FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:
JENNIFER L. GRAHAM DONN H. WRAY
Indianapolis, Indiana DAVID I. RUBIN
Stewart & Irwin, P.C.
ATTORNEYS FOR INTERESTED Indianapolis, Indiana
PARTY/TRIAL COURT PLAINTIFF
AUTOMOTIVE FINANCE CORPORATION
:
SCOTT R. LEISZ
BRAD R. MAURER
Bingham McHale LLP
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
AUTOXCHANGE.COM, INC. and )
DONALD TABOR, )
)
Appellant-Third Party Plaintiffs, )
)
vs. ) No. 49A05-0402-CV-108
)
DREYER AND REINBOLD, INC., )
)
Appellee-Third Party Defendant. )
APPEAL FROM THE MARION SUPERIOR COURT
The Honorable Victoria M. Ransberger, Special Judge
Cause No. 49D05-0105-CP-745
September 15, 2004
OPINION - FOR PUBLICATION
RILEY, Judge
STATEMENT OF THE CASE
Appellants-Third Party Plaintiffs, AutoXchange.com, Inc. (AutoXchange) and Donald Tabor (Tabor) (collectively, Appellants), appeal
the trial courts denial of their motion to strike and award of partial
summary judgment in favor of Appellee-Third Party Defendant, Dreyer & Reinbold, Inc. (Dreyer
& Reinbold).
We affirm and remand.
ISSUES
Appellants raise four issues on appeal, which we consolidate and restate as follows:
1. Whether the trial court erred in denying Appellants motion to strike certain portions
of Dreyer & Reinbolds supplemental designation of evidence in support of its motion
for summary judgment; and
2. Whether the trial court erred in awarding partial summary judgment in favor of
Dreyer & Reinbold.
FACTS AND PROCEDURAL HISTORY
At the outset we note that significant portions of Dreyer & Reinbolds appellate
brief are dedicated to responding to Appellants factual allegations. Interested Party-Plaintiff, Automotive
Finance Corporation (AFC), even felt compelled to submit an interested party brief replying
to Appellants inaccuracies and unsupported assertions as included in the
statement of facts.
See footnote Instead of directly responding to the respective parties arguments,
we have reviewed the record, evidence, and briefs; and accordingly base this statement
of facts on our reading of the designated materials.
In March of 2001, Dreyer & Reinbold, an automobile retailer operating several locations
in and out of Marion County, Indiana, purchased three automobiles from AutoXchange for
a total amount of $148,208. During the negotiations leading up to this
transaction, Dreyer & Reinbold dealt solely with Scott Ellingwood (Ellingwood), AutoXchanges corporate officer
and minority shareholder. Tabor was AutoXchanges corporate president and majority shareholder.
At Ellingwoods request, Dreyer & Reinbold paid the purchase price directly to AFC,
AutoXchanges floorplan lender and secured creditor, which would ensure Dreyer & Reinbolds receipt
of free and clear title to the vehicles. Dreyer & Reinbolds payment
to AFC was credited to AutoXchanges account by AFC following receipt of the
purchase price. Under the terms of the financing agreement between AutoXchange and
AFC, AutoXchange was required to hold the proceeds of the sale of any
floorplanned vehicles in trust for AFC, and to transfer those proceeds to AFC
within forty-eight hours of the sale.
On March 23, 2001, AFC filed for and obtained an Order of Prejudgment
Replevin. On March 26, 2001, Appellants filed, among others, a Verified Third
Party Complaint against Dreyer & Reinbold. On October 6, 2003, Dreyer &
Reinbold filed its Motion for Partial Summary Judgment, together with its brief in
support of its motion and designation of evidence. Thereafter, on December 9,
2003, AutoXchange filed its brief and designated evidence in opposition to Dreyer &
Reinbolds motion for partial summary judgment. Subsequently, on January 5, 2004, Dreyer
& Reinbold filed its reply brief and supplemental designation of evidence.
