Hughes v. Encyclopaedia Britannica, 10591.
| Court | United States Courts of Appeals. United States Court of Appeals (7th Circuit) |
| Writing for the Court | KERNER, FINNEGAN and SWAIM, Circuit |
| Citation | 199 F.2d 295 |
| Parties | HUGHES et al. v. ENCYCLOPAEDIA BRITANNICA, Inc. |
| Docket Number | No. 10591.,10591. |
| Decision Date | 22 October 1952 |
199 F.2d 295 (1952)
HUGHES et al.
v.
ENCYCLOPAEDIA BRITANNICA, Inc.
No. 10591.
United States Court of Appeals Seventh Circuit.
October 22, 1952.
Harry Becker, Rubenstein & Becker, Chicago, Ill., for appellants.
Leo H. Arnstein, Herbert E. Ruben, Chicago, Ill. (Lederer, Livingston, Kahn & Adsit, Chicago, Ill., of counsel), for appellee.
Before KERNER, FINNEGAN and SWAIM, Circuit Judges.
FINNEGAN, Circuit Judge.
This is an appeal from an order of the District Court for the Northern District of Illinois, Eastern Division, dismissing plaintiffs' cause of action.
The complaint, filed on November 27, 1950, on behalf of Roland B. Hughes, Armin Eastman and Edward J. Frick, alleges that they, and each of them, are residents of the State of Illinois; that the defendant Encyclopaedia Britannica, Inc., is a New York corporation; that the amount in controversy, exclusive of interest and costs, exceeds the sum of $3000. It is then alleged that the plaintiffs are former employees of the defendant corporation; that during their employment, and on to-wit, February 1, 1944, the defendant put into force and effect a certain Retirement Income Plan for its employees; a copy of the plan is attached to and made a part of the complaint by reference. Plaintiffs then alleged that they are entitled to the benefits under said plan as therein recited, that the plaintiff Hughes was employed by defendant from October, 1941, to April, 1950; plaintiff Eastman from November, 1945, to July, 1950; and plaintiff Frick from October, 1941 to January, 1950, except for the period between February, 1944, and March, 1945. It is then charged that all contributions to the plan were to be made by the defendant; that such contributions were to be used to purchase retirement insurance with the Equitable Life Assurance Society of the
Plaintiffs allege that they bring the action on behalf of themselves and all other employees of the defendant similarly situated; that said employees number several hundred and it is therefore impracticable to bring them all before the court. The complaint seeks the following relief: (1) that defendant be summoned and required to answer, (2) that it be required to bring into court and pay over to Equitable the sum or sums of money necessary to continue in effect the Retirement Income Plan for the years 1948 and 1949, together with the remaining amounts to be deposited under Section 6 of the plan for the benefit of plaintiffs and other employees in similar situation.
By amendment of April 11, 1951, Elliott Williamson, employed by defendant from November, 1934, to July, 1950, and Fred Davis, employed from March, 1938, to June, 1949, were added as plaintiffs. At that time a copy of the agreement between Equitable and defendant, marked Exhibit B, was added to and made part of the complaint.
Defendant moved to dismiss the cause of action for the following reasons:
"1. The Court is without jurisdiction for the reason that the interest of each of the plaintiffs is less than the jurisdictional amount of $3000, and this is not a true class action wherein the claims of all the members of the class may be aggregated to reach the jurisdictional amount.
"2. The complaint fails to allege facts showing that the plaintiffs are proper representatives of the class which they purport to represent and, on the contrary, they are not such representatives of the class described in the complaint so as to entitle them to maintain this suit.
"3. The complaint fails to state a cause of action for the following reasons:
"(a) Plaintiffs fail to allege facts necessary to make out an equitable estoppel in their favor and there is, in fact, no basis for an equitable estoppel.
"(b) There exists no contract between plaintiffs and defendant upon which to base an action at law; at most, defendant\'s employee benefit plan constituted an unenforceable gratuity.
"(c) Even construing the Plan as a contract between plaintiffs and defendant, plaintiffs are bound by its terms and precluded from maintaining this action.
"(d) Even construing the Plan as a contract and refusing to give effect to its express provisions, sufficient notice was given plaintiffs by defendant to constitute an effective termination pursuant to the terms thereof."
The defendant's motion contained an alternative prayer for summary judgment under Rule 12(b) of the Federal Rules of Civil Procedure, 28 U.S.C.A.
In consideration and disposition of the motion to dismiss, the District Court assumed that the cause of action asserted by plaintiffs was a true class action, and proceeded to determine whether or not the complaint stated a claim upon which relief could be granted.
