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Local 1330, United Steel Workers v. United States Steel Corp.

631 F.2d 1264 (6th Cir. 1980)

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Local 1330, United Steel Workers v. United States Steel Corp.

United States Court of Appeals for the Sixth Circuit

631 F.2d 1264 (6th Cir. 1980)

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Facts

United States Steel Corporation (United States Steel) (defendant) owns and operates two steel mills in the City of Youngstown, Ohio. United States Steel intended to close the mills due to lack of profits. In an effort to avoid closure, representatives of United States Steel encouraged mill workers to make every effort to increase productivity and profitability at the mills. The workers made such efforts as requested but the mills were not made profitable under normal accounting standards. Two labor unions of United Steel Workers, the Congressman for the district, and the Attorney General of Ohio (plaintiffs) brought suit seeking an order requiring United States Steel to keep the mills in operation. The claim was based on a theory of promissory estoppel, under which the plaintiffs claimed the mill workers relied on a promise by United States Steel to keep the mills open if the workers made an effort to make the mills profitable. The District Court rejected the promissory estoppel claim. The plaintiffs appealed.

Rule of Law

Issue

Holding and Reasoning (Edwards, C.J.)

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