On January 20, 2004, Appellants filed their motion to strike portions of Dreyer
& Reinbolds designation of evidence and supplemental designation of evidence. Dreyer &
Reinbold filed a reply to this motion on January 23, 2004. On
January 27, 2004, the trial court conducted a hearing on Dreyer & Reinbolds
motion for partial summary judgment. Consequently, on February 10, 2004, the trial
court issued an Order granting partial summary judgment in favor of Dreyer &
Reinbold, and certified the order as a final judgment. On that same
day, the trial court also issued an Order denying Appellants motion to strike.
Appellants now appeal both Orders. Additional facts will be provided as necessary.
DISCUSSION AND DECISION
I. Waiver
It is well settled that the duty of presenting a record adequate for
intelligent appellate review on points assigned as error falls upon the appellant, as
does the obligation to support the argument presented with authority and references to
the record pursuant to App. R. 46(A)(8). See, e.g., Lasater v. Lasater,
809 N.E.2d 380, 389 (Ind. Ct. App. 2004); Dawson v. State, 612 N.E.2d
580, 583 (Ind. Ct. App. 1993). In this regard, Appellants brief and
reply brief are highly inadequate and fall well short of this requirement.
Examination of Appellants briefs reveal that not only do Appellants fail to address
this court with cogent reasoning, none of their contentions are supported by citations
to authorities or relevant parts to the record and therefore amount to nothing
more than mere rambling allegations. See App. R. 46(A)(8)(a). Accordingly, we
have the authority to waive Appellants entire argument. See id. However,
waiver notwithstanding, we will attempt to address the merits of Appellants claims.
II. Interlocutory Appeal
Appellants first contend that the trial court abused its discretion by denying their
motion to strike certain portions of Dreyer & Reinbolds designated evidence in support
of its motion for partial summary judgment. Specifically, Appellants claim that Dreyer
& Reinbolds designation fails in specificity and authentication.
We first observe that the trial court never certified its Order denying the
motion to strike as a final judgment, nor did Appellants seek certification of
the Order pursuant to Ind. Trial Rule 54(B) or App. R. 14.
Nevertheless, as this court observed in our grant of this interlocutory appeal on
May 3, 2004, we cannot decide the trial courts award of partial summary
judgment unless we know what evidence was designated for review to the trial
court. Therefore, we will examine Appellants contention.
Indiana Trial Rule 56(C) requires each party to a summary judgment motion to
designate to the court all parts of pleadings, depositions, answers to interrogatories, admissions,
matters of judicial notice, and any other matters on which it relies for
purposes of the motion. This designation requirement promotes the expeditious resolution of
lawsuits and conserves judicial resources by relieving the trial courts from the burden
of searching the record when considering summary judgment motions. Rosi v. Business
Furniture Corp., 615 N.E.2d 431, 434 (Ind. 1993). More significantly, T.R. 56(H)
specifically prohibits appellate courts from reversing a grant of summary judgment on the
ground that there is a genuine issue of material fact unless the material
fact and the evidence relevant thereto shall have been specifically designated to the
trial court. T.R. 56(H).
The language of T.R. 56(C), however, permits the parties to determine how to
designate, which has engendered a lack of consensus both with the bench and
bar as to what must be done to designate evidentiary materials to the
trial court in support of or in opposition to a motion for summary
judgment. National Bd. of Examiners for Osteopathic Physicians and Surgeons, Inc. v.
American Osteopathic Assn, 645 N.E.2d 608, 615 (Ind. Ct. App. 1994). Nevertheless,
consensus is clear that the rule requires specificity. Id. Thus, designating
pleadings, discovery materials, and affidavits in their entirety will fail to meet the
specificity required by T.R. 56(C). Id. Even if entire portions of
the record are designated, however, the designation will not fail for lack of
specificity if more detailed references to the record are provided in accompanying memoranda.
