Contracts Keyed to Scott
Hayes v. Plantations Steel Co.
Facts
Edward Hayes (Plaintiff) worked for Plantations Steel Co. (Defendant) for 25 years. In 1972 he decided to retire at age 65. Upon his retirement announcement, Plaintiff met with Hugo Mainelli, an officer of Defendant. Mainelli told Plaintiff that Defendant “would take care” of him, but they did not sign a formal pension agreement, nor did Mainelli mention any dollar amount. Each year from 1973 to 1976, Defendant paid Plaintiff $5000 “as a token of appreciation for the many years of [his] service.” It was implied that the payments would continue annually and Plaintiff did not look for other employment after his retirement. In 1976, the Mainelli family ceded control of Defendant and the new ownership ceased payments to Plaintiff. Plaintiff brought suit against Defendant, arguing that his decision to retire constituted consideration for Plantation’s promise to pay him a pension, or in the alternative that he was entitled to the pension under the theory of promissory estoppel. The trial court ruled in favor of Plaintiff. Defendant appealed.
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