Legal Definitions - election, estoppel by

Estoppel by Election is a legal principle that prevents a person from taking a position or pursuing a remedy that is inconsistent with a previous choice they made. When someone has two mutually exclusive legal options or remedies available to them, and they clearly and unequivocally choose one, they may be legally "estopped" (prevented) from later abandoning that choice and pursuing the other, inconsistent option. This principle applies when the initial choice was made with full knowledge of the facts and the available options, and allowing a change would be unfair or cause prejudice to the other party.

• Example 1: Contract Breach Remedies

  Imagine a scenario where a custom furniture maker fails to deliver a unique, handcrafted dining table as per a contract. The client has two primary legal options: either sue for "specific performance" (asking the court to compel the furniture maker to complete and deliver the table) or sue for "damages" (asking for monetary compensation to cover the cost of buying a similar table elsewhere or the losses incurred due to the delay). If the client files a lawsuit specifically demanding that the furniture maker complete and deliver the table, and actively pursues that claim through court proceedings, they have made an election. They would likely be estopped from later changing their mind mid-trial and asking for monetary damages instead, especially if the furniture maker has already spent significant resources defending against the specific performance claim.

• Example 2: Employment Termination Options

  Consider an employee who believes they were wrongfully terminated. Their employment contract or company policy might offer two distinct avenues for resolution: either reinstatement to their former position with back pay, or a severance package in exchange for a full release of all claims against the company. If the employee, after being terminated, formally accepts the severance package, signs a document releasing all claims, and cashes the severance check, they have made an election. They would then be estopped from later filing a lawsuit demanding reinstatement to their job, as accepting the severance and releasing claims is a choice inconsistent with seeking to return to employment.

• Example 3: Insurance Claim Resolution

  Suppose a homeowner's roof is severely damaged in a storm, and they file an insurance claim. The insurance policy might give the insurer two options for resolving the claim for the damaged roof: either repair or replace the damaged roof directly using their preferred contractors, or pay the homeowner the cash value of the damage. If the insurance company, after assessing the damage, clearly communicates its decision to repair the roof, hires contractors, and begins the repair process, it has made an election. It would then be estopped from suddenly stopping the repairs and offering a cash settlement instead, especially if the homeowner has already made arrangements or incurred costs based on the expectation of the repairs being completed.