Thursday, November 21, 2013

McArthur v. Times Printing Co. case brief

McArthur v. Times Printing Co. case brief summary
51 N.W. 216 (1892)


CASE SYNOPSIS
Defendant appealed a Hennepin County District Court (Minnesota) denial of its request for a new trial on plaintiff's claims for damages for breach of an employment contract.

CASE FACTS
Plaintiff alleged that defendant contracted with him for a period of one year and that defendant discharged him in violation of its contract. Defendant argued that plaintiff's employment was from week to week and that he was discharged with good cause. Trial court found for plaintiff, as the evidence showed that a promoter had made the contract on behalf of defendant while defendant was contemplating organization of corporation. Evidence further showed that after organization, defendant's board never took any formal action with regards to the contract, but that all of its stockholders, directors, and officers knew of the contract and they retained plaintiff without implementing any new contracts.  The defendant appealed the decision.

DISCUSSION
The court affirmed judgment, holding that while defendant was not bound by the contract made by its promoter before its organization, after its organization, it made the contract on its own by acquiescing in plaintiff's employment by retaining him without other contracts.

CONCLUSION
Denial of defendant's request for a new trial on plaintiff's claims of breach of employment contract affirmed. Court held while defendant was not bound by contracts made by promoters before organization of corporation; after organization, it made the contract its own by acquiescing in plaintiff's employment and retaining him without other contracts.


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