Opinion ID: 1783782
Heading Depth: 2
Heading Rank: 2

Heading: whether heritage cablevision is bound by the 1967 agreement between new albany electric and new albany t.v. cable, inc.

Text: Heritage claims that as it was not a party to the original 1967 contract, it should not be bound by the indemnity clause contained therein. A determination of this issue is hampered somewhat by the lack of documentation in the record regarding the sale of New Albany T.V. Cable, Inc. to Heritage Cablevision. However, ample evidence exists elsewhere. First, Heritage acknowledged during discovery that it has been using the television cable attached to New Albany Electric's poles under the 1967 agreement since it bought New Albany T.V. Cable. They cannot pick and chose the provisions upon which to be bound. § 59 Acceptance of benefits Estoppel is frequently based upon the acceptance and retention, by one having knowledge or notice of the facts, of benefits from a transaction, contract, instrument, regulation, or statute which he might have rejected or contested. This doctrine is obviously a branch of the rule against assuming inconsistent positions, and it has been said that such cases are referable, when no fraud either actual or constructive is involved, to the principles of election or ratification, rather than to those of equitable estoppel. The result produced, however, is clearly the same, and the distinction is not usually made. Such estoppel operates to prevent the party thus benefitted from questioning the validity and effectiveness of the matter or transaction insofar as it imposes a liability or restriction upon him, or, in other words, it precludes one who accepts the benefits from repudiating the accompanying or resulting obligation. And the principle of estoppel by the acceptance of benefits may operate to prevent a party from profiting by his own wrong. 28 Am.Jur.2d Estoppel and Waiver § 59 (1966). (Emphasis added.) Heritage cannot accept the benefit under this contract and also repudiate its obligations. Whether they actually signed the original 1967 document is irrelevant now that they have been operating under it for so many years. Equity obliges Heritage to acknowledge that they are bound by the agreement. Moreover, further evidence of Heritage's past willingness to accept the original contract can be seen in the 1982 agreement between them and New Albany Electric. This agreement amended the payment terms of Article 8 in the 1967 contract and is signed by representatives of both Heritage and New Albany Electric. It reads in part, The New Albany Electric Department and Heritage Cablevision agree that the following amendment shall be a part of the agreement between the parties dated August 2, 1967. Clearly this bound Heritage to the 1967 contract. Finally, Heritage conceded during discovery that they had recognized and adhered to the 1967 agreement since they started servicing the New Albany area. They also stated that Heritage Cablevision, Inc. is of the position that any and all contractual relationships that existed between Heritage Cablevision, Inc. and the City of New Albany on December 7, 1988, would be the 1967 Agreement attached to the Complaint and the 1982 Amendment attached to the Complaint and further that Heritage is of the opinion that its contracts, duties and obligations regarding the City of New Albany are contained in the 1967 Agreement and the 1982 Amendment thereto attached to the complaint. These words constitute a specific acknowledgement by Heritage that the 1967 contract contains its duties and obligations to New Albany Electric. Under the circumstances, their claim that no such duties and obligations exist is incomprehensible. Whether by principles of equitable estoppel, the 1982 amendment, or Heritage's own admissions, it is clear that Heritage should be and is bound by the 1967 agreement between New Albany Electric and New Albany T.V. Cable.