Frank Dixon v. Wells Fargo Bank, N.A.
United States District Court for the District of Massachusetts
798 F.Supp.2d 336 (2011)
The Dixons (plaintiffs) orally agreed with Wells Fargo (defendant) to pursue a mortgage loan modification; at Wells Fargo's instruction, they submitted financial information and stopped making mortgage payments, understanding the missed payments would be rolled into the modified loan. Wells Fargo then moved to foreclose. The Dixons obtained a temporary restraining order and sued for an injunction, specific performance, and damages; Wells Fargo removed the case to federal court and moved to dismiss, arguing it never made an enforceable promise, only an agreement to negotiate in the future.
Whether, under promissory estoppel, a party negotiating an agreement may break a promise made during those negotiations after the other party has detrimentally relied on it.