Ed DeWitte Insurance Agency v. Financial Associates Midwest

In this case construing the full-performance exception to the statute of frauds, Kan. Stat. Ann. 33-101 et seq., the Supreme Court adopted the rule set forth in Restatement (Second) of Contracts, 130, holding that full performance by one party alone is sufficient to remove an agreement from the statute and allows the performing party to enforce the agreement in a court of law.Three employees asked the Supreme Court to enforce their oral agreement with their former employer, arguing that they fully performed their obligation under the agreement and were owed the compensation they bargained for. The court of appeals ruled in favor of the former employer, concluding that the former employer’s duty to pay depended on the action of third parties. The Supreme Court reversed, holding (1) the court of appeals erroneously construed the full-performance exception; and (2) because the employees completed their employment and fulfilled their end of the bargain, the full-performance exception applied and the alleged oral agreement was removed from the statute of frauds. View "Ed DeWitte Insurance Agency v. Financial Associates Midwest" on Justia Law