Legal Definitions - estoppage

Estoppage refers to the legal state or condition where a person is prevented from asserting a particular fact or claim in a legal proceeding because their previous actions, statements, or failures to act contradict their current position, and another party has reasonably relied on that previous conduct.

• Example 1: Business Lease Agreement

  A commercial landlord repeatedly accepts rent payments from a tenant five days late for over a year, without ever issuing a late fee or warning. The lease agreement clearly states that rent is due on the first of the month and late payments incur a penalty. When the landlord suddenly tries to evict the tenant for a single late payment, arguing a breach of the lease, the tenant might argue that the landlord is in a state of estoppage. The landlord's consistent past behavior of accepting late payments without objection led the tenant to reasonably believe that strict adherence to the due date was not being enforced, preventing the landlord from suddenly enforcing it without prior notice.

• Example 2: Property Boundary Dispute

  For twenty years, a homeowner has maintained a garden bed that extends two feet onto what a new survey now shows is their neighbor's property. The previous neighbor never objected to the garden's placement, and in fact, often complimented it. When the new neighbor demands the garden be removed and the fence be moved to the exact property line, the homeowner might argue that the new neighbor is in a state of estoppage. The long-standing acquiescence of the previous owner, which the homeowner relied upon by investing time and effort into the garden, could prevent the new owner from suddenly asserting their strict property rights.

• Example 3: Insurance Claim

  An individual calls their car insurance company to confirm if their new custom car modifications are covered. An insurance agent assures them over the phone that "all modifications are fully covered under your comprehensive policy." Relying on this assurance, the individual does not purchase additional, specific modification coverage. Later, after an accident damages the modifications, the insurance company denies the claim, stating that the standard policy explicitly excludes custom modifications. The insurance company could be in a state of estoppage. The agent's clear statement, which the policyholder reasonably relied upon to their detriment by not securing additional coverage, might prevent the company from denying the claim based on the written policy's exclusion.