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Tuition reimbusement with no contract.

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cbg

I'm a Northern Girl
By your own admission (I know different states have different laws) you know that laws vary by state. But you don't think it's important for us to know what state you're in so we can tell you what laws are applicable to YOU?

FYI, in employment law there are quite a number of laws where an action taken legally in one state is quite illegal in another. I'd say that makes it pretty important that we know where you are. And any employment law forum is going to demand that you answer the same question for that reason.
 


swalsh411

Senior Member
Ok I think we have beaten up on the OP enough. I don't know if he's coming back but here is the answer.

They cannot deduct it from your wages without your permission. They can sue you but if they have nothing in writing I don't see their chances as being very good.
 

davew128

Senior Member
and there is an income tax deduction or credit for any amount that needs to be repaid.....but since you copped an attitude, I won't tell you anything more about it.
 

tranquility

Senior Member
With respect to your obligation to repay, your former employer can endeavor to contend you had an oral contract to repay the tuition assistance. However, in order to form an oral contract, the parties have to agree on the parameters of the terms. In this instance, the value of the tuition assistance remains in dispute. As a consequence, your former employer may have difficulty in advancing a breach of oral contract claim here. In addition, they may have a statute of frauds problem.
They DID agree. (What potential statute of frauds problem?)
My company wanted me to go back to school and agreed verbally to pay the tuition. Their agreement with me was if I left the company voluntarily within two years I would owe them 50% of the tuition.
It was only later when the OP was asked to sign a contract when he declined as he thought about the taxes and made a counteroffer.

There are two possibilities, there is a contract or not. If there is a contract it is for reimbursement at 50%. If there is not, what result?

Did the company gift the money? I'd say a quantum meruit action for the full amount based on his verbal agreement.
 

ESteele

Member
Tranquility: One, the parties did not have the requisite “meeting of the minds” in order to form an oral agreement. The company thought he would repay 50% of the gross bonus. In contrast, the employee thought he would repay 50% of the net bonus.

Two, the statute of frauds precludes an oral contract which cannot be performed within one year. The parties here discussed his repaying a portion of the bonus-tuition assistance if he failed to stay with the company for two years.
 

tranquility

Senior Member
Tranquility: One, the parties did not have the requisite “meeting of the minds” in order to form an oral agreement. The company thought he would repay 50% of the gross bonus. In contrast, the employee thought he would repay 50% of the net bonus.
As I pointed out, at the time of the agreement, the OP did not consider the "net" portion. (Which as dave128 alluded to is incorrect. There is a way the OP can get the tax money back if he returns the money.) There WAS a meeting of the minds. It's just one mind changed after thinking about it for a while.

As to the SOF, I agree it is an issue. But, are you saying all the money that the employer paid for tuition is not "part performance".

What result if there is not a contract? Is the employer just out all the money?
 

ESteele

Member
Could be! Even if the meeting of the minds issue is not an obstacle, the statute of frauds issue would appear to constitute an impassable roadblock. Obviously, if the OP takes a “pound sand” approach, he should first consult with a local attorney to confirm that his former employer cannot overcome the apparent statute of frauds problem.

Separately, can you explain for me and for others interested in the issue how the OP could minimize or eliminate the tax consequences of these bonus payments? If the OP was accurate, the payments here totaled nearly $100,000. The consequential tax consequences would be considerable.
 
Ok I think we have beaten up on the OP enough. I don't know if he's coming back but here is the answer.

They cannot deduct it from your wages without your permission. They can sue you but if they have nothing in writing I don't see their chances as being very good.
I agree & see their chances as zero.
 

tranquility

Senior Member
The tax theory is the tax benefits rule.

As to the "impassable roadblock", the court addressed different theories which might apply here in Player v. Chandler, 382 SE 2d 891.

Appellants assert three exceptions to the Statute of Frauds. First, appellants assert part performance as an exception. In order for part performance of an oral agreement to remove the agreement from operation of the Statute of Frauds and permit specific performance, the appellants must establish acts which relate clearly and unequivocally 106*106 to the agreement, exclusive of any other relation between parties touching such agreement. Aust v. Beard, 230 S.C. 515, 96 S.E. (2d) 558 (1957); Gibson v. Hrysikos, 293 S.C. 8, 358 S.E. (2d) 173 (S.C. App. 1987). According to the terms of the 1980 lease, appellants were entitled to make improvements to the leased property as they desired. Thus, the construction of the Ghost Ship II does not relate clearly to the oral agreement exclusive of the original lease agreement.

