JAMES S. GWIN, District Judge.
Plaintiff Barbara Gilday brings breach of contract, promissory estoppel, and unjust enrichment claims against Defendant BBDO USA LLC ("BBDO"). Plaintiff Gilday claims that she is entitled to payments under a retirement benefits agreement.
This Court conducted a bench trial. The parties stipulated to all facts,
Upon considering the above materials, the Court rules in favor of Defendant BBDO on all claims.
"Intended third-party beneficiaries `have the rights of parties in privity of contract and thus may bring suit for breach of contract or to enforce performance.'"
When deciding contract interpretation, the court's role is to give effect to the parties' intent.
Unless ambiguous, courts should not interpret contract words beyond their plain meaning or rewrite the terms of the contract.
Because the parties have stipulated to all factual issues, the Court does not need to decide contested factual issues for Federal Rule of Civil Procedure 52(a) purposes.
The parties stipulated to the following facts
Thomas Gilday was once a Griswold Inc. employee. In May 1987, he and Griswold entered into the Amended and Restated Supplemental Retirement Program Agreement
Griswold went through various ownership changes. Defendant BBDO is now Griswold's successor in interest. BBDO and its predecessors are collectively "the Corporation."
Thomas Gilday died on December 20, 2017.
From Gilday's 1990 retirement through December 2017, the Corporation made all required payments under the Agreement. At the time of Gilday's death, the annual amount payable was about $50,000.
Plaintiff Barbara Gilday was married to Thomas Gilday at the time the Agreement was executed, and until his death.
BBDO has not made any payments under the Agreement since Thomas Gilday's death. It also does not contend that Thomas Gilday failed to perform under the Agreement.
The parties disagree as to whether the Agreement requires Defendant BBDO to make payments to Plaintiff Barbara Gilday, Thomas Gilday's surviving spouse, after Thomas Gilday's death. Paragraphs 2 and 3 are the pertinent provisions of the Agreement.
Paragraph 2 requires the Corporation to make annual payments to Thomas Gilday for the rest of his life. The relevant part of Paragraph 2 states:
Thomas Gilday's retirement
Paragraph 3 potentially requires the Corporation to make payments to Thomas Gilday's spouse (i.e., Plaintiff Gilday) after his death. Paragraph 3(a) specifically addresses the scenario of Thomas Gilday dying after his retirement. The parties agree that Paragraph 3(a) primarily governs the issue of whether BBDO is required to make payments to Plaintiff Gilday after Thomas Gilday's death.
The pertinent part of Paragraph 3 is as follows:
Thomas Gilday's death triggered the Corporation's obligation to make any payments required by Paragraph 3(a).
Defendant BBDO's failure to make payments to Plaintiff Gilday after Thomas Gilday's death did not breach the Agreement.
Central to the parties' differing views of Defendant BBDO's obligations is the disagreement over what starts the ten-year minimum payment period under Paragraph 3(a). Defendant BBDO had an obligation to pay Plaintiff Gilday under Paragraph 3(a) only "until the Corporation has paid such annual amount to Gilday and/or his spouse for a period of ten (10) years or until her earlier death." BBDO's obligation to pay Plaintiff Gilday is discharged if the event contemplated by this condition—the making of annual payments for ten years, or Plaintiff's earlier death—has occurred.
Plaintiff argues that the ten-year minimum payment period starts at Thomas Gilday's death.
Defendant's interpretation is the correct one. The ten-year minimum payment period began when Thomas Gilday retired and he began receiving the annual payments.
Plaintiff fails to distinguish between the event triggering the applicability of Paragraph 3(a) (Thomas Gilday's death) and the event triggering the start of the ten-year minimum payment period (Thomas Gilday's retirement). In the condition "until the Corporation has paid such annual amount to Gilday and/or his spouse for a period of ten (10) years or until her earlier death," the reference to "such annual amount" is a reference to the payments at the beginning of the sentence, "the annual amount payable to Gilday under Paragraph 2." The annual payments required by Paragraph 2 begin at Thomas Gilday's retirement. His retirement date therefore started the ten-year minimum payment period for Paragraph 3(a).
Once the Corporation made annual payments to Thomas Gilday for ten years, its Paragraph 3(a) obligations to pay his spouse (Plaintiff Gilday) were satisfied. Because the Corporation had already made annual payments to Thomas Gilday from his 1990 retirement until his death in December 2017
The Agreement as a whole likewise reflects this intent to guarantee the Gildays annual payments for at least ten years (or until their earlier deaths). Paragraph 3(b), which would have applied had Thomas Gilday died before his retirement, also requires that the annual amount from Paragraph 2 "be paid to Gilday's spouse from the date of Gilday's death for a period of ten (10) years or until her earlier death."
There is only one reasonable interpretation of the contract terms. Plaintiff Gilday's interpretation—that the annual payments are required for ten years following Thomas Gilday's death—is illogical. Under this reading, BBDO would have been required to make annual payments "to Gilday and/or his spouse" after Gilday's death.
The Agreement's unambiguous language therefore reflects the parties' intent.
Because Defendant BBDO made the annual payments to Thomas Gilday for over ten years, it no longer had an obligation to Plaintiff Gilday by the time he died. Plaintiff's breach of contract claim therefore fails.
Plaintiff Gilday does not appear to advance the promissory estoppel and unjust enrichment claims in her briefs. The Court therefore finds that they have been forfeited.
Even if Plaintiff Gilday had argued in support of these claims, neither would have succeeded. Her breach of contract argument assumes the existence of a valid contract. In these circumstances, the existence of a valid contract precludes recovery for promissory estoppel and unjust enrichment.
For these reasons, this Court rules in favor of Defendant BBDO on liability for breach of contract, promissory estoppel, and unjust enrichment.
IT IS SO ORDERED.