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Byron L. Jackson, Jr. v. Jay Howard Crippen

Tenn. Ct. App.January 24, 2019No. E2018-00850-COA-R3-CV
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Case Details

Judge(s)
Judge Charles D. Susano, Jr.
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
appellate affirmance of trial verdict

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Outcome

Trial court found that the consulting agreement unambiguously required the employer to pay one-half of plaintiff's health insurance costs, not the full amount deducted from his pay. Appellate court affirmed the judgment.

Excerpt

At an earlier time, Byron L. Jackson, Jr. (plaintiff) and defendant Jay Howard Crippen operated a company named Swiss Technologies, Inc. There were disagreements. The parties engaged in mediation. Following mediation, the parties, including Swiss, entered into a three year consulting agreement for Jackson pursuant to which he was to be paid $30,000 annually, "less the cost of health and related insurance." The contract provides that plaintiff "shall be entitled to health and related insurance . . . on the same term as other employees of [Swiss]." The parties stipulated that every other employee paid no more than one-half the cost of their health insurance, and employer paid the other half. Defendants Crippen and Swiss (collectively defendants) deducted the full amount of health insurance premiums from plaintiff's pay. Plaintiff brought this action for breach of contract. The trial court held that the contract was unambiguous, and that it required defendants to pay one-half of plaintiff's health care insurance costs. We affirm.

What This Ruling Means

**What Happened** Byron Jackson and Jay Howard Crippen had disagreements while running Swiss Technologies, Inc. together. To resolve their disputes, they went through mediation and reached a settlement that included a three-year consulting agreement. Under this agreement, Jackson would receive $30,000 per year "less the cost of health and related insurance," and he was entitled to health insurance coverage. However, a dispute arose over how much Jackson should pay for his health insurance premiums. **The Court's Decision** Both the trial court and appeals court ruled in Jackson's favor. The courts found that the consulting agreement clearly required Swiss Technologies to pay half of Jackson's health insurance costs. The company could not deduct the full amount of the insurance premiums from his pay – only half of the cost. **Why This Matters for Workers** This case shows how important precise contract language is when negotiating employment benefits. When contracts mention insurance costs, workers should ensure the terms clearly specify who pays what portion. The ruling also demonstrates that courts will enforce the plain meaning of contract terms, even when employers try to interpret agreements in ways that benefit them financially. Workers facing similar disputes over benefit costs may find success if their contracts contain clear language about cost-sharing arrangements.

This summary was generated to explain the ruling in plain English and is not legal advice.

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