Court Opinion

ID: 9549070
Source: CourtListenerOpinion
Date Created: 2023-08-07 18:12:49.743995+00
Date Added: 2024-06-11T15:19:47.882391
License: Public Domain

Lockett, J.,
concurring in part and dissenting in part. I concur in the majority opinion except on the issue of estoppel.
Mrs. Kobbeman received a letter from Planters stating:
“Effective 08/25/82. In accordance with the fluctuating rate terms of your note number 0003 with a current balance of $230,061.64, the rate has been decreased 8.49% to 0.00%
Hi-Plains Elevator Mach. Inc.
Formerly KOML Inc.
P O Box 1565
Salina KS” (Emphasis supplied.)
Planters was informed she had received that notice and two others and that she was relying on them. Planters took no action except to deny to Berkley that the information was correct. The trial court held the notices sent by Planters to Hi-Plains, stating zero interest was currently being charged on its loans, estopped Planters from collecting interest on Hi-Plains’ notes after that date. The principles of equitable estoppel were applied by the trial court. Those principles were discussed in Bowen v. Westerhaus, 224 Kan. 42, 45-46, 578 P.2d 1102 (1978):
“The doctrine of equitable estoppel is based upon the principle that a person is held to a representation made or a position assumed when otherwise inequitable consequences would result to another who, having the right to do so under all the circumstances, has in good faith relied thereon. (Maurer v. J. C. Nichols Co., 207 Kan. 315, 485 P.2d 174 [1971].)
. . . One who asserts an estoppel must show some change in position in reliance on the adversary’s misleading statement. . . .’ (In re Morgan, 219 Kan. 136, 137, 546 P.2d 1394 [1976].)
. . . Equitable estoppel is the effect of the voluntary conduct of a person whereby he is precluded, both at law and in equity, from asserting rights against another person relying on such conduct. A party asserting equitable estoppel must show that another party, by its acts, representations, admissions, or silence when it had a duty to speak, induced it to believe certain facts existed. It must also show it rightfully relied and acted upon such belief and would now be prejudiced if the other party were permitted to deny the existence of such facts. . . .’ (United American State Bank & Trust Co. v. Wild West Chrysler Plymouth, Inc., 221 Kan. 523, 527, 561 P.2d 792 [1977].)”
*766To show equitable estoppel, there must be a good faith reliance on a representation made resulting in some change of position because of this reliance. In this case there was a representation made by Planters. Mrs. Kobbeman, representing the estate of the guarantor, relied on that representation and changed her position by paying unsecured debts of the deceased guarantor. The trial court found that her reliance was in good faith, that the notices from the bank and the surrounding circumstances were such that Mrs. Kobbeman, as representative of the estate, had sufficient reason to act in good faith reliance and, therefore, that the bank was estopped from denying the validity of the notice.
The trial court made its findings of fact and conclusions of law. This court did not perform its function as an appellate court, which is to determine only whether the findings were supported by substantial competent evidence and whether those findings were sufficient to support the conclusions of law. Iola State Bank v. Bolan, 235 Kan. 175, 679 P.2d 720 (1984). Instead, the majority reweighed the conflicting evidence and found for Planters, reversing the trial court.
Schroeder, C.J., joins the foregoing concurring and dissenting opinion.