Opinion ID: 2305731
Heading Depth: 2
Heading Rank: 1

Heading: Waiver and Equitable Estoppel

Text: [¶ 24] CKF argues that, by permitting CPR to remain on the premises past October 2, 2006, Blue Star approved the continued tenancies of both CPR and Postal Express and thus waived its right to enforce that date through its breach of contract claim. CKF further asserts that equitable estoppel applies to the breach of contract claim because CKF and Flannery justifiably relied upon Blue Star's actions and statements permitting the continuing tenancies, and that such reliance was to its detriment because of the subsequent exposure to liability and legal fees. [¶ 25] In order for CKF to avoid summary judgment on the basis of its affirmative defenses of waiver and equitable estoppel, CKF must demonstrate that the summary judgment record contains disputed issues of fact to generate these defenses. See Kirkham v. Hansen, 583 A.2d 1026, 1027 (Me.1990). [¶ 26] Waiver is a voluntary or intentional relinquishment of a known right and may be inferred from the acts of the waiving party. Interstate Indus. Unif. Rental Serv., Inc. v. Couri Pontiac, Inc., 355 A.2d 913, 919 (Me.1976) (citations omitted). If a party in knowing possession of a right acts inconsistently with the right or that party's intention to rely on it, the right is deemed waived. Id. To bar enforcement of a known right, the waiver, however established, must have induced a belief in the party who is claiming reliance on that waiver that the waiving party intended voluntarily to relinquish his rights. Id. [¶ 27] Equitable estoppel precludes a party from asserting rights which might perhaps have otherwise existed ... against another person who has in good faith relied upon such conduct, and has been led thereby to change his position for the worse, and who on his part acquires some corresponding right. Dep't of Health & Human Servs. v. Pelletier, 2009 ME 11, ¶ 17, 964 A.2d 630, 635 (quotation marks omitted). Equitable estoppel requires a misrepresentation that may arise through a combination of misleading statements, conduct, or silence. Id. ¶ 18, 964 A.2d at 636. [¶ 28] CKF's argument that Blue Star waived, or is equitably estopped from asserting, its claim of breach of contract is based upon its factual allegations that, following the attempted lockout at the mill on October 16, Blue Star: (1) attempted to negotiate a short term lease with CPR; (2) indicated to CPR on several occasions that there was no urgency that CPR vacate the premises and that Kampf could work around CPR while redeveloping the property; and (3) permitted both Postal Express and CPR to remain on the premises until they voluntarily vacated on October 31 and mid-November, respectively. [¶ 29] Despite the factual disputes between the parties regarding the events following the mid-October lockout, CKF has failed to allege facts that, even if true, would generate a successful defense based on either waiver or equitable estoppel. The actions that CKF alleges were taken by Blue Star in permitting the tenants to remain on the premises do not amount to either a voluntary or intentional relinquishment of a known right, see Interstate, 355 A.2d at 919, or a misrepresentation inducing good faith reliance on the part of CKF. CKF does not dispute that Blue Star permitted the holdover tenancies precisely because it intended to enforce its rights through the purchase and sale agreement and seek damages from CKF for the breach, and that it unequivocally alerted CKF to that course of action. The parties agree that no lease extension was reached between Blue Star and either holdover tenant and that Flannery received rents from the holdover tenants during the holdover period. In this circumstance, CKF has not alleged facts indicating that Blue Star at any time acted inconsistently with its contractual rights to seek damages from CKF resulting from the breach. The doctrines of waiver and equitable estoppel do not provide defenses to the Blue Star breach of contract claim.