Frequently Asked Questions
How Do Courts Describe "Promissory Estoppel"?
"Promissory estoppel is an equitable remedy traditionally used to enforce a promise in the absence of bargained-for consideration." Cohn v. Pa. State Univ., CIVIL ACTION NO. 19-2857 (E.D. Pa. Feb. 12, 2020). Promissory estoppel provides an equitable remedy to enforce a 'contract-like promise that would be otherwise unenforceable under contract law principles," Id., quoting, W. Chester Univ. Found. v. MetLife Ins. Co. of Conn., 259 F. Supp. 3d 211, 222 (E.D. Pa. 2017).
What are the Elements of Promissory Estoppel in Pennsylvania?
Promissory estoppel allows a court to enforce a person's promise -- which is unsupported by consideration -- so long as:(1) the promisor makes a promise that he reasonably expects to induce action or forbearance by the promisee, (2) the promise does induce action or forbearance by the promisee, (3) enforcing the promise is needed to prevent an injustice." Carlson v. Arnot-Ogden Memorial Hosp., 918 F.2d 411, 416 (3d Cir. 1990) (citing Cardmone v. Univ. of Pittsburgh, 384 A.2d 1228, 1233. (Pa. Super. Ct. 1978)).
How Serious Are the Courts About Needing Proof of Each Element?
The above elements are strictly enforced to guard against the 'loose application' of promissory estoppel, Cohn v. Pa. State Univ., CIVIL ACTION NO. 19-2857 (E.D. Pa. Feb. 12, 2020), citing Cornell Narbeth, 167 A.3d at 239 (quoting Peluso, 970 A.2d at 533). Thus, promissory estoppel is not simply a "catch all" theory to enforce all poorly formed contracts. Instead, each element of the claim must be proven.
What's the Statute of Limitations For a Claim for Promissory Estoppel?
In Crouse v. Cyclops Industries, 745 A.2d 606, 560 Pa. 394 (2000), Pennsylvania's Supreme Court decided that the statute of limitations in Pennsylvania for promissory estoppel is four (4) years. However, the discovery rule applies. Here is how the court in Crouse, above, described the discovery rule:
The discovery rule is a judicially created device which tolls [or extends] the running of the applicable statute of limitations until the point where the complaining party knows or reasonably should know that he has been injured and that his injury has been caused by another party's conduct. Pearce v. Salvation Army, 449 Pa.Super. 654, 657-59, 674 A.2d 1123, 1125 (1996).
When Will a Claim For Promissory Estoppel Fall Apart?
A Promise Lacking Specificity
A court will not enforce a promise unless the promise is reasonably specific. For example, a University telling a student he's "on track" to graduate is not a sufficient "promise" of graduation. "Informing a student that they are currently on track to graduate does not equate to promising that student that she or he will indeed graduate in the future. Therefore, the Court finds that Ms. Cohn's amended complaint, as alleged, fails to plead a plausible promissory estoppel claim." Cohn v. Pa. State Univ., CIVIL ACTION NO. 19-2857 (E.D. Pa. Feb. 12, 2020).
Lack of Reasonable Reliance
Reliance on a promise must be reasonable. So let's say, an employee gets an offer of at-will employment, requiring him to move across the country for it. But the employer remains free to terminate the employee at any time. In Pennsylvania, the courts have held it is not reasonable to rely on a promise of mere "at-will" employment. Chand v. Merck & Co., CIVIL ACTION No. 19-0286 (E.D. Pa. Jul. 26, 2019).
What Damages Can Be Claimed in a Claim for Promissory Estoppel?
A party bringing a successful claim for unjust enrichment can claim the reasonable and foreseeable costs incurred in reliance on the promise and reimbursements for non-refundable purchases made in reliance on a promise. However, many costs are not recoverable, such as attorney fees, emotional distress, or time away from work when dealing with litigation or the stress from it.
Is Promissory Estoppel the Same Thing as Unjust Enrichment?
A claim for promissory estoppel is similar to one for unjust enrichment, in one key regard: both require the absence of an enforceable contract. Plus, both are based on the concept of "fairness." But that's where the similarities end.
Promissory estoppel requires a promise (of course) and actual reliance on it by the Plaintiff. However, to prove unjust enrichment, the Plaintiff need only show that he did something that unfairly benefitted the Defendant, such that it would be unfair unless the Defendant made payment to the Plaintiff. Click here for more about unjust enrichment.
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