Corey Eschweiler - Is a promise a contract?

 

Corey Eschweiler, the attorney for the Nevada Cancer Institute, has no doubts over the validity of the lawsuit or that a promised donation is an enforceable contract. “There is legal precedent for this. We have obligations to our patients and supporters to pursue this gift. The failure of Jim to give this gift impacted us as a whole. The law is pretty clear that a charitable donation is an enforceable contract. This was an enforceable contract. There was valuable consideration for the gift, as they were able to garner publicity for the gift in front of the community. In this case there was also a written agreement signed by the Rhodeses that was provided to Nevada Cancer prior to the Rock the Cure event where the announcement was made.” Eschweiler concedes there was no time schedule on the agreement for when the donation was to arrive. And he also agrees that suing a donor (and, at worst, Rhodes gave $600,000) is an extraordinary step. “It is an unfortunate situation. When it became clear that he had no intention to pay it, we had to sue to continue our mission to fight cancer.”

Of course, between 2007 and 2009, the construction and real estate companies Rhodes owns have been on a downward spiral and have now gone bankrupt, which is likely to impact his ability to donate $10 million. (Rhodes’ lawyer did not reply to questions sent by e-mail or to a request for an interview.) But Rhodes’ financial situation, according to Eschweiler, should not release him from his obligation to make the donation: “We work with our donors to allow them to structure a gift to meet our needs and their needs. But Jim did not reply to any of our communications. That is why this is unfortunate and why we had to take this step. We are always open to resolution, but if we need to we are going to pursue this litigation through the courts to achieve our goal on the commitment.”

Professor Rowley remains skeptical: “It sounds like the argument that the charity is making essentially is that, ‘We let the Rhodeses attach our good name to theirs, and that is enough to oblige them and bind them to pay us $11 million.’ I don’t think the court is going to find that to be enough to require them to make an $11 million payment.” Rowley points to another reason these suits are so unusual: “A charity that sues a donor for not fulfilling a pledge is really running a substantial risk of frightening off future donors. Should the Nevada Cancer Institute be using money given for their medical and scientific undertakings to bring and prosecute this lawsuit?”