Miles Excavating, Inc. v. Rutledge Backhoe & Septic Tank Servs., Inc., 927 P.2d 517 (Kan. Ct. App. 1996). · Go Syfert
Miles Excavating, Inc. v. Rutledge Backhoe & Septic Tank Servs., Inc., 927 P.2d 517 (Kan. Ct. App. 1996). Cases Citing This Book View Copy Cite
34 citation events (30 in the last 25 years) across 6 distinct courts.
Strongest positive: TP ST Acquisition, LLC v. Lindsey (ksd, 2021-05-04)
Treatment trajectory · 1999 → 2026 · click a year to view as-of
1999 2012 2026
Top citers, strongest first. 8 distinct citers. How cited ↗
discussed Cited as authority (rule) TP ST Acquisition, LLC v. Lindsey
D. Kan. · 2021 · confidence medium
The integration clause states that “there are no warranties, representations or other agreements between the Parties in connection with the 47 Great Plains Christian Radio, Inc., 399 F. Supp. 2d at 1197 . 48 Miles Excavating, Inc. v. Rutledge Backhoe & Septic Tank Servs., Inc., 927 P.2d 517, 518 (Kan.
discussed Cited as authority (rule) Cessna Finance Corporation v. JS CJ3, LLC (2×) also: Cited "see, e.g."
D. Kan. · 2020 · confidence medium
The court noted, however, that “the rule supported generally is that a provision in a written contract expressly excluding from consideration representations not included in the written contract does not prevent proof of parol representations which amount to fraud in the inducement of the contract.”35 The court admonished that “the parol evidence rule should never be used to shield fraud.”36 To that end, the court reasoned that while the parol evidence rule bars evidence seeking to contradict or modify the terms in a contract, evidence of fraud is introduced for the purpose of 34 Id. a…
discussed Cited as authority (rule) Poeppel v. Lester
S.D. · 2013 · confidence medium
Sys., Inc. v. Rexham Corp., 624 So.2d 1379, 1383 (Ala.1993) ("[T]he law in this state renders an integration, or merger, clause ineffective to bar parol evidence of fraud in the inducement or procurement of a contract."); Hall v. Crow, 240 Iowa 81 , 34 N.W.2d 195, 198 (1948) (''[W]here there is evidence of fraudulent misrepresentations in the inception of a contract such misrepresentations can be the basis for either an action to rescind or for damages, despite the limiting provisions of a contract.”); Miles Excavating, Inc. v. Rutledge Backhoe & Septic Tank Servs., Inc., 23 Kan.App.2d 82 , …
discussed Cited as authority (rule) Abry Partners V, L.P. v. F & W Acquisition LLC
Del. Ch. · 2006 · confidence medium
The case law along these lines is not always as focused as would be ideal on the precise terms of the contract and sometimes has tended to conflate distinctive contractual provisions that address the scope of representations and agreements made under broad terms such as "merger or integration clauses.” Recognizing that, a sampling of the cases tending to give little effect to contractual disclaimers of representations not contained within the contract's four corners includes: Northwest Bank and Trust Co. v. First Illinois Nat’l Bank, 354 F.3d 721, 725-26 (8th Cir.2003); RepublicBank Dallas…
cited Cited "see" Schremmer v. Farmers Insurance Co.
Kan. Ct. App. · 2022 · signal: see · confidence high
See Miles Excavating, Inc. v. Rutledge Backhoe & Septic Tank Services, Inc., 23 Kan.
discussed Cited "see" N111KJ, LLC v. Cessna Aircraft Company (2×)
11th Cir. · 2017 · signal: see · confidence high
See Miles Excavating, Inc. v. Rutledge Backhoe & Septic Tank Servs., Inc., 23 Kan.App.2d 82 , 927 P.2d 517, 518 (1996).
discussed Cited "see" Van Enterprises, Inc. v. Avemco Insurance (2×)
D. Kan. · 2002 · signal: see · confidence high
See Miles Excavating, Inc. v. Rutledge Backhoe & Septic Tank Servs., Inc., 23 Kan.App.2d 82, 84 , 927 P.2d 517, 518 (1996) (parol evidence admissible to show fraud in inducement of contract even where contract contains provision stating that parties have not relied on any representations other than those contained in written contract); Ramada Franchise Sys., Inc. v. Tresprop, Ltd., 188 F.R.D. 610, 615-16 (D.Kan.1999) (same).
discussed Cited "see" Ramada Franchise Systems, Inc. v. Tresprop, Ltd. (2×)
D. Kan. · 1999 · signal: see · confidence high
See Miles Excavating, Inc. v. Rutledge Backhoe and Septic Tank Sens., Inc., 23 Kan.App.2d 82, 84 , 927 P.2d 517, 518 (1996) (parol evidence admissible to show fraud in inducement of contract even where contract contains provision stating that parties have not relied on any representations other than those contained in written contract).
Retrieving the full opinion text from the archive…
Miles Excavating, Inc., Appellant,
v.
Rutledge Backhoe and Septic Tank Services, Inc., Appellee
74,855.
Court of Appeals of Kansas.
Nov 22, 1996.
927 P.2d 517
Lori R Schultz and William E. Hanna, of Morrison & Hecker, L.L.P., of Kansas City, Missouri, for appellant., J. Michael Grier, Lori H. HiU, and JejfKennard, of Blackwell Sanders Matheny Weary & Lombardi, L.C., of Overland Park, for appellee.
Elliott, Knudson, Smith.
Cited by 13 opinions  |  Published
Elliott, J.:

Miles Excavating, Inc., (Miles) sued Rutledge Backhoe and Septic Tank Services, Inc., (Rutledge) for breach of contract and fraud or fraud in the inducement of a release agreement. The trial court granted Rutledge’s motion to dismiss for failure to state a claim and denied Miles’ request to file an amended petition. We reverse and remand.

The petition made the following allegations: Miles and Rutledge agreed to provide services on a project for Terracon Environmental, Inc., (Terracon) at the McCormick Distillery. Miles and Rutledge agreed to share profits equally. Upon completion of the project, Rutledge submitted two notices to Terracon. When Rutledge received payment on the first invoice, it paid Miles its share of the[*83] profits and required Miles to execute a release acknowledging payment in full. Rutledge did not inform Miles of the second invoice or that it expected to receive additional monies from the project.

A few days after Miles executed the release, Rutledge received an additional $185,250 for the project. Not surprisingly, Rutledge refused to pay Miles any portion of the monies received from the second invoice.

In its motion to dismiss, Rutledge argued that Miles admitted executing the release which contained the following language: “[Tjhis Release is not executed in reliance upon any statement or representation made by the party or parties hereby released.” Miles responded it should be allowed to present evidence of the alleged fraud and that the parol evidence rule does not exclude that evidence where the contract was induced by fraud.

Our standard of review is to determine whether the facts pled, viewed in a light most favorable to plaintiff, state any valid claim for relief. We accept plaintiff’s version of the facts and any reasonable inferences which may be drawn from them, and must resolve any doubts in plaintiff’s favor. Dismissal is proper only if the allegations in the petition clearly show plaintiff has no claim. Blevins v. Board of Douglas County Comm’rs, 251 Kan. 374, 381, 834 P.2d 1344 (1992).

In dismissing, the trial court ruled the release covered all claims arising out of the McCormick Distillery project and also ruled that parol evidence could not be used to vary the terms of the release agreement. The parties agree that Kansas law applies.

In Stegman v. Professional & Business Men’s Life Ins. Co., 173 Kan. 744, 751, 252 P.2d 1074 (1953), the Supreme Court held that parol evidence is permitted where a contract is procured or induced by fraud, explaining that “[fjraud vitiates whatever it touches including final judgments and final orders as well as contracts.” See also Griesa v. Thomas, 99 Kan. 335, 339-41, 161 Pac. 670 (1916) (parol evidence rule not applicable where fraud pled and proved); Hart v. Haynes, 96 Kan. 262, Syl. ¶ 2, 150 Pac. 530 (1915).

The twist in the present case is the clause in the release stating that Miles did not rely on any representations of Rutledge. No Kansas case has directly addressed the issue of the effect of such[*84] a clause, but “the rule supported generally is that a provision in a written contract expressly excluding from consideration representations not included in the written contract does not prevent proof of parol representations which amount to fraud in the inducement of the contract.” 37 Am. Jur. 2d, Fraud & Deceit § 452; see Annot., 56 A.L.R. 13, 56.

Oak Industries, Inc. v. Foxboro Co., 596 F. Supp. 601 (S.D. Cal. 1984), involved similar, if not identical, arguments to the ones made in the present case. There, the court allowed parol evidence to show fraud in the inducement of a contract even where the contract had a provision that no oral representation had been made. The court reasoned that extrinsic evidence of fraud does not contradict or vary the terms of the written contract — it merely shows that no binding contract was ever made. Further, the parol evidence rule should never be used to shield fraud. 596 F. Supp. at 607-08.

Rutledge’s reliance on Edwards v. Phillips Petroleum Co., 187 Kan. 656, 360 P.2d 23 (1961), and Kelly v. Tillotson-Pearson, Inc., 840 F. Supp. 935 (D.R.I. 1994), is misplaced. Both cases are distinguishable, since both cases involved disclaimers specific to the matter about which the plaintiffs claimed to have been defrauded. See 840 F. Supp. at 939-42; 187 Kan. at 658, 662.

Further, the parol evidence rule is not violated when the evidence tends to show the relation of the parties and the circumstances under which the contract was executed. See In re Estate of Goff, 191 Kan. 17, 29, 379 P.2d 225 (1963).

We hold that parol evidence is admissible to show fraud in the inducement of a contract even where the contract contains a provision stating the parties have not relied on any representations other than those contained in the writing. Accordingly, the trial court erred in ruling Miles’ petition failed to state a claim.

Because of our holding on the dismissal ruling, we need not address the issue concerning Miles’ request to file an amended petition.

Reversed and remanded for further proceedings.