FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEES:
SAMUEL W. JARJOUR JAMES D. STREIT
Fort Wayne, Indiana Fort Wayne, Indiana
IN THE
COURT OF APPEALS OF INDIANA
FORT WAYNE LODGE, LLC, )
)
Appellant-Defendant, )
)
vs. ) No. 02A05-0305-CV-241
)
EBH CORPORATION and )
EDWARD A. WHITE, )
)
Appellees-Plaintiffs. )
APPEAL FROM THE ALLEN SUPERIOR COURT
The Honorable Daniel G. Heath, Judge
Cause No. 02D01-9912-CP-2243
April 6, 2004
OPINION - FOR PUBLICATION
RILEY, Judge
STATEMENT OF THE CASE
Appellant-Defendant, Fort Wayne Lodge, LLC (Fort Wayne), appeals the trial courts order granting
Appellees-Plaintiffs, EBH Corporation and Edward A. White (White) (collectively EBH), Motion for Summary
Judgment.
We affirm.
ISSUES
Fort Wayne raises five issues on appeal, which we restate as follows:
1. Whether the trial court erred when it, without a Motion to Strike, sua
sponte, determined that it would not consider material filed in opposition to EBHs
Motion for Summary Judgment;
2. Whether the trial court abused its discretion by failing to set aside the
Motion for Summary Judgment upon a showing of excusable neglect;
3. Whether the trial court erroneously considered EBHs untimely attorney fee evidence, despite a
timely motion to strike;
4. Whether EBH made a prima facie showing that they were entitled to summary
judgment as a matter of law; and
5. Whether Indiana law permits the award of attorney fees in actions to enforce
Indemnity Agreements.
FACTS AND PROCEDURAL HISTORY
On May 29, 1998, EBH sold to Fort Wayne substantially all of the
assets of the business formerly known as the Fort Wayne Airport Holiday Inn
(the Hotel), located at 3939 Ferguson Road, Fort Wayne, Indiana. The terms
of the purchase and sale were set forth in a certain Real Estate
Purchase Agreement (the Purchase Agreement), dated December 8, 1997. The Purchase Agreement
provided, among other things, that EBH would sell and assign, and Fort Wayne
would accept and assume, all of EBHs rights and obligations under certain equipment
leases relating to the operation of the Hotel, many of which were personally
guaranteed by White, EBHs sole shareholder.
At the closing of the purchase of the Hotel, Fort Wayne and EBH
also entered into a certain Assignment and Assumption Agreement (the Assumption Agreement), dated
May 29, 1998, pursuant to which EBH sold and assigned to Fort Wayne,
and Fort Wayne accepted and assumed, all of EBHs liabilities and obligations under
every contract, lease, and service contract pertaining to the operation of the Hotel.
The Assumption Agreement included, as an exhibit, a list of the leases
covered by the agreement and provided that Fort Wayne would indemnify and hold
EBH and White harmless from and against any and all liability, damage, costs,
or expenses arising out of such leases.
Included among the leases covered by the Assumption Agreement and set forth on
the attached exhibit was a certain lease, the Liberty Lease, with the Liberty
Leasing Company (Liberty), which involved heat pumps installed at the Hotel. The
Liberty Lease was entered into between EBH and Libertys predecessor, Triumphe Leasing Network,
Inc., on September 7, 1995, and was personally guaranteed by White. After
closing, Fort Wayne failed to make the payments under a number of the
leases, including the Liberty Lease. As a result, on September 30, 1998,
Liberty commenced an action (the Arizona Litigation) against EBH and White for breach
of the lease in the Maricopa County, Arizona Superior Court, which is the
county of Whites residence.
Thereafter, EBH notified Fort Wayne that it had been sued by Liberty for
breach of the Liberty Lease and that, in accordance with the terms of
the Assumption Agreement, it would look to Fort Wayne for indemnification for all
damages sustained and all costs and expenses incurred in connection with such lawsuit.
Following the commencement of the suit, Liberty negotiated extensively with Fort Wayne
regarding the rental obligation under the lease and, on or about June 1,
1999, Liberty and Fort Wayne entered into a settlement agreement pursuant to which
Fort Wayne paid to Liberty the sum of $32,000 for the purchase of
the heat pumps and the satisfaction of the rental obligation under the lease
for the period of June 1, 1998, through May 31, 1999.
