You Be the Judge

Sawyer v. Mills

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, 2007 WL 1113038. Kentucky Court of Appeals, 2007

Facts: Barbara Sawyer worked as a paralegal for Melbourne Mills, assisting him in a large class-action lawsuit against the maker of diet drug Fen-Phen. Mills promised Sawyer a large bonus but never specified how much he would pay her. When Mills settled the case, he later met with Sawyer and her husband to discuss her bonus. The Sawyers secretly taped the conversation.

During the meeting, Mills orally agreed to pay Sawyer $1 million dollars in monthly installments for the next ten years, plus a $65,000 payment for a luxury car. Mills agreed to sign a document confirming this agreement, but when Sawyers lawyer drafted a contract, Mills refused to sign. Mills made nine monthly payments and an extra payment of $100,000.

A jury heard the tape-recorded conversation and concluded that the parties reached a binding agreement and awarded Sawyer $900,000. The court granted a judgment notwithstanding the verdict, ruling that the agreement was barred by the Statute of Frauds.

Sawyer appealed.

You Be the Judge: Does the statute of frauds prevent enforcement of Mills promise?

Holding: Yes, the order for JNOV is affirmed. According to the court, the undisputed testimony from Sawyer, her husband, and her attorney and a draft agreement of the parties' conversation regarding the bonus, coupled with the tape recording of that conversation, all confirmed that the parties agreed the bonus would be paid in monthly installments over 107 months. The tape recording clearly showed that Mills never intended to pay Sawyer the bonus as a lump sum and Sawyer was recorded agreeing to the monthly payments. Thus, the parties never contemplated that the bonus would be paid within one year, and therefore the oral promise is not enforceable.

For Chapter 16 Assignment, please answer the following questions:

1. Did not Mills agree to pay Sawyer $10,000 for ten years?
2. Is it fair that he can make that promise and then not honor it?
3. What about the checks that Sawyer received? Doesnt nine months of checks constitute a writing?