Question

Scalisi et al. v. New York University Medical Center 805 N.Y.S.2d 62 (N.Y. App. Div., 1st Dept., Dec. 6, 2005)

The plaintiffs in this breach-of-contract action learned the importance of getting guarantees in writing. They allegedly entered into an oral agreement with the Medical Center for an in vitro fertilization procedure that would not result in the birth of an autistic child. Subsequently, the parties signed a written contract stating that a certain percentage of children are born with physical and mental defects and the occurrence of such defects is “beyond the control of the physician.” The document also stated that the Medical Center and its physicians would not “assume responsibility for the physical and mental characteristic or hereditary tendencies” of any child born as a result of the in vitro procedure.

When one of the twins conceived as a result of the in vitro procedure was born with “autistic traits,” the parents sued for breach of the oral agreement, alleging that they had entered into it for the purpose of having offspring free of autism. The lower court granted the hospital summary judgment, holding that the written agreement signed by the parents barred the admissibility of the oral agreement. The state court of appeals affirmed, finding that even if the alleged oral promises had been made, they were inadmissible in light of the existence of the subsequent written agreement directly contradictory to them.

Why was the basis of the parent’s argument that they were not bound by the written contract in the Scalisi et al. v. New York University Medical Center case? How did the court rule and what was the reasoning for that decision? Do you agree or disagree? Why or why not? Have you ever entered into an oral contract? Discuss.

Answer 1

The basis for the Scalisi’s (the parent’s) argument was that before signing the written contract with New York Univ. Medical Center, there was an Oral Contract between them and the hospital. They said the written contract was not binding on them, due to a breach of oral contract by NY Univ. Medical Center.They were assured through Oral Agreement that the child born would be free of Autism.

The courts gave decision in favour of the New York University Medical Center. As per the parol evidence rule, the Written Agreement is binding over the oral agreement. Any oral representation made even before the Written Agreement is inadmissible.

We agree with the decision of the court in this behalf.

Oral Agreements are quite frequent in nature. While purchasing vegetable,the agreement is an Oral Agreement between the Vegetable vendor and us. Similarly many other examples can be quoted.