Part 1
Case Citation: Levin v. Knight, 780 F.2d 786 (9th Cir. 1986)
Facts: Harold A. Lipton was the owner of the San Diego Clippers professional
Basketball franchise, he and Irving H. Levin were the plaintiffs. Phillip Knight was
the defendant. Lipton and Levin came to meet with Knight to discuss Clippers
Basketball franchise’s sale. After the meeting, Lipton, Levin and Knight drafted a
three-page written memorandum which gave a description of the major terms of their
discussion. However, two days later, Knight told Levin that he would not go to buy
the Clippers Basketball franchise. Then Lipton and Levin came to sue Knight for
fraud. The district court agreed with defendant that the three-page memorandum was
not sufficient. However, the California Supreme Court hold the district court’s
summary judgement was inappropriate.
Issue: Was the handwritten memorandum sufficient to qualify the Statute of Frauds?
Holding: Yes, the three-page’s written memorandum was sufficient to satisfy the
Statute of Frauds requirements.
Majority Reasoning: Judge Gilliam
A. Rule:The Supreme Court hold its rule by Statute of Frauds that a state statute that
requires certain types of agreements to be executed in writing. The Supreme Court