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COA finds Yellow Book ad contract induced by fraud

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A heating and cooling company does not owe Yellow Book for a contract it tried to break after finding the publication didn’t change the terms of the contract as promised, the Indiana Court of Appeals held. But, the heating and cooling company is on the hook for two other contracts it had that it failed to fully pay.

Larry Stone’s company, Central Indiana Cooling and Heating, entered into three 12-month contracts with Yellow Book to advertise in certain directories for the years 2008 – 2010. Yellow Book sued in August 2011, claiming the company failed to pay for the advertising as provided by the contracts and his personal guarantee on two of the contracts.

The trial court found that Stone and his company were appropriately credited for payments he testified he made to Yellow Book which he claimed the company didn’t apply, and it ruled that he properly cancelled Contract 3. This contract Stone claimed he signed with the understanding that the terms of the contract were just a placeholder until he could sign a new, less expensive contract. But after no one contacted him with a new contract, he was unable to reach anyone at Yellow Book afterward to cancel the contract.

The trial court also denied attorney fees for Yellow Book.

In Yellowbook Inc. f/k/a Yellow Book Sales and Distribution Company, Inc. v. Central Indiana Cooling and Heating, Inc. and Lawrence E. Stone aka Larry Stone, 30A05-1311-CC-561, the Court of Appeals found that Stone, in fact, was credited for payments that he claimed were missing. Stone admitted at trial that all payments he had perceived as omitted from Yellow Book’s account statement had in fact been credited toward his unpaid balances. Thus, the trial court improperly concluded he was not indebted to Yellow Book under contracts 1 and 2.

There was no error in concluding that Contract 3 was properly cancelled. Yellow Book argued that evidence of the oral misrepresentations made by Yellow Book’s salesperson to Stone are not admissible due to an integration clause in Contract 3. But Stone can overcome this clause because he relied on misrepresentations by Yellow Book when he signed Contract 3 as a placeholder contract. He was supposed to have a smaller contract, but he never received one and his attempts to reach someone at the company were not answered.

The trial court remanded for calculation of pre-judgment interest on contracts 1 and 2 and a determination of attorney fees for work done on those contracts.

 

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  1. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  2. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  3. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  4. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

  5. I totally agree with John Smith.

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