BUS311_chapter_05

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Unformatted text preview: Burton 165 Mich. 293 (Mich. 1911) Facts: Burton injured his knee while riding on the Detroit United Railroad Company, and sought medical treatment from Sherman, a physician. At the urging of Dr. Sherman, the two men made a written contract that said Burton would pay Sherman one-third of any damages that Burton would receive from his lawsuit against the Detroit United Railway Company. If the sum recovered was $2,000 or more, Burton would also pay Sherman an additional $90. According to Burton, Sherman told him that Burton’s knee was “bad” and may contain tuberculosis (yes, tuberculosis). Sherman also mentioned his influence with the Detroit Railway Company, which Sherman said would pay Burton “many thousands of dollars right away.” Sherman never mentioned the unique payment agreement to Burton until the time Sherman asked that it be signed. Burton received an $1,800 settlement and paid Sherman $290 for his services. Burton claimed that he and Sherman finally agreed “to destroy the agreement,” and that the amount Burton paid to Sher...
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