Abbott v. Bates, 670 N.E.2d 916, 922 (Ind. Ct. App. 1996), rehg
denied.
Appellants first allege that Dreyer & Reinbold designated its brief and reply brief
in their entirety as support of the motion, thereby violating the specificity requirement
of T.R. 56(C). Although we agree that T.R. 56(C) mandates that designated
evidence must be specifically detailed, the manner in which a party chooses to
designate material is not mandated. See Ling v. Stillwell, 732 N.E.2d 1270,
1276 (Ind. Ct. App. 2000), trans. denied. A party satisfies T.R. 56(C)
if it specifies evidence in a summary judgment motion, separate filing of designation,
or in a memorandum in support or opposition to the motion for summary
judgment. Id. Our review of Dreyer & Reinbolds brief and reply
brief in support of its motion for summary judgment reveals that these briefs
clearly satisfy the specificity requirement of T.R. 56(C). Regardless that Dreyer &
Reinbold designated their entire briefs as supporting evidence, both briefs include page and
paragraph numbers clearly referencing the specific material upon which they rely. This
specific material is then also listed in a separate filing of designation.
Further, we have held that as long as the trial court is apprised
of the specific material upon which the parties rely in support of or
in opposition to a motion for summary judgment, then the material may be
considered. National Bd., 645 N.E.2d at 615. We are hard-pressed to
see how Dreyer & Reinbold could have been more specific in apprising the
trial court than by providing page and paragraph numbers. Thus, we conclude
that Appellants first argument is devoid of merit.
Next, Appellants claim that some exhibits designated by Dreyer & Reinbold in their
filing of designation are not authenticated or certified. Specifically, Appellants focus our
attention on an uncertified copy of a promissory note, an amendment to the
promissory note, and unauthenticated copies of checks from AFC to Dreyer & Reinbold
in payment for vehicles AutoXchange purchased from Dreyer & Reinbold. Our review
discloses that the promissory note and its amendment were submitted to the trial
court without objection during its replevin hearing. Further, Appellants included these same
exhibits as part of their own designated evidence in response to Dreyer &
Reinbolds motion for summary judgment. Once evidence has been designated to the
trial court by one party, that evidence is deemed designated and the opposing
party need not designate the same evidence. Powell v. American Health Fitness
Center of Fort Wayne, Inc. 694 N.E.2d 757, 759-60 (Ind. Ct. App. 1998).
Regardless whether Dreyer & Reinbold submitted properly authenticated materials, since Appellants designated
the same promissory note and its amendment as evidence in support of its
response to the motion for summary judgment, Dreyer & Reinbold could properly rely
and refer to this evidence. See id.
Furthermore, the record shows that the checks Appellants now attempt to strike, were
originally produced to Appellants as part of Dreyer & Reinbolds responses to the
first set of interrogatories and request for production of documents. This response
included a verification from an authorized representative of Dreyer & Reinbold, stating that
he hereby swear[s] or affirm[s] under the penalties for perjury that the foregoing
representations are true and correct under the best of [his] knowledge and belief.
(Appellants App. p. 314). Thus, a certified copy of the check
was served on Appellants. Moreover, the record reflects that Dreyer & Reinbolds
responses to the interrogatories and request for production were submitted to the trial
court as part of Appellants designated evidence. Since Appellants themselves submitted a
copy of the check as part of its own designated evidence, they are
now prohibited from objecting to the admission of this evidence by the trial
court.
Finally, Appellants claim that since T.R. 56 does not mention supplemental designation of
evidence, Dreyer & Reinbolds supplemental designation of evidence in support of its reply
brief to Appellants opposition to the motion for summary judgment should be stricken
from the record. Again, we find Appellants argument to be unavailing.
