FOR PUBLICATION
ATTORNEYS FOR APPELLANT: ATTORNEY FOR APPELLEE:
ANDREW C. CHARNSTROM TERRY R. CURRY
MAUREEN E. WARD Sommer, Barnard, P.C.
Wooden & McClaughlin, LLP Indianapolis, Indiana
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
ABERDEEN APARTMENTS, et al., )
)
Appellant-Plaintiffs )
)
vs. ) No. 29A04-0406-CV-297
)
CARY CAMPBELL REALTY )
ALLIANCE, INC., )
)
Appellee-Defendant. )
APPEAL FROM THE HAMILTON CIRCUIT COURT
The Honorable Judith S. Proffitt, Judge
Cause No. 29C01-0304-CT-595
January 11, 2005
OPINION - FOR PUBLICATION
ROBB, Judge
Aberdeen Apartments and ninety-five other apartment communities
See footnote in Hamilton, Hancock, Hendricks, Johnson, Marion,
and Shelby counties (collectively the Apartments), appeal the trial courts denial of their
motion for a preliminary injunction against Cary Campbell Realty Alliance, Inc. (Campbell Realty).
We reverse and remand.
Issues
The Apartments raise four issues for our review, which we consolidate and restate
as follows:
Whether the trial court properly denied the Apartments motion for a preliminary injunction
because the Apartments failed to show that they were reasonably likely to succeed
at trial on their trespass claim and because they failed to show irreparable
harm; and
Whether the trial court properly denied the Apartments motion for a preliminary injunction
because the preliminary injunction sought by the Apartments is an impermissible prior restraint
under the United States and Indiana Constitutions.
Facts and Procedural History
Campbell Realty is an Indiana corporation with its principal office in Hamilton County.
It is a for-profit business that seeks to sell new homes to
first-time home buyers. In order to find new buyers, Campbell Realty publishes
the Renters Gazette. The Renters Gazette is a free publication that Campbell
Realty has distributed to numerous apartment communities throughout central Indiana for the last
two to three years. In City of Indianapolis v. Campbell, 792 N.E.2d
620, 626 (Ind. Ct. App. 2003), we held that the Renters Gazette qualified
as a newspaper under a City of Indianapolis and Marion County
ordinance. The Renters Gazette has the appearance of a newspaper. It
is printed on newsprint and is folded down the middle. It is
usually between eight and ten pages in length. The content of the
Renters Gazette varies. It often contains articles that are appealing to renters,
such as how to keep ones apartment secure. It also usually contains
the schedule of one of the local sports teams. Some of the
articles in the Renters Gazette are designed to cast apartment communities, their management,
and landlords in a negative light. These articles have suggested that landlords
were not concerned about their tenants security, that landlords were thieves, and that
landlords are somehow like the mafia. A large portion of the Renters
Gazette is devoted to advertisements. The majority of these ads offer for
sale new homes with low monthly payments. Each of these ads lists
a telephone number that prospective buyers can call. This telephone number connects
the caller with Campbell Realtys answering service located in the state of Arizona.
The answering service takes the name and telephone number of the caller
and forwards this information to Campbell Realtys real estate agents in Indiana.
The real estate agents then contact the caller and attempt to sell them
a new house. In 2003, Campbell Realty located about five hundred new
home buyers, and in 2002 they located between seven hundred and eight hundred
new buyers.
The distribution of the Renters Gazette is of critical importance here. Anywhere
between twenty-five thousand and fifty thousand copies of the Renters Gazette are published
each week. Campbell Realty then hires individuals, who work in teams of
three to four, to deliver the Renters Gazette to numerous apartment communities located
throughout central Indiana. The Renters Gazette is delivered once each week between
Sunday and Thursday. The delivery teams are only supposed to deliver the
Renters Gazette between 6 p.m. and 10 p.m., but tenants have reported that
the Renters Gazette has been delivered after 10 p.m. Individuals do not
subscribe to the Renters Gazette, instead delivery teams leave one copy of the
Renters Gazette at the doorstep of each apartment in the apartment community.
The Apartments brought suit against Campbell Realty alleging that the distribution of the
Renters Gazette constituted a trespass and interference with a business relationship.
See footnote
Each
of the apartment communities involved here have signs posted on their property stating
that no solicitation or trespassing is permitted, and these rules are strictly enforced.
The Apartments indicated that on several occasions they have contacted Campbell Realty
and told them to stop entering their properties to deliver the Renters Gazette.
Despite these requests, Campbell Realtys delivery teams have continued to enter the
properties. Security personnel at some of the apartment communities have asked the
delivery teams to leave the property. Sometimes the delivery teams leave, but
sometimes they do not.
