Waitress Enraged at "Toy Yoda"

In the spring of 2001, Hooter’s Restaurants thought it would be fun and profitable to sponsor a regional beer sales contest among their restaurants and to award the top-selling waitress a “Toyota.” When Jared Blair, manager of the Panama City Beach Hooter’s announced the contest, he allegedly stated that the winning waitress would be led blindfolded to the “Toyota” which would be waiting for her in the parking lot. Blair also allegedly stated that the winner would have to pay the taxes on the automobile. All information concerning the contest was verbal. Everything about the contest looked perfectly legal until Blair announced that Jodee Berry had won the contest and led her out to the parking lot to receive her prize. What Jodee found was a toy Yoda, the wizened troll from Star Wars.

Jodee did not think the play on words was a laughing matter, and on October 12, 2001, she sued Hooter’s for breach of contract and fraudulent misrepresentation. She sought compensatory damages, attorneys' fees and any other relief the court might award her. Did Jodee simply lack a sense of humor, or did she really have a case?

Since the contest terms were not formalized in writing, all the court had to go on was the verbal contract between Jodee and Hooter’s. Jodee performed her part of the contract and brought in higher beer sales. Her performance of the contract required some effort on her part. Hooter’s performance, on the other hand, required very little effort aside from coming up with the concept of the visual pun itself and paying a minimal amount for the doll. Jodee argued that Hooter’s failed to perform the stated obligation of providing the contest winner a new Toyota and breached their verbal contract with her. In addition, she alleged that Blair knowingly made fraudulent statements that led the contestants to believe that the prize was a new vehicle and not a replica of a Hollywood space guru.

The contract between Jodee and Hooter’s provided Hooter’s increased revenue from the higher beer sales and in return, Hooter’s only had to engage in a practical joke and pay the price of the doll. Jurors or a judge could view Hooter’s behavior as a demoralizing bait and switch and would likely award Jodee the contract performance she expected–a brand new Toyota.

As an employer, you may enter into several “informal” contracts with your employees, including contests and fun at work-related gatherings. A verbal promise to an employee that requires specific performance on their part could create a contract which could be held up for scrutiny in a court of law. Also, what you may intend to be fun or comic relief, could offend an employee who may construe your behavior as somehow harassing or discriminatory. If you strive to maintain the dignity and respect of your employees in your company “fun,” you will enhance your relationship with your workforce and also avoid possible litigation.