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Contracts Keyed to George
Alaska Airlines, Inc. v. Stephenson
Facts
Arthur W. Stephenson was employed by Western Airlines in California when he was approached by R.W. Marshall, the Chairman of Alaska Airlines, Inc., with an offer to work as a general manager for the airline. Alaska Airlines, a smaller carrier operating in the Territory of Alaska, was planning to expand its operations to include flights to and from the United States. Stephenson accepted the oral employment offer and took a six-month leave of absence from Western Airlines to move his family to Alaska. He repeatedly requested a signed written employment contract from Marshall and other executives at Alaska Airlines, but was informed that no contracts would be signed until the airline obtained a certificate to operate interstate flights. By the time Stephenson’s leave of absence from Western Airlines expired, he could not return to his former job. Shortly thereafter, Alaska Airlines terminated his employment. Stephenson then filed a lawsuit seeking monetary damages in federal district court, which ruled in his favor. Alaska Airlines appealed the decision, arguing various legal points including the application of the statute of frauds and the duty to mitigate damages
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