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Damon Corp. v. Estes

Citations: 750 N.E.2d 891; 2001 Ind. App. LEXIS 1178; 2001 WL 767804Docket: 20A05-0101-CV-29

Court: Indiana Court of Appeals; July 10, 2001; Indiana; State Appellate Court

Narrative Opinion Summary

In this appellate case, Damon Corporation challenged a trial court ruling that awarded former employee Daniel Estes $121.14 for accrued vacation pay. Estes was employed by Damon from August 27, 1997, until his termination on May 1, 2000, and sought vacation pay accrued from his last anniversary date to his termination. Damon's employee handbook stated that vacation pay is not earned until the employee's anniversary date, leading to the denial of Estes' claim. The trial court initially ruled in favor of Estes, but Damon appealed, arguing the enforceability of its policy. The appellate court applied a less stringent standard of review due to Estes not submitting an appellee's brief, which allowed for reversal if Damon demonstrated prima facie error. The court found Damon's policy clear and enforceable, concluding that Estes was not entitled to vacation pay as he was terminated prior to his anniversary date when such pay would have been earned. Thus, the appellate court reversed the trial court's decision, ruling in favor of Damon Corporation.

Legal Issues Addressed

Enforceability of Employer Policies

Application: The court upheld the enforceability of Damon Corporation's policy that vacation pay is not earned until an employee's anniversary date.

Reasoning: The court found that Damon’s published policy explicitly stated vacation pay is not earned until the anniversary date, which in Estes' case would have been August 27, 2000.

Standard of Review Without Appellee's Brief

Application: Due to Estes not submitting an appellee's brief, a less stringent standard of review was applied, allowing reversal if Damon established prima facie error.

Reasoning: The Court of Appeals noted that since Estes did not submit an appellee's brief, it applied a less stringent standard of review, allowing for reversal if Damon established prima facie error.

Vacation Pay as Additional Wages

Application: The appellate court considered whether vacation pay is accrued weekly as additional wages or subject to the employer's specific policy terms.

Reasoning: The court referenced prior cases establishing that vacation pay should be treated as additional wages earned weekly, but also recognized the enforceability of a clear company policy regarding vacation accrual.