Unclaimed issues of the Renters Gazette create litter on the grounds of the
apartment communities. Many of the apartment communities must use all of their
maintenance personnel to insure that the litter caused by the Renters Gazettes is
picked up. This often causes the maintenance personnel to neglect their other
responsibilities. The litter caused by the unclaimed Renters Gazettes detracts from an
apartment communitys curb appeal. Curb appeal apparently relates to the appearance of
an apartment community as a prospective tenant drives by the community. The
cleaner and more tidy an apartment community appears, the more curb appeal it
has. Due to their decreased curb appeal, the Apartments contend that prospective
tenants are discouraged from renting there.
The information in the Renters Gazette has caused some of the Apartments tenants
to purchase new homes rather than renew their leases. The Apartments have
received complaints from their tenants regarding the Renters Gazette. Some tenants have
complained about the mess caused by issues of the Renters Gazette. Others
have complained that they have been awakened by the delivery of the Renters
Gazette late at night. The Apartments have been unable to quantify their
losses attributable to the Renters Gazette.
The Apartments moved for a preliminary injunction to bar Campbell Realtys delivery teams
from entering onto their properties. The trial court denied the Apartments motion
for a preliminary injunction and this appeal ensued.
Discussion and Decision
I. Preliminary Injunction
The Apartments first contend that the trial court abused its discretion in denying
their motion for a preliminary injunction. We agree.
A. Standard of Review
The decision whether to grant or deny a preliminary injunction rests within the
discretion of the trial court, and the scope of appellate review is limited
to deciding whether the trial court has clearly abused its discretion. Dicen
v. New Sesco, Inc., 806 N.E.2d 833, 841 (Ind. Ct. App. 2004).
An abuse of discretion occurs when the trial courts decision is clearly against
the logic and effect of the facts and circumstances or if the trial
court misinterprets the law. Indiana High Sch. Athletic Assn Inc., v. Martin,
731 N.E.2d 1, 5 (Ind. Ct. App. 2000), trans. denied. When determining
whether or not to grant a preliminary injunction, the trial court is required
to make special findings of fact and conclusions of law. Barlow v.
Sipes, 744 N.E.2d 1, 5 (Ind. Ct. App. 2001), trans. denied (citing Ind.
Trial Rule 52(A)). When findings and conclusions of law are made, the
reviewing court must determine if the trial courts findings support the judgment.
Id. We will reverse the trial courts judgment only when it is
clearly erroneous. Id. Findings of fact are clearly erroneous when the
record lacks evidence or reasonable inferences from the evidence to support them.
Id. We will consider the evidence only in the light most favorable
to the judgment and construe findings together liberally in favor of the judgment.
Id.
The trial courts discretion to grant or deny a preliminary injunction is measured
by several factors:
(1) whether the plaintiff's remedies at law are inadequate, thus causing irreparable harm
pending the resolution of the substantive action if the injunction does not issue;
2) whether the plaintiff has demonstrated at least a reasonable likelihood of success
at trial by establishing a prima facie case; 3) whether the threatened injury
to the plaintiff outweighs the threatened harm the grant of the injunction may
inflict on the defendant; and 4) whether, by the grant of the preliminary
injunction, the public interest would be disserved.
Id. The moving party has the burden of showing, by a preponderance
of the evidence, that the facts and circumstances entitle him or her to
injunctive relief. Id. The power to issue a preliminary injunction should
be used sparingly, and such relief should not be granted except in rare
instances where the law and facts are clearly in the moving partys favor.
Id.
B. Reasonable Likelihood of Success at Trial
The trial court found several grounds for denying the Apartments motion for a
preliminary injunction. One of those grounds was its conclusion that the Apartments
were not likely to succeed at trial in their trespass claim against Campbell
Realty. The trial court made the following relevant conclusions of law:
M. Pursuant to Indiana law, a tenant holds a leasehold in the rented
premises. The estate of the landlord during the term of the lease
is limited to his reversionary interest, which ripens into perfect title at the
expiration of the lease. Mendenhall et al. v. First New Church Society
of Indianapolis, 98 N.E. 57, 60 (Ind. 1912).
N. In accordance with Indiana law, unless otherwise agreed to or specifically reserved,
everything which belongs to the demised premises or is used with and is
appurtenant to the leased premises, and which is reasonably necessary to the beneficial
use and enjoyment thereof, will be considered as incidental to the leased premises
and thus a right belonging to the tenant. Caito v. Indianapolis Produce
Terminal, Inc., 320 N.E.2d 821, 825 (Ind. Ct. App. 1974). Receiving information
in the form of free newspapers and accepting deliveries at the tenants leased
premises are all reasonably necessary to the beneficial use and enjoyment of leased
premises. Absent any provision in the plaintiffs leases or rules to the
contrary, Campbell Realtys activity cannot be prohibited by plaintiffs.