Second, appellants assert that equitable estoppel takes the oral agreement out of the operation of the Statute of Frauds. In order to overcome statutory requirements that an agreement be in writing, the party asserting estoppel must show that he suffered a definite, substantive, detrimental change of position in reliance on such agreement and that no remedy except enforcement of the bargain is adequate to restore his former position.

The appellants fail to show any definite, substantial and detrimental change of position in reliance upon any oral agreement. Exercise of the full extension options under the lease would allow appellants to have the benefit of any improvements for an additional fifteen years beyond the initial lease term. The record reveals no substantive detrimental change in appellants' position sufficient to estop enforcement of the requirements of the Statute of Frauds. Atlantic Wholesale Co., Inc. v. Solondz, 283 S.C. 36, 320 S.E. (2d) 720 (S.C. App. 1984); 73 Am. Jur. (2d) Statute of Frauds, § 278 (1974).

Third, appellants assert that Exhibits Numbers 3 and satisfy the memorandum requirement of the Statute of Frauds. A writing prepared by a party to a contract or by his agent may constitute a memorandum sufficient to satisfy the Statute of Frauds, although not delivered to the other contracting party and was neither intended for nor known to him, provided it is intended to evidence the contract of the parties and its contents are disclosed for that purpose. Smith v. McClam, 289 S.C. 452, 346 S.E. (2d) 720 (1986). The writing must reasonably identify the subject matter of the contract, sufficiently indicate a contract has been made between the parties, and state with reasonable certainty the essential terms of the agreement. Restatement (Second) of Contracts, § 131 (1981). Exhibit 107*107 No. 3 is a letter to the respondents, written by Attorney C.C. Grimes, discussing the proposed amendments which he enclosed. Exhibit No. 3 does not indicate that an agreement had been reached and supports respondents' contention that negotiations were not complete.

Exhibit No. 4 is a letter written by respondent William A. Chandler to Mr. Grimes wherein he states that the terms of the proposed amendments were not acceptable. We hold that these exhibits are insufficient to constitute a written memorandum of agreement under the Statute of Frauds.

Finally, appellants contend that if they cannot recover under contract, they are due monetary relief for restitution or under the theory of quantum meruit. In order to recover under these causes of action, it must be shown that a party was enriched by the unjust retention of a benefit to the loss of another. 66 Am. Jur. (2d), Restitution and Implied Contracts, § 3 (1973). In this case, improvements to the premises were contemplated by the original lease. Furthermore, the appellants hold the right to benefit from any improvements during the term and under the provisions of the lease. According to the record, construction of the second restaurant was commenced one day after the February 5, 1985, telephone conversation and while the original lease was still in effect. The appellants were notified within three weeks of the February 5th telephone conversation that the lease would not be extended unless an agreement was reached on certain additional terms and conditions. This Court concludes that the record fails to establish the unjust enrichment of the respondents to the exclusion of appellants' benefit and that the retention of any benefit by the respondents is a result of the initial lease.
While, on the facts, the court found against the theories, it is not the holding but the discussion which is of interest.

Info edit:
That's assuming it's IN the statue of frauds. The common law year rule is not really favored by the courts and many have determined the SOF would not apply if performance is possible within one year. Possible. Calamari's Hornbook on Contracts phrases it as "In short, the question is, would it be a breach of contract to perform in less than a year; only then is the contract within the one year section." Can this contract be completed within a year? Yes. The OP could have quit immediately and paid the money. An example he uses is a contract to employ a person for a lifetime. That's not within the statute as the person could die within a year.
 
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Your former employer spent “almost six figures” on your education? Do you mean an amount just short of $100,000? In 1.5 to 2 years? .
School I graduated from is now $2500/semester hr or $60K/yr full time ... wow, its disgusting the cost of college .. all because of our federal government & their interference with all aspects of education

So I don't doubt the 100K figure. Good job congress.
 

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