ILNews

Appeals court split on parol evidence issue

Back to TopE-mailPrintBookmark and Share

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normally be included in an employment contract, the omission of it supported the conclusion Hinkel's written contract superseded any prior oral promises, wrote Judge Vaidik.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.

ADVERTISEMENT

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  2. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

  3. This outbreak illustrates the absurdity of the extreme positions taken by today's liberalism, specifically individualism and the modern cult of endless personal "freedom." Ebola reminds us that at some point the person's own "freedom" to do this and that comes into contact with the needs of the common good and "freedom" must be curtailed. This is not rocket science, except, today there is nonstop propaganda elevating individual preferences over the common good, so some pundits have a hard time fathoming the obvious necessity of quarantine in some situations....or even NATIONAL BORDERS...propagandists have also amazingly used this as another chance to accuse Western nations of "racism" which is preposterous and offensive. So one the one hand the idolatry of individualism has to stop and on the other hand facts people don't like that intersect with race-- remain facts nonetheless. People who respond to facts over propaganda do better in the long run. We call it Truth. Sometimes it seems hard to find.

  4. It would be hard not to feel the Kramers' anguish. But Catholic Charities, by definition, performed due diligence and held to the statutory standard of care. No good can come from punishing them for doing their duty. Should Indiana wish to change its laws regarding adoption agreements and or putative fathers, the place for that is the legislature and can only apply to future cases. We do not apply new laws to past actions, as the Kramers seem intent on doing, to no helpful end.

  5. I am saddened to hear about the loss of Zeff Weiss. He was an outstanding member of the Indianapolis legal community. My thoughts are with his family.

ADVERTISEMENT