O. The fundament [sic] element of trespass to realty is injury to possession,
and right to possession is necessary for the maintenance of the action.
State v. Gibson Circuit Court, 206 N.E.2d 135 (Ind. 1965); Sigsbee v. Swathwood,
419 N.E.2d 789 (Ind. Ct. App. 1981). [The Apartments] thus cannot maintain
an action for trespass because a party cannot assert an action for trespass
unless the party has exclusive dominion and control over the property alleged to
be trespassed upon by [Campbell Realty]. [The Apartments] do not have the
common areas of their communities within their exclusive control.
Appellants Brief at tab 1 pg. 9-10 (emphasis added). The trial court
found that the Apartments did not have exclusive control over the common areas
because the tenants were allowed to use these areas.
The question of whether a landlord must have exclusive possession of the common
areas of an apartment community before he or she may sue for trespass
to those areas has not been addressed in this state; therefore, we will
consider how courts in other states have resolved this or similar issues.
Initially, we note that in a trespass claim a plaintiff must prove that
he was in possession of the land and that the defendant entered the
land without right. Indiana Michigan Power Co. v. Runge, 717 N.E.2d 216,
227 (Ind. Ct. App. 1999) (quoting Lever Bros. Co. v. Langdoc, 655 N.E.2d
577, 581-82 (Ind. Ct. App. 1995)). By our own enunciation of the
elements of a trespass claim, a plaintiff need only prove that he or
she is in possession, rather than exclusive possession, of the land in question
to succeed. But we have also abided by the traditional rule that
an action for trespass to real estate cannot be maintained for an invasion
of a right of way or easement. Runge, 717 N.E.2d at 227
(quoting State ex rel. Green v. Gibson Circuit Court, 246 Ind. 446, 449,
206 N.E.2d 135, 137 (1965)). This traditional rule is based upon
the principle that trespass actions are possessory actions and that the right interfered
with is the plaintiffs right to the exclusive possession of a chattel or
land. Id. The traditional rule then seems to muddy the waters
by suggesting that for a plaintiff to prevail in a trespass claim he
or she must prove exclusive possession of the land in question.
We do not need to resolve this ambiguity in the case law as
we conclude that the Apartments are in exclusive possession of the common areas.
As the Michigan Court of Appeals has explained:
[t]he landlord grants to tenants rights of exclusive possession to designated portions of
the property, but the landlord retains exclusive possession of the common areas.
The landlord grants to tenants a license to use the common areas of
the property. Tenants pay for this license as part of their rent.
Therefore, tenants are invitees of the landlord while in the common areas,
because the landlord has received a pecuniary benefit for licensing their presence.
Stanley v. Town Square Coop., 512 N.W.2d 51, 54 (Mich. Ct. App. 1994).
However, the Washington Supreme Court has taken a position contrary to that of
the Michigan Court of Appeals. They have stated:
Contrary to appellants assertion, landlords do not have exclusive authority over the common
areas. In order to admit visitors to an apartment, the tenant must
necessarily possess the authority to permit guests to pass through the common areas
leading to that apartment. The tenant must therefore possess the authority to
consent to the visitors entry into the building itself. For that reason,
the authority over common areas is more properly characterized as common to both
tenant and landlord, rather than exclusive to the landlord alone.
City of Seattle v. McCready, 124 Wash.2d 300, 307, 877 P.2d 686, 690
(1994).
Although we agree that tenants must have the right to permit visitors to
pass through the common areas in order to enter their apartment, we believe
the Michigan Court of Appeals has satisfactorily dealt with this by giving tenants
a license to use the common areas. The Washington Supreme Courts position
that landlords and tenants share authority over common areas also leaves us with
the same problem caused by the trial courts decision here. If neither
the landlord nor the tenant has exclusive control over common areas then no
one would be able to maintain an action for trespass to those areas.
We believe that for each piece of property there should be at
least one individual with a sufficient interest in that property to maintain an
action for trespass to it. This would help to protect the property
from such things as waste, and also protect the interests of any individuals
who happen to be tenants on the property. We therefore hold that
a landlord retains exclusive possession of the common areas of an apartment complex
and that the trial court has abused its discretion to the extent that
it has held otherwise.
See footnote
Regardless of whether or not a landlord has exclusive possession over common areas,
we would still conclude that he or she has a sufficient possessory interest
in the common areas of an apartment complex to bring an action for
trespass. The Apartments correctly note that a landlord has a duty to
maintain the common areas or areas under his or her control in a
safe condition.