Following the settlement with Fort Wayne, Liberty pursued its remedies against EBH and
White in the Arizona Litigation for the remaining balance due under the Liberty
Lease, which Liberty contended was in excess of $45,000. On or about
December 13, 1999, EBH, White and Liberty entered into a settlement agreement pursuant
to which a Stipulated Judgment in favor of Liberty and against EBH and
White in the sum of $38,500 was entered in the Arizona Litigation.
Thereafter, on January 3, 2000, EBH filed a Complaint in the Allen County
Superior Court, alleging breach of contract against Fort Wayne. In its Complaint,
EBH attempted to recover the $38,500 amount it paid in settlement with Liberty,
attorney fees for defending the Liberty action, attorney fees for prosecuting the instant
action, and prejudgment interest. On January 24, 2000, Fort Wayne filed its
Answer, Affirmative Defenses, and Counterclaim.
On September 18, 2000, EBH served on Fort Wayne discovery requests consisting of
Plaintiffs First Set of Interrogatories and Plaintiffs First Request for Production of Documents.
On January 26, 2001, EBH filed a Motion to Compel Responses to
Plaintiffs Discovery Requests, due to Fort Waynes failure to serve timely responses to
EBHs discovery requests. On February 21, 2001, a hearing on EBHs motion
to compel was held. At the hearing, the trial court granted EBHs
motion and ordered Fort Wayne to provide its discovery responses not later than
February 26, 2001. On February 26, 2001, Fort Waynes then current attorney
faxed to EBH their Defendants Answers to Plaintiffs Interrogatories which were not signed
and which contained incomplete and inadequate responses to certain interrogatories.
As a result, on May 22, 2001, EBH filed a second Motion to
Compel Responses to Plaintiffs Discovery Requests, due to Fort Waynes failure to comply
with the trial courts order of February 21, 2001. On June 19,
2001, Fort Waynes original attorney in this case, T. Dean Swihart (Attorney Swihart),
filed a Motion to Withdraw Appearance as counsel for Fort Wayne on the
ground that Fort Wayne had ceased to communicate with him, thereby preventing him
from providing effective legal representation under the circumstances. Upon withdrawing as counsel,
Attorney Swihart advised Fort Waynes corporate counsel of their responsibilities of notifying the
clerk of the court with the name, address, and telephone number of a
person to receive notices concerning the case as required by Local Rule 3.
Nonetheless, Fort Wayne failed to give the clerk of the court such
information. As a result, all pleadings and orders served on Fort Wayne
subsequent to Attorney Swiharts withdrawal on June 19, 2001, and entry of appearance
by Fort Waynes current attorney on May 28, 2002, were directed to Fort
Waynes statutory agent for service of process, CT Corporation.
On June 26, 2001, a hearing on EBHs second motion to compel was
held. At the hearing, the trial court ordered Fort Wayne to serve
proper discovery responses on EBH on or before July 26, 2001, or face
a dismissal with prejudice of its counterclaim against EBH. Fort Wayne again
failed to provide EBH with discovery responses within the time specified by the
trial court. Accordingly, on July 31, 2001, EBH filed a Motion to
Dismiss Fort Waynes Counterclaim. On August 29, 2001, the trial court granted
EBHs Motion to Dismiss Fort Waynes Counterclaim.
On April 4, 2002, EBH filed its Motion for Summary Judgment along with
supporting materials and a hearing was set for May 31, 2002. On
May 28, 2002, Fort Wayne appeared by new counsel who filed a Motion
to Continue Hearing on Summary Judgment and to Extend the Deadlines in Which
to Respond to Plaintiffs Motion for Summary Judgment. On May 31, 2002,
a hearing on EBHs Motion for Summary Judgment was held. At the
hearing, Fort Wayne, filed the following documents: 1) Affidavit of Jamal Garmo,
2) Affidavit of Samuel Jarjour, 3) Defendants Reply to Plaintiffs Motion for Summary
Judgment, and 4) Designation of Material Issues of Fact and Evidence Relevant Thereto.
