Abrams v. Unity Mutual Life Insurance Co.

237 F.3d 862 (7th Cir. 2001)

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Nature of the Case

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Facts

In 1991, P and D began discussing a business arrangement in which P would become a general agent for D, helping D develop and market its first preneed insurance program. P was to receive commission payments in an amount equal to a percentage of preneed products ultimately sold. Six draft agreements were proposed, but no formal agreement was ever signed. P kept working for D, based on a 'handshake' agreement and an oral promise from D employee Shirley Cruickshank that, although the contract negotiations were 'getting cumbersome,' P would receive commission payments for his services. P claims that between 1991 and 1997, he developed and marketed preneed insurance products for D and also trained D's employees and agents on selling the products. These efforts were significant in scope. P asserted that he introduced Ds product to about 12,000 funeral homes by including a reference to D in a newsletter he regularly sent out. Sales of D's preneed insurance products were not as high as anticipated, and D terminated its relationship with Abrams in 1997. P sued D alleging that D owed him commissions for the sales of all insurance policies resulting from his efforts under the putative oral agreement. He relied upon theories of breach of contract, promissory estoppel, and unjust enrichment and sought damages in excess of $75,000. D eventually moved for summary judgment. D was granted summary judgment on all counts, because there was no signed written agreement and that any oral agreement violated New York's Statute of Frauds. The court held that the unjust enrichment claim was an improper effort to circumvent the Statute of Frauds.