Brink's, Inc. v. Hoyt, 13972

• Decision Date: 17 January 1950
• Docket Number: No. 13972,13973.,13972
• Citation: 179 F.2d 355
• Parties: BRINK'S, Inc. v. HOYT. HOYT v. BRINK'S, Inc. et al.
• Court: U.S. Court of Appeals — Eighth Circuit

179 F.2d 355 (1950)

BRINK'S, Inc. v. HOYT.

HOYT v. BRINK'S, Inc. et al.

Nos. 13972, 13973.

United States Court of Appeals Eighth Circuit.

January 17, 1950.

Henry L. Jost, Jr., Kansas City, Mo., for Brink's Inc.

Guy W. Runnion and Wm. Dennis Bush, Kansas City, Mo. (C. W. Prince, Kansas City, Mo. on the brief) for George C. Hoyt.

Before GARDNER, Chief Judge, and THOMAS and JOHNSEN, Circuit Judges.

GARDNER, Chief Judge.

This was an action brought by George C. Hoyt as plaintiff against Brink's Inc., a corporation, and Theo. E. Frazee as defendants, to recover damages alleged to have been suffered by the plaintiff by reason of the malicious failure of defendants to issue to plaintiff a service letter stating the period of his employment, the character of services rendered and the cause of his discharge, as provided by Section 5064, Revised Statutes of Missouri, 1939, Mo.R.S. A. The parties will be referred to as they were designated in the trial court. The action was brought in the Circuit Court of Jackson County, Missouri, but on motion of defendant Brink's Inc., alleging that a separable controversy existed between plaintiff and itself, the cause was removed to the Federal Court. The plaintiff entered a special appearance in the Federal Court for the sole purpose of moving to remand the action to the State Court, alleging in his motion that the defendant Theo. E. Frazee was a resident of Jackson County, Missouri, as was also the plaintiff, and hence there was no diversity of citizenship; that the defendant Frazee was jointly liable with the defendant Brink's Inc., because he aided and abetted and assisted Brink's Inc., in the perpetration of a wilful, deliberate and malicious damage and injury to the plaintiff. The motion to remand was denied on the ground that the complaint stated no cause of action against the defendant Frazee and hence a separable controversy existed between the plaintiff and the removing defendant as to whom a diversity of citizenship existed.

The action was tried to the court without a jury and at a pre-trial conference many of the facts were agreed upon between the parties but as they were afterwards embodied in the findings no further reference need be made to them here.

There was oral testimony introduced by the parties at the conclusion of which request for findings in favor of defendants was made and denied. The court found substantially as follows: (1) That the plaintiff was employed by the defendant Brink's, Inc., on the 2nd day of August, 1946, and continued in such employment until the 1st day of February, 1948, at which time he was discharged by the defendant; (2) that on the 17th day of February, 1948, plaintiff mailed to Mr. Ted Frazee, the manager of the Kansas City office of the defendant, Brink's Inc., the Exhibits A, A-1 and A-2, in which plaintiff requested of defendant a letter showing the time he worked for the defendant, the kind of work that he did and the reason for his discharge; (3) that after the receipt of that letter by the defendant, no service letter, as provided by Section 5064, Revised Statutes of Missouri, 1939, Mo.R.S. A. was given to plaintiff; (4) that subsequent to the termination of the plaintiff's employment with the defendant, Brink's Inc., request was made of defendant, Brink's Inc., by persons to whom plaintiff made application for employment as to the reason of the termination of plaintiff's services by Brink's Inc.; (5) that after inquiry was made by such prospective employers of the manager of Brink's Inc., in Kansas City, Missouri, plaintiff did not secure employment with such other prospective employers; (6) that in terminating plaintiff's employment with the defendant, Brink's, Inc., the manager of the Kansas City office took into consideration a certain transaction in which said manager concluded that the plaintiff had improperly conducted himself and had been arrested and admitted to bail; and that there was no probable grounds for the manager of Brink's, Inc., so concluding; (7) that after the request for service letter was made by plaintiff of the manager of the Kansas City branch of Brink's, Inc., such manager did not forward said letter to the home office of the defendant until after the filing of the suit in question; (8) that plaintiff has been actually damaged in the sum of $500 by reason of the failure of the manager of the Kansas City office of Brink's, Inc., to give to plaintiff a service letter as requested; that the conduct of said manager in failing and refusing to give said service letter was wilful, in that it was a violation of the statutes of the State of Missouri, and for such wilful conduct plaintiff is entitled to recover punitive damages of defendant, Brink's, Inc.; (10) that the amount of such punitive damages should be assessed at the sum of $1,000.

