Lowndes Co-op. Ass'n (AAL) v. Lipsey
| Decision Date | 30 January 1961 |
| Docket Number | No. 41680,41680 |
| Citation | 240 Miss. 71,126 So.2d 276 |
| Parties | LOWNDES COOPERATIVE ASSOCIATION (AAL) v. R. L. LIPSEY. |
| Court | Mississippi Supreme Court |
Burgin & Gholson, Columbus, for appellant.
William J. Threadgill, Dewitt T. Hicks, Jr., Columbus, for appellee.
This case involves a question of the legal sufficiency of a consideration to support a retirement agreement of an employee. Appellee, R. L. Lipsey, brought this action in the Circuit Court of Lowndes County against Lowndes Cooperative Association (AAL) (called 'Cooperative'), a corporation, to recover the retirement payments alleged due him up to that time from the defendant. The jury found for plaintiff in the amount of $1,795.
Some of the facts are in dispute, but, in view of the jury's verdict, we state the essential facts which the jury was warranted in finding. Lipsey worked for the Cooperative for thirty-one years as its general manager. It is a retail outlet selling primarily farm seed, fertilizer, and insecticides. Two or three years before 1958, Lipsey suffered a 'stroke', but subsequently returned to work. For several years the Cooperative had been operating at a deficit, and apparently there was some dissatisfaction among the members of the board of directors with its management. Lipsey served as the secretary of the board of directors, but was not present at a meeting of the board on June 6, 1958, at which the board decided that Lipsey should be relieved of his duties as manager, effective June 30, 1958, and should be paid certain retirement payments for the succeeding thirty months 'provided he cooperates with the board of directors and the new management.'
The board of directors held another meeting the next week, June 13. Its minutes stated that the meeting was called 'for the purpose of offering the manager, R. L. Lipsey, a retirement plan.
'The manager agreed to this plan, and as there was no other business the meeting was adjourned at 8:30 o'clock.'
The minutes of this meeting were signed by the president of the corporation, and subsequently were placed and kept in the minute book. Lipsey was employed on a yearly basis, with the current contract ending June 30, 1958.
Lipsey was somewhat reluctant to accept retirement, but, in view of the offer made by the board of directors, he finally accepted it, and did not attempt to encourage any active opposition to the board's action among his friends in the county who were members of Cooperative. A new manager, Taylor, was employed and started working on July 1. Lipsey went to the place of business every morning for about an hour and a half, over a period of two months. He cooperated with the new manager, showing him where various records and inventory were, and otherwise assisted in the indoctrination of the new management.
In September or October 1958 Lipsey opened a small garden seed store in Columbus, selling small quantities of garden seeds and supplies. Its inventory has a wholesale value of about $500, whereas the wholesale value of the stock at Cooperative is about $40,000. Cooperative sells wholesale to farmers and other commercial operations, and Lipsey's business is not in competition with that of Cooperative. However, in October the Board of Directors of Cooperative terminated the retirement payments to appellee.
Apparently Cooperative made its promises to Lipsey to pay him the retirement benefits for several reasons: To provide for him during the interim between termination of employment and the time he would be eligible for social security benefits; to prevent any objection to Lipsey's discharge from appellee's friends who were members of the Cooperative; and to obtain his cooperation in developing a new manager. Lipsey accepted this offer and retired voluntarily. He refrained from raising any objections among members of Cooperative to the action of the board of directors. He went to its place of business for about an hour and a half a day for two months to assist the new manager in getting accustomed to his job. The latter had had only slight experience in operating a county cooperative.
Appellant's witnesses testified, in substance, that the board of directors decided to discharge Lipsey, but offered the retirement plan to him if he would cooperate with the new manager; the retirement payments were really a contribution or gift to Lipsey, and there was no contract with him about it. Taylor...
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