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Verification letters support estoppel argument

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A series of verification letters from a subcontractor to a contractor provided the grounds for the doctrine of promissory estoppel from being applied to commercial transactions.

Sterling Commercial Credit – Michigan LLC, Hammert’s Iron Works Inc., and National Steel Erectors Inc. entered into a maze of contractor and subcontractor agreements to do construction work at the Veteran’s Administration Outpatient Clinic in Evansville.

As part of those agreements, Sterling purchased invoices from NSE and Hammert’s verified the validity of the invoices. Hammert’s tried to impose payment conditions on the second invoice and did not pay the third invoice.

On appeal, Sterling argued that since Hammert’s had sent verification letters, it was estopped from denying payment on the third invoice and placing payment restrictions on the second invoice.

In Sterling Commercial Credit – Michigan, LLC v. Hammert’s Iron Works, Inc., 49A02-1306-PL-513, the Indiana Court of Appeals agreed. It found that Hammert’s did make promises that it would not assert claims to reduce the value of the invoices. Also, there was detrimental reliance when Sterling believed Hammert’s verification that NSE had done the work.
 

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  1. Major social engineering imposed by judicial order well in advance of democratic change, has been the story of the whole post ww2 period. Contraception, desegregation, abortion, gay marriage: all rammed down the throats of Americans who didn't vote to change existing laws on any such thing, by the unelected lifetime tenure Supreme court heirarchs. Maybe people came to accept those things once imposed upon them, but, that's accommodation not acceptance; and surely not democracy. So let's quit lying to the kids telling them this is a democracy. Some sort of oligarchy, but no democracy that's for sure, and it never was. A bourgeois republic from day one.

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