Tanenbaum v. Biscayne Osteopathic Hosp., Inc. - 190 So. 2d 777 (Fla. 1966)

Rule:

The statute of frauds requires that all actions based on agreements for longer than one year must depend on a written statement or memorandum, signed by the party to be charged. The statute of frauds should be strictly construed to prevent the fraud it was designed to correct, and so long as it can be made to effectuate this purpose, courts should be reluctant to take cases from its protection.

Facts:

W. L. Tanenbaum was an osteopathic physician specializing in radiography. In September 1961 he removed from Allentown, Pennsylvania, to North Miami Beach where he became osteopathic radiologist at Biscayne Osteopathic Hospital’s North Miami Beach hospital. The parties entered into an oral contract providing for his services for a period of five years terminable only after the expiration of that period and even then only upon 90 days written notice by either party. There was evidence that Tanenbaum importuned respondent to execute a written agreement but this was never accomplished. In April 1962 Biscayne notified Tanenbaum that his services would be discontinued the first of the following July and in the next month Tanenbaum filed his complaint for damages resulting from Biscayne’s action. Principal defense of Biscayne, then defendant, was the Statute of Frauds. Biscayne moved, at the end of Tanenbaum’s case for a directed verdict in its favor. This was denied. The motion was repeated at the close of all testimony and evidence, and ruling upon it was reserved by the court. Then the jury returned a verdict for Tanenbaum’s in the amount of $40 thousand. Later Biscayne presented a motion for a judgment in accordance with the motion for directed verdict and the court granted it. The appellate court affirmed the trial court and refused to apply the doctrine of promissory estoppel.

Issue:

Did the lower courts err in rejecting the doctrine of promissory estoppel in connection with this case?

Answer:

No.

Conclusion:

Tanenbaum had but to follow the provisions of the Statute of Frauds to secure his rights under the arrangement with Biscayne instead of taking the position, rather tardily that they did not apply to him. Thirty-three years have passed since the Restatement the court have quoted was adopted and there have been about 15 intervening sessions of the legislature at which the contents of Sec. 90 of the Restatement could have been incorporated into the act yet it knew of no such effort or accomplishment.