The etymology of this word is not known with any certainty, but may derive from the French estoupail, meaning "stopper plug" (as in a drain plug). In legal terms, estoppel is a court order that prevents a party from asserting or denying a fact, or disallows the exercise of a right or privilege.
Estoppel is used to protect the interest of a plaintiff in a civil proceeding whose case may be harmed if the defendant has taken some action or made a statement that induces an expectation upon which the plaintiff relied, and would hurt the plaintiff were the expectation shown to be false.
One example in which estoppel might be applied is a case in which a representative from a hospital gives an assurance to a patient that expenses for treatment will be covered. Even if the insurance company refuses to cover the expenses, the court may use estoppel to prevent the hospital from taking legal action to collect on the debt, even though it may have a legal right to do so. This would be an example of equitable estoppel. Essentially, this legal doctrine prohibits a party from taking a position during legal action that is different from that taken before the trial.
There is also what is known as collateral estoppel. Under this doctrine, a party is prohibited from raising an issue or fact that had previously been decided during an earlier proceeding. For example, if an employer had been found guilty of reckless endangerment or criminal negligence of its employees welfare during a criminal trial and then is later sued by former employees in a civil action, the employer cannot claim ignorance of a hazardous situation.