ALASKA AIRLINES V. STEPHENSON
217 F.2d 295 (1954)
NATURE OF THE CASE: Alaska (D) appealed an order that found in favor of Stephenson (P),
employee, in P's action against D following his dismissal as general manager.
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 of 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 moneys 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. .
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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