T.R. 56(C) provides that at the time of filing the motion or response,
a party shall designate all evidence on which it relies. Here, Dreyer
& Reinbolds supplemental evidence was part of its reply to Appellants brief requesting
the trial court to deny the motion for summary judgment. Therefore, pursuant
to the rule, Dreyer & Reinbold was allowed to designate evidence supporting its
reply. The mere fact that Dreyer & Reinbold characterized its designation of
evidence in its reply brief as supplemental designation of evidence is irrelevant for
the purpose of T.R. 56(C).
Based on the evidence before us, we conclude that Dreyer & Reinbold properly
designated its evidence in support of its motion for summary judgment. See
T.R. 56(C). Accordingly, we find that the trial court did not err
in denying Appellants motion to strike.
III. Summary Judgment
Appellants contend that the trial court erred by granting Dreyer & Reinbolds motion
for partial summary judgment. Initially, we note that at the trial court,
Appellants alleged a myriad of claims in tort against Dreyer & Reinbold as
part of their third party complaint, which included: (1) a request for
mandatory injunctive relief;
See footnote (2) wrongful diversion and
misappropriation of corporate funds; (3) fraud; (4) intentional and malicious interference with a
business relationship; (5) intentional infliction of emotional distress; and (6) unfair business practices.
On appeal, Appellants assert that their third party complaint also raised the following
claims against Dreyer & Reinbold: (1) breach of implied contract; and (2)
conversion. A careful review of Appellants third party complaint clarifies that Appellants
never asserted a breach of implied contract. Additionally, the complaint only asserted
a claim of conversion against AFC and Ellingwood, not against Dreyer & Reinbold.
As a general rule, a party may not present an argument or
issue to an appellate court unless the party raised the same argument or
issue before the trial court.
GKC Indiana Theatres, Inc. v. Elk Retail
Investors, LLC, 764 N.E.2d 647, 651 (Ind. Ct. App. 2002). Consequently, since
Appellants did not raise the claims of breach of implied contract and conversion
to the trial court, these issues are now waived for our review.
Id.
A. Standard of Review
Summary judgment is appropriate only when there are no genuine issues of material
fact and the moving party is entitled to a judgment as a matter
of law. T.R. 56 (C). In reviewing a trial courts ruling
on summary judgment, this court stands in the shoes of the trial court,
applying the same standards in deciding whether to affirm or reverse summary judgment.
American Family Mut. Ins. Co. v. Hall, 764 N.E.2d 780, 783 (Ind.
Ct. App. 2002), trans. denied. Thus, on appeal, we must determine whether
there is a genuine issue of material fact and whether the trial court
has correctly applied the law. Id. In doing so, we consider
all of the designated evidence in the light most favorable to the non-moving
party. Id. The party appealing the grant of summary judgment has
the burden of persuading this court that the trial courts ruling was improper.
Id. Accordingly, the grant of summary judgment must be reversed if
the record discloses an incorrect application of the law to the facts.
See Ayres v. Indian Heights Volunteer Fire Dep.t, Inc., 493 N.E.2d 1229, 1234
(Ind. 1986).
We observe that in the present case, the trial court entered detailed and
helpful findings of fact and conclusions of law in support of its judgment.
Special findings are not required in summary judgment proceedings and are not
binding on appeal. Watters v. Dinn, 633 N.E.2d 280, 285 (Ind. Ct.
App. 1994), trans. denied. However, such findings offer this court valuable insight
into the trial courts rationale for its judgment and facilitate appellate review.
Id.
B. Agency Authority
Appellants litany of causes of action against Dreyer & Reinbold all stem from
one event: Dreyer & Reinbolds payment to AFC at Ellingwoods request.
In this vein, Appellants first maintain that the trial court erred in its
award of partial summary judgment in favor of Dreyer & Reinbold on the
basis of apparent and inherent agency authority. Specifically, Appellants insist that under
the circumstances, Dreyer & Reinbold did not act in good faith when it
complied with Ellingwoods instructions to transfer the purchase price for the vehicles directly
to AFC.
