Wednesday, December 11, 2013

Detroit Bank and Trust Co. v. Chicago Flame Hardening Co. case brief

Detroit Bank and Trust Co. v. Chicago Flame Hardening Co. case brief summary
541 F.Supp. 1278 (1982)


CASE SYNOPSIS
Plaintiff guardian initiated complaint which sought to enforce terms of widow's resolution for benefit of its ward with plaintiff contending there was failure to expressly reserve right to rescind, a presumption of acceptance for donee beneficiary, and ward's mental condition precluded earlier assertion of her rights as means of acceptance.

CASE FACTS
A widow agreement was executed in which defendant corporation would pay to the owners' wives, if then living, a graduated monthly stipend. A second corporate resolution was adopted which was executed to rescind the right of plaintiff guardian's ward as surviving spouse to receive monthly payments as formerly provided in the original resolution. Although the ward did not see the actual agreement, she was aware that her rights had been extinguished. Plaintiff initiated a complaint which sough to enforce the terms of the widow agreement. The parties agreed that the appellate court would render the final decision since the trial court judge had passed away.

DISCUSSION

  • The court found that plaintiff's ward failed to accept, adopt, or act upon the resolution prior to the rescission of her rights. 
  • The ward's failure to act or rely upon the original agreement extinguished any benefits which might have accrued to her from the agreement.

CONCLUSION
The appellate court concluded that plaintiff guardian's ward failed to accept, adopt, or act upon the widow's resolution prior to the rescission and her failure to act or rely upon the original agreement extinguished any benefits which might have accrued to her from the widow's agreement.


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