City of Indianapolis Hous. Auth. v. Pippin, 726 N.E.2d 341,
345 (Ind. Ct. App. 2000). Should a landlord breach this duty, he
or she could be liable in an action for negligence. The Apartments
argue that because a landlord is burdened with this duty and the threat
of potential liability, he or she must retain a sufficient possessory interest in
the property to maintain an action for trespass.
The Missouri Court of Appeals has reached a similar conclusion. In Motchan
v. STL Cablevision, Inc., 796 S.W.2d 896 (Mo. Ct. App. 1990), the landlords
owned a four-family dwelling that they rented out to tenants. The defendants
installed video transmission cables across the property and into the building at the
request of one of the tenants. In order to install the cable,
the defendants had to drive nails and drill holes into the building.
The landlords brought a suit against the defendants for trespass. The defendants
moved for summary judgment, arguing that the landlords could not maintain a trespass
action because they were not in possession of the property. The trial
court granted the defendants motion for summary judgment. On appeal, the landlords
argued that they retained a possessory interest in the common areas that was
sufficient to permit them to maintain an action for trespass. The landlords
argued that their possessory interest in the common areas was derived from their
retention of control over those areas and their duty to repair and keep
those areas safe. The Missouri Court of Appeals noted that [t]he landlord
retains, as to the tenants, possession and control of the common areas.
Id. at 899. The court also stated that [w]hen a tenant is
in full possession of the premises, the landlord will have no liability for
injuries occurring therein, but when the landlord reserves some area for common use,
he may be liable. Id. The court ultimately held that because
landlords retain control over and could be subject to liability for injuries occurring
in the common areas, they retain sufficient possession of the common areas to
support an action for trespass. Id. at 900. We agree with
the Missouri Court of Appeals. Because Indiana landlords have a duty to
maintain common areas in a safe condition and can be held liable for
injuries occurring in those areas, we hold that landlords retain sufficient possession over
common areas to maintain an action for trespass. See Colonial Properties, Inc.
v. Vogue Cleaners, Inc., 86 F.3d 210, 211 (11th Cir. 1996) (concluding that
Alabama law is the same as that enunciated by the Missouri Court of
Appeals in Motchan).
We further conclude that public policy supports allowing landlords to maintain an action
for trespass to the common areas of their properties. The United States
Supreme Court has stated that one of the essential sticks in the bundle
of property rights is the right to exclude others. Pruneyard Shopping Ctr.
v. Robins, 447 U.S. 74, 82, 100 S.Ct. 2035, 2041, 64 L.Ed.2d 741,
752 (1980). The trial courts denial of the Apartments motion for a
preliminary injunction denies the Apartments their right to exclude trespassers from their property.
As with all rights afforded to citizens, our property rights must be
closely safeguarded from unwarranted infringements. Here, the denial of the Apartments property
rights is unwarranted.
The Apartments also persuasively argue that the trial courts conclusion will lead to
illogical and unjust results. The trial court concluded that the Apartments could
not maintain an action for trespass against Campbell Realty because they were not
in exclusive possession of the common areas of their properties. The Apartments,
however, note that by their very nature the common areas are used by
both the tenants and the landlord in common. Under the trial courts
reasoning, neither the landlord nor the tenant would have exclusive possession of the
common areas. If no one has exclusive possession, then no one would
have the ability to maintain an action for trespass to the common areas.
Such a result would mean that businesses like Campbell Realty would have
unfettered access to all apartment communities in Central Indiana. Appellants Brief at
20. Perhaps of even greater concern, if landlords cannot maintain an action
for trespass to the common areas of their properties, then those common areas,
like parking lots, sidewalks, laundry rooms, tennis courts, playgrounds, and swimming pools, would
be open to public use without limit or restriction. Id. This
result is not in the publics best interest, as it would have a
deleterious effect on the landlords business and would interfere with the privacy and
repose that tenants expect from what is their home.
We therefore hold that landlords do have a sufficient possessory interest in the
common areas of their properties to maintain an action for trespass to those
areas. The trial court abused its discretion in concluding that the Apartments
did not demonstrate a reasonable likelihood of success at trial on their trespass
claim because the Apartments have made a prima facie showing that they are
in possession of the common areas of their properties and because Campbell Realty
has indisputably entered the Apartments land without right.
See footnote
C. Irreparable Harm
The trial court also denied the Apartments motion for a preliminary injunction because
it found that they had failed to establish an irreparable injury. The
trial court found that the Apartments had only shown they would suffer a
mere economic injury, which it concluded did not constitute irreparable harm.
