Schwartzreich v. Bauman-Basch, Inc.

Schwartzreich (plaintiff) signed a one-year employment contract with Bauman-Basch (defendant) at $90 per week; after receiving a competing job offer at a higher salary, he negotiated with Bauman-Basch and the parties signed a second, identical contract at $100 per week, at which point Schwartzreich tore the signatures off his copy of the original contract and gave or left it with Bauman, who said the new contract replaced the old one. After Schwartzreich was later terminated, he sued for breach based on the higher $100 salary from the October contract; Bauman-Basch argued the August contract's raise lacked new consideration and thus remained the operative agreement. The jury, instructed to decide whether the first contract was canceled by mutual consent at or before the second contract's execution, found in Schwartzreich's favor based on the $100 salary, but the trial judge set aside that verdict for insufficient evidence; the Appellate Term reversed and reinstated the jury's verdict, and Bauman-Basch appealed.