Plowman v. Indian Refining Co.
United States District Court
20 F.Supp. 1 (1937)
Eighteen employees, including Plowman (the employees) (plaintiffs), of Indian Refining Co. (Indian Refining) (defendant) were let go from the company and began receiving pension checks. These employees had all worked for Indian Refining for a number of years before they were let go. The employees were retained on the payroll, but did not render any further services for the company. Most of the employees testified that they were told they would receive the pension checks throughout the rest of their lives. A letter from Indian Refining to the employees stated that the pension checks were being paid in recognition of many years of faithful service and in order to shield the employees from the effects of having to let them go. In order to receive their pension checks, the employees needed to pick them up from the main office. A year after promising the pension checks, Indian Refining discontinued the payments. The employees filed suit for breach of contract.
Rule of Law
Holding and Reasoning (Lindley, J.)
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