Hayes v. Plantations Steel Co.

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Parties: Hayes, Plaintiff, was an employee of Defendant.

Facts: Hayes worked for Defendant for about 25 years. In Jan. of 1972 he announced his retirement effective July of same year. A week before his actual retirement, an officer of the company said they "would take care of" plaintiff. Company started paying four installments per year of $5,000 each to plaintiff. Each year, Plaintiff came to the business to say hello. He would thank the office for the checks, and inquire how long they would continue. In 1976, the control of the business changed hands and Defendant discontinued making payment to Plaintiff.

Proc. Hist.: Hayes brought suit. Lower court held for defendant.

Issue: Was the promise to pay plaintiff enforceable?

Arguments: Defendant argued that Plaintiff had made decision to retire before the promise was made. There was no reliance on the promise or expectation of money.

Holding: The promise wasn't enforceable.

Reasons: The decision to retire was made before the promise was made.

Judgment: For the defendant

Comments: Distinguished Feinberg by the fact that Hayes's retirement was before Defendant's promise.