Our established case law recognizes a difference between apparent agency authority and inherent
agency authority. An agent possesses apparent authority when a third person reasonably
believes the agent possesses authority due to some act by the principal.
Scott v. Randle, 697 N.E.2d 60, 67 (Ind. Ct. App. 1998). Whereas
the focus of apparent authority is the reasonable belief of the third party,
inherent authority refers to acts done on the principals account which accompany or
are incidental to transactions which the agent is authorized to conduct if, although
they are forbidden by the principal, the third party reasonable believes that the
agent is authorized to do them and has no notice that he is
not so authorized. Menard, Inc. v. Dage-MTI, Inc., 726 N.E.2d 1206, 1212
(Ind. 2000).
In Scott, we stated that placing an agent in a position to act
and make representations which appear reasonable is sufficient to endow him with apparent
authority. Scott, 697 N.E.2d at 67. However, we also added that
a communication of authority made solely by the agent is inadequate, instead it
is essential that there be some form of communication, direct or indirect, by
the principal, which instills a reasonable belief in the mind of the third
party. Id. In the present case, Ellingwood was a corporate officer
and minority shareholder of AutoXchange, and was authorized to sell vehicles. The
designated evidence shows Ellingwood to be Dreyer & Reinbolds sole contact at AutoXchange
and sole negotiator for sale terms. Despite Dreyer & Reinbolds claim that
Ellingwoods request to submit payment directly to AFC was reasonable, this communication was
made by Ellingwood personally, and not by his principal, AutoXchange. See id.
Nevertheless, when a party places an agent in the position of sole negotiator
on his behalf, it may be reasonable for the third person to believe
that the agent possesses authority to act for the principal. See id.
In such instance, the conduct of the principal, although indirect, constitutes the
requisite manifestation or communication. Id. This is exactly the case here.
Ellingwoods sole negotiating position in the commercial transactions with Dreyer & Reinbold
resulted in an indirect manifestation by AutoXchange which could reasonably be relied upon
by Dreyer & Reinbold. As a result, we conclude that Ellingwood had
apparent authority to instruct Dreyer & Reinbold to make payment directly to AFC.
Furthermore, Ellingwood also possessed inherent agency authority during his discussions with Dreyer &
Reinbold. Distilling inherent authority to its basics, we have to analyze whether:
(1) Ellingwood acted within the usual and ordinary scope of his authority
as corporate officer and sole negotiator; (2) Dreyer & Reinbold reasonably believed Ellingwood
was authorized to dictate the payment terms in this commercial transaction; and (3)
Dreyer & Reinbold had no notice that Ellingwood was not so authorized.
See Menard, 726 N.E.2d at 1212; see also Koval v. Simon Telelect, Inc.,
693 N.E.2d 1299, 1304 n.7 (Ind. 1998), rehg denied.
In examining whether Ellingwood acted within the usual and ordinary scope of his
authority, we find that the record supports that Ellingwood, as corporate officer and
minority shareholder, was authorized to sell vehicles. Additionally, since Ellingwood was the
sole negotiator of the transactions between AutoXchange and Dreyer & Reinbold, we conclude
that the formulation of payment terms was a necessary accompaniment to the ordinary
scope of Ellingwoods authority.
Next, we determine the reasonableness of Dreyer & Reinbolds belief that Ellingwood had
the authority to instruct the payment to be made directly to AFC.
Because the inherent agency theory originates from the customary authority of a person
in the particular type of agency relationship, we examine the agents indirect or
direct manifestations to find whether Dreyer & Reinbolds reliance on Ellingwoods authority was
reasonable. See Menard, 726 N.E.2d at 1214; Koval, 693 N.E.2d at 1304
n.7. The record shows that from AutoXchanges inception, Ellingwood served as a
corporate officer and minority shareholder. During all commercial transactions with Dreyer &
Reinbold, Ellingwood held himself out as the sole negotiator and only contact with
AutoXchange. Considering that AutoXchange placed Ellingwood in the position of corporate officer
and sole negotiator, we conclude that Dreyer & Reinbold should not be required
to scrutinize too carefully the mandates of this agent, who did nothing more
than what is usually done by a corporate officer. See Menard, 726
N.E.2d at 1214 (citing Restatement Second of Agency § 161 cmt. A).