At the hearing on the Apartments motion for a preliminary injunction, the Apartments
introduced several pieces of evidence regarding the harm they suffered. The Apartments
established that on a weekly basis agents of Campbell Realty were entering their
property uninvited to deliver the
Renters Gazette. Evidence was introduced that the
Apartments had to use all of their grounds personnel and maintenance staff to
clean up the mess caused by unclaimed issues of the Renters Gazette.
The Apartments testified that the litter caused by the Renters Gazettes diminished their
curb appeal and, thus, discouraged potential future tenants from living there. Evidence
was also presented that some tenants were not renewing their leases and had
instead decided to buy a new home due to information they had received
in the Renters Gazette.
The Apartments have presented sufficient evidence of irreparable harm. Campbell Realtys delivery
teams enter the Apartments properties on a weekly basis. This constitutes a
continuing trespass. A trial court may issue an injunction in order to
prevent a continued trespass. Ballard v. Harman, 737 N.E.2d 411, 417 (Ind.
Ct. App. 2000). The Apartments have also introduced evidence that they have
suffered economic losses. The trial court and Campbell Realty make much of
the fact that the Apartments cannot quantify these losses, but this is not
required at this stage of the proceedings. See Roberts Hair Designers, Inc.
v. Pearson, 780 N.E.2d 858, 865 (Ind. Ct. App. 2002). If the
Apartments could point to a specific dollar amount of losses, then a remedy
at law would be sufficient. Id. The trial court abused its
discretion by denying the Apartments motion for a preliminary injunction because they had
failed to establish irreparable harm.
See footnote See footnote
II. Prior Restraint
The Apartments next argue that the trial court abused its discretion in denying
their motion for a preliminary injunction by finding the injunction sought by the
Apartments would constitute an impermissible prior restraint. We agree.
We begin by considering whether the injunction sought by the Apartments would violate
either the First Amendment to the United States Constitution or Article I, Section
9 of the Indiana Constitution. The First Amendment, made applicable to the
States through the Fourteenth Amendment, provides that Congress shall make no law .
. . abridging the freedom of speech . . . . Article
I, Section 9 of the Indiana Constitution states that [n]o law shall be
passed, restraining the free interchange of thought and opinion, or restricting the right
to speak, write, or print, freely, on any subject whatever." One of
the chief purposes of the First Amendment is to prevent previous restraints upon
publication.
Barlow, 744 N.E.2d at 9 (quoting Near v. Minnesota, 283 U.S.
697, 713, 51 S.Ct. 625, 75 L.Ed. 1357 (1931)). Thus if the
injunction sought by the Apartments is a prior restraint, we will not consider
it a per se violation of the First Amendment, but it will come
before us with a heavy presumption that it is constitutionally invalid. Barlow,
744 N.E.2d at 9.
A prior restraint describes orders forbidding certain communications that are issued before the
communications occur. Id. Restraining orders and injunctions that forbid future speech
activities are classic examples of prior restraints. Mishler v. MAC Sys., Inc.,
771 N.E.2d 92, 95 (Ind. Ct. App. 2002). The special vice of
a prior restraint is that communication is suppressed, either directly or by inducing
excessive caution in the speaker, before an adequate determination that it is unprotected
by the First Amendment. Barlow, 744 N.E.2d at 9. However, the
protections that the First Amendment and Article I, Section 9 afford against prior
restraints are not triggered unless there is a state action. As Campbell
Realty points out, the issuance of a preliminary injunction by the trial court
would constitute a state action triggering the protections of both the First Amendment
and Article I, Section 9. Id. at 10; Mishler, 771 N.E.2d at
97.
See footnote
Although both the First Amendment and Article I, Section 9 are implicated here,
we do not believe that the preliminary injunction sought by the Apartments is
an impermissible prior restraint. The Apartments have only asked the trial court
to enjoin Campbell Realtys agents from trespassing on their private properties. The
injunction sought by the Apartments would not bar Campbell Realty from publishing or
distributing the
Renters Gazette. Campbell Realty would be free to distribute the
Renters Gazette to all of the Apartments tenants through the mail. They
could also distribute the Renters Gazette as a free publication at the various
news racks located at grocery stores, drug stores, gas stations, restaurants, and along
some city streets. Some of the apartment communities indicated that they allow
distributors of free publications to leave copies of their publications in the complexs
management office where tenants could pick them up if they so desired.
With proper approval, copies of the Renters Gazette could be left here as
well. Therefore, we hold that the preliminary injunction sought by the Apartments
is not an impermissible prior restraint under either the First Amendment or Article
I, Section 9 of the Indiana Constitution.
