. In this connection the 1962 union contract introduced into evidence by plaintiff provided:

'27.3 An Employee who shall have completed 15 years of Accredited Service on or before October 1, 1963, and is actively employed in 1963 or thereafter shall become entitled to an initial Vested Leave and Leave Allowance as of October 1, 1963 (Vesting Date). Such an Employee shall become entitled to additional Vested Leaves and Leave Allowances every 5 years after that date, Provided he is actively employed on or after the applicable subsequent Vesting Date and has at least 15 years of Accredited Service when he is thus actively employed.

'Leave Allowances shall be granted to all employees who shall have retired on pension under the Pension Agreement between October 1, 1962 and September 30, 1963, but shall be payable, as of January 1, 1964.' (Italics supplied.)

There was no evidence that the benefits proposed in the September 28, 1962, and August 7, 1963, letters had become effective when plaintiff terminated his services with defendant on August 2, 1963. He testified that he had no knowledge of the plan described in the letters and he did not know if it ever became effective. ² He said that he knew of one employee who received benefits but he did not know if he got them under the plan under consideration or some other plan. He knew only that the employee retired at 62 years of age. Plaintiff was 49 when he terminated his employment with defendant. He testified that on or about the time he quit, July 12, 1963, he had a talk with defendant's plant manager who, as he recalled, told him he was too young to retire and that he had to be at least 55 years old. As a supervisory employee, plaintiff said that he knew the requirements for employees under defendant's retirement plan for salaried employees, but he would not say flatly that such an employee had to be 65 years old to retire under the normal retirement plan. He did know, however, that the provisions for early retirement of a salaried employee required that he be at least 55 years of age. He said that he was not claiming in this action that defendant had denied him any right regarding annuity benefits after age 65 but his claim was only for the 2 months' separation pay.

It appears undisputed from the record here that plaintiff was entitled to certain other...