Opinion ID: 2809802
Heading Depth: 3
Heading Rank: 5

Heading: Promissory estoppel and detrimental reliance

Text: ATC also argues that the circuit court erred in granting summary judgment on the issue of promissory estoppel. To prove promissory estoppel, a plaintiff must show that (1) the defendant made a promise; (2) the defendant should have reasonably expected the plaintiff to act or refrain from acting in reliance on the promise; (3) the plaintiff acted or refrained from acting in reasonable reliance on the promise to its detriment; and (4) injustice can be avoided only by enforcement of the promise. See, e.g., Van Dyke v. Glover, 326 Ark. 736, 934 S.W.2d 204 (1996). Detrimental reliance is an equitable principle that may be presented as an alternative to a breach-of-contract claim. See id. In the case at bar, ATC sought to enforce the oral partnership agreement because ATC expended approximately $100,000 in labor and materials to renovate and make improvements to the Landers property. In its affidavit, ATC described its version of the oral agreement and 9 Cite as 2015 Ark. 268 stated that it “relied upon and based its decision to expend significant time and money to move into the subject real property and renovate the same upon the mutual promises and agreements by and between [ATC and Landers].” Thus, in its affidavit, ATC provided proof with proof that there was an agreement or promise between the parties and that ATC allegedly relied on that agreement in expending money to improve the property. Given our well-established standard of review, a genuine issue of material fact remains as to whether ATC detrimentally relied on Landers’s promise to use the property and what improvements were actually made by ATC. For these reasons, we reverse the circuit court’s ruling on the issue of promissory estoppel and detrimental reliance and remand for further proceedings.