See footnote
The trial court also denied the Apartments motion for a preliminary injunction because
the injunction would interfere with the tenants right to receive the
Renters Gazette.
We agree with the trial court that the tenants have a First
Amendment right to receive information and ideas. Virginia State Bd. of Pharmacy
v. Virginia Citizens Consumer Council, Inc., 425 U.S. 748, 757, 96 S.Ct. 1817,
1823, 48 L.Ed.2d 346, 355 (1976) (quoting Kleindienst v. Mandel, 408 U.S. 753,
762-63, 92 S.Ct. 2576, 2581, 33 L.Ed.2d 683, 691-92 (1972)). However, we
do not believe that the preliminary injunction sought by the Apartments interferes with
the tenants First Amendment rights. Although the preliminary injunction would bar Campbell
Realtys delivery teams from trespassing on the Apartments properties, it would not bar
Campbell Realty from publishing and distributing the Renters Gazette. Tenants would be
free to obtain a copy of the Renters Gazette at any location where
Campbell Realty chooses, and is permitted, to distribute it.
We therefore hold that the injunction would not constitute an impermissible prior restraint,
and the trial court abused its discretion by denying the Apartments motion for
a preliminary injunction.
Conclusion
The trial court abused its discretion in denying the Apartments motion for a
preliminary injunction because landlords do have a sufficient possessory interest in the common
areas of their properties to maintain an action for trespass to those areas
and because the Apartments have presented sufficient evidence that they will suffer irreparable
harm if a preliminary injunction is not granted. We also hold that
the preliminary injunction sought by the Apartments will not constitute an impermissible prior
restraint under either the First Amendment or Article I, Section 9 of the
Indiana Constitution. The trial courts denial of the Apartments motion for a
preliminary injunction is therefore reversed, and we remand the case to the trial
court.
Reversed and remanded.
KIRSCH, C.J., concurs.
BAKER, J., dissents with opinion.
IN THE
COURT OF APPEALS OF INDIANA
ABERDEEN APARTMENTS, et al., )
)
Appellants-Plaintiffs, )
)
vs. ) No. 29A04-0406-CV-297
)
CARY CAMPBELL REALTY )
ALLIANCE, INC., )
)
Appellee-Defendant. )
Baker, Judge, dissenting.
I understand that the Apartments find themselves in an aggravating situationhaving to dedicate
extra employee time to cleaning up the Renters Gazette from its properties, losing
tenants who buy a home as a result of information contained in the
Renters Gazette, and fearing a loss of prospective tenants who see the littered
properties and choose not to rent an apartment. But I believe that
granting the requested preliminary injunction gives landlords an unprecedented right to bar whomever
they choose from their properties, and I also believe that the injunction violates
Campbell Realtys and the tenants rights under the First Amendment to the United
States Constitution and Article I, Section 9 of the Indiana Constitution. Therefore,
I respectfully dissent from the majority opinion.
I. Trespass
The majority concludes that a landlord has the right to exclusive possession of
the common areas of its apartment building such that it may bring an
action for trespass. It further concludes that while a tenant has the
right to exclusive possession of her apartment, she has only a license to
use the common areas of her apartment building, and is an invitee of
the landlord while in the common areas. I agree that a landlord
has a possessory interest in common areas to the extent that needs to
repair and maintain them, see City of Indianapolis Hous. Auth. v. Pippin, 726
N.E.2d 341, 345 (Ind. Ct. App. 2000), but I respectfully disagree that its
interest goes any farther than that.
To hold that a landlord has the right to exclusive possession of the
common areas of an apartment building is tantamount to the notion that a
landlord has the right to bar anyone of its choosingnot just solicitorsfrom the
premises. While a tenant may agree to such a condition if it
is included in her lease, I believe it is unwise for the judiciary
to read that condition into a contractespecially where, as here, the already-executed lease
governing the landlord-tenant relationship contains no such provision.
Although the Apartments and the majority opinion attempt to distinguish between invited guestssuch
as The Indianapolis Star and food delivery peopleand non-invited guestssuch as the Renters
Gazette delivery peoplegiving landlords the right to exclusive possession of common areas means
that they may bar whomever they choose from the premisesincluding friends and other
guests of tenants. Moreover, even if I accept the distinction between invitees
and non-invitees for arguments sake, there is evidence in the record that not
only did some tenants have no objection to the delivery of the Renters
Gazette, they even decided to purchase a new home based on the information
contained therein. Appellants App. p. 17. Indeed, this loss of business
is inarguably a significantand troublingly content-basedcomponent of the Apartments problem with the newspaper.
