Pillois v. Billingsley
United States Court of Appeals for the Second Circuit
179 F.2d 205 (2d Cir. 1950)
Sherman Billingsley (defendant), director of Cigogne, Inc., hired Raymond Pillois (plaintiff) to secure an exclusive Western Hemisphere representation contract with a French perfume company, agreeing to pay Pillois whatever amount Billingsley alone deemed reasonable. Pillois traveled to France and successfully returned with a 99-year exclusive representation contract, which Cigogne accepted, but Billingsley never actually determined or paid any amount for Pillois's services. Pillois sued to recover the reasonable value of his work, and the trial court awarded him $6,000; Billingsley appealed.
Whether a party who is given discretion to determine the value of another's performance is obligated to exercise that discretion in good faith.