Case Two: The White Arch Casino
Enoch Thompson was employed for several years as a dealer at the White Arch Casino (WAC) in Las Vegas, Nevada. WAC is one of Colossal Corporation's entertainment/gaming division companies. Over the years, Thompson developed a reputation as one of the most skillful high-stakes poker dealers in Nevada. He was often requested by top poker players at the Texas Hold'em Tournament of Champions, a televised annual event in Las Vegas.
Nine months ago, Thompson was approached by Shirley Eugest, the manager of the Venetian Flamingo Casino—a rival company of WAC. Eugest offered Thompson a substantial salary increase to leave WAC and come to work for her. Thompson agreed to think about this offer and get back to Eugest in 48 hours. When he returned to WAC, he asked several of the other dealers what they thought about the offer. One of those dealers immediately went to WAC's manager, Sal Pending, and told him the details of Eugest's offer to Thompson.
Upon hearing of the offer, Pending called Thompson into his office and said: "If you stay with WAC, I promise that next year you will receive a promotion with a 50 percent raise and a five-year contract." This sounded good to Thompson, and he turned down the offer from Eugest to stay with WAC. However, last week he was dismissed from WAC due to corporate downsizing. Although nothing has happened at this point, the vice president of human resources is concerned that Thompson might try to hold WAC to Pending's promise.
Your task is to research the issue and write a memo to the vice president answering the following questions: Can Thompson legally enforce Pending's promise? What theory or theories might Thompson use to try to enforce Pending's promise? If Thompson were to file a lawsuit and win, what sort of damages or other remedies might he be entitled to? Include the reasoning process you used and any evidence that lead you to your conclusions.
Finally, regardless of the legal implications, the vice president would like your view on the ethical issues. Was the promise legally enforceable? Was the promise morally enforceable? Is it right to downsize Thompson?
Question
1) If Thompson were to file a lawsuit and win, what sort of damages or other remedies might he be entitled to? Include the reasoning process you used and any evidence that lead you to your conclusions.
"Please elaborate by providing a full explanation that allows the VP to understand not only if Thompson would be entitled to damages, were he to sue and win, but also the nature of the damages that would be likely. " [To do so, review “Contract Remedies”, Breach of Contract”, “Promissory Estoppel”, and “Damages in a Breach of Contract Action”
2) Was the promise legally enforceable? Was the promise morally enforceable? Is it right to downsize Thompson? (Research ethical doctrines)
3) Can Thompson legally enforce Pending's promise? What theory or theories might Thompson use to try to enforce Pending's promise?
"Provide a more detailed discussion of the definition and elements of contracts as well as a clearer explanation of how the WAC circumstances fit those elements. Please review “Contract Law”. Also, please note that there are questions whether all required elements of a contract -- offer, acceptance, and consideration -- really were present here. Please review “Contract Law”. Lastly, Educate the VP on the breach of contract doctrine and how these case facts meet the breach of contract criteria. Please review “Breach of Contract”.
4) Whether or not a contract is in place, are there any other legal doctrines on which Thompson might rely in this instance? If so, it would be useful for you to advise the VP of other possible ways that this promise might be enforced.