Little v. Federal Container Corp.
| Decision Date | 21 November 1969 |
| Citation | 61 Tenn.App. 26,452 S.W.2d 875 |
| Parties | Norman LITTLE, Appellee, v. FEDERAL CONTAINER CORPORATION, Appellant. |
| Court | Tennessee Court of Appeals |
Hal Gerber, Memphis, for appellant; Gerber, Gerber, Lewis & Marshal, Memphis, of counsel.
Philip G. Kaminsky, Memphis, for appellee; Feuerstein, Feibelman & Kaminsky, Memphis, of counsel.
The plaintiff employee sued the defendant employer for damages due to breach of a contract of employment.
The plaintiff by Declaration averred he was hired for a twelve month period beginning April 11, 1968, and on November 9, 1968 he was discharged without cause or reason. Plaintiff sought as damages the amount of money he would have earned during the remainder of the twelve month period.
The defendant by plea denied it contracted as alleged or that it owed plaintiff any amount; and by amended plea denied it discharged plaintiff without cause or reason.
The lawsuit was heard by the Trial Judge sitting without a jury. The Trial Judge held for the plaintiff and entered judgment in his favor in the amount of $2,100.00. The defendant appealed and is entitled to a review de novo on the record as made in the trial court, with a presumption of the correctness of the judgment in that court. T.C.A. § 27--303.
The defendant insists the Trial Judge erred in holding as a matter of law that under the contract of employment the defendant could not discharge the plaintiff for just cause, and because of the holding the defendant could not have considered by the Trial Court the existence of facts which would tend to establish just cause for the discharge of the plaintiff.
Plaintiff alleged the contract of employment is a letter, dated April 11, 1968, to the plaintiff and signed by his brother James E. Little who was at the time the business consultant of defendant corporation. A Resolution was passed by defendant's board of directors on March 14, 1968 giving Mr. James E. Little authority 'to sign employment contracts in behalf of Federal * * *.'
The letter which plaintiff insists is his contract of employment provides:
'April 11, 1968
'Mr. Norman Little
4292 Knight Arnold Road
Memphis, Tennessee
Dear Norman:
This is to confirm our agreement as to your recently becoming associated with Federal Container Corporation of Tennessee.
As I have told you Federal Container Corporation is undercapitalized and there are substantial accounts which are past due. These were incurred before we bought the controlling interest in Federal. However, I believe the Company has excellent possibilities due to the arrangement Federal has with David Band, Inc. of New Orleans, Louisiana.
Federal cannot afford to pay you what you have been offered by another company but I believe that your possibilities for advancement in position and compensation with Federal are much greater.
To induce you to stay with Federal I have given you a 12 months contract guaranteeing you a gross annual salary of not less than $6,000.00 with a beginning salary of $100.00 per week with a guaranteed increase to $150.00 per week within six months. If your work is satisfactory I hope that Federal will be in position to raise your salary to $150.00 per week long before the six months period expires.
You will be under the direct supervision of Mr. R. E. McCroy and he shall be the sole judge as to whether your work is satisfactory. I have specifically asked Mr. McCrory to consider you as any other employee and not to let our relationship influence him in any way.
I know that you have the capabilities and I have the utmost faith in your becoming one of Federal's most valuable employees. I am happy to have you with us at Federal.
Sincerely yours,
Federal Container Corporation
by James E. Little'
A letter addressed 'To Whom It May Concern' dated November 11, 1968 was signed by R. E. McCrory and given to the plaintiff. This is the only written instrument presented which relates to the discharge of plaintiff. This letter is as follows:
'This letter is written on behalf of Mr. Norman Little of 4292 Knight Arnold Road, Memphis, Tennessee.
Mr. Little was employed by Federal Container Corporation of Tennessee for almost a year, his tenure of service having terminated as of November 9, 1968 as a result of a reorganization of the business.
We have no hesitation is (sic) saying that Mr. Little is a man of very high moral standards, he is a willing worker, very conscientious and loyal, highly reliable, and all-in-all a most desirable employee. We would recommend him to such extent as he represents himself.
R. E. McCory
Plant Manager.'
R. E. McCrory testified for the plaintiff and stated plaintiff's work was satisfactory. He stated he discharged the plaintiff on order of his superiors, a Mr. Page and a Mr. George Martin. He stated the reason these superiors gave for the discharge was that plaintiff was the brother of James E. Little and a degree of incompatibility had arisen between them and James E. Little.
It appears from the record that at some time David Bland, Inc. obtained all the common stock of defendant corporation. It is not shown whether this was before or after the plaintiff was hired, but the record reveals Mr. George Martin was present at defendant's plant and offices as of October, 1968 looking after the interests of David Bland, Inc. Mr. R. E. McCrory, plant manager of defendant, testified that Mr. Virgyl Johnson, president of defendant corporation, gave to McCrory instructions to take his orders from George Martin. McCrory stated he understood Mr. Martin and Mr. Page were the new owners of defendant corporation.
The plaintiff insists the contract of employment for twelve months cannot be terminated by the defendant unless Mr. R. E. McCrory finds plaintiff's work to be unsatisfactory. Plaintiff relies on Mr. McCrory's testimony that his work was satisfactory, and the letter dated November 11, 1968 stating the reason for discharge was 'a result of reorganization of the business.' Plaintiff therefore insists the contract was breached by defendant without cause or...
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