Case Citation
Legal Case Name

DYER v. NATIONAL BY-PRODUCTS, INC. Case Brief

Supreme Court of Iowa1986
380 N.W.2d 732

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Case Brief Summary & Legal Analysis

General Brief
3 min read

tl;dr: An employee forbore suing his employer for a work injury in exchange for an alleged promise of lifetime employment. The court held that forbearing from a legally invalid claim can be valid consideration if the forbearance was made in good faith.

Legal Significance: This case establishes that forbearance from asserting an invalid claim constitutes sufficient consideration for a contract, provided the claim is asserted in good faith. It adopts the modern rule from the Restatement (Second) of Contracts § 74.

DYER v. NATIONAL BY-PRODUCTS, INC. Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Plaintiff Dale Dyer, an employee of National By-Products, Inc., lost his right foot in a job-related accident. After a period of paid leave, he returned to work but was subsequently laid off indefinitely. Dyer filed suit, alleging the employer breached an oral contract for lifetime employment. As consideration for this alleged promise, Dyer claimed he forbore from litigating a personal injury tort claim against the employer. Dyer asserted that he believed in good faith that this tort claim was valid. The employer moved for summary judgment, arguing that no consideration existed because Dyer’s exclusive remedy for his injury was through the workers’ compensation system, rendering any tort claim legally invalid and unfounded. The trial court granted summary judgment for the employer on this basis. For the purposes of its review, the Supreme Court of Iowa assumed that Dyer’s potential tort action was, in fact, invalid.

Court Holding & Legal Precedent

Issue: Is good faith forbearance to assert a claim that ultimately proves to be invalid sufficient consideration to support a settlement contract?

Yes. The court reversed the grant of summary judgment and remanded the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore e

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IRAC Legal Analysis

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IRAC (Issue, Rule, Analysis, Conclusion) is the exact format professors want to see in your exam answers. Our exclusive Flash-to-Full briefs combine holding, analysis, and rule statements formatted to match what A+ students produce in exams. These structured briefs help reinforce the essential legal reasoning patterns expected in law school.

Legal Issue

Is good faith forbearance to assert a claim that ultimately proves to be invalid sufficient consideration to support a settlement contract?

Conclusion

This decision aligns Iowa's contract law with the modern Restatement view on Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco labori

Legal Rule

Forbearance to assert or the surrender of a claim or defense which Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolo

Legal Analysis

The Iowa Supreme Court resolved a conflict within its own case law Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip

Flash-to-Full Case Opinions

Flash Summary

  • Forbearance to assert a claim that proves to be legally invalid
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. E

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