As declarations of law the court held that the written request made by plaintiff was a sufficient compliance with the provisions of Section 5064 of the Revised Statutes of Missouri, Mo.R.S.A. for a service letter; that by reason of the failure to furnish the plaintiff with the service letter plaintiff was entitled to recover $500 actual damages and $1000 punitive damages, making a total of $1500. Judgment was entered in favor of the plaintiff pursuant to these findings and both parties have appealed from the entire judgment.

It is the contention of the plaintiff (1) that the Federal Court had no jurisdiction because a joint cause of action was stated against Brink's, Inc., and Theo. E. Frazee, and hence there was no diversity of citizenship as to defendant Frazee; (2) the damages awarded were grossly inadequate.

On its appeal defendant Brink's, Inc., contends (1) that the written demand of plaintiff "for a letter of recommendation * * * showing the time I worked for you, the kind of work I did, if satisfactory, and why I was fired," was not sufficient under the Missouri statute; (2) the court's finding as to actual damage was not supported by substantial evidence; (3) the court's finding that the manager of defendant Brink's, Inc., in his omission to give the letter requested by plaintiff, acted wilfully, thus entitling plaintiff to recover punitive damages, was unwarranted; (4) that Brink's, Inc., is not liable in punitive damages.

Section 5064 of the Revised Statutes of Missouri, 1939, Mo.R.S.A., upon which plaintiff's action is based, so far as here material reads as follows: "Whenever any employee of any corporation doing business in this state shall be discharged or voluntarily quit the service of such corporation, it shall be the duty of the superintendent or manager of said corporation, upon the written request of such employee to him (if such employee shall have been in the service of said corporation for a period of at least ninety days), to issue to such employee a letter, duly signed by such superintendent or manager, setting forth the nature and character of service rendered by such employee to such corporation and the duration thereof, and truly stating for what cause, if any, such employee has quit such service * * *."

The statute then provides that, "If any such superintendent or manager shall fail or refuse to issue such letter to such employee when so requested by such employee, such superintendent or manager shall be deemed guilty of a misdemeanor, * * *."

Unless otherwise provided by statute the employer is not legally bound to give a service letter to an employee when the latter is discharged or leaves the employment.

The above quoted statute was on the statute books at and for a long time prior to the time plaintiff entered the employ of the defendant Brink's, Inc. It therefore became a part of the contract of employment so that the action of plaintiff was in the nature of an action for damages for the breach of his employment contract. His employment contract was with Brink's, Inc., and not with its manager Frazee. The statute has to do with the relation of employer and employee and has been the subject of interpretation by the appellate courts of Missouri in a number of cases. The trial court was of the view that the statute could not be made the basis of an action to recover civil damages against the manager and for that reason held that the complaint did not state a cause of action against the defendant Frazee. If the court was correct in this ruling then it was correct in denying the motion to remand. It is vigorously contended by plaintiff that a joint cause of action was stated against both defendants and he asserts that the decisions of the Missouri appellate courts relied upon are not conclusive on the question. It is, of course, the duty of the Federal Court to follow the State decisions in construing this statute and even though the Missouri courts may not have squarely passed upon the exact issue presented by this case, "considered dictum of that court should not be ignored when a federal court is attempting to construe or ascertain the meaning of the local law, whether it be the state statute or the State Constitution." Hawks v. Hamill, 288 U.S. 52, 53 S.Ct. 240, 77 L.Ed. 610; Mattson v. Central Electric & Gas Co., 8 Cir., 174 F.2d 215; Badger v. Hoidale, 8 Cir., 88 F.2d 208 at page 211; Yoder v. Nu-Enamel Corp., 8 Cir., 117 F.2d 488.

The Missouri cases chiefly relied upon are as follows: Cheek v. Prudential Ins. Co. of America, Mo.Sup., 192 S.W. 387; Burens v. Wolfe Wear-U-Well Corp., 236 Mo. App. 892, 158 S.W.2d 175; State ex rel. Terminal R. R. Ass'n v. Hughes, 350 Mo. 869, 169 S.W.2d 328. The statute was first considered by the Supreme Court of Missouri in Cheek v. Prudential Ins. Co., supra. In that case suit was brought against the employer to recover damages for its alleged refusal to give the plaintiff a service letter. It was contended that...