Classic Cheesecake Co. v. JPMorgan Chase Bank
United States Court of Appeals, Seventh Circuit
546 F.3d 839 (2008)
Relevant factsFree
Classic Cheesecake (plaintiff) applied to Chase (defendant) for an SBA-backed loan and, relying on a bank representative's verbal assurance of approval, paid off a principal's defaulted student loans (an SBA requirement) and stopped shopping other lenders. About two and a half months later, Chase denied the loan. Classic sued under promissory estoppel, claiming over $1 million in losses from the delay in seeking other financing; Chase argued the statute of frauds barred enforcing any oral loan promise.
IssueFree
Whether the doctrine of promissory estoppel may except an oral promise from the writing requirement of the statute of frauds if the plaintiff's reliance was significant.