At the conclusion of the hearing, the trial court held the following:
Comes now [EBH], by counsel, James D. Streit. Comes now Fort Wayne
[], LLC, by counsel, Samuel W. Jarjour. [Fort Wayne] request[s] a continuance
of the Motion for Summary Judgment. The [c]ourt notes that there was
no request for extension of time to file summary judgment response filed by
[Fort Wayne] within the time period required by law. The [c]ourt notes
that the June 15, 2001 letter from [Attorney] Swihart informs [Fort Waynes] corporate
counsel of the necessity of appearing and defending the case against the prospect
of judgment. The [c]ourt has no discretion to extend the time period
to respond inasmuch as [Fort Wayne] failed to request such extension of time
within thirty (30) days of receipt of the Motion for Summary Judgment.
Therefore, the [c]ourt may only consider the motion and evidence designated by [EBH]
in this cause of action. The [c]ourt request[s] that counsel for [EBH]
prepare a proposed order on this matter. Counsel for [EBH] also informs
the [c]ourt that he intends to ask for attorney fees, has submitted a
brief on same, and will file an Affidavit for Attorney Fees. The
[c]ourt request[s] that counsel for [EBH] file same and share same with opposing
counsel. The [c]ourt now gives opposing counsel fourteen (14) days from the
receipt of same in which to respond to the [c[ourt.
(Appellants App. p. 121). Thereafter, EBH filed its proposed Order and Affidavit
of Attorney Fees.
On June 19, 2002, Fort Wayne filed its Motion to Strike the Affidavit
of Attorney Fees and Defendants Response to Plaintiffs Proposed Order. On June
25, 2002, EBH filed its Plaintiffs Response to Defendants Motion to Strike Affidavit.
On that same date, EBH also filed its Motion to Strike the
Affidavit of Jamal Garmo, Affidavit of Samuel Jarjour, Defendants Reply to Plaintiffs Motion
for Summary Judgment, and Designation of Material Issues of Fact and Evidence Relevant
Thereto by Defendant.
On October 7, 2002, the trial court issued its Order or Judgment of
the Court. In its written order, the trial court held:
The [c]ourt, pursuant to its Order of May 31, 2002, asked the parties
to brief the issue of whether attorney fees might be granted in this
case on [EBHs] Motion for Summary Judgment. In the meantime, the [c]ourt
has reviewed [EBHs] Motion for Summary Judgment and GRANTS [EBHs] Motion for Summary
Judgment. The [c]ourt notes that [Fort Waynes] Response to Plaintiffs Motion for
Summary Judgment was untimely filed. The [c]ourt has reviewed the brief filed
by [EBH] regarding his ability or right to obtain attorney fees in this
cause of action. The [c]ourt notes that attorney fees are not directly
addressed in the Assumption Agreement but the Assumption Agreement does refer to any
and all liability, damage, costs, or expenses resulting from or in any way
arising out of the assumed leases. [EBH] cites case law which the
Court of Appeals has determined that such language is sufficient for the granting
of attorney fees.
WHEREFORE, the [c]ourt now GRANTS [EBHs] Motion for Summary Judgment and enters judgment
for [EBH] and against [Fort Wayne] in the sum of Thirty-Eight Thousand, Five
Hundred Dollars ($38,500), together with interest at the rate of eight percent (8%)
per annum from December 13, 1999 to and including the date of judgment
in the sum of Eight Thousand, Six Hundred and Forty-Eight Dollars and Ninety-Five
Cents ($8,648.95), calculated as of October 7, 2002. Costs in the sum
of One Hundred Dollars ($100.00), and attorney fees in the sum of Nineteen
Thousand, Five Hundred and Fifty-Five Dollars ($19,555.00) for a total judgment in the
sum of Sixty-Six Thousand, Eight Hundred and Three Dollars and Ninety-Five Cents ($66,803.95).
(Appellants App. p. 142). On November 6, 2002, Fort Wayne filed its
Motion to Correct Errors, and the trial court set the matter for hearing
on December 2, 2002. On November 25, 2002, EBH filed its Memorandum
in Opposition to Defendants Motion to Correct Errors and Affidavit of James Streit.
On December 2, 2002, the trial court rescheduled the hearing for December 12,
2002, due to unsatisfactory service to EBH. On December 12, 2002, the
hearing on Fort Waynes Motion to Correct Errors was held. During that
hearing, Fort Wayne filed its Motion to Strike the Affidavit of James Streit
and the Argument portion of the Memorandum. On February 19, 2003, the
trial court entered its written order denying Fort Waynes Motion to Correct Errors.
