Opinion ID: 2032938
Heading Depth: 1
Heading Rank: 5

Heading: validity of agreement

Text: We turn first to Gertrude and Norwest's contention that Lawrence is estopped from challenging the validity of the Agreement. Gertrude and Norwest argue, and the district court found, that since the Bayes, and Lawrence as personal representative of John's estate, accepted the benefit of the Agreement by accepting payment thereunder, Lawrence cannot subsequently claim that the Agreement is invalid. Under Nebraska law, the doctrine of equitable estoppel is frequently applied to transactions in which it is found that it would be unconscionable to permit a person to maintain a position inconsistent with one in which he or she has acquiesced or of which he or she has accepted any benefit. See, Wenzel v. Wenzel, 174 Neb. 61, 115 N.W.2d 788 (1962); Securities Acceptance Corp. v. Brown, 171 Neb. 406, 106 N.W.2d 456 (1960); Schroeder v. Ely, 161 Neb. 252, 73 N.W.2d 165 (1955); In re Estate of Lee, 137 Neb. 567, 290 N.W. 437 (1940); Brisbin v. E.L. Oliver Lodge No. 335, 134 Neb. 517, 279 N.W. 277 (1938). The acceptance of any benefit from a transaction or contract, with knowledge or notice of the facts and rights, will create an estoppel. See, Wenzel v. Wenzel, supra ; Securities Acceptance Corp. v. Brown, supra ; Schroeder v. Ely, supra ; Brisbin v. E.L. Oliver Lodge No. 335, supra . See, also, Pearce v. ELIC Corp., 213 Neb. 193, 329 N.W.2d 74 (1982); McLeod v. Crawford, 176 Neb. 513, 126 N.W.2d 663 (1964); Wegner v. West, 169 Neb. 546, 100 N.W.2d 542 (1960); Einot, Inc. v. Einot Sales Co., Inc., 154 Neb. 760, 49 N.W.2d 625 (1951) (general rule is that assertion of invalidity of a contract is nullified by subsequent acceptance of benefits growing out of a contract). Accord Bohrer v. Bohrer Realty Corp., 157 A.D.2d 458, 549 N.Y.S.2d 25 (1990) (applying estoppel to close corporation stock purchase). The record establishes beyond any reasonable dispute that the Bayes accepted the benefit of the Agreement, by accepting $20,000 annually from 1987 until 1994, and that Lawrence accepted another $20,000 payment on behalf of John's estate in 1995. We also note that even though Lawrence accepted payment on behalf of the estate, the beneficiaries of John's estate would in any event be bound by the conduct of the Bayes, as an heir stands in privity with an ancestor, and an estoppel enforceable against the ancestor is likewise enforceable against the heir. See, Grand Lodge I.O.O.F. v. Marvin, 220 Neb. 197, 369 N.W.2d 54 (1985); Focht v. Wakefield, 145 Neb. 568, 17 N.W.2d 627 (1945) (superseded on other grounds by statute as stated in In re Estate of Kopecky, 6 Neb.App. 500, 574 N.W.2d 549 (1998)); Jorgensen v. Crandell, 134 Neb. 33, 277 N.W. 785 (1938). Given the above-cited authority, we find that the district court correctly determined that the evidence establishes, as a matter of law, that Lawrence is estopped from asserting the invalidity of the Agreement. Therefore, Lawrence's assignments of error relating to the validity of the Agreement are without merit.