Opinion ID: 2359281
Heading Depth: 1
Heading Rank: 1

Heading: Did the trial court err in instructing the jury regarding the satisfaction clause contained in the contract?

Text: Paragraph four of the contract read: 4. Stern shall at all times discharge his duties in consultation with and under the supervision of the Board of Directors of the CORPORATION through Salvatore Contino and Stern shall be solely responsible for the quality of his services to the said Board of Directors and the said Salvatore Contino. The employment of STERN shall continue only so long as the services rendered by him are satisfactory to the Board of Directors and Salvatore Contino, regardless of any other provisions contained, in this Agreement. The Board of Directors and Salvatore Contino shall be the sole judges as to whether the services of STERN are satisfactory. (Emphasis supplied.) In its charge to the jury the court stated: Now, you determine from the evidence whether in fact they were dissatisfied. You've heard the testimony of the parties, you've heard the depositions read, you've listened very carefully. You determine from the evidence whether in fact they were dissatisfied. And if you find that they were dissatisfied, consider under the terms of this contract whether their dissatisfaction gave them the right to terminate him, because in considering the evidence, as well as the plaintiff's claim, your verdict must be guided by the terms of the August 31, 1976 agreement, as the parties once they entered into this contract defined their rights and obligations. The Corporation argues that the second paragraph of the above charge added a requirement that the dissatisfaction be reasonable. It contends that so long as the dissatisfaction was genuine and in good faith, it could terminate appellee. See, Jenkins Towel Service v. Tidewater Oil Co., 422 Pa. 601, 223 A.2d 84, 86 (1966); Kramer v. Phila. Feather Goods Corp., 364 Pa. 531, 73 A.2d 385 (1950). We believe that appellant misconstrues the court's charge. As we read the particular charge in question, the court first directed the jury to determine if the board of directors was dissatisfied, and if it was, did it give the board the right to terminate him under the contract. A written contract should be construed as a whole. Atlantic Richfield Co. v. Razumic, 480 Pa. 366, 390 A.2d 736 (1978). Shehadi v. Northeastern Nat. Bank of Pennsylvania, 474 Pa. 232, 378 A.2d 304 (1977). In the current case, the complained of charge did nothing more than direct the jury to consider appellant's alleged dissatisfaction in light of the whole contract. In this particular respect, the charge was proper. However, the charge taken as a whole did not accurately state the law regarding dissatisfaction. The Corporation complains that the court refused its points for charge, numbers 4, 5, 6, 7 and 8. These points contend that an employer's dissatisfaction need only be sincere, not reasonable, and that an employer need not inform an employee of its reasons. Appellee contends that the issue was not preserved by specific exceptions after the charge was given, and even if it was raised, the charge given was sufficient. We must disagree with appellee on both counts. The trial court after denying such points for charge indicated that while the points were accurate statements of the law they were more appropriate for closing arguments. (N.T. p. 269). Prior to the charge, defense counsel attempted to persuade the court that the suggested points were proper for charging the jury. ( Id., 474 Pa. at 272-73, 378 A.2d 304). Following the charge, defense counsel, on the record, questioned the court's charge contending that the issue was not whether there was sufficient performance but rather whether the dissatisfaction with the performance was genuine. ( Id., 474 Pa. at 296, 378 A.2d 304). Thus, the issue was preserved. Turning our attention to the merits of the rejected points for charge, we find a long line of cases supporting the Corporation's view. [Satisfaction] contracts are not strangers to the law of Pennsylvania and have been considered by us on numerous previous occasions. We have consistently held that where a contract provides for performance by one party to the satisfaction of the other, the test of adequate performance is not whether the person for whom the service was rendered ought to be satisfied, but whether he is satisfied, there being, however, this limitation, that any dissatisfaction on his part must be genuine