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Appeals court split on parol evidence issue

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Judges on the Indiana Court of Appeals were split on whether a boss's oral promise to a future employee regarding a severance package would be barred from consideration by the parol evidence rule.

In Mark Hinkel v. Sataria Distribution & Packaging Inc., No. 49A04-0908-CV-473, Judges Nancy Vaidik and Patricia Riley ruled any alleged promises John Jacobs from Sataria made to potential employee Mark Hinkel regarding severance and salary are barred from consideration by the parol evidence rule.

Hinkel worked for a different company when Jacobs approached him about working for Sataria. Hinkel claimed Jacobs promised him in a job offer one year's salary and insurance coverage if Hinkel ever lost his job with Sataria for any reason except if Hinkel quit. Jacobs sent a letter to Hinkel outlining the terms of the employment, but the letter didn't mention the oral agreement, nor did it specify paid vacation time.

Hinkel signed the letter and worked for the company for a little over a year until Sataria terminated his employment. Hinkel sued for breach of contract and/or promissory estoppel, claiming the company owed him the severance package Jacobs promised instead of the six weeks he received. The trial court granted summary judgment for Sataria.

Under the parol evidence rule, the majority found Hinkel's contract represented a complete integration of the parties' employment agreement. Since a lucrative severance provision would normally be included in an employment contract, the omission of it supported the conclusion Hinkel's written contract superseded any prior oral promises, wrote Judge Vaidik. In addition, the majority held that Jacobs' alleged oral promises after Hinkel signed the employment agreement don't constitute a valid contract modification because they weren't supported by an independent, bargained-for exchange.

Judge Terry Crone dissented on the issue of parol evidence because he believed a genuine issue of material fact exists as to whether the parties intended for Jacobs' written job offer to be completely integrated. The one-page written agreement doesn't contain an integration clause. Judge Crone also found telling the fact the vacation terms were yet to be determined, which he interpreted as meaning the parties hadn't reached an agreement on the issue and the offer is more like a memorandum of understanding.

Also, he believed the terms of the severance package didn't vary from or contradict the terms of the written offer, but merely covered that which wasn't covered in the offer. As such, even assuming that the offer is completely integrated, the terms of the severance package would not be barred by the parol evidence rule, he wrote.

The majority also addressed Hinkel's claim for promissory estoppel and found he failed to show an injury "so independent and severe that injustice could only be avoided by enforcement of Jacobs' alleged promise," wrote Judge Vaidik.

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  1. On a related note, I offered the ICLU my cases against the BLE repeatedly, and sought their amici aid repeatedly as well. Crickets. Usually not even a response. I am guessing they do not do allegations of anti-Christian bias? No matter how glaring? I have posted on other links the amicus brief that did get filed (search this ezine, e.g., Kansas attorney), read the Thomas More Society brief to note what the ACLU ran from like vampires from garlic. An Examiner pledged to advance diversity and inclusion came right out on the record and demanded that I choose Man's law or God's law. I wonder, had I been asked to swear off Allah ... what result then, ICLU? Had I been found of bad character and fitness for advocating sexual deviance, what result then ICLU? Had I been lifetime banned for posting left of center statements denigrating the US Constitution, what result ICLU? Hey, we all know don't we? Rather Biased.

  2. It was mentioned in the article that there have been numerous CLE events to train attorneys on e-filing. I would like someone to provide a list of those events, because I have not seen any such events in east central Indiana, and since Hamilton County is one of the counties where e-filing is mandatory, one would expect some instruction in this area. Come on, people, give some instruction, not just applause!

  3. This law is troubling in two respects: First, why wasn't the law reviewed "with the intention of getting all the facts surrounding the legislation and its actual impact on the marketplace" BEFORE it was passed and signed? Seems a bit backwards to me (even acknowledging that this is the Indiana state legislature we're talking about. Second, what is it with the laws in this state that seem to create artificial monopolies in various industries? Besides this one, the other law that comes to mind is the legislation that governed the granting of licenses to firms that wanted to set up craft distilleries. The licensing was limited to only those entities that were already in the craft beer brewing business. Republicans in this state talk a big game when it comes to being "business friendly". They're friendly alright . . . to certain businesses.

  4. Gretchen, Asia, Roberto, Tonia, Shannon, Cheri, Nicholas, Sondra, Carey, Laura ... my heart breaks for you, reaching out in a forum in which you are ignored by a professional suffering through both compassion fatigue and the love of filthy lucre. Most if not all of you seek a warm blooded Hoosier attorney unafraid to take on the government and plead that government officials have acted unconstitutionally to try to save a family and/or rescue children in need and/or press individual rights against the Leviathan state. I know an attorney from Kansas who has taken such cases across the country, arguing before half of the federal courts of appeal and presenting cases to the US S.Ct. numerous times seeking cert. Unfortunately, due to his zeal for the constitutional rights of peasants and willingness to confront powerful government bureaucrats seemingly violating the same ... he was denied character and fitness certification to join the Indiana bar, even after he was cleared to sit for, and passed, both the bar exam and ethics exam. And was even admitted to the Indiana federal bar! NOW KNOW THIS .... you will face headwinds and difficulties in locating a zealously motivated Hoosier attorney to face off against powerful government agents who violate the constitution, for those who do so tend to end up as marginalized as Paul Odgen, who was driven from the profession. So beware, many are mere expensive lapdogs, the kind of breed who will gladly take a large retainer, but then fail to press against the status quo and powers that be when told to heel to. It is a common belief among some in Indiana that those attorneys who truly fight the power and rigorously confront corruption often end up, actually or metaphorically, in real life or at least as to their careers, as dead as the late, great Gary Welch. All of that said, I wish you the very best in finding a Hoosier attorney with a fighting spirit to press your rights as far as you can, for you do have rights against government actors, no matter what said actors may tell you otherwise. Attorneys outside the elitist camp are often better fighters that those owing the powers that be for their salaries, corner offices and end of year bonuses. So do not be afraid to retain a green horn or unconnected lawyer, many of them are fine men and woman who are yet untainted by the "unique" Hoosier system.

  5. I am not the John below. He is a journalist and talk show host who knows me through my years working in Kansas government. I did no ask John to post the note below ...

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