Johnson v. Star Iron & Steel Co.

— Plaintiffs appeal from a judgment dismissing their claim for compensation based on an alleged contract to provide financial assistance to defendant, Star Iron and Steel Company. They assign error to the trial court’s findings and conclusions that no contract was ever formed. For the reasons set out below, we affirm the judgment of dismissal.

The facts in this case illustrate a classic contract formation problem. Defendant, Star Iron, required short-term financing. In part, the company’s financial problems were attributable to an unprofitable, wholly owned subsidiary, Star Marine. Plaintiff,…