Plowman v. Indian Refining Co.

Plowman v. Indian Refining Co.
United States District Court
20 F. Supp. 1 (E.D. Ill. 1937)

Facts: Several employees were relieved of their duties at IR Co. but remained on the payroll in respect for their long service to the company (they were downsizing for economic reasons). The company maintains that the extended payroll was a gift; the employees maintain that it was contract and supposed to last their entire life. Controverted fact is whether anyone ever mentioned that the payments would go on for life.

Procedure: District Court level.

Issue: Do the past actions of the employees count as consideration?

Holding: No.

Reasoning: It cannot be consideration for a new contract if it has already been given and without reference to the contract. Plus traveling to the office to pick up the check was simply a condition, not consideration.