Text Box
FOR PUBLICATION
ATTORNEYS FOR APPELLANT
: ATTORNEY FOR APPELLEE:
JULIE A. DUGAN EDWARD P.
GRIMMER
Kopka, Pinkus, & Dolin, P.C. Edward P. Grimmer, P.C.
Crown Point, Indiana Crown Point, Indiana
JAMES E. FOSTER
Funk & Foster
Hammond, Indiana
IN THE
COURT OF APPEALS OF INDIANA
MARK E. McDILLON, )
)
Appellant/Counter Plaintiff, )
)
vs. ) No. 45A04-0305-CV-237
)
NORTHERN INDIANA PUBLIC )
SERVICE COMPANY, )
)
Appellee/Counter Defendant. )
APPEAL FROM THE LAKE SUPERIOR COURT
The Honorable John J. Halcarz, Magistrate
The Honorable Sheila Moss, Judge
Cause No. 45D08-0010-CP-04436
July 21, 2004
OPINION - FOR PUBLICATION
VAIDIK, Judge
Case Summary
Mark McDillon appeals the jury verdict awarding Northern Indiana Public Service Company (NIPSCO)
$12,440.29 for damages incurred as a result of McDillons vehicle colliding with one
of its utility poles. NIPSCO cross-appeals, claiming that the trial court erroneously
set aside the default judgment entered against McDillon and erroneously granted McDillons untimely
demand for a jury trial. Because we find that the jury may
have predicated its verdict on a nonparty instruction erroneously given to the jury,
we reverse. Although NIPSCO argues that its default judgment should be reinstated
if we reverse, we find that NIPSCO waived its challenge to the setting
aside of the default judgment by failing to perfect a timely appeal.
Additionally, contrary to NIPSCOs contention, we find that McDillon timely requested a trial
by jury. Accordingly, we remand for a jury trial.
Facts and Procedural History
McDillon called the Hammond Police Department at approximately 5:00 a.m. on Sunday, August
22, 1999, to report that his vehicle had been stolen from a gas
station as he was inside purchasing a cup of coffee.
See footnote
Approximately fifteen
minutes later, an unidentified person called the Hammond Police Department to report that
a vehicle had collided with a utility pole. As a result of
this collision, there was a power outage in the area. When an
officer arrived on the scene of the accident, he observed a vehicle with
front-end damage, including a missing front passenger tire and flattened rim. Approximately
twenty minutes later, McDillon arrived on the scene and informed the police that
although he was the owner of the vehicle, he was not driving the
vehicle at the time of the collision. McDillon explained to the officer
that he had reported the vehicle stolen earlier that morning. No one,
however, was ever apprehended for the theft.
NIPSCO owned the utility pole involved in the collision. The collision resulted
in damage to three transformers, which caused NIPSCO to incur repair costs of
$6,822.79. In accordance with company policy, NIPSCO attempted to recover its losses
resulting from the collision from McDillon, first by sending three separate demand letters
and then by turning the matter over to a collections attorney. McDillon
failed to respond to any of these collection attempts. NIPSCOs attorney then
initiated a lawsuit. A summons was personally served on McDillon, but he
failed to appear for the hearing. On November 11, 2000, the trial
court entered a default judgment against McDillon for $10,000the courts jurisdictional limitplus $2,274
for attorney fees and $100 in costs.
See footnote
After receiving notice of the
proceedings supplemental, McDillon filed a motion to set aside the default judgment, claiming
excusable neglect and meritorious defense. The trial court set aside the default
judgment, and McDillon subsequently filed his answer and counterclaim and demand for jury
trial.
At the jury trial, McDillon testified that he was not driving his vehicle
at the time it collided with the utility pole. He explained that
his vehicle had been stolen from a gas station while he was inside
getting a cup of coffee. McDillon promptly reported his vehicle stolen.
Officer Salvidor Bermudez, who took the stolen vehicle report, testified that as he
was obtaining information from McDillon, a report of a vehicle being driven recklessly
came across the radio. The vehicle described in the radio report matched
McDillons stolen vehicle. According to Officer Bermudezs testimony, there was a power
outage moments later.
Following the presentation of evidence, the trial court instructed the jury, among other
things, on nonparty liability under Indianas Comparative Fault Act. The jury returned
a verdict in favor of NIPSCO for $12,440.29. Because of the courts
jurisdictional limits, the trial court entered judgment in favor of NIPSCO for $10,000.00,
plus judgment interest. Appellants Supp. App. p. 5-6. McDillon filed a
motion to correct errors with the trial court, which claimed that the trial
court erroneously instructed the jury and that the jury verdict was excessive.
The trial court denied McDillons motion to correct errors, and he now appeals.
NIPSCO also cross-appeals.
Discussion and Decision
McDillon raises two issues on appeal, one of which we find dispositive.
See footnote
Specifically, McDillon argues that the trial court erroneously instructed the jury. NIPSCO
cross-appeals, claiming that the trial court erroneously set aside the default judgment against
McDillon and allowed the case to be tried to a jury when McDillon
waived his right to a jury by failing to make a timely request.
