William Edwards v. Aetna Life Insurance Company

690 F.2d 595, 1982 U.S. App. LEXIS 24764
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 18, 1982
Docket80-1665
StatusPublished
Cited by405 cases

This text of 690 F.2d 595 (William Edwards v. Aetna Life Insurance Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Edwards v. Aetna Life Insurance Company, 690 F.2d 595, 1982 U.S. App. LEXIS 24764 (6th Cir. 1982).

Opinions

[597]*597CELEBREZZE, Senior Circuit Judge.

William Edwards appeals from the district court’s order granting Aetna Life Insurance Company’s motion for summary judgment. The district court held that the doctrine of judicial estoppel precludes Edwards from proving that he is entitled to receive disability benefits from Aetna. We reverse because we believe that Edwards should be permitted to prove his right to benefits.

The facts are not disputed. Edwards began working for the Chrysler Corporation in 1964. From June, 1965 until May, 1967, he served with the armed forces, spending part of that time in Vietnam. Upon his discharge, Edwards returned to Chrysler and worked until 1970 when he was no longer able to work because of an illness that was diagnosed as tuberculosis. Edwards returned to Chrysler in 1972 and worked there until November, 1973, when he apparently became too ill to continue working.

In April, 1970, Edwards applied for disability benefits from the Veterans Administration pursuant to 38 U.S.C. Sec. 310, which allows compensation to be paid to those veterans who suffer a “disability resulting from personal injury suffered or disease contracted in [the] line of duty.” Although Edwards could not establish that his illness was contracted in the line of duty, he was able to obtain disability benefits from the Veterans’ Administration by relying upon a rebuttable presumption that “active tuberculosis disease developing ... within three years from the date of separation from such service” was contracted while the applicant was a member of the armed forces. 38 U.S.C. Sec. 312. Thus, Edwards was able to obtain benefits by proving that he contracted tuberculosis within three years of leaving the service.1 The Veterans’ Administration concluded that Edwards was entitled to benefits under 38 U.S.C. Sec. 310 and awarded him disability benefits. Apparently, Edwards never made an unequivocal assertion that he contracted tuberculosis as a result of his service in the armed forces.2

In February, 1971, Edwards applied to Aetna for extended disability benefits and submitted to Aetna a notice of claim. He asserted that Aetna was required to pay him disability benefits pursuant to Aetna’s group insurance policy issued as part of Chrysler’s benefit package. In his application for benefits, Edwards indicated that he was receiving disability benefits pursuant to 38 U.S.C. Sec. 310. Aetna concluded that Edwards was not entitled to benefits, relying on the exclusion clause contained in the group policy:

“Section 2. Extended Disability Benefit
C. Exclusions, Limitations and Other Provisions Relating to The Benefits Provided by This Section
No insurance is afforded under this section:
as to extended disability which is caused or contributed to by, or is a consequence of, pregnancy or resulting childbirth, miscarriage, or abortion; or
as to an extended disability which is the result of service in the military (land, water or air) forces or any national or subdivision thereof; provided, however, that the terms of this item (b) shall not apply to any period of extended disability which begins after the Employee has been in the employ of a Participant Employer for at least ten years following his separation from service in such military forces or unless the Employee is at work on or after October 1, 1975.”

[598]*598Consequently, Edwards filed a complaint against Aetna in the district court, seeking to obtain disability benefits under the policy. Both parties stipulated the facts necessary for decision and filed cross-motions for summary judgment. The district court granted Aetna’s motion for summary judgment and later denied Edwards’ motion for rehearing.

The issue before us is whether the doctrine of judicial estoppel should be applied in a subsequent proceeding when a party has previously asserted an inconsistent position in an uncontested, non-judicial, administrative proceeding.3 Aetna asserts that Edwards, by applying for and receiving benefits pursuant to Sec. 310, has effectively asserted that his disability is service connected. Consequently, Aetna argues that Edwards should be estopped from assuming the position in this litigation that his disability did not result from his service in the armed forces. We reject Aetna’s argument because we believe that the policies upon which the rule is based and the precedent in this circuit do not permit the application of judicial estoppel in the context presented here.4

The policies supporting judicial estoppel are different from those that support the more common doctrines of issue preclusion, equitable and collateral estoppel. Courts apply equitable estoppel to prevent a party from contradicting a position taken in a prior judicial proceeding. See, e.g., Davis v. Wakelee, 156 U.S. 680, 689, 15 S.Ct. 555, 558, 39 L.Ed. 578 (1895). Equitable estoppel enables a party to avoid litigating, in the second proceeding, claims which are plainly inconsistent with those litigated in the first proceeding. Because the doctrine is intended to ensure fair dealing between the parties, the courts will apply the doctrine only if the party asserting the estoppel was a party in the prior proceeding and if that party has detrimentally relied upon his opponent’s prior position. See Id. at 689-90, 15 S.Ct. at 558. Collateral estoppel prevents relitigation of factual matters that were fully considered and decided in a prior proceeding. Thus, collateral estoppel operates to prevent repetitive litigation. Tipler v. E. I. du Pont de Nemours and Co., 443 F.2d 125, 128 (6th Cir. 1971).

The doctrine of judicial estoppel applies to a party who has successfully and unequivocally asserted a position in a prior proceeding; he is estopped from asserting an inconsistent position in a subsequent proceeding. Smith v. Montgomery Ward & Co., 388 F.2d 291, 292 (6th Cir. 1968). See City of Kingsport v. Steel & Roof Structure, Inc., 500 F.2d 617, 620 (6th Cir. 1974) (success in prior proceeding necessary). Unlike equitable estoppel, judicial estoppel may be applied even if detrimental reliance or privity does not exist. See Konstantinidis v. Chen, 200 D.C.App. 69, 626 F.2d 933, 937 (1980). This distinction reflects the difference in the policies served by the two rules. Equitable estoppel protects litigants from less than scrupulous opponents. Judicial estoppel, however, is intended to protect the integrity of the judicial process. Allen v. Zurich Ins. Co., 667 F.2d 1162, 1166 (4th Cir. 1982); Konstantinidis v. Chen, 626 F.2d at 937; Scarano v. Central R. Co., 203 F.2d 510, 512-13 (3rd Cir. 1953) (“such use' of inconsistent positions would most fla[599]

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Bluebook (online)
690 F.2d 595, 1982 U.S. App. LEXIS 24764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-edwards-v-aetna-life-insurance-company-ca6-1982.