2 - Facing Limits
Unenforceable Bargains
Published online by Cambridge University Press: 05 June 2012
Summary
A legal order can indeed be characterized by the agreements which it does or does not enforce.
– Max WeberUNCONSCIONABILITY: GAIL WATERS’S ANNUITY SWAP
When Gail Waters was twelve years old, she had a bad accident and fought a resulting legal battle for six years, finally settling for cash. With that money, she bought an annuity from Commercial Union Insurance Company. It would pay annual amounts totaling $694,000 over its twenty-five-year life and could be surrendered on any given day for cash of $189,000. At twenty-one, Gail became involved with an ex-convict, Thomas Beauchemin, who turned her to drugs and ran up $6,000 in charges on her credit card, hitting its limit. Thomas, aware of Gail’s annuity, put the idea into her head of selling it to some friends of his, David DeVito, Robert DeVito, and Michael Steamer, for $50,000.
Thomas worked out details for Gail, who was then naïve, insecure, and vulnerable. The others used a licensed lawyer for the trade. They sealed the swap and signed the papers in a parking lot of a restaurant. As part of the deal, the DeVitos and Steamer forgave debts Thomas owed them of $7,000. Later, Gail regretted the deal and refused to turn over the annuity. She asked a Massachusetts court to declare it invalid.
- Type
- Chapter
- Information
- Contracts in the Real WorldStories of Popular Contracts and Why They Matter, pp. 35 - 58Publisher: Cambridge University PressPrint publication year: 2012