and not prompted by caprice or bad faith. (Emphasis in original.) Kramer v. Phila. Leather Goods Corp., 364 Pa. 531, 73 A.2d 385 (1950); Burke v. Daus. of Holy Redeemer, 344 Pa. 579, 26 A.2d 460 (1942); Singerly v. Thayer, 108 Pa. 291, 2 A. 230 (1885). Jenkins Towel Serv. v. Tidewater Oil Co., 422 Pa. at 606, 223 A.2d at 86. Such a holding has been echoed in numerous cases. See, Aster v. B.P. Oil Corp., 412 F.Supp. 179 (M.D.Pa. 1976); Feinberg v. Automobile Banking Corporation, 353 F.Supp. 508 (E.D.Pa. 1973); Marine Transport Lines, Inc. v. Publicker International, Inc., 303 F.Supp. 423 (E.D.Pa. 1969); Commonwealth Department of Prop. & Sup. v. Berger, 11 Pa.Cmwlth. 332, 312 A.2d 100 (1973). [1] Since the trial court acknowledged that the requested points accurately reflected the law, it should have so charged. In Brourman v. Bova, 198 Pa.Superior Ct. 279, 182 A.2d 245 (1962), this court relying on Burke v. Daus. of Holy Redeemer, supra , found that the trial court had not erred in charging the jury that performance was to be to the defendant's satisfaction so long as dissatisfaction was bona fide and not capricious. [2] If we look back to the case of Kramer v. Philadelphia Leather Goods Corporation, supra , we find that the determination of whether the discharge was based on genuine dissatisfaction is a question for the jury. However, in the current appeal, was the jury provided with adequate guidance from the court to determine that question? We think not. Viewing the above charge, the jury was directed to determine, whether the Corporation was dissatisfied with Stern's performance, and whether dissatisfaction gave it the right to terminate him. The jurors were not instructed to determine whether the dissatisfaction was sincere or genuine. Since the jury did not have the benefit of proper instructions we are unable to hold that the jury had a proper basis upon which to return its verdict. Therefore, we are constrained to award a new trial. The trial court did not fully apprise the jury of the pertinent law and hence we are unable to determine whether the verdict had a proper basis or not. See, Hamil v. Bashline, 481 Pa. 256, 392 A.2d 1280 (1978); Fama v. Smith, 303 Pa.Superior Ct. 414, 449 A.2d 755 (1982); Weinstein v. Philadelphia Trans. Co., 222 Pa.Superior Ct. 448, 295 A.2d 111 (1972). Having found that a new trial is required, we nonetheless find it necessary and desirable, so as to avoid any possibility of the repetition of the errors, to address the remaining issues. Included in appellant's first contention is a claim that the court should not have permitted the jury to rely on paragraph eleven of the agreement to influence its verdict. That paragraph reads: Regardless of any other provision in the Agreement, this Agreement may be terminated for breach of the Agreement by either party giving sixty (60) days written notice of termination to the other party. Such termination notice as given by the CORPORATION, shall only be transmitted to STERN after the CORPORATION indicates its intention to so terminate the employee's contract; said intention may be relayed to STERN by Salvatore Contino on behalf of the Board of Directors. Termination of the Agreement by either party may be made prior to completion of the term of employment specified herein in accordance with the aforementioned notice provision. Such termination shall not prejudice any other remedy to which the terminating party may be entitled either at law, or in equity, or under this Agreement. The Corporation argues that such paragraph should be read separate and apart from paragraph four, supra, at p. 428, as paragraph four is not affected by the provisions of paragraph eleven. In other words according to the Corporation a termination pursuant to paragraph four did not require sixty days notice and the jury should not have been permitted to find a breach of the agreement for failing to give such written notice. As we held above no error occurred in permitting the jury to consider an issue in light of the whole contract. We can not accept appellant's argument. Paragraph four provides a basis for termination but it does not set forth what procedure was to be followed. Paragraph eleven spells out the procedure that controls when a breach occurs, but it does not, in and of itself, provide a definition for breach. We find that it was within the purview of the jury to determine whether paragraph eleven pertained to the satisfaction provision contained in paragraph 4.