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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normally be included in an employment contract, the omission of it supported the conclusion Hinkel's written contract superseded any prior oral promises, wrote Judge Vaidik.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. That comment on this e-site, which reports on every building, courtroom or even insignificant social movement by beltway sycophants as being named to honor the yet-quite-alive former chief judge, is truly laughable!

  2. Is this a social parallel to the Mosby prosecutions in Baltimore? Progressive ideology ever seeks Pilgrims to burn at the stake. (I should know.)

  3. The Conour embarrassment is an example of why it would be a good idea to NOT name public buildings or to erect monuments to "worthy" people until AFTER they have been dead three years, at least. And we also need to stop naming federal buildings and roads after a worthless politician whose only achievement was getting elected multiple times (like a certain Congressman after whom we renamed the largest post office in the state). Also, why have we renamed BOTH the Center Township government center AND the new bus terminal/bum hangout after Julia Carson?

  4. Other than a complete lack of any verifiable and valid historical citations to back your wild context-free accusations, you also forget to allege "ate Native American children, ate slave children, ate their own children, and often did it all while using salad forks rather than dinner forks." (gasp)

  5. "So we broke with England for the right to "off" our preborn progeny at will, and allow the processing plant doing the dirty deeds (dirt cheap) to profit on the marketing of those "products of conception." I was completely maleducated on our nation's founding, it would seem. (But I know the ACLU is hard at work to remedy that, too.)" Well, you know, we're just following in the footsteps of our founders who raped women, raped slaves, raped children, maimed immigrants, sold children, stole property, broke promises, broke apart families, killed natives... You know, good God fearing down home Christian folk! :/

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