Justice v. Stanley Aviation Corp.

• Decision Date: 06 November 1974
• Docket Number: No. 74--008,74--008
• Citation: 530 P.2d 984,35 Colo.App. 1
• Parties: Ressell W. JUSTICE, Plaintiff-Appellee, v. STANLEY AVIATION CORPORATION, a corporation, Defendant-Appellant. . I
• Court: Colorado Court of Appeals

Page 984

530 P.2d 984

35 Colo.App. 1

Ressell W. JUSTICE, Plaintiff-Appellee, v. STANLEY AVIATION CORPORATION, a corporation, Defendant-Appellant.

No. 74--008.

Colorado Court of Appeals, Div. I.

Nov. 6, 1974.

Rehearing Denied Nov. 26, 1974.

Certiorari Denied Feb. 3, 1975.

Herbert M. Boyle, Denver, for plaintiff-appellee.

Dawson, Nagel, Sherman & Howard, Craig A. Christensen, Denver, for defendant-appellant.

ENOCH, Judge.

Plaintiff Russell W. Justice initiated this action to recover damages for an alleged breach of contract for services. Defendant Stanley Aviation Corporation appeals from the judgment entered in favor of plaintiff. We reverse.

Defendant, located in Aurora, Colorado, is engaged primarily in the manufacture of ejection systems for aircraft. In need of a maintenance superintendent, defendant advertised for that position in the Los Angles Times. Plaintiff, who was then living in California, responded to the advertisement by sending his resume to defendant. Subsequently, defendant's personnel manager had a telephone conversation with plaintiff and a personal interview was scheduled at defendant's office. Following the interview defendant mailed plaintiff a letter, dated January 11, 1972, which is referred to by the parties as the contract of employment. Plaintiff moved to Colorado and worked for defendant from January 31, 1972, until April 12, 1972, when he was discharged.

The letter of January 11, 1972, consists of five paragraphs. The first paragraph states:

'We are pleased to confirm our offer to join Stanley Aviation Corporation as a Maintenance Foreman at a starting annual salary of $12,000 per year.'

The second paragraph provides that defendant will reimburse plaintiff his relocation cost 'up to the equivalent of one month's beginning salary, $1,000.00 for actual expenses' of moving household goods plus 8 cents a mile for travel expenses. It further provides that plaintiff was expected to complete his household move within 90 days and that if additional time were required a further extension would have to be agreed to by the defendant. The third paragraph provides that if plaintiff resigned for any reason within his control 'at any time within twelve (12) months' from the date of his employment he would be obligated to reimburse defendant the amount of all travel and moving expenses paid by defendant. The other two paragraphs are not material to the issues presented.

The dispositive issue presented is whether, as found by the trial court, the contract of employment was for a definite period of one year. If there were no fixed term of employment either party could terminate the contract at any time without incurring liability for damages. In the determination of this issue we are not bound by the trial court's interpretation of the written document, Metropolitan State Faculty Federation v. State of Colorado, 32 Colo.App. 420, 514 P.2d 784; Bator v. Mines Development, Inc., 32 Colo.App. 320, 513 P.2d 220, nor by its findings if they are not supported by the evidence, Reilly v. Korholz, 137 Colo. 20, 320 P.2d 756.

Unless the circumstances indicate otherwise, a contract which sets forth an annual salary rate but states no definite term of employment is considered to be indefinite employment, terminable at the will of either party without incurring liability for breach of contract. See Bauer v. Goldman, 45 Colo. 163, 100 P. 435; Kansas Pacific Railway Co. v. Roberson, 3 Colo. 142.

The first paragraph of defendant's letter established an annual salary rate of $12,000 but was silent as to the term of employment. The second paragraph added nothing concerning a term of employment for one year. An agreement on the part of defendant to pay moving expenses...