Gallon v. Lloyd-Thomas Co.

Gallon (plaintiff) worked in sales for Lloyd-Thomas Co. (defendant) under a 15-percent commission arrangement until being transferred to a less successful territory and having his draw reduced; in October 1954, company executives pressured him for hours with threats about a supposed government bigamy investigation and deportation, causing him severe anxiety, and implied they would call off the investigation if he signed a new, harsher employment contract, which he did. Gallon continued working under the new contract, represented by an attorney throughout, without ever complaining about the circumstances of its signing, until Lloyd-Thomas again cut his draw in summer 1955, at which point he resigned (citing only the draw reduction) and later sued in September 1955 to rescind the contract for duress; the jury found for Gallon, but the trial court granted Lloyd-Thomas judgment notwithstanding the verdict on ratification grounds, and Gallon appealed.