Court Opinion

ID: 9531420
Source: CourtListenerOpinion
Date Created: 2023-08-07 04:10:41.812442+00
Date Added: 2024-06-11T13:28:26.809271
License: Public Domain

Concurring Opinion
Arterburn, C. J.
I concur in the majority opinion; *181however, I think there is a more cogent reason for sustaining the decision of the trial court. To me, it appears that principles of waiver and estoppel are applicable here. A review of the evidence is helpful on this point.
The appellant and appellee were having marital difficulties in January, 1953, when the appellee went to her parents’ home in Chicago, and consulted her attorney in Hammond, Indiana, Richard P. Tinkham. Her attorney got in touch with Albert E. Jenner, Jr., attorney at Chicago, and a mutual friend of both parties. He later became attorney for appellant. The two attorneys discussed the case from time to time, and submitted conditions and terms for settlement. Appellant’s attorney, Albert E. Jenner, Jr., on March 14, 1953, in one of his letters, wrote appellee’s attorney, in part:
“I am assuming that, in the meantime, pending completion of Dr. Boshe’s interviews, matters will remain in status quo. Maintenance of the status quo is imperative if anything is to be worked out. I wish you would write me confirming that fact because I have induced Mr. Cantwell to proceed on that premise and I will be personally very much embarrassed if you had in mind proceeding otherwise and my not being advised thereof.”
On March 23, 1953, Mr. Tinkham answered without specifically using the words “status quo”, stating:
“In general, I agree with everything you have said. It is my wish that Mr. and Mrs. Cantwell can find the basis for a reconciliation. . . . Consequently, I believe this situation, which I hope is temporary, should be continued until such time as a definite decision can be reached.”
Attorney Jenner denies sharply there was any agreement to keep the status quo; however, Mr. Tinkham *182states emphatically there was such an agreement, and that it was re-emphasized and discussed in various conversations between him and Mr. Jenner. Part of Mr. Tinkham’s testimony is in substance as follows:
“I recall a telephone conversation with Mr. Jenner in which the agreement that Mr. Cantwell would stay in the State of Indiana was discussed and it seems to me that Mr. Jenner did say that he had persuaded Mr. Cantwell to give up the idea of going to California — that is a hazy recollection. There is no doubt in my mind about the agreement that Mr. Cantwell was to remain in Indiana. We agreed not to file the divorce pending determination of negotiations. That was part and parcel in my mind of the whole status under agreement. I heard Mr. Jenner say yesterday on the stand that there was no such agreement. One or the other is mistaken. One of us is wrong about it.”
On May 11, 1958, Mr. Tinkham submitted a number of reconciliation conditions. On May 28 and June 1, 1953, Mr. Tinkham called appellant’s attorney with reference to what Mr. Cantwell’s reactions were to these proposals. Mr. Jenner’s answer was that he had discussed the terms with appellant’s brother, an attorney in Chicago, and had no direct answer from appellant.
On June 1, 1953, the appellant, Frank Cantwell, arranged to have his furniture in the house shipped out to California in care of another person. Sometime around noon on June 2, 1953, the appellant left Michigan City, Indiana, by automobile taking his two sons with him, at that time ages 7 and 5. On June 3, 1953, the appellee arrived in Michigan City to get her two sons who were to visit with her, under a pending agreement with appellant. She found their home was abandoned, the furniture had been moved out, and that the appellant had left the day before. After the appellant left the State of Indiana, appellee, after *183considerable effort, located him in California, and instituted an action there to recover the custody of the two boys. Appellant appeared there, and contested the action but the California court awarded the custody of the two boys to Mrs. Cantwell. On the night before the appellant was to surrender the custody of the boys in California, he again fled the jurisdiction of the court.
Appellee filed her suit for divorce on the 4th day of June, 1953, and summons was served at appellant’s last and usual place of residence in Michigan City, in the State of Indiana. Judgment was entered in her favor accordingly, and before the term of court ended, the appellant, through his attorney, appeared specially, and filed a motion to set aside the judgment on the ground that he had no residence in Indiana at the time the summons was issued and served. In the hearing on that motion, Mr. Tweedle, the appellant’s attorney, stated in substance:
“I do not know the present address of the defendant Frank Cantwell. The only address I ever had was the one in Carmel, California. I have never personally discussed this case, with the defendant. The address in California is the only one I ever had at any time; subsequently I communicated by letter with him through devious means. I have never discussed the case with him by telephone. My employment was by Mr. Albert Jenner, Jr.”
He further said he had never discussed the case with Mr. Cantwell except to advise him by letter that Mr. Tinkham would consent to the setting aside of the judgment if Mr. Cantwell would authorize an appearance and defense on the merits.
We must accept the evidence most favorable to appellee in support of the finding and judgment of the trial court. The trial court has determined whom it will believe, and how the facts should be resolved. The *184appellant’s attorneys have improperly gone outside of the record, and stated that the trial court, in commenting upon its general finding, said it was making no decision upon the issue of estoppel, and have further challenged the appellant’s attorneys to deny this statement. To say the least, this was not the way matters are presented to this court on appeal. We look only to the record. The record here shows the court overruled the appellant’s demurrer to appellee’s plea of estoppel or waiver, as the case may be. This was an issue in the hearing on the motion to set aside the judgment, and the court decided it was a good issue if proved. If the appellant desired a special finding he should have asked for it instead of attempting to present one in this manner, dehors the record.