We address each partys contentions in turn.
I. McDillons Appeal
A. Jury Instructions
McDillon contends that the trial court erroneously instructed the jury. The purpose
of jury instructions is to inform the jury of the law applicable to
the facts without misleading the jury and to enable it to comprehend the
case clearly and arrive at a just, fair, and correct verdict.
Dill
v. State, 741 N.E.2d 1230, 1232 (Ind. 2001). In reviewing a trial
courts decision to give a tendered jury instruction, we consider (1) whether the
instruction correctly states the law, (2) is supported by the evidence in the
record, and (3) is not covered in substance by other instructions. See
Wal-Mart Stores, Inc. v. Wright, 774 N.E.2d 891, 893 (Ind. 2002), rehg denied;
Whitney v. State, 750 N.E.2d 342, 344 (Ind. 2001). The trial court
has discretion in instructing the jury, and we will reverse only when the
instructions amount to an abuse of discretion. Whitney, 750 N.E.2d at 344.
To constitute an abuse of discretion, the instructions given must be erroneous,
and the instructions taken as a whole must misstate the law or otherwise
mislead the jury. Id. We will consider jury instructions as a
whole and in reference to each other, not in isolation. Id.
Included among the trial courts instructions to the jury was the following:
Jury Instruction #13
You must decide NIPSCOs case on the basis of the Indiana law of
comparative fault. The term fault refers to varieties of conduct that make
a person responsible, in some degree, for property damage. NIPSCO has the
burden of proving the following propositions by a preponderance of the evidence:
First: That Mr. McDillon was operating the car in an unsafe or negligent way,
without the reasonable care which is expected of every driver.
Second: That NIPSCOs property was damage[d]; and
Third: That the negligent act or omission of Mr. McDillon proximately caused the collision
of his car with NIPSCOs pole and that resulted in the property damage
NIPSCO suffered.
As I have stated, the Plaintiff must prove these propositions; the Defendant has
no burden of disproving them.
However, the Defendant has claimed certain specific defenses, and the Defendant does have
the burden of proving those defenses by a preponderance of the evidence.
The Defendant claims that his car was stolen and has the burden of
proving that by a preponderance of the evidence:
the name and identity of that [nonparty], sufficiently so that the person could
have been joined as a defendant
If you conclude that there was a [nonparty] at fault, you will be
requested to identify that person by name on your verdict form, and assign
a percentage of fault against that [nonparty]. If the [nonparty] cannot be
identified, the jury cannot assign a percentage of fault against the [nonparty].
Appellants App. p. 4 (emphasis supplied). McDillon claims, however, that this is
not a nonparty case, and therefore, the jury was improperly instructed.
Indianas Comparative Fault Act provides that [i]n an action based on fault, a
defendant may assert as a defense that the damages of the claimant were
caused in full or in part by a nonparty. Ind. Code §
34-51-2-14; see also Witte v. M.M. ex rel. Mundy, 800 N.E.2d 185, 189
(Ind. Ct. App. 2003), rehg denied, trans. denied. The burden of proof
of a nonparty defense is upon the defendant, who must affirmatively plead the
defense. Ind. Code § 34-51-2-15. The defendant also has the burden
of identifying the nonparty to whom fault should be attributed. See Cornell
Harbison Excavating, Inc. v. May, 546 N.E.2d 1186, 1187 (Ind. 1989). If
the nonparty is not identified, then the jury may not assign fault against
the nonparty. See id.
In his answer, McDillon denied that he was operating the vehicle at the
time it collided with NIPSCOs utility pole. Additionally, McDillon asserted the following:
McDillon, in the matter of an Affirmative Defense, asserts that on or about
August 22, 1999, he was the victim of a car theft and the
damage, if any, was caused by the thief.
* * * *
That as a second Affirmative Defense McDillon asserts that on or about August
22, 1999, he was not operating the vehicle which caused damage to the
property of plaintiff.
Appellants Supp. App. p. 17. At trial, McDillon clarified that he was
claiming that because his car had been stolen, he was not the proximate
cause of NIPSCOs pecuniary loss. In fact, McDillon cited Dillner v. Maudlin,
314 N.E.2d 794 (Ind. Ct. App. 1974), to the trial court for the
proposition that the negligent leaving of the ignition keys in the automobile [by
the vehicles owner] could not be considered the proximate cause of injuries later
resulting from the negligent operation of the stolen automobile by a thief.
Id. at 795 (quotation omitted). In Indiana, there is a well-established policy
that [a]ll pleadings shall be so construed to do substantial justice, lead to
disposition on the merits, and avoid litigation of procedural points. Ind. Trial
Rule 8(F). Based on the language used in what McDillon identifies as
his affirmative defenses, it is unclear whether he intended to plead a nonparty
defense. However, in light of the record before uswhich establishes that McDillon
denied that he was operating the vehicle when it was involved in the
collision and that he clarified that his thief defense went to proximate causeand
Indianas policy of construing pleadings to do substantial justice, we find that McDillon
did not raise a nonparty affirmative defense. Consequently, we conclude that the
trial court erred by instructing the jury on the affirmative defense of nonparty.
