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Lee v. Jenkins Bros.

Second Circuit Court of Appeals
268 F.2d 357 (1959)


Facts

Jenkins Brothers (defendant) purchased the Crane Company. Lee (plaintiff) was the Crane Company’s business manager. Yardley was Jenkins’ president and a substantial stockholder. Yardley and Jenkins’ vice president met with Lee to convince him to join Jenkins. At the meeting, Yardley agreed orally, on behalf of Jenkins, that Lee would be paid a pension when he reached the age of 60, at an amount not to exceed $1,500 a year, even if he were no longer working for Jenkins at that time. Lee joined Jenkins for 25 years, but was then discharged at the age of 55. Jenkins argued that Yardley did not have the authority to bind Jenkins to the pension agreement. The trial court found as a matter of law that the contract was extraordinary, and that Yardley had no authority to bind Jenkins to it.

Rule of Law

Issue

Holding and Reasoning (Medina, J.)

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