Gates v. Rivers Construction Co., Inc.

1973

Court: Supreme Court of Alaska

Facts: US firm employs a Canadian guy for PR, putting his pay in trust, until he gets citizenship. Then, just before he does, they fire him and claim they don't have to pay him because the contract was illegal.

Posture: Appealed from a motion to dismiss

Issue: Can you use illegality to get out of a contract?

Holding: The contract should be enforced. Reversed.

Rule: People shouldn't look to the courts to help them profit from illegal contracts

Reasoning: This would actually be contrary to the interest of protecting US workers, because it would mean you could just hire foreigners and lie to them.

Dicta: