Opinion ID: 1841678
Heading Depth: 3
Heading Rank: 3

Heading: Equitable Estoppel and Waiver.

Text: Key contends that, notwithstanding the warranty deed, Brunson's denial of any interest in the property, through his pleadings and letter brief filed in the prior proceedings, operates as a waiver of any interests he may have and estops him from making subsequent transfers. The essential elements of equitable estoppel are: (1) the person against whom estoppel is asserted, who usually must have knowledge of the facts [or at least the circumstances must be such that knowledge of them is necessarily imputed to him], communicates something in a misleading way, either by words, conduct, or silence, with the intention that the communication will be acted on; (2) the person seeking to assert estoppel, who lacks knowledge of the facts, relies upon that communication; and (3) the person relying would be harmed materially if the actor is later permitted to assert a claim inconsistent with his earlier conduct. Mazer v. Jackson Ins. Agency, 340 So.2d 770, 773 (Ala.1976). General Electric Credit Corp. v. Strickland Division of Rebel Lumber Co., 437 So.2d 1240, 1243 (Ala.1983). Furthermore, the law is settled in Alabama that a party in a pending suit who has knowledge of the facts may be precluded from assuming a position inconsistent with a position taken in a prior judicial proceeding to the prejudice of an adverse party. Brooks v. Peoples National Bank of Huntsville, 414 So.2d 917 (Ala.1982); Henson v. McDonald, 413 So.2d 1135 (Ala. 1982); Russell v. Russell, 404 So.2d 662 (Ala.1981); United Security Life Ins. Co. v. Birmingham Trust National Bank, 282 Ala. 295, 211 So.2d 139 (1968); Hartley v. Alabama National Bank of Montgomery, 247 Ala. 651, 25 So.2d 680 (1946); LeFurgey v. Beck, 244 Ala. 281, 13 So.2d 179 (1943). Waiver, on the other hand, is the voluntary and intentional surrender or relinquishment of a known right. See O'Neal v. O'Neal, 284 Ala. 661, 227 So.2d 430 (1969); State Farm Mutual Automobile Ins. Co. v. Hubbard, 272 Ala. 181, 129 So.2d 669 (1961). The inconsistent position alleged by Key to have been taken by Brunson in the prior proceeding was as follows: In Brunson's motion to have himself dismissed as a defendant in the Smith complaint, he alleged as grounds, among other things, that he has no interest in this matter as is evidenced by his quitclaim deed to Dominex. Further, in his letter brief filed in support of his motion, Brunson stated that he no longer has an interest in this controversy and evidence that fact by the quitclaim deed. But, later, apparently realizing that an issue existed as to the effectiveness of this quitclaim deed to transfer a statutory right of redemption, Dominex and Brunson, by amendment, sought to include and confirm that James Brunson was a party plaintiff to Dominex's complaint. The final judgment granted Brunson's motion to dismiss and Key's motion to strike this amendment. From the foregoing, we conclude that, at the time Brunson assumed the position of no interest, he did not have knowledge of the fact that the quitclaim was ineffective to transfer the only interest he could have had at that timethe statutory right of redemption. Furthermore, his failure to assert that right, resulting from ignorance of the fact that he had not conveyed that right, does not constitute estoppel if he commences his remedial action with promptness after becoming acquainted with the facts. Ivey v. Dixon Investment Co., 283 Ala. 590, 219 So.2d 639 (1969); Nelson Realty Co. v. Darling Shop of Birmingham, 267 Ala. 301, 101 So.2d 78 (1958). This rationale was explained in LeFurgey v. Beck, 244 Ala. 281, 13 So.2d 179 (1943), where estoppel is based on prior proceedings: Inconsistent positions in different litigations, where the party failed of benefit from the former position, through mistake of fact, or mistake as to rights of property in certain cases, does not ordinarily estop the party from asserting the true facts. This is quite different, in principle, from setting up a fraudulent claim on simulated facts, burdening the other party with long delay in the enjoyment of property rights, admittedly his in that proceeding, but for the fraudulent claim asserted, and the burden of protracted litigation to defeat the fraudulent claim, to be followed by suit in equity founded on another and conflicting state of facts, all known to complainant from the beginning. (Emphasis added.) 244 Ala. at 284, 13 So.2d 179. Furthermore, in view of Brunson's apparent mistake as to the effectiveness of his deed and his attempt to assert his own right to redeem by joining the prior lawsuit, we cannot conclude that Brunson voluntarily and intentionally relinquished (waived) a known right. Consequently, we hold that nothing in the prior lawsuit operates as an estoppel or waiver by Brunson of his statutory right to redeem and his subsequent right to transfer to Dominex.