Fischer v. First Chicago Capital Markets, Inc.

First Chicago Capital Markets (FCCM) (defendant) hired Thomas Fischer (plaintiff) to help develop a healthcare accounts-securitization program under a signed letter of understanding paying Fischer hourly, which also mentioned FCCM's hope to later move to an ongoing consulting fee of 8 to 5 basis points per year if the program succeeded. After the program launched two $32 million bonds and the hourly arrangement expired, Fischer kept consulting and invoiced FCCM $25,600 (8 basis points times $32 million) for the first year; FCCM refused to pay. Fischer sued for breach of contract and promissory estoppel, claiming FCCM had orally assured him ongoing basis-point payments for the life of the bonds -- more than 20 years. The district court dismissed both claims, finding the letter too indefinite to be an enforceable contract and the oral promise barred by Illinois's statute of frauds.