Thursday, December 12, 2013

Gallon v. Lloyd-Thomas Co. case brief

Gallon v. Lloyd-Thomas Co. case brief summary
264 F.2d 821 (1959)

Plaintiff employee challenged a judgment from the United States District Court, which had ruled in favor of defendant employer, in the employee's action against the employer for rescission of a contract and actual damages.

The employee had sued his employer, alleging that as the result of the employer's duress, threats, and coercion, he was compelled to sign an agreement with respect to his employment. He sought rescission and cancellation of the contract, and actual damages. The trial court entered a judgment in favor of the employer. The employee contended that the trial court had precluded him from filing his amended petition that the contract had been executed by him as the result of duress and coercion, substituting a new right of action based upon fraud in the procurement thereof.


  • The court affirmed. In the instant situation, it was apparent that the employee was not entitled to amend his petition under Fed. R. Civ. P. 15(b), for the question of fraud embraced in his fourth amended petition was not the issue that was tried. 
  • Further, the trial court did not abuse its discretion in refusing to allow the amendment. 
  • The court noted that contracts made under duress are not void, but are voidable, and capable of ratification when the duress was removed. 
  • The employee ratified the contract as a matter of law.

The court affirmed the judgment from the trial court, which had ruled in favor of the employer, in the employee's action for rescission of a contract.

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