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Court relies on equitable estoppel determination test

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Examining both state and national caselaw in an appeal involving an Allen County car crash, the Indiana Court of Appeals has used a two-part test in determining whether equitable estoppel is available to those filing a claim.

The Indiana Court of Appeals issued a decision today in Janice L. Davis v. Shelter Insurance Companies, State Farm Insurance Companies, and Jennifer Culver, No. 02A05-1105-CT-256.

Stemming from a case before Allen Superior Judge David Avery, the appeal involves a January 2008 car crash between Janice Davis and Jennifer Culver in which Davis was injured. Shelter insured Davis while State Farm insured Culver, and Davis received treatment paid for by her insurance company. A State Farm representative phoned Davis after the accident and told her that she wasn’t able to call State Farm about the accident until she completed treatment and was ready to settle the claim.

The insurance companies communicated and early the following year, Davis told another State Farm representative she’d provide full medical documentation of her treatment when she was ready to settle. The statute of limitation on Davis’ claim ran out on Jan. 3, 2010, and Davis was still receiving treatment at the time.

She asked State Farm to settle her claim of nearly $4,339 in March 2010, but State Farm informed her the statute of limitations had expired. Davis hired an attorney and filed a complaint in June 2010, and after both parties submitted motions for judgment the trial court granted summary judgment for State Farm and Culver.

On appeal, the judges disagreed with Davis’ claim that equitable estoppel barred the statute of limitations defense by State Farm and Culver. Specifically, the panel relied on rulings from the state’s top appellate courts in 1980, 1990 and 2003 that addressed the doctrine of equitable estoppel and, when applied to this instant case against State Farm and Culver, didn’t amount to any fraud or deceit in stopping the statutory timeline of the case.

The appellate court found that according to the documents in this case, when there’s a promise to settle or perform, any reliance on that promise by a claimant must be reasonable before equitable estoppel is available. The claim by Davis isn’t reasonable in rising to the level of stopping the statute of limitations defense, the judges determined.

Looking at rulings from federal appellate courts and state appellate courts in California, Illinois, Pennsylvania and South Carolina along with federal precedent on this issue, the Indiana Court of Appeals compared that caselaw with this state’s decisions and determined that a two-part test exists for determining whether equitable estoppel should apply. First, a court must determine whether the insurer has engaged in a promise to settle, discouraged the person from filing suit, discouraged the person from hiring an attorney, or other egregious conduct. If one of those factors exists, then the court must engage in the second part of the test and look at the totality of the circumstance surrounding the insurer’s actions.

In this claim by Davis, the appellate panel found that State Farm’s conduct wasn’t sufficient to trigger equitable estoppel because the insurer didn’t engage in any of those initial activities.

“State Farm’s only action at issue in this case was to tell Davis to contact them when she was done with her medical treatment,” Judge Nancy Vaidik wrote. “This conduct can hardly be considered egregious and should not have overridden Davis’s common sense that she needed to actively pursue her claim with State Farm.”

The appellate panel affirmed the lower court’s decision.
 

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  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

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