Schmalz v. Hardy Salt Co.

• Decision Date: 17 November 1987
• Docket Number: No. 52622,52622
• Citation: 739 S.W.2d 765
• Parties: 110 Lab.Cas. P 56,019 William C. SCHMALZ, Plaintiff-Appellant, v. HARDY SALT COMPANY, et al., Defendants-Respondents.
• Court: Missouri Court of Appeals

Page 765

739 S.W.2d 765

110 Lab.Cas. P 56,019

William C. SCHMALZ, Plaintiff-Appellant, v. HARDY SALT COMPANY, et al., Defendants-Respondents.

No. 52622.

Missouri Court of Appeals,

Eastern District,

Division Three.

Nov. 17, 1987.

Dallas W. Cox, St. Louis, for plaintiff-appellant.

Joseph L. Leritz, St. Louis, for defendants-respondents.

SMITH, Judge.

Plaintiff appeals from the order of the court granting defendants' motion for summary judgment on plaintiff's seven count petition. The petition was based upon plaintiff's employment by defendant Hardy Salt Co. and the termination of that employment. We affirm.

Plaintiff was hired by Hardy Salt in August 1982 pursuant to a written contract. The agreement does not state a term of employment. It did contain the following severance provision:

"Should you be terminated involuntarily during a period covering two years from your date of employment due to discontinuation of the company's operations, reorganization or other similar reason, you will be entitled to a severance pay settlement equal to six months of compensation at your normal rate at that time. This commitment does not cover any voluntary separation or involuntary termination for other reasons such as poor performance or for cause." (Emphasis supplied).

In April 1983, plaintiff was requested to resign his position. He was told if he did not do so he would be immediately fired. We accept plaintiff's assertions that his termination resulted from his romantic involvement with the executive secretary of the chairman of the board, defendant T. Walter Hardy, and the plans of plaintiff and the secretary to marry after each had divorced their present spouses. We will also accept arguendo plaintiff's contention that such grounds did not constitute "cause." Plaintiff executed a letter of resignation and at the same time signed a release. We find it unnecessary to address the question of whether a resignation executed under a threat of being fired is a "voluntary separation" or an "involuntary termination."

That release provided that:

"... William C. Schmalz (Employee) for and in consideration of the continuation of his employment until such date (the Termination Date) as may be set by the Employer but not sooner than May 31, 1983, and in further consideration of the payment to him on the Termination Date of the sum of $4583.33 gross (or its agreed equivalent), representing one (1) month's pay, has remised, released and forever discharged, and by these presents does remise, release and forever discharge the Hardy Salt Company (Employer) its officers, directors, employees and agents, successors and assigns, of and from any and all manner of action and actions, causes and causes of action, debts, sums of money, obligations, liabilities, claims and demands whatsoever made, to be made, or which might have been made as a consequence of his employment by the Employer, or arising out of the termination of the employment relationship, or arising out of any acts committed or omitted during or after the existence of the employment relationship, including, but not limited to, ... any action at law or equity under federal, state or local law, ... or at common law in contract or tort, and including, but not limited to, claims for backpay, frontpay, salary, defamation, compensatory damages, punitive damages, service letters, benefits, attorney's fees, reinstatement or re-employment.

"It is expressly understood and agreed by the Employee that this instrument may be pleaded as a complete defense to and in bar of any action or proceeding brought, maintained or conducted by the undersigned Employee in connection with or on account of any of the matters hereinabove set forth ..." (Emphasis supplied).

Plaintiff continued in his employment with Hardy Salt through July 1983. Plaintiff's petition sought recovery for (1) breach of contract, (2) prime facie tort for wrongful termination, (3) fraudulent misrepresentation of the contract, (4) two counts of invasion of privacy, (5) tortious interference with contract and (6) outrage. The last count has not been pursued on appeal. All of these counts are factually based upon conduct connected with plaintiff's employment or its termination.

Defendants contend that plaintiff has fully released them from all liability under the contract or for matters connected with his employment or its termination. Plaintiff asserts that the release lacks consideration, that it was waived by plaintiff's continued employment, and that it was executed under duress. Underlying the consideration claim is plaintiff's conclusion that the employment contract entitled him to six months severance pay. This is based on his interpretation of the contract as authorizing such pay unless he was terminated for poor performance or for cause. Defendants interpret the contract as limiting severance pay to termination due solely to discontinuation of the company's operations, reorganization or similar reasons. Both parties agree the termination did not arise from such causes.

We need not resolve the meaning of the contract. At best for plaintiff's position it is ambiguous on his right to severance pay. Because no definite term of employment is contained in the contract it constituted a contract for employment at will. Haith v. Model...