Feinberg v. Pfeiffer Co.

Facts

Plaintiff began working for defendant at seventeen years old. She held various roles within the company, including bookkeeper, office manager, and assistant treasure of the defendant. She owned 70 shares of stock in the company and received substantial dividends on the stock she owned. In addition to her salary, between 1937 and 1949 plaintiff received yearly bonuses in amounts ranging from $300-$2,000. In December of 1947 at the annual meeting of defendant’s Board of Directors, adopted a resolution to thank the plaintiff for her many years of long and faithful service to the company. The plaintiff’s salary was increased from $350 per month to $400 per month, and she would be given the privilege of retiring from active duty at any time she may elect. Upon retirement, the plaintiff would receive a lifetime pension of $200 per month. The president of the company called the plaintiff to inform her of the resolution.

Plaintiff continued to work for defendant for two more years and then retired when she was diagnosed with cancer. In accordance with the resolution, defendant began paying plaintiff the sum of $200 on the first day of each month. A few months after the plaintiff’s retirement, the company’s president died. His wife continued to sign the plaintiff’s monthly pension check, and eventually she was succeeded by her son-in-law who continued to sign the checks too. Both successors questioned the validity of these payments and believed them to be mere gratuities rather than amounts due under contractual obligation. The son-in-law decided to reduce the plaintiff’s checks to $100 per month. Plaintiff declined to accept the reduced amount, and brought suit to enforce the previous president’s resolution.