ILNews

COA finds Yellow Book ad contract induced by fraud

Back to TopCommentsE-mailPrintBookmark and Share

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.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

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. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

ADVERTISEMENT