From the affidavits filed in support of defendant's motion and the exhibits attached thereto, the District Court made the following findings as to the Retirement Plan and its Administration:
"* * * In substance, the Plan provided that employees who, on February 1, 1944, had completed two years of continuous service and had attained the age of thirty would become participants under the Plan as of that date, provided that they had not then attained their sixtieth birthday. New employees and employees with less than two years of service would become eligible on the February 1st next preceding their completion of two years continuous service and the attainment of their sixtieth birthday. All contributions to the Plan were to be made by defendant. These
contributions were to be paid to...
To continue reading
Request your trial
-
Hales v. Winn-Dixie Stores, Inc., WINN-DIXIE
...Section 1332(a)(1). Snyder v. Harris, 394 U.S. 332, 89 S.Ct. 1053, 22 L.Ed.2d 319 (1969). See Hughes v. Encyclopedia Britannica, Inc., 199 F.2d 295 (7th Cir. 1952). Cf. Zahn v. Int'l Paper Co., 414 U.S. 291, 94 S.Ct. 505, 38 L.Ed.2d 511 In Count I, Eatmon and Tart allege they are owed respe......
-
Zahn v. International Paper Company 8212 888, 72
...County Aviation Authority, 308 F.2d 724 (C.A.5, 1962); Troup v. McCart, 238 F.2d 289 (C.A.5, 1956); Hughes v. Encyclopaedia Britannica, 199 F.2d 295 (C.A.7, 1952); Ames v. Mengel Co., 190 F.2d 344 (C.A.2, 1951); Miller v. National City Bank of New York, 166 F.2d 723 (C.A.2, 1948); Matlaw Co......
-
O'BRIEN v. Continental Illinois Nat. Bank & Trust Co., 72 C 2551
...misconceives the nature of plaintiffs' lawsuit and claim. Thus, unlike the cases cited by defendant, Hughes v. Encyclopaedia Britannica, 199 F.2d 295 (7th Cir. 1952); Sturgeon v. Great Lakes Steel Corp., 143 F.2d 819 (6th Cir.), cert. denied, 323 U.S. 799, 65 S.Ct. 190, 89 L.Ed. 622 (1944);......
-
Potrero Hill Community Action Com. v. Housing Authority, 22012.
...as Thomson v. Gaskill, 1942, 315 U.S. 442, 62 S.Ct. 673, 86 L.Ed. 951, and Hughes v. Encyclopedia Britannica, Inc., 7 Cir., 1952, 199 F.2d 295, and accordingly we will not follow it here. See also Snyder v. Harris, supra, 394 U.S. at 336, 89 S.Ct. 1057. 6 See Note, Review of State Welfare P......
-
Hales v. Winn-Dixie Stores, Inc., WINN-DIXIE
...Section 1332(a)(1). Snyder v. Harris, 394 U.S. 332, 89 S.Ct. 1053, 22 L.Ed.2d 319 (1969). See Hughes v. Encyclopedia Britannica, Inc., 199 F.2d 295 (7th Cir. 1952). Cf. Zahn v. Int'l Paper Co., 414 U.S. 291, 94 S.Ct. 505, 38 L.Ed.2d 511 In Count I, Eatmon and Tart allege they are owed respe......
-
Zahn v. International Paper Company 8212 888, 72
...County Aviation Authority, 308 F.2d 724 (C.A.5, 1962); Troup v. McCart, 238 F.2d 289 (C.A.5, 1956); Hughes v. Encyclopaedia Britannica, 199 F.2d 295 (C.A.7, 1952); Ames v. Mengel Co., 190 F.2d 344 (C.A.2, 1951); Miller v. National City Bank of New York, 166 F.2d 723 (C.A.2, 1948); Matlaw Co......
-
O'BRIEN v. Continental Illinois Nat. Bank & Trust Co., 72 C 2551
...misconceives the nature of plaintiffs' lawsuit and claim. Thus, unlike the cases cited by defendant, Hughes v. Encyclopaedia Britannica, 199 F.2d 295 (7th Cir. 1952); Sturgeon v. Great Lakes Steel Corp., 143 F.2d 819 (6th Cir.), cert. denied, 323 U.S. 799, 65 S.Ct. 190, 89 L.Ed. 622 (1944);......
-
Potrero Hill Community Action Com. v. Housing Authority, 22012.
...as Thomson v. Gaskill, 1942, 315 U.S. 442, 62 S.Ct. 673, 86 L.Ed. 951, and Hughes v. Encyclopedia Britannica, Inc., 7 Cir., 1952, 199 F.2d 295, and accordingly we will not follow it here. See also Snyder v. Harris, supra, 394 U.S. at 336, 89 S.Ct. 1057. 6 See Note, Review of State Welfare P......