Fort Wayne now appeals. Additional facts will be supplied as necessary.
DISCUSSION
I. Standard of Review
Summary judgment is appropriate if there is no genuine issue of material fact
and the moving party is entitled to judgment as a matter of law.
Ind. Trial Rule 56(C). In reviewing a decision upon a summary
judgment motion, we apply the same standard as the trial court. Miller
v. NBD Bank, N.A., 701 N.E.2d 282, 285 (Ind. Ct. App. 1998).
We do not reweigh the evidence designated by the parties. See id.
Instead, we liberally construe the evidence in the light most favorable to
the non-moving party. Schoknecht v. Hasemeier, 735 N.E.2d 299, 301 (Ind. Ct.
App. 2000).
The moving party bears the burden of showing that there are no genuine
issues of material fact and that it is entitled to judgment as a
matter of law. Id. Once this burden has been met, the
non-moving party must respond by setting forth specific facts demonstrating a genuine need
for trial, and cannot rest upon the allegations or denials in the pleadings.
Id. We review only the designated evidentiary material in the record,
construing that evidence liberally in favor of the non-moving party, so as not
to deny that party its day in court. Id.
II. Trial Courts Sua Sponte Ruling
First, Fort Wayne argues that the trial court abused its discretion in determining
that it would not consider Fort Waynes Response to Plaintiffs Motion for Summary
Judgment. Specifically, Fort Wayne asserts that EBHs Motion to Strike Fort Waynes
Response to Plaintiffs Motion for Summary Judgment was untimely filed and should not
have been granted sua sponte by the trial court. The admission of
evidence is left to the sound discretion of the trial court, and we
will not reverse that decision except for an abuse of that discretion.
Mann v. Russells Trailer Repair, Inc., 787 N.E.2d 922, 926 (Ind. Ct. App.
2003) (quoting State v. Snyder, 594 N.E.2d 783, 787 (Ind. 1992)). An
abuse of discretion occurs when the trial courts decision is against the logic
and effect of the facts and circumstances before it. Id.
In the instant case, our review of the record reveals that Fort Wayne
did not comply with the rules set forth in T.R. 56(C).
See footnote Specifically,
Fort Wayne did not respond to EBHs Motion for Summary Judgment within the
thirty-day time frame or request additional time within that same thirty-day period.
As a result, the trial court clearly stated at the May 31, 2002
hearing that it would not consider the materials filed by Fort Wayne on
the day of the hearing for the purpose of ruling on EBHs Motion
for Summary Judgment.
The record further discloses that Fort Wayne waited until the summary judgment hearing
to file their response. T.R. 56(I) states that, [t]he Court, for cause
found, may alter any time limit set forth in this rule. Here,
the trial court did not find cause and as such determined that it
would not alter the time limits. Therefore, the trial court did not
accept Fort Waynes untimely filing. Based upon our review of the record,
we find that the trial courts determination was not against the logic and
effect of the facts and circumstances before it.
See Mann, 787 N.E.2d
at 926. As a result, we conclude that the trial court did
not abuse its discretion.
Moreover, we find Fort Waynes contentions that the trial court acted, sua sponte,
without merit. On the contrary, our review of the record shows that
EBH objected to Fort Waynes summary judgment response. Particularly, at the December
12, 2002 hearing on Fort Waynes Motion to Correct Errors, EBH specifically objected
to the trial courts consideration of Fort Waynes untimely filings and any continuance
or enlargement of time to make further filings. Although the record reveals
that EBH also filed a Motion to Strike Fort Waynes untimely filings, nonetheless,
their objection was made orally at the prior hearing. Based upon this,
we find that the trial court did not act sua sponte; but rather
acted upon motion by EBH.
Based upon the above, we conclude that the trial court did not abuse
its discretion in granting EBHs Motion to Strike Fort Waynes Response to Plaintiffs
Motion for Summary Judgment. Mann, 787 N.E.2d at 926. Consequently, we
find that the trial court did not err in refusing to consider Fort
Waynes untimely response to EBHs Motion for Summary Judgment. See id.
III. Excusable Neglect
Next, Fort Wayne alleges that the trial court abused its discretion by failing
to set aside the summary judgment ruling under Trial Rule 60(B)(1), excusable neglect.
In particular, Fort Wayne claims that it suffered from the dismissal of
a counterclaim when its prior counsel was dismissed from the instant case.