I respectfully disagree with the majoritys holding that landlords have the right
to exclusive possession of common areas, therefore, because I believe that this holding
will have far-reaching and unintended implications for the landlord-tenant relationship.
II. Irreparable Harm
I also disagree with the conclusion that the Apartments have shown irreparable harm
as a result of the distribution of the Renters Gazette. There are
two ways in which the Apartments attempt to show irreparable harm. The
first, concerning litter from the Renters Gazette blowing around the Apartments properties, does
not qualify for a preliminary injunction because money damages would suffice to remedy
this harm. The second, involving a loss of business as a result
of the decision of certain tenants to buy a home after reading the
Renters Gazette, is a content-based argument that causes the injunction to violate the
United States and Indiana Constitutions.
A. Litter
The Apartments introduced evidence of added clean-up costs, unsightly appearance, and security concerns
caused by unclaimed issues of the Renters Gazette. I agree that this
evidence shows that the Apartments have been harmed by the distribution of the
Renters Gazette, but I disagree that it shows irreparable harm such that an
injunction is appropriate relief. Initially, the record does not appear to reveal
whether the Renters Gazette is the only printed material that blows around and
leaves litter on the premises. It may be that the Apartments have
similar problems with other printed material, such as The Indianapolis Star and USA
Today. Moreover, it would not be difficult to quantify the number of
employees, the number of hours, and the salary per hour of each employee,
which is regularly required to clean up the Renters Gazette litter. Because
it is quantifiable, money damages are adequate, and an injunction is inappropriate.
B. First Amendment
The Apartments also argue that they may keep the Renters Gazette from their
tenants because it has damaged the Apartments business. To wit, the Apartments
point to the loss of long-time tenants who decided to buy a home
after reading the Renters Gazette, Appellants Br. p. 7, and to some of
the content in the Renters Gazette that is calculated to cause residents to
look unfavorably on the apartment communities and their management. Id. p. 4.
The majority agrees, highlighting evidence that some tenants were not renewing their
leases and had instead decided to buy a new home due to information
they had received in the Renters Gazette. Slip op. p. 14.
Based on this argument, I believe that the injunction violates the First Amendment
to the United States Constitution and Article I, Section 9 of the Indiana
Constitution. See Mishler v. MAC Sys., Inc., 771 N.E.2d 92, 97 (Ind.
Ct. App. 2002) (holding that trial courts issuance of an injunction is state
action sufficient to implicate Article I, Section 9); Barlow v. Sipes, 744 N.E.2d
1, 10 (Ind. Ct. App. 2001) (same, with respect to First Amendment of
U.S. Constitution).
In my opinion, enjoining the distribution of the Renters Gazette is an impermissible
prior restraint. While the Apartments point to Mishler as support for their
argument that because Campbell Realty could have distributed the Renters Gazette in other
ways and in other places an injunction would not be a prior restraint,
in fact Mishler stands for the opposite conclusion. The Mishler court noted
that the injunction in that case was an impermissible prior restraint because the
plaintiffs were prevented from exercising their state constitutional right to speak on any
subject whatever by the means they deemed most appropriate . . . .
771 N.E.2d at 98 (emphasis added). The Mishlers could have shared
their opinion by writing a letter to the editor, creating and mailing a
newsletter to people in the community, or organizing a protest, but because the
injunction prevented them from sharing their opinion by the means they deemed most
appropriatevia a sign in their yardit was an impermissible prior restraint.
Similarly, while it is true, as pointed out by the majority, that Campbell
Realty would be free to distribute the Renters Gazette in other venues such
as grocery stores, drug stores, gas stations, restaurants, and along some city streets,
slip op. p. 16, that does not change the fact that Campbell Realty
has the right to express itself by the means it deems most appropriate,
which appears to be distribution directly to the Apartments tenants. An injunction
preventing Campbell Realty from doing so amounts to an impermissible prior restraint.
Moreover, as acknowledged by the majority, the tenants have a right, pursuant to
the First Amendment, to receive information and ideas. Slip op. at p.
17. I disagree with the majoritys conclusion that because Campbell Realty could
still publish and distribute the Renters Gazette in other locations, the preliminary injunction
would not interfere with this right. Indeed, a preliminary injunction barring the
distribution of the Renters Gazette directly to the tenants because the Apartments are
troubled by its content is a fundamental and impermissible violation of the tenants
right to receive that information, and I believe that it violates the First
Amendment and Article I, Section 9.
Therefore, I would affirm the trial courts denial of the preliminary injunction.
Footnote:
Campbell Realty states in their brief that ninety-seven apartment communities are involved
in this case, whereas the Apartments indicate that only ninety-six communities are involved.
