Ricketts v. Scothorn

1898

Court: Supreme Court of Nebraska

Facts: J.C. Ricketts, grandfather to Katie Scothorn, promises to pay her $2K on demand in a 6%/year manner, so that she doesn't have to work. She quits her job as a bookkeeper (she earned $10/week at this job, and she's quitting to get $120/year?). Later she got another job, with the grandfather's help. Then he dies, regretting that he was unable to pay the balance, but saying that if he could sell off his Ohio farm he would do so.

Posture: She makes a claim against the estate, it is rejected. Initial trial finds for the plaintiff.

Issue: Is there an equitable estoppel which ought to make the note enforceable, even though it lacks consideration?

Holding: Yes. Judgment is affirmed.

Rule: It would be inequitable to let the defendant off on a technicality, given that Katie made life-changing decisions in reliance on this promise.

Reasoning: The note didn't make any demands of Katie. There was no quid pro quo. In fact, this is like a gift or donation.

Dicta: