Read the case of Dynegy v. Yates ( JPG Uploaded ) in Chapter 16. In your thread, post your case summary, using the briefing method outlined in Chapter 1’s appendix.

Read the case of Dynegy v. Yates ( JPG Uploaded ) in Chapter 16. In your thread, post your case summary, using the briefing method outlined in Chapter 1’s appendix.
This is an example of last assignment
Example

Olis, who was a former Dynegy employee, was indicted for fraud. Olis had multiple counts of securities fraud, mail and wire fraud, and conspiracy arising out of his work he performed while at Dynegy. Dynegy had agreed in 2002 to pay for the fees/expenses for some people for those who were involved in ” Project Alpha” if they met certain requirements. Olis hired Yates, who is an attorney, who orally verified that Dynegy would be paying for his services for Olis. Dynegy refused to pay Yates third invoice and he then sued them for breach of contract and fraudulent inducement.

HISTORY: A Texas jury returned a verdict in favor of Yates. The appellate court affirmed the lower courts judgment, the statue of frauds did not apply because Dynegy’s promise totaled to a primary obligation. Dynegy Inc appealed to the United States supreme court.

ISSUE: Was the obligation primary or collateral?

HOLDING: The obligation was primary. The judge examined the case and the facts surrounding the case. It was then decided that Dynegy’s promise of payment was a primary obligation and therefore the agreement was enforceable.

REASONING: Clark and Yates testified that Cracraft orally promised that Dynegy would be paying Olis fees through trial and it is undisputed that this agreement was never reduced to writing.

RESULT: The claim for breach of contract was affirmed in favor of Yates.

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