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Greater Kansas City Laborers Pension Fund, a Trust Fund Roy Livingston Neil Thursby Richard Everhart John Rider Columbus Sumpter Francis Jacobs Jack Lehman Roy Phillips Norman Hansen Lynn Bowman Wm. W. Weeks and James Duvall, Trustees of the Greater Kansas City Laborers Pension Fund, a Trust Fund Roy Livingston Neil Thursby James Nidiffer John Rider Columbus Sumpter Francis Jacobs Jack Lehman Jim Senter Ralph Walters T.C. Lemon Vincent S. Dicarlo Harold E. Porter Terry Dunn and James Duvall, Trustees of the Greater K.C. Laborers Welfare Fund Greater K.C. Laborers Vacation Plan, a Trust Fund James Nidiffer Neil Thursby Jack Lehman Norman Hansen Jim Senter James L. Hutton and Fred Reagan, Trustees of the Greater K.C. Laborers Vacation Plan Greater K.C. Laborers Training Fund, a Trust Fund Richard Everhart Neil E. Thursby Jack Lehman Fred Reagan James Duvall Wm. Weeks and Don Meyer, Trustees of the Greater K.C. Laborers Training Fund v. B.E.A.M., Inc.

Citations: 754 F.2d 297; 118 L.R.R.M. (BNA) 3390; 1985 U.S. App. LEXIS 29005Docket: 84-1397

Court: Court of Appeals for the Eighth Circuit; February 11, 1985; Federal Appellate Court

Narrative Opinion Summary

In this case, employee-benefit funds filed a lawsuit against B.E.A.M. Inc. to recover unpaid benefits, claiming entitlement under a prior collective bargaining agreement. The defense argued that the agreement had been rescinded through an oral agreement linked to a prior confession of judgment. The District Court ruled in favor of the plaintiffs, excluding evidence of the oral agreement under the parol-evidence rule, as it would modify the terms of a previous judgment. On appeal, the Eighth Circuit Court of Appeals affirmed the District Court's decision but based its ruling on the insufficiency of evidence to establish the alleged oral agreement. The appellate court noted that the primary evidence, consisting of depositions and particularly the testimony from Beam's attorney, did not provide a clear or concrete basis for determining that a definitive agreement to terminate the collective bargaining contract existed. Thus, the ruling favored the employee-benefit funds, solidifying the requirement for concrete evidence in claims of contract rescission.

Legal Issues Addressed

Parol-Evidence Rule

Application: The District Court excluded evidence of an alleged oral agreement as it would alter the terms of a prior judgment, applying the parol-evidence rule.

Reasoning: The District Court ruled in favor of the plaintiffs, determining that evidence of the alleged oral agreement was inadmissible under the parol-evidence rule, as it would alter the terms of the prior judgment.

Requirements for Rescission of Contracts

Application: The appellate court emphasized that rescission of a collective bargaining agreement requires a clear and concrete agreement, which was not demonstrated in this case.

Reasoning: The Court found that these statements were inadequate to demonstrate a definitive agreement to cancel the collective bargaining contract, emphasizing that any such termination would require a clearer and more concrete agreement.

Sufficiency of Evidence for Oral Agreements

Application: The Eighth Circuit Court of Appeals found the evidence insufficient to prove the existence of an oral agreement rescinding the collective bargaining agreement.

Reasoning: The Eighth Circuit Court of Appeals, however, did not address the parol-evidence issue but instead concluded that the evidence presented was insufficient to establish the existence of an oral agreement.