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Contracts Keyed to Murray
Dyer v. National By-Products Inc.
Facts
Dale Dyer (Plaintiff) worked for National By-Products Inc. (Defendant) as a foreman. In 1981, Plaintiff lost a foot in a workplace accident. Plaintiff was given a leave of absence with pay until he returned to work in August 1982. Plaintiff was laid off the following March. Plaintiff sued for breach of an oral contract, claiming that Defendant had promised him lifetime employment in exchange for his agreement not to litigate his claim for personal injury. Defendant denied the agreement. After discovery, Defendant moved for summary judgment. The trial court granted the motion, holding that (1) Plaintiff made no reciprocal promise to work for Defendant for life and (2) Plaintiff did not forbear from bringing a legitimate claim because workers’ compensation was his sole remedy for the injury. Plaintiff appealed to the Iowa Supreme Court, arguing that his forbearance from bringing what he reasonably and in good faith believed to be a valid claim was sufficient consideration for Defendant’s promise of lifetime employment.
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