GALLON V. LLOYD-THOMAS CO.
264 F.2d 821 (8th Cir. 1959)
NATURE OF THE CASE: This was an action to avoid a contract made under duress. Gallon (P)
challenged a judgment in favor of Lloyd (D), in P's action against D for rescission of a
contract and actual damages.
FACTS: Gallon (P) worked for Lloyd-Thomas (D) as a salesman. P's work had been
unsatisfactory and he had constantly overdrawn his account and owed D money. An officer of D
informed P that he was being investigated by the Justice Department for bigamy. P had
applied to become a permanent resident of the U.S. because of his marriage to a U.S.
citizen, but P was allegedly also married to a citizen of Great Britain. After numerous
threats of deportation at a meeting with officers of D, P broke down. The officers of D
agreed to see if they could stop the investigation by the Justice Department and prevent P's
deportation. Based on these threats and D's assurance of stopping the deportation, P agreed
to a new employment contract to repay $15,000 in overdrafts and to give up his right to
payments for prior jobs. P was represented by counsel at the time the contract was signed.
For the next seven-month period, P never objected to the new contract, and received his
substantially reduced pay and benefits. P subsequently quit and sued for damages. The trial
court entered a judgment in favor of the D; P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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