Therefore, we find it reasonable that Dreyer & Reinbold did not question Ellingwoods
instruction to transfer the purchase price of the vehicles directly to AFC.
Finally, we analyze whether Dreyer & Reinbold had notice that Ellingwood was not
authorized to change the payment terms in this particular purchase. The trial
court did not mention any evidence, nor does our review of the record
reveal any indication that Dreyer & Reinbold was aware of the alleged limitations
to Ellingwoods authority as a corporate officer. Appellants mere statement that Dreyer
& Reinbold knew or should have known that Ellingwood lacked the requisite authority
does not make it so. Thus, based on the foregoing, we conclude
that Ellingwood had inherent authority to request Dreyer & Reinbold to transfer the
purchase price for the vehicles directly to AFC.
However, Appellants contend that Ellingwoods reason to change the payment terms, i.e., so
Dreyer & Reinbold could receive clear and free title to the vehicles, should
logically have put them on notice that Ellingwood did not have inherent agency
authority to direct AutoXchanges funds. Thus, Appellants argue, Dreyer & Reinbold failed
to act in good faith by not investigating whether Ellingwood had AutoXchanges authorization
for changing the payment terms. We are not persuaded. According to
Appellants assertion, anyone dealing with a corporate agent would be required to determine
the identity of the corporate officers and their hierarchy in the corporation and
then seek confirmation of the corporate officers authority from the highest ranking officer
each time this corporate officer makes a reasonable request during a regular commercial
relationship. Affirming Appellants would then effectively impede commerce and result in a
paralysis of speedy business transactions with repeated inquiries and attempts to contact corporate
executives who would become flooded with requests for numerous confirmations of authority.
This would completely defeat the purpose of agency law.
Further, Appellants insist that Dreyer & Reinbolds direct transfer of $148,204 to AFC
resulted in an overpayment of AutoXchanges account with AFC because they only owed
$103,456 and in the loss of use of the funds by AutoXchange.
In support of their claim Appellants focus on a cancelled check from AutoXchange
to AFC in the amount of $103,456. Our review reflects that the
funds paid by Dreyer & Reinbold were properly credited to AutoXchanges financing obligation
to AFC pursuant to the terms of the financing agreement. The language
of the agreement explicitly requires that once a vehicle financed by AFC is
sold, AutoXchange must repay AFC within forty-eight hours of the transaction. Accordingly,
pursuant to the terms of the financing agreement, we fail to see what
use, if any, AutoXchange could have made of the funds during this very
limited time period even if Dreyer & Reinbold had remitted the funds to
Appellants, rather than AFC.
Moreover, the March 14, 2001 Floorplan Status for AutoXchange indicates that the total
amount owed by AutoXchange to AFC was $188, 452.20. This debt excludes
the amount of $148,204 covering Dreyer & Reinbolds purchase, which was already credited
towards AutoXchanges balance. Thus, Appellants actual debt was greater than the cancelled
checks amount of $103,456. Therefore, we concur with the trial court that
no overpayment occurred.
Based on the foregoing, we conclude that Ellingwood possessed apparent and inherent agency
power on which Dreyer & Reinbold could reasonably rely when complying with his
request to transfer the purchase price directly to AutoXchanges floorplan lender. These
funds were immediately credited towards AutoXchanges balance and resulted in diminishing AutoXchanges debt
to AFC. We disagree with Appellants that any damage or overpayment of
their account occurred. Accordingly, we find that the trial court did not
err in its award of partial summary judgment in favor of Dreyer &
Reinbold on the basis of apparent and inherent agency authority. See T.R.
56(C).
