ILNews

Court relies on equitable estoppel determination test

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Unfortunately, the court doesn't understand the difference between ebidta and adjusted ebidta as they clearly got the ruling wrong based on their misunderstanding

  2. A common refrain in the comments on this website comes from people who cannot locate attorneys willing put justice over retainers. At the same time the judiciary threatens to make pro bono work mandatory, seemingly noting the same concern. But what happens to attorneys who have the chumptzah to threatened the legal status quo in Indiana? Ask Gary Welch, ask Paul Ogden, ask me. Speak truth to power, suffer horrendously accordingly. No wonder Hoosier attorneys who want to keep in good graces merely chase the dollars ... the powers that be have no concerns as to those who are ever for sale to the highest bidder ... for those even willing to compromise for $$$ never allow either justice or constitutionality to cause them to stand up to injustice or unconstitutionality. And the bad apples in the Hoosier barrel, like this one, just keep rotting.

  3. I am one of Steele's victims and was taken for $6,000. I want my money back due to him doing nothing for me. I filed for divorce after a 16 year marriage and lost everything. My kids, my home, cars, money, pension. Every attorney I have talked to is not willing to help me. What can I do? I was told i can file a civil suit but you have to have all of Steelers info that I don't have. Of someone can please help me or tell me what info I need would be great.

  4. It would appear that news breaking on Drudge from the Hoosier state (link below) ties back to this Hoosier story from the beginning of the recent police disrespect period .... MCBA president Cassandra Bentley McNair issued the statement on behalf of the association Dec. 1. The association said it was “saddened and disappointed” by the decision not to indict Ferguson police officer Darren Wilson for shooting Michael Brown. “The MCBA does not believe this was a just outcome to this process, and is disheartened that the system we as lawyers are intended to uphold failed the African-American community in such a way,” the association stated. “This situation is not just about the death of Michael Brown, but the thousands of other African-Americans who are disproportionately targeted and killed by police officers.” http://www.thestarpress.com/story/news/local/2016/07/18/hate-cops-sign-prompts-controversy/87242664/

  5. What form or who do I talk to about a d felony which I hear is classified as a 6 now? Who do I talk to. About to get my degree and I need this to go away it's been over 7 years if that helps.

ADVERTISEMENT