Conversely, EBH contends that there was ample evidence to support the trial courts
refusal to set aside the judgment on the grounds of excusable neglect.
On motion and upon such terms as are just, the trial court may
relieve a party from an entry of a final order for reasons other
than mistake, surprise, neglect, fraud, default without notice or grounds that could be
rectified with a motion to correct error. T.R. 60(B)(1); In re Estate
of Moore, 714 N.E.2d 675, 677 (Ind. Ct. App. 1999). This catchall
provision is reserved for those cases in which extraordinary circumstances justify extraordinary relief.
Id.; McIntyre v. Baker, 703 N.E.2d 172, 175 (Ind. Ct. App. 1998).
Relief from judgment is an equitable remedy that is left to the
discretion of the trial court. Thayer v. Gohil, 740 N.E.2d 1266, 1269
(Ind. Ct. App. 2001). Thus, this court will not reverse a denial
of a motion for relief from judgment in the absence of an abuse
of discretion. Id.; Wolvos v. Meyer, 668 N.E.2d 671, 678 (Ind. 1996).
An abuse of discretion occurs where the courts judgment is clearly against
the logic and effect of the facts and inferences supporting the judgment for
relief. In re Estate of Moore, 714 N.E.2d at 677.
In the present case, Fort Wayne claims excusable neglect under T.R. 60(B)(1) because
service of EBHs Motion for Summary Judgment, which was filed on April 4,
2002, was made on Fort Waynes registered agent in Indiana, CT Corporation, and
Fort Wayne did not actually receive the motion at its offices in Michigan
until around May 3, 2002. (Appellants App. p. 155). Fort Wayne
maintains that it was prejudiced by service of process being made upon its
registered agent, and not sent directly to Fort Waynes offices in Michigan.
We find that there is no excusable neglect in this case that warrants
the setting aside of the summary judgment order under T.R. 60(B)(1). Fort
Waynes responsibilities under Local Rule 3 were clear, and they were not met.
Particularly, the record indicates that its prior attorney, Attorney Swihart, advised Fort
Wayne in writing that it was responsible for filing with the clerk of
court the name, address, and telephone number of the proper person to receive
notices regarding the case. In fact, the record discloses that at the
December 12, 2002 hearing, the trial court spent ample time discussing Fort Waynes
failure to provide the clerk or EBHs counsel of this pertinent information.
Thus, Fort Wayne prejudiced itself by not complying with Local Rule 3 or
taking action pursuant to the advice from its prior counsel.
Nevertheless, the record indicates that service of process was made upon Fort Waynes
registered agent in Indiana, CT Corporation, and transmitted to Fort Wayne at its
address of record on April 9, 2002.
See footnote However, Fort Wayne changed the
address that was on record as of April 9, 2002, without notifying CT
Corporation and therefore EBHs summary judgment documents were not received by Fort Wayne
until around May 3, 2002. (Appellants App. p. 155). Although Fort
Wayne contends that it was harmed due to its delay in receiving the
summary judgment documents, we believe that Fort Wayne still had sufficient time to
respond or make a timely request for an enlargement of time, if it
had acted diligently. In particular, the record reflects that Fort Wayne did
not hire the services of its current Indiana counsel to enter an appearance
on its behalf until another twenty-five days after they received the summary judgment
documents on May 3, 2002.
Accordingly, because Fort Wayne has presented no extraordinary circumstances justifying relief under Indiana
Trial Rule 60 (B)(1), we conclude that the trial court did not abuse
its discretion when it denied Fort Waynes motion to set aside the summary
judgment order.
See In re Estate of Moore, 714 N.E.2d at 678.
IV. Untimely Attorney Fee Evidence
Fort Wayne also contends that the trial court erroneously granted attorney fees to
EBH. Specifically, Fort Wayne argues that EBHs attorney fee affidavit should have
been stricken due to their untimely filing. Conversely, EBH claims that the
attorney fee affidavit supplemented the facts that were already in evidence, and therefore
the admission of the attorney fee evidence met the time restrictions and designation
requirements in T.R. 56(C).
