Vicente Sabalvaro v. Erlanger & Galinger

Summary

Vicente Sabalvaro, a 12-year employee of Erlanger & Galinger, Inc., sued the corporation and its officers after his 1933 separation, demanding they purchase his 10 company shares, pay 7% interest for 1932, and commute his accrued leave. The Supreme Court affirmed the lower court's dismissal, ruling that: (1) the stock purchase agreements contained no obligation for the corporation to buy back shares upon employee separation; (2) Sabalvaro validly waived his 1932 interest claims by signing a December 1932 waiver agreement; and (3) accrued leave benefits were discretionary privileges limited to foreign employees and not legally enforceable. The decision emphasized strict contract interpretation principles, holding that clear contractual terms should be enforced as written without judicial construction that would effectively create new obligations between parties.