We must now decide whether such instructional error mandates reversal.
The facts here show that as McDillon was standing face-to-face with an officer
reporting his vehicle as stolen, a dispatch came over the officers radio regarding
a report of reckless driving. The description of the vehicle being driven
recklessly matched the description of McDillons stolen vehicle. A few moments later,
there was a power outage. Thereafter, the police found McDillons vehicle crashed
into a utility pole. This evidence indicates that McDillon was neither operating
the vehicle at the time of the collision nor the proximate cause of
NIPSCOs damages. Nonetheless, the jury returned a verdict in favor of NIPSCO.
Because we are unable to discern whether the jury ruled in favor
of NIPSCO because it disbelieved this evidence or because McDillon failed to identify
the person who stole his vehicle, we cannot say that the jury did
not predicate its verdict on this erroneously given nonparty instruction.
See footnote
Accordingly, we
reverse and remand for a new trial. Because we are reversing and
remanding for a new trial, we must address the two issues that NIPSCO
raises in its cross-appeal.
II. NIPSCOs Cross-Appeal
A. Setting Aside of Default Judgment
In its cross-appeal, NIPSCO first argues that the trial court abused its discretion
by setting aside the default judgment entered against McDillon. Once entered, a
default judgment may be set aside because of mistake, surprise, or excusable neglect
so long as the motion to set aside the default is filed not
more than one year after the judgment and the moving party also alleges
a meritorious claim or defense. Ind. Trial Rule 55(C), 60(B);
see also
Coslett v. Weddle Bros. Constr. Co., 798 N.E.2d 859, 861 (Ind. 2003).
A ruling denying or granting relief on a motion to set aside a
default judgment is deemed a final judgment. T.R. 60(C); Coslett, 798 N.E.2d
at 861. Here, following the trial courts May 15, 2001, Order setting
aside the default judgment against McDillon, NIPSCO failed to perfect an appeal as
required by Indiana Appellate Rule 9. See Ind. Appellate Rule 9 (requiring
a Notice of Appeal to be filed with the trial court clerk within
thirty days after the entry of final judgment). Thus, NIPSCO waived any
error in the trial courts setting aside of the default judgment and may
not now appeal that determination.
B. Request for Trial by Jury
NIPSCO additionally argues that McDillon waived his right to a jury trial by
failing to file a timely demand. In a civil case, a demand
for a jury trial must be made by the requesting party no later
than ten days after the first responsive pleading is due. Ind. Trial
Rule 38(B). This ten-day period applies whether the responsive pleading is mandatory
or merely permissive. T.R. 38(B); Smith v. Washington, 716 N.E.2d 607, 616
(Ind. Ct. App. 1999), vacated in part on other grounds by 734 N.E.2d
548 (Ind. 2000). The failure of a party to serve a demand
as required by Trial Rule 38(B) constitutes a waiver of the partys right
to a trial by jury. Id. Furthermore, Trial Rule 38(D) provides
that the trial court shall not grant an untimely demand for a jury
trial except upon the written agreement of all the parties to the action.
NIPSCO filed its Complaint against McDillon on October 5, 2000. McDillon failed
to respond, and the trial court granted NIPSCO a default judgment. McDillon
moved the trial court to set aside the default judgment against him.
On May 15, 2001, the trial court issued an Order setting aside the
default judgment, which was served upon the parties by U.S. Mail. Thus,
we treat NIPSCOs Complaint as if it had been filed on May 15,
2001. See Wright v. Paraservices, Inc., 726 N.E.2d 1263, 1265 (Ind. Ct.
App. 2000) (If the clock were not reset after a default judgment had
been set aside and timeliness were still measured from service of the complaint,
every pleading filed subsequent to the court setting aside a default judgment would
be untimely. . . . [O]nce the default judgment [has] been set aside,
the parties in essence [sit] in the same position they were in when
the complaint was initially filed.).
Indiana Trial Rule 6(C) requires a responsive pleading to be served within twenty
days after service of the prior pleading. Because the trial court served
its May 2001 Order upon the parties by mail, the time within which
McDillons responsive pleading was due was extended by three days. See Ind.
Trial Rule 6(E). Therefore, McDillons response was due on June 7, 2001.
On June 4, 2001, McDillon filed a Motion for Two Week Enlargement.
The two-week enlargement of time made McDillons Answer due on June 21,
2001. On June 29, 2001, McDillon filed his jury demand. This
was within ten days of when his responsive pleading was due. Consequently,
we find that McDillon did not waive his right to a jury trial.
Reversed and remanded.
SULLIVAN, J., and MAY, J., concur.
Footnote:
McDillon had left his keys in his vehicle as he went
inside to purchase a cup of coffee.
Footnote:
Post-judgment interest was set at 8%.
Footnote:
Because we are reversing and remanding on the first issue, we
need not address McDillons remittitur argument.
Footnote:
Because we cannot say that the erroneously given instruction did not
impact the jurys determination of the counterclaim, we find that McDillon should be
able to pursue his counterclaim on remand.