Promissory Estoppel

Case Examples

• Equitable Remedy: Promissory estoppel is an equitable remedy that only applies when there is no actual contract in place. The doctrine is used to avoid injustice. See Norman v. Tradewinds Airlines, Inc., 286 F. Supp. 2d 575, 591 (M.D.N.C. 2003).
• Elements of Promissory Estoppel: To make a case for promissory estoppel, a plaintiff must show that “(1) that a promise was made; (2) that the promise was unambiguous and not unenforceably vague; and (3) that [she] reasonably relied upon the promise to [her] detriment.” Lansky v. Prot. One Alarm Monitoring, Inc., No. 2:17-CV-2883-SHM-DKV, 2018 WL 3077803, at *7 (W.D. Tenn. June 21, 2018). In Lansky, a woman entered into a contract with an alarm company to install an alarm system in her apartment in Memphis, Tennessee. Id. Despite the alarm being on, the alarm company failed to alert the police when a burglar broke into her home. She subsequently sued the alarm company. Id. The woman claimed promissory estoppel as the alarm company had been bought out by another company. Id . She therefore claimed that there was no valid contract. Id . The court disagreed, stating that the new owners simply stepped into the shoes of the previous alarm company when they bought out the business and inherited her contract, which was still valid. Id . Because there was a valid contract in place, the woman could not claim promissory estoppel, which only exists when a contract is not formed. Id.
• Employment: In Hernandez v. UPS Supply Chain Sols., Inc., 496 F. Supp. 2d 778 (W.D. Tex. 2007), a job applicant sued his potential employer for failing to honor a job offer. To support his claim, Hernandez supplied receipts for relocation expenses and proof of his resignation from a previous job. Id . The Court found that these expenses were reasonable and foreseeable reliance on the employer’s job offer. Id . It is important to note that some states, such as North Carolina, do not recognize promissory estoppel in an employment context. See Norman v. Tradewinds Airlines, Inc., 286 F. Supp. 2d 575, 591 (M.D.N.C. 2003).
• No right to a jury trial: As promissory estoppel is an equitable remedy, the party seeking the remedy is not entitled to a jury trial. See InCompass IT, Inc. v. XO Commc'ns Servs., Inc., 719 F.3d 891, 895 (8th Cir. 2013)