Knigge v. B & L Food Stores, Inc.
Annotate this CaseDavid Knigge entered into an oral employment contract with Robert Knigge, who had cancer and a limited time to live, to manage a grocery store that was owned by Robert and his wife, Lynette. David alleged that the contract included a severance payment if Lynette ended David’s employment after Robert’s death. Robert died five months after entering into the contract. Lynette terminated David’s employment two months after Robert died and refused to pay the severance. David filed suit to enforce the agreement. The circuit court granted summary judgment in favor of Lynnette, ruling that the oral contract was unenforceable under the statute of frauds because it could not be performed within one year. The Supreme Court reversed, holding that the circuit court erred in ruling that the contract was unenforceable under the statute of frauds and that there were disputes of material fact regarding the existence of the severance term.
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