C. Fraud
Next, Appellants allege that the trial court erred in its award of summary
judgment in favor of Dreyer & Reinbold on the basis that no fraud
or fraud by omission could be established. Although we accept Dreyer &
Reinbolds argument that Appellants third party complaint fails to include specific allegations of
fraud on the part of Dreyer & Reinbold and therefore should be disregarded
under T.R. 9(B),
See footnote we nevertheless will address the argument since the trial court
provided us with an elaborate conclusion of law.
In support of their common law fraud claim, Appellants maintain that Dreyer &
Reinbold willingly participated in Ellingwoods fraudulent scheme when it diverted the purchase price
for the vehicles from AutoXchange to AFC. To successfully sustain an action
for common law fraud, a party must prove five essential elements: (1)
a material misrepresentation, (2) of past or existing facts, (3) the falsity of
the representation, (4) the representation was made with knowledge or reckless ignorance of
its falsity, (5) and detrimental reliance on the representations.
Browning v. Walters,
616 N.E.2d 1040, 1047 (Ind. Ct. App. 1993). In the case at
bar, Dreyer & Reinbold relied on Ellingwoods apparent and inherent authority to
comply with his request to directly transfer the funds to AutoXchanges secured creditor.
This resulted in a credit on AutoXchanges balance and diminishing of its
debt to AFC. The circumstances of the present case satisfy none of
the requirements for common law fraud. Therefore, we find Appellants argument unavailing.
Secondly, arguing fraud by omission, Appellants contend that Dreyer & Reinbold had a
duty to inform AutoXchange that it had issued a check directly to AFC.
Again, we find this contention to be without merit. We have
previously held that imputed knowledge is a tenet of agency law, and is
based upon an underlying legal fiction of agency. Southport Little League v.
Vaughan, 734 N.E.2d 261, 274 (Ind. Ct. App. 2000), trans. denied (quoting Stump
v. Indiana Equip. Co., 601 N.E.2d 398, 403 (Ind. Ct. App. 1992), trans.
denied). Under this rule, the law imputes the agents knowledge to the
principal even if the principal does not actually know what the agent knows.
Id. Furthermore, in the absence of a duty, mere silence is
not actionable fraud. Indiana Bank and Trust Co. v. Perry, 467 N.E.2d
428, 431 (Ind. Ct. App. 1984). Thus, based on the imputed knowledge
doctrine, Dreyer & Reinbold were not under a duty to expressly notify AutoXchange,
since Ellingwoods knowledge of the transfer of funds would be automatically imputed to
AutoXchange.
Therefore, we find that the trial court did not err in its award
of partial summary judgment in favor of Dreyer & Reinbold based on Appellants
failure to prove their claim of fraud. See T.R. 56(C). Consequently,
we refuse to reverse the grant of partial summary judgment. See Ayres,
493 N.E.2d at 1234.
D. Tortious Interference with a Business Relationship
In their continuing effort to reverse the partial summary judgment in favor of
Dreyer & Reinbold, Appellants subsequently claim that the trial court erred in finding
no tortuous interference with a business relationship. Specifically, Appellants assert that because
Dreyer & Reinbold submitted payment directly to AFC without verifying Ellingwoods corporate authority,
they acted illegally. The elements of this tort include: (1) the
existence of a valid relationship; (2) the defendants knowledge of the existence of
the relationship; (3) the defendants intentional interference with that relationship; (4) the absence
of justification; and (5) damages resulting from defendants wrongful interference with the relationship.
Levee v. Beeching, 729 N.E.2d 215, 222 (Ind. Ct. App. 2002).
The only interference by Dreyer & Reinbold in AutoXchanges business relationship with AFC
that our review of the record discloses consists of Dreyer & Reinbold directly
transferring the purchase price of the vehicles to AFC upon the request of
Ellingwood, AutoXchanges authorized corporate agent. These funds were immediately credited towards AutoXchanges
account. As we already determined, in complying with Ellingwoods request, Dreyer &
Reinbold could reasonably and justifiably rely on his apparent and inherent agency authority.