We will use the number ninety-six, in the hope that counsel for
the Apartments knows the exact number of clients that he or she represents.
Footnote:
The Apartments claim of interference with a business relationship is not at
issue here.
Footnote:
In his dissent, Judge Baker expresses his concern that by giving landlords
the right to exclusive possession of the common areas of an apartment building
we are giving landlords the right to bar anyone of their choosing, not
just solicitors, from the premises. We disagree. We believe that by
giving tenants a license to use the common areas of an apartment building,
tenants are sufficiently protected from this sort of behavior by a landlord.
Furthermore, we believe that such behavior by a landlord is not in the
landlords best interest. If landlords suddenly decided to start excluding both invited
and uninvited guests from their property, many potential tenants would choose not to
live in such a complex and current tenants might choose not to renew
their leases.
Footnote:
We believe it is indisputable that Campbell Realtys delivery teams have entered
the Apartments properties without right and are therefore trespassers. They did not
enter any of the apartment communities pursuant to an invitation because no one
has subscribed to the Renters Gazette, and the managers of the apartment communities
have repeatedly told them not to enter the property. The trial court
seems to compare Campbell Realtys delivery teams to other delivery persons like Indianapolis
Star carriers, pizza delivery persons, or Federal Express drivers. We believe that
this is a faulty comparison. Tenants either expressly or impliedly invite onto
an apartment communitys grounds Indianapolis Star carriers, pizza delivery persons, and Federal Express
drivers. There is no indication that a tenant has either expressly or
impliedly invited Campbell Realtys delivery teams onto the grounds of any of the
apartment communities involved here.
Footnote:
Judge Baker in his dissent argues that the Apartments have not shown
that they have suffered irreparable harm from the distribution of the Renters Gazette.
He contends that the litter caused by unclaimed issues of the Renters
Gazette, and the loss of business suffered by the Apartments is not sufficient
evidence of an irreparable harm. However, Judge Baker ignores the fact the
Campbell Realtys agents have been entering the Apartments properties on a weekly basis
for several years. This constitutes a continuing trespass, which alone permits a
trial court to to issue an injunction. See Ballard, 737 N.E.2d at
417.
Footnote:
We have yet to analyze two of the factors that the Apartments
must prove to be entitled to a preliminary injunction. One factor concerns
whether the grant of a preliminary injunction would be beneficial to the public
interest. We briefly touched upon this in section I.B. above. We
conclude that the preliminary injunction sought here would be beneficial to the public
interest as it would protect property rights and maintain the serenity and privacy
of tenants homes. We also conclude that the threatened injury to the
Apartments outweighs the potential injury to Campbell Realty caused by the injunction.
The Apartments are injured by Campbell Realtys continued trespasses onto their property.
The mess caused by the Renters Gazettes reduces the value and attractiveness of
the Apartments properties and discourages prospective tenants from wanting to live there.
The Renters Gazette has also caused current tenants to not renew their leases.
The preliminary injunction would only bar Campbell Realty from entering onto the
Apartments properties and would not bar them from continuing to publish and distribute
the Renters Gazette.
Footnote:
Campbell Realty also argues that the Apartments employment of off-duty police officers
as security personnel to enforce their no trespassing rules constitutes a state action.
We do not reach this argument as we find that the trial
courts issuance of a preliminary injunction would constitute a state action.
Footnote:
Judge Baker argues that Mishler indicates that the issuance of an injunction
here would be a prior restraint under both the federal Constitution and the
Indiana Constitution. We find Mishler distinguishable. In Mishler, the plaintiffs were
exercising their right to speak on their own private property. Here, Campbell
Realty wishes to trespass onto private property to exercise its speech rights.
Furthermore, in Lloyd Corp., Ltd. v. Tanner, 407 U.S. 551, 568, 92 S.Ct.
2219, 2228, 33 L.Ed.2d 131, 142 (1972), the United States Supreme Court stated
that this Court has never held that a trespasser or an uninvited guest
may exercise general rights of free speech on property privately owned and used
nondiscriminatorily for private purposes only. The Court further stated that [i]t would
be an unwarranted infringement of property rights to require [the owners of a
shopping mall] to yield to the exercise of First Amendment rights under circumstances
where adequate alternative avenues of communication exist. Such an accommodation would diminish
property rights without significantly enhancing the asserted right of free speech. 407
U.S at 566, 92 S.Ct. at 2228, 33 L.Ed.2d at 141-42. Here,
we find that there is no prior restraint because Campbell Realty has ample
adequate alternative avenues for it to distribute the Renters Gazette.