Opinion ID: 2612171
Heading Depth: 1
Heading Rank: 2

Heading: estoppel and quasi-estoppel

Text: In regard to the doctrine of estoppel we have held that a party asserting estoppel must demonstrate, among other things, that he reasonably relied on another's representation and that he would suffer some detriment if the other were now permitted to change his position. [10] In the instant case the superior court did not articulate any reasons in support of its conclusion that summary judgment in favor of Kirschbaum on the issue of estoppel was appropriate, and thus we cannot tell why the superior court apparently believed that there were no issues of fact remaining relevant to the elements of Kirschbaum's estoppel claim. Nevertheless, it is our view that the Bank has presented a persuasive case that the issues of Kirschbaum's reliance on the Bank's representations and of the resulting detriment are genuinely open to dispute and thus were inappropriate for resolution by summary judgment. The gist of Kirschbaum's estoppel argument is that he relied on the Bank's representation that he would not be able to take clear title to the 54 lots securing the land loan unless he paid a substantial portion of the construction loan as well as the full balance on the land loan, and that his reliance took the form of permitting the Bank to consummate a nonjudicial foreclosure and extinguish his rights in the 54 lots. Implicit in this assertion is the underlying assumption that Kirschbaum would have been able to, and in fact could have, paid the balance due on the land loan and would have attempted to secure the release of the 54 lots had the Bank not represented that it would not accept tender of only the amount due on the land loan. In other words, Kirschbaum's estoppel argument depends on his ability to show that events might have turned out differently had the Bank not made the alleged representation. The record indicates, however, that Kirschbaum was never able to pay even a fraction of the balance due on the land loan, much less tender payment of the full amount owed to the Bank. If Kirschbaum could not have avoided foreclosure in any event it is not apparent to us how it can be said that he detrimentally relied on the Bank's representation. [11] Thus we hold that the superior court could not have decided the question of detrimental reliance on the record presented and that summary judgment in Kirschbaum's favor on the ground of estoppel was improper. [12] Kirschbaum's alternative theory of estoppel is that of quasi-estoppel. In Jamison v. Consolidated Utilities, Inc., 576 P.2d 97, 102-03 (Alaska 1978), we explained that reliance is not an element of a claim based on quasi-estoppel. Rather, The essence of the doctrine of quasi-estoppel is the existence of facts and circumstances making the assertion of an inconsistent position unconscionable. [13] Our review of the record persuades us that it cannot be concluded as a matter of law that the Bank's assertion and course of action were so offensive as to be unconscionable. First, the instant case arises out of a commercial context in which the party asserting quasi-estoppel on the basis of unconscionable conduct borrowed a total of $650,000 from the Bank. Second, any element of unconscionability is lacking on this record. As with the estoppel issue it is also relevant to resolution of the quasi-estoppel issue to consider whether Kirschbaum in fact suffered any detriment. On the record presented we hold that there remains a significant issue as to whether Kirschbaum's position would have been any better had the Bank not taken the course of action he questions in the litigation. We thus hold that the superior court's grant of summary judgment on the basis of quasi-estoppel was erroneous. [14]