We have observed ${\ensuremath{\Lambda}}_{c}$ baryons in nonresonant ${e}^{+}{e}^{\ensuremath{-}}$ annihilation at energies around $\sqrt{s}=10.5$ GeV through their decay to $\ensuremath{\Lambda}{\ensuremath{\pi}}^{+}{\ensuremath{\pi}}^{+}{\ensuremath{\pi}}^{\ensuremath{-}}$. We measure the branching fraction to be (2.8 \ifmmode\pm\else\textpm\fi{} 0.7 \ifmmode\pm\else\textpm\fi{} 1.1)%. The momentum spectrum of the ${\ensuremath{\Lambda}}_{c}$ is similar to that of charmed mesons, providing a constraint on models of charmed-quark hadronization.
