Opinion ID: 2456652
Heading Depth: 1
Heading Rank: 4

Heading: Findings Defeat Champlin's Defense of Equitable Estoppel

Text: An essential element of Champlin's defense that Chastain was equitably estopped is a finding that it relied and was injured by reason of Chastain's silence after he was under a duty to speak. Gulbenkian v. Penn, 151 Tex. 412, 252 S.W.2d 929 (1952); Waxahachie National Bank v. Beilharz, 94 Tex. 493, 62 S.W. 743 (1901). Special Issue 9 was unanswered and Special Issue 11 was answered against Champlin. They were: SPECIAL ISSUE No. 9. Do you find from a preponderance of the evidence that the Defendants acted in reliance upon the apparent acceptance, if any, by the Plaintiffs of Champlin's monthly accountings to them, by altering their position so that it would prejudice the Defendants to require a reaccounting to the Plaintiffs? (Unanswered). SPECIAL ISSUE No. 11. Do you find from a preponderance of the evidence that during the period of such delay the Defendants have changed their position in any way which would make it unjust for the Plaintiffs to assert such a claim now? Answer No. Champlin requested Special Issue 11, and knew its effect when it moved the Court to disregard the answer and hold that the defendants have changed their position in a way which would, as a matter of law, make it unjust for the plaintiffs to assert such a claim.    Indeed, as Champlin recognized, this Court must hold that all the evidence shows that Champlin has changed its position. Champlin has done nothing but continue the breach of Chastain's contract. Apparently what Champlin means is that if Chastain had hastily complained, it would have begun abiding by its agreement. The jury probably thought so. Champlin received about four or five barrels of the processed product out of every ten that were run through its plant. Giving effect to its stipulations, it could pay Chastain all it owes him without disturbing anyone. The argument that it could have recouped its losses from the other 164 suppliers is equally tenuous. After Champlin pays Chastain the $118,076.25 which it owes by force of a contract between those two, how it could pass that loss on to the other producers is difficult to determine. The proof does not divulge the kind of proceedings or the legal theory of liability of these other parties whose rights are measured by their own separate contracts with Champlin. The basis for this confusing argument by Champlin is the assumption that all parties were entitled to an aliquot part of the gas supplied the Champlin plant. The proof is that Champlin's rights and liabilities were measured by 165 separate contracts, and the rights of one were not governed by the contracts of others. In any event, the jury found against Champlin and that defeated their plea of equitable estoppel.