Opinion ID: 889792
Heading Depth: 1
Heading Rank: 4

Heading: Issue One: Did the District Court err in denying Schindlers' motion for summary judgment?

Text: ¶ 22 Schindlers filed a motion for summary judgment on their equitable estoppel claim, arguing USAA should be estopped from claiming Greg misrepresented material facts during the oral application process because USAA, in violation of § 33-1-501, MCA, used an application form that had not been approved by the Commissioner. The District Court declined to invoke the doctrine of equitable estoppel as a matter of law or fact, concluding (1) that USAA's oral application process did not have to be approved by the Commissioner and, further, (2) that summary judgment was not appropriate because issues of material fact existed. ¶ 23 We conclude the District Court appropriately denied Schindlers' motion for summary judgment on their equitable estoppel claim on the basis that issues of material fact existed, which precluded summary judgment. Accordingly, we need not address the District Court's determinations regarding Schindlers' § 33-1-501, MCA, arguments. ¶ 24 Equitable estoppel, although generally not favored, is a doctrine based upon principles of equity and good faith and serves to prevent a party from suffering gross injustice at the hands of another party who created the situation or condition. Avanta Fed. Credit Union v. Shupak, 2009 MT 458, ¶ 41, 354 Mont. 372, 223 P.3d 863. A court sitting in equity is empowered to fashion just results. Kauffman-Harmon v. Kauffman, 2001 MT 238, ¶ 11, 307 Mont. 45, 36 P.3d 408. This Court has consistently recognized that one who seeks equity must do equity. Id. at ¶ 13. A party may not expect equitable relief unless he or she comes into court with clean hands. Id. at ¶ 19. ¶ 25 Here, issues of material fact existed regarding whether Greg possessed clean hands when applying for the policy, as evinced in the documents USAA attached to its brief in opposition to summary judgment: (1) Greg's statement taken under oath and (2) Schindlers' insurance policy. While Greg stated under oath that he described the House as a six kitchen and six bathroom single family dwelling that had been converted to apartments, the insurance policy indicates Greg represented otherwise. Furthermore, Greg, for whatever reason, failed to notify USAA of the alleged errors in the policy. [2] Because genuine issues of material fact existed regarding whether Greg applied for the policy in good faith, Schindlers were not entitled to estop USAA from defending itself.