It is true that under Rule 56 (C) a party opposing summary judgment
has thirty-days to file a response. Further, when a party fails to
file a response within thirty days, the trial court has the discretion whether
to consider materials filed thereafter. See Indiana Univ. Medical Center, Riley Hosp.
for Children v. Logan, 728 N.E.2d 855, 858 (Ind. 2000); see also Seufert,
649 N.E.2d at 1073. In particular, Indiana Trial Rule 56(E) provides that
the court may permit affidavits to be supplemented or opposed by depositions, answers
to interrogatories, or further affidavits. Thus, it is within the trial courts
discretion to accept an affidavit filed later than the date specified in the
rule. Indiana Univ. Medical Center, 728 N.E.2d at 858; see also Penkin
Ins. Co. v. Charlie Rowe Chevrolet, Inc., 556 N.E.2d 1367, 1369 (Ind. Ct.
App. 1990) (where court held that timely filed affidavits may properly be considered
by the trial court).
In the instant case, Fort Wayne contends that the attorney fee affidavit does
not fit within the meaning of T.R. 56(E), supplemental affidavit, and therefore should
not have been accepted by the trial court. However, we find this
contention misplaced. In particular, the record reveals that in paragraph 16 of
the Affidavit of White, White states: EBH and I have incurred substantial
legal fees and expenses in the defense of the Arizona Litigation and in
the enforcement of [Fort Waynes] indemnification obligation under the Assumption Agreement. (Appellants
App. p. 106). Thus, our review of the record indicates that the
attorney fee affidavit merely supplements the Affidavit of White by detailing and quantifying
the amount of fees incurred by EBH as stated in the affidavit.
See Indiana Univ. Medical Center, 728 N.E.2d at 858.
Nonetheless, Fort Wayne maintains that it was error for the trial court to
have accepted the attorney fee affidavit submitted by EBH and to have allowed
the recovery of fees based on that affidavit, because it was not specifically
listed in EBHs Designation of Materials. However, T.R. 56(C) clearly provides that
the issues of liability and damages can be considered separately. Here, the
record shows that EBHs attorney fee affidavit was not relied upon by the
trial court as a legal or factual basis for granting summary judgment.
Thus, we believe that it was proper for the trial court to request
and receive evidence on the issue of damages.
Accordingly, we find that admitting the attorney fee affidavit, filed after the deadline,
but before the date of the hearing, was not against the logic and
effect of the facts and circumstances before the trial court. Consequently, we
conclude that the trial court did not abuse its discretion. See Indiana
Univ. Medical Center, 728 N.E.2d at 858.
V. Summary Judgment Award
Additionally, Fort Wayne alleges that the trial court erred in granting summary judgment
in EBHs favor. Particularly, Fort Wayne claims that EBH did not present
a prima facie case entitling it to summary judgment. Conversely, EBH maintains
that the trial court properly granted summary judgment in their favor based on
applicable law and the evidentiary matters designated to the trial court by EBH.
As mentioned previously, in reviewing a motion for summary judgment, this court must
determine whether there is a genuine issue of material fact and whether the
trial court has correctly applied the law. Venture Enterprises, Inc. v. Ardsley
Distributors, Inc., 669 N.E.2d 1029, 1032 (Ind. Ct. App. 1996). On appeal,
the appellant bears the burden of proving that the trial court erred in
determining that there are no genuine issues of material fact and that the
moving party was entitled to judgment as a matter of law. Id.
In the present case, the materials designated before the trial court by EBH
definitely established a lack of any genuine issues of material fact. Through
the Assumption Agreement and exhibits submitted to the trial court, EBH established that
Fort Wayne was responsible for and failed to make payments under the Liberty
Lease. Particularly, the Assumption Agreement provided that Fort Wayne would expressly and
unconditionally assume(d) all of EBHs liabilities and obligations under that lease, as well
as under the remaining leases set forth in the exhibit attached. (Appellants
App. pp. 20, 23). Based upon this agreement, we find that Fort
Wayne was negligent in failing to make the payments under the lease.
Nevertheless, Fort Wayne maintains that a genuine issue of material fact exists regarding
whether the Liberty Lease was ineffective and void due to the fact that
Libertys prior written consent to the assignment had not been obtained; nonetheless, we
disagree. Our review of the record discloses that Fort Wayne entered into
the Assumption Agreement and accepted the assignment of the Liberty Lease. The requirement
contained in the Liberty Lease that EBH first obtain Libertys written consent to
any assignment of the lease did not render the lease non-assignable. Rather,
we find that the requirement rendered the assignment voidable at the option of
Liberty, not Fort Wayne. The record is devoid of evidence where Liberty
objected to Fort Wayne making the payments under the terms of the lease.