See Menard, 726 N.E.2d at 1212; Scott, 697 N.E.2d at 67.
Although it is clear that, based on those circumstances, Appellants allegation does not
satisfy the elements of tortuous interference with a business relationship, we are equally
unconvinced that Dreyer & Reinbolds payment of AutoXchanges debt even amounts to the
type of interference the tort is intended to protect against. Consequently, we
agree with the trial court that Appellants cannot sustain a cause of action
for tortuous interference with a business relationship. Therefore, the trial court did
not err in its award of partial summary judgment. See T.R. 56(C).
E. Intentional Infliction of Emotional Distress
Lastly, Appellants assert that the trial court erred by rejecting their claim of
intentional infliction of emotional distress when awarding its motion of partial summary judgment.
In particular, Appellants insist that Dreyer & Reinbolds conduct was malicious and
done with the intent to cause emotional distress. According to Appellants, under
the circumstances, Dreyer & Reinbolds actions should be characterized as extreme and outrageous.
Contrary to Appellants contention that a claim of intentional infliction of emotional distress
can only be decided by a trier-of-fact, previous decisions of this court make
it clear that the tort is amenable to be decided by the trial
court on a motion for summary judgment. See Gable v. Curtis, 673
N.E.2d 805, 810 (Ind. Ct. App. 1996). We have recognized this tort
as one who by extreme and outrageous conduct intentionally or recklessly causes severe
emotional distress to another. Cullison v. Medley, 570 N.E.2d 27, 31 (Ind.
1991) (adopting the Restatement Second of Torts, § 46 (1965)). However, the
burden of proof is high and liability has been found only where the
conduct has been so outrageous in character, and so extreme in degree, as
to go beyond all possible bounds of decency, and to be regarded as
atrocious, and utterly intolerable in a civilized society. Gable, 673 N.E.2d at
810.
Here, the record simply does not support the atrocious conduct the tort calls
for. Again, the evidence only establishes that Dreyer & Reinbold acted in
accordance with a reasonable request made by Ellingwood, AutoXchanges corporate officer who possessed
apparent and inherent authority. The record is completely devoid of any traces
of malice, let alone atrocious conduct, on the part of Dreyer & Reinbold.
Therefore, we conclude that Dreyer & Reinbolds actions did not inflict intentional
emotional distress. Accordingly, we hold that the trial court did not err
in its award of partial summary judgment in favor of Dreyer & Reinbold.
See T.R. 56(C).
CONCLUSION
Based on the foregoing, we conclude that the trial court properly granted partial
summary judgment as a matter of law in favor of Dreyer & Reinbold.
We remand to the trial court for further judgment on all outstanding
issues.
Affirmed and remanded.
CRONE, J., and VAIDIK, J., concur.
Footnote:
We hereby deny Appellants Motion to Strike AFCs brief, filed on June
9, 2004. In their motion, Appellants allege that AFC has no standing
to file an interested party brief because AFC does not have an issue
in this appeal and none of AFCs interests will be affected by the
outcome of this appeal. However, Ind. Appellate Rule 17 clearly states that
a party of record in the trial court shall be a party on
appeal. Since AFC was a party of record in the trial court,
we hold that AFC can be a party on appeal.
See App.
R. 17. Therefore, we refuse to strike AFCs filing.
Footnote:
Since the emergency has ceased, Appellants now concede that mandatory injunctive relief
is no longer an issue. Therefore, we will not address this argument.
Footnote: T.R. 9(B) states that in all averments of fraud or mistake, the
circumstances constituting fraud or mistake shall be specifically averred. This mandate is
equally applicable to common law and statutory fraud claims.
Continental Basketball Assn,
Inc. v. Ellenstein Enterprises, Inc., 669 N.E.2d 134, 137 (Ind. 1996).