The appellant is an attorney who retired from the practice of law in Chicago in 1947, and his brother, who acts as an intermediary at this time, is also an attorney. They undoubtedly know the significance of an agreement and the meaning of status quo, and the effect of waiver and an estoppel. The appellee had an opportunity to file suit first, and then to talk about a settlement after-wards, if she had desired. Ordinary precaution in view of appellant’s previous talk of going to California would have dictated such a suit be filed unless she relied upon the representation of appellant and his attorneys that the status quo would not be changed.
The appellant attempts to avoid the effect of his agreement to maintain the status quo by a reference to the statute, Acts 1881 (Spec. Sess.), ch. 38, §837, p. 240, being §4-3609 Burns’ 1946 Replacement:
“An attorney has authority, until discharged or superseded by another:
“First. To bind his client in an action or special proceeding by his agreement filed with the clerk *185entered upon the minutes of the court, and not otherwise.”
The appellant states that this statute applies to agreements made after suit is filed, and impliedly prohibits agreements prior to the filing of a suit made by attorneys for their clients. We find no prohibition in the statute against attorneys, pending negotiations and prior to filing a suit, binding their clients, as an agent might bind his principal where they have authority, and are authorized to do so. An attorney at least has the usual authority of an agent for his principal. It seems to us the statute referred to is applicable to cases where there is no expressed or implied authority from the client shown during a pending proceeding. It really extends the usual scope of authority of an agent where he is an attorney in a pending action. Since no action was pending the statute was not applicable to an agreement made by attorneys for their clients.
The appellant knew of the arrangements of his attorney to maintain the status quo. His attorney in writing Mr. Tinkham, said he had “induced Mr. Cant-well to proceed on that premise.” It is undisputed that during negotiations the attorneys did enter into agreements which were accepted and acted upon by the parties. This included:
1. The custody of the two boys should be alternated at two week intervals between the parties pending negotiations.
2. The parties should remain temporarily separated.
8. That they should make a good faith attempt to settle their difficulties through their attorneys.
These agreements strengthen and support the conclusion that there was a necessary corollary agreement that the relationship of the parties should remain in *186the status quo which include not only their residence, but the status of the property which each owned.
The evidence shows appellant and his attorney had actual notice of the filing of the divorce suit prior to the entry of the judgment. His contention that he was not properly served with a summons, if true, is the result of his own violation of the status quo agreement.
There is no merit in appellant’s contention that the trial court erred in refusing a request to have appellee produce a letter written by one of her co-counsel (Tinkham) to another of her co-counsel (Link). Regardless of the failure to allege or show she has possession of the letter, an order of production would have violated the confidence existing between attorney and client. Acts 1881 (Spec. Sess.), ch. 38, §275, p. 240, being §2-1714, Burns’ 1946 Replacement; Acts 1937, ch. 88, §1, p. 452, being §4-3608, Burns’ 1946 Replacement. It is abhorrent to one’s sense of privacy to think that one party may pry into the confidence and private files of the attorney of the opposing party. 58 Am. Jur., Witnesses, §462, p. 259.
The appellant in this case gave up his right and privilege to change his residence, and move from the State of Indiana pending negotiations, in consideration that the appellee would not file suit during that time, and thus obtain jurisdiction of the person of the appellant. This was a binding contract. Existing rights were given up by each party. There may be some who would urge that this is in truth a waiver by the appellant of his right to change his residence for a consideration. We are not inclined to quibble over the name given the principle involved, whether we call it “waiver” or “promissory estoppel.” Waiver and estoppel in many cases overlap. Be that as it may, there are sufficient facts for the application of the doctrine of promissory *187estoppel here. 3 Pomeroy’s Equity Jurisprudence (5th Ed.), §808b, p. 211; 31 C. J. S., Estoppel, §61a, p. 242.
Principles of estoppel are founded upon justice and fair dealings. It prevents a party from denying the existence of a fact, and thus profiting by his own wrong, or from taking inconsistent positions in order to gain an advantage. 19 Am. Jur., Estoppel, §39, p. 637; Robertson v. Smith et al. (1891), 129 Ind. 422, 28 N. E. 857, 15 L. R. A. 273.
“To prevent fraud or injustice, however, a promise is sometimes made the basis of an estoppel if the promise has been made to induce action and has in fact done so, usually where abandonment of a right is involved.” 31 C. J. S., Estoppel, §80, p. 289; Restatement, Contracts, §90, Ind. Annotations thereto.
There is no reason why this court should reject the plea of estoppel or waiver made by the appellee, and direct her to another remedy in contract where damages alone would not adequately grant the relief to which she would be entitled. There should be no circuity of actions in this case. The relief should be direct by waiver or estoppel in the suit affected by the breach of good faith.
The policy of the law has always been the encouragement of settlements, and the avoidance of litigation. In the pursuit of that objective this court should look with favor upon collateral agreements made in good faith pending negotiations to keep matters in status quo, and should condemn the breaches of such agreements in the manner and form exhibited by the evidence here.
The judgment of the trial court should be affirmed.
Achor, J., concurs.
Note. — Reported in 143 N. E. 2d 275.
*190This is an appeal from a judgment entered for failure of appellant to amend and plead over after a demurrer had been sustained to its complaint.