Thus, Fort Wayne was clearly responsible for making the payments for the
heat pumps that it continued to use in the Hotel.
With the above in mind, we conclude that no genuine issue of material
fact exists regarding whether the Liberty Lease was void. Venture Enterprises, Inc.,
669 N.E.2d at 1032. Therefore, we find that the trial court properly
granted EBHs Motion for Summary Judgment.
VI. Attorney Fees
Lastly, Fort Wayne claims that the trial court erred in awarding attorney fees
to EBH. Particularly, Fort Wayne argues that Indiana law does not permit
the award of attorney fees in actions to enforce indemnity agreements. However,
our case law holds otherwise.
The award of an amount for attorney fees is within the trial courts
discretion, therefore, we will reverse only where an abuse of discretion is apparent.
Zebrowski and Associates, Inc. v. City of Indianapolis by and through its
Bd. Of Directors for Utilities of its Dept. of Public Utilities, 457 N.E.2d
259, 263 (Ind. Ct. App. 1983). We have previously held that an
indemnitee is entitled to recover attorneys fees expended defending the underlying claim and
prosecuting the claim for indemnification. Bethlehem Steel Corp. v. Sercon Corp., 654
N.E.2d 1163, 1168 (Ind. Ct. App. 1995). It has been held:
An indemnitee, who incurs legal expenses through defending an action against him for
which he is entitled to indemnification, is entitled to recover the expenses of
creating his defense, including reasonable attorney fees. This is especially true where
the indemnitor incurred through an original action which is settled, and also for
the cost of prosecuting the indemnity clause.
Id. at 1168-69. Generally, the reasonableness of the attorneys fees is a
matter to be resolved in an evidentiary hearing. Id.
Here, the record reveals that a significant amount of damage suffered by EBH
as a result of Fort Waynes breach of the Assumption Agreement has been
the legal expense incurred in the settlement of the Arizona Litigation, as well
as in the prosecution of the instant case. The record further reveals
that Fort Waynes refusals to comply with the discovery rules and orders issued
by the trial court have increased the considerable legal fees. Consequently, EBH
has suffered financially as a result of Fort Waynes breach of its obligations
under the Assumption Agreement.
Based upon this, it is clear that EBH was entitled to recover attorney
fees. See Bethlehem Steel Corp., 654 N.E.2d at 1168. Therefore, we
find that the trial court did not abuse its discretion in awarding attorney
fees to EBH. See Zebrowski and Associates, Inc., 457 N.E.2d at 263.
CONCLUSION
Based on the foregoing, we conclude that the trial court did not abuse
its discretion in granting EBHs Motion to Strike Fort Waynes Response to Plaintiffs
Motion for Summary Judgment. Further, we find that the trial court did
not abuse its discretion in refusing to set aside the summary judgment order.
Additionally, we hold that the trial courts determination to admit the attorney
fee affidavit, filed after the deadline, was not against the logic and effect
of the facts and circumstances before the trial court. We also conclude
that a genuine issue of material fact did not exist regarding whether the
Liberty Lease was void. Lastly, we find that the trial court did
not abuse its discretion in awarding attorney fees to EBH. Therefore, we
affirm the trial courts grant of summary judgment in favor of EBH.
Affirmed.
DARDEN, J., and BAILEY, J., concur.
Footnote:
Trial Rule 56(C) requires that an adverse party designate evidence and
material issues of fact in its response, which must be filed within 30
days after the motion is served.
Kissell v. Vanes, 629 N.E.2d 878,
880 (Ind. Ct. App. 1994). If the non-moving party does not respond
to a properly supported motion by setting forth specific facts showing a genuine
issue for trial, then T.R. 56(E) mandates that summary judgment, if appropriate, be
entered against him. Id.
Footnote:
Specifically, at the time of the filing of EBHs Motion
for Summary Judgment, information on file with the Indiana Secretary of State indicated
that Fort Waynes address was One N. Capitol Avenue, Indianapolis, Indiana 46204, and
that its registered agent was CT Corporation, 36 S. Pennsylvania Street, Suite 700,
Indianapolis, Indiana 46204.