Langer v. Superior Steel Corp.
Superior Court of Pennsylvania
161 A. 571 (Pa. Super. 1932)
Langer (plaintiff) was employed as a superintendent at Superior Steel Corp. (Superior) (defendant). When Langer was about to retire from his position, Superior sent him a letter offering him a pension of $100 per month in exchange for Langer agreeing not to seek employment with any of Superior’s competitors. Langer accepted these terms and did not seek competitive employment. Superior paid Langer $100 per month for four years, after which it notified Langer that it would no longer make payments. Langer brought suit in Pennsylvania state court seeking to enforce the terms of the contract. Superior argued that the letter was not an enforceable contract, but merely a gratuitous promise. The trial court entered judgment for Superior, and Langer appealed.
Rule of Law
Holding and Reasoning (Baldrige, J.)