Alaska Airlines v. Stephenson

217 F.2d 295 (1954)

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Nature of the Case

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Facts

Stephenson (P) worked for Western Airlines. Marshall, Chairman of D, was approached P for a general manager position. D was a small airline operating in Alaska day to day in the hope of obtaining a certificate to operate from the states, probably from Seattle, Washington, to Alaska. P went to New York to meet Marshall. Immediately P was employed as general manager. He took a no penalty leave of absence from Western. P moved his family to Anchorage and eventually with P's six months' leave with Western about to expire, he was pressing for a written contract of definite duration and substantial length. D wasn't signing any contracts until it had a certificate. The six months expired. The certificate apparently was granted in May 1951. By this time, Stephenson had lost favor with the company. P was fired. P sued D for salary beyond the time he was carried on the payroll and for money he claimed due on his expense account and for salary admittedly due except for an offset claimed by D. P sustained his burden of proof for $11,050 in unpaid salary. D appealed based on the statute of frauds.