Was Toscano entitled to reliance damages? Joseph Toscano was the general manager of Fields Pianos (Fields) in

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Was Toscano entitled to reliance damages?

Joseph Toscano was the general manager of Fields Pianos (Fields) in Santa Ana, California. He was unhappy with his job and decided to seek other employment. Toscano contacted Michael Greene, who owned similar stores. In July, Greene offered Toscano a sales management job starting September 1. Relying on that offer, Toscano resigned from Fields on August 1. However, in mid-August, Greene withdrew his employment offer. Toscano later found lower-paying jobs in other cities.
Toscano sued Greene for breach of contract and promissory estoppel. Greene argued that Toscano was not entitled to any expectation damages because his employment with Greene would have been at will, meaning he could lose the job at any time. Greene also urged that because Toscano was an at-will employee at Fields, he could recover at most one month’s lost wage.
The trial court ruled that Toscano was entitled to reliance damages for all lost wages at Fields, starting from the day he resigned, going forward until his anticipated retirement in 2017. Toscano’s expert accountant calculated his past losses (until the time of trial) at $119,061, and his future lost earnings at $417,772. The trial court awarded Toscano $536,833, and Greene appealed.

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Business Law and the Legal Environment

ISBN: 978-1111530600

6th Edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Dean A. Bredeson

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