Frebank Co. v. White

• Decision Date: 16 July 1957
• Citation: 152 Cal.App.2d 522,313 P.2d 633
• Court: California Court of Appeals Court of Appeals
• Parties: , 33 Lab.Cas. P 70,927 FREBANK COMPANY, Plaintiff, Cross-Defendant and Appellant, v. Eugene H. WHITE, Defendant, Cross-Complainant, and Respondent. Civ. 22171.

Page 633

313 P.2d 633

152 Cal.App.2d 522, 33 Lab.Cas. P 70,927

FREBANK COMPANY, Plaintiff, Cross-Defendant and Appellant, v. Eugene H. WHITE, Defendant, Cross-Complainant, and Respondent.

Civ. 22171.

District Court of Appeal, Second District, Division 1, California.

July 16, 1957.

Arthur J. Crowley, Horace A. Ruderman, Hollywood, for appellant.

Stone & Moran, Hugh A. Moran III, Willard J. Stone, Pasadena, for respondent.

DORAN, Justice.

In the trial court, defendant and cross-complainant Eugene H. White recovered judgment against the plaintiff and cross-defendant, Frebank Company, in the amount of $3,358.34, plus interest, for a balance of salary and bonus while employed by the Frebank Company in the capacity of Vice President and Administrative Assistant to the President.

The appellant's principal contentions of appeal from the judgment are summarized as follows: '1. Is a promise to pay an indeterminate bonus, unsupported by consideration, the subject of enforcement? 2. Were the figures correctly computed in the light of the pleadings and findings.'

Respondent White was employed by appellant corporation, February 1, 1954, as a result of a series of oral conversations with Fred Bankey, the president, at a salary of $650 per month, payable weekly. Respondent testified that in August or September, 1954, President Bankey proposed a system of Christmas bonuses for the personnel of Frebank Company, and that the bonuses of respondent and one Wilson, amounted to $6,000, or 'between $5,000 and $6,000' each.

According to the witness Wilson, President Bankey explained that Wilson and White would receive these bonuses because 'Business has been good. We are fat on the goose.' Mr. Bankey stated that White's bonus would be paid because, 'The engineering files were set up by him. Although small and streamlined, they will enable the Frebank Company to grow many times its size because of the efficiency in the engineering setup, the files, and so forth.' The president further explained that 'Gene White had entree to many of the aircraft or air frame companies and to many of the influential people in them and through the introductions and connections that would be made the sales would increase, and did increase rapidly. So he felt in all fairness to Gene White he should give him a bonus the same as mine.'

In August of 1954 the respondent, in obtaining an FHA house loan, was required to furnish an 'Employer's Verification'. This instrument, signed by President Bankey, contains the following information: 'The applicant, Eugene H. White, is currently my Administrative Assistant with the specific duties outlined above. His inherent worth to the corporation is such that his tenure in the same capacity together with the addition of added responsibility, in future years, places no known limitations thereon.' At Bankey's suggestion, the amount of annual bonus was given as '$4,000.00 Minimum.' President Bankey denied promising any bonus but testified that 'We put in (the paper) the $4,000.00' on the basis of a $400,000.00 sales potential.'

Respondent White testified, as stated in respondent's brief, 'that he was in fact paid a bonus of $5,500.00 on November 2, 1954, and that he left the office * * * to apply that sum on his indebtedness on his house. On his return to the office Mr. Bankey called him to his office, and stated that other employees would feel offended that respondent got his bonus ahead of the other people, and required respondent to execute a promissory note and trust deed for it, which promissory note and trust deed are still outstanding.' It was stipulated that a note and trust deed in Bankey's favor was recorded. Both respondent and Bankey testified that respondent protested at receiving a Christmas bonus of only $200. Respondent remained in the employ of appellant until discharged on February 28, 1955.

The trial court resolved the various conflicts in evidence in favor of the respondent, determined that Exhibit C, the Employer's Verification hereinbefore referred to, reflected the contract of the parties, and gave judgment for respondent for the unpaid balance due under the contract so...