Opinion ID: 1511973
Heading Depth: 1
Heading Rank: 1

Heading: Upon the Question of Estoppel.

Text: The facts show that upon being notified that the Government was demanding from the bankrupt payment of the taxes herein sued for, the appellee, United States Fidelity and Guaranty Company, took action to save itself from loss if it should be found to be liable on any of its bonds. It notified its indemnitors immediately and kept in communication with the department of Internal Revenue and the proceedings in the Matter of the Bankruptcy of The Coast Wineries, Inc. Thereafter it was advised of the agreement between the Government and the trustee, whereby the bankruptcy court had entered its order disallowing this claim for taxes. Appellee was also advised by the Revenue office of the disposition made of the matter by the court, and that it had no claim. Accordingly, the appellee, believing that it had been relieved of liability on its bonds refrained from presenting any creditor's claim against the Estate of N. J. Dolph, Deceased, and in reliance upon the order of the court and the representations of the Internal Revenue office permitted the time for filing this claim to expire. The record shows that the Estate of said N. J. Dolph, Deceased, would have been sufficient to pay any claim of appellee had it been presented, based on its indemnity agreement. We do not understand appellant to question that these facts would establish estoppel as a matter of law between individuals in the ordinary case. But appellant, in this connection, again contends that an attorney for the Government cannot bind it by any stipulation or agreement in a court proceeding in which he is authorized to appear, even where such agreement is acted upon by counsel for the parties and the court; and appellant further contends that the United States of America can never be estopped by the acts of its agents. No cases directly in point have been cited, but the argument and authorities on the question of res judicata are persuasive here. The following cases also recognize the principle. United States v. Alexander, 110 U.S. 325, 4 S.Ct. 99, 28 L.Ed. 166; Moses v. United States, 166 U.S. 571, 17 S.Ct. 682, 41 L.Ed. 1119. If the contention of appellant is upheld no trial court can accept a statement or stipulation of a Government attorney during the progress of a trial, which must necessarily result in delay and confusion, which would be seriously detrimental to the orderly administration of justice. The findings and conclusion of the trial court are sustained and the judgment is affirmed.