FOR PUBLICATION
ATTORNEY FOR APPELLANTS:
ATTORNEYS FOR
APPELLEES:
JOHN A. KRAFT
James
G. Vogt, Jr. and Nancy H. Vogt:
Young, Lind, Endres & Kraft CRAIG D. DOYLE
New Albany, Indiana MARK S. GRAY
Doyle & Friedmeyer, P.C.
Indianapolis, Indiana
Marine Builders, Inc.:
ERNEST W. SMITH
Smith, Bartlett, Heeke, Carpenter,
Thompson & Fondrisi, LLC Jeffersonville, Indiana
IN THE
COURT OF APPEALS OF INDIANA
LEO H. MEYER and CHERYL D. MEYER, )
Appellants-Defendants, )
)
vs. ) No. 10A01-0304-CV-123
)
MARINE BUILDERS, INC., )
Appellee-Plaintiff, )
and )
WINSTON KNAUSS, JAMES G. VOGT, JR., )
NANCY H. VOGT, and CHASE MANHATTAN )
MORTGAGE COMPANY, )
Appellees-Defendants. )
APPEAL FROM THE CLARK SUPERIOR COURT
The Honorable Cecile Blau, Judge
Cause No. 10D02-0205-PL-093
September 29, 2003
OPINION FOR PUBLICATION
BAILEY, Judge
Case Summary
Appellants-Defendants Leo and Cheryl Meyer (collectively, the Meyers) appeal the trial courts denial
of their motion for summary judgment and the trial courts grant of summary
judgment in favor of Appellees James and Nancy Vogt (collectively, the Vogts), defendants
below, and Marine Builders, Inc. (MBI), plaintiff below. We affirm.
Issues
The Meyers raise several issues in their challenge to the trial courts entry
of summary judgment, which we consolidate, reorder, and restate as:
Whether the trial court abused its discretion by denying the Meyers motion to
strike portions of two affidavits;
Whether a prior agreed judgment between the parties and/or their privies bars litigation
of the disputed issues pursuant to the doctrine of res judicata;
Whether the trial court erred by reforming the warranty deed for the property
in dispute because the Vogts did not present clear and convincing evidence that
reformation was appropriate; and
Whether the Meyers Warranty Deed has priority over the Vogts
See footnote pursuant to Indiana
Code Section 32-1-2-16.
Facts and Procedural History
I. Background
The relevant designated facts follow. The Meyers and the Vogts own property
in a residential development known as Shore Acres Subdivision (Shore Acres). The
residential property owned by the Meyers is located at 407 Shore Acres Drive
(the Meyers Property). The Vogts residential property is located at 406 Shore
Acres Drive (the Vogts Property).
II. Conveyance of Property from Knauss to MBI
Prior to April of 1990, Fred J. Kunz, Jr., (Kunz) owned certain real
property in Shore Acres, which was contiguous to a road owned by MBI.
On April 3, 1990, MBI, Kunz, and several other property owners entered
into an Agreed Judgment. In brief and in relevant part, the Agreed
Judgment: (1) extended Kunzs lot lines in Shore Acres up to the
present location of MBIs road; and (2) granted MBI an easement over the
extension of Kunzs lot lines.
See footnote On July 21, 1997, Kunz conveyed the
real estate to Winston Knauss (Knauss). On June 18, 1999, MBI purchased
a parcel of the real estate from Knauss, which is described, in relevant
part, as:
Being part of Lots 25 and 27 and being all of Lot 26
and Part of Survey Number 7 of the Illinois Grant, Clark County, Indiana,
more particularly described as follows:
Beginning at the southwest corner of lot number 6, Thence N 72 degs.
W, 92.15 feet to a PK rail, The True Point of Beginning for
the following described tract; Thence N 72 degs. W, 127.85 feet to a
point; Thence N 18 degs. E, 100.00 feet to a point; thence S
72 degs E, 127.85 feet to point marked by a PK nail; Thence
S 18 degs. W, 100.00 feet to point, the true of beginning, containing
0.2935 acres more or less. Subject to a roadway easement as described
in Deed Drawer 2, Instrument No. 6566.
Appellants App. at 6. The Warranty Deed for this parcel of real
estate was recorded on June 24, 1999.
III. Conveyance of the Meyers Property: 407 Shore Acres Drive
On August 2, 2000, Knauss conveyed the remainder of his interest in the
real estate, i.e., property located at 407 Shore Acres Drive, to the Meyers.See footnote
The Meyers property is more specifically described as:
Being a part of Lots [8See footnote ], 12, 14, 25, and 27, all of
Lots 6, 7, 13, and 26 and part of a 25 foot wide
vacated roadway (see miscellaneous Record Book 36, Page 195) in Shore Acres Subdivision
as shown in Plat Book 6, Page 16 of the Clark County, Indiana
Records and being further described as:
Beginning at the southwestern corner of said Lot 6; Thence N. 72 W.,
245 feet to a steel pin on southeast right-of-way line of a 31.5
foot wide ingress and egress easement; Thence N. 18 E., along said southeast
line, 100 feet; Thence S. 72 E., 176.42 feet to a steel pin;
Thence N. 18 degrees E., 5 feet to a steel pin; Thence S.
72 degrees E., 298.5, more or less, to the line dividing the State
of Indiana and the Commonwealth of Kentucky; Thence Southwestwardly along said dividing line,
105 feet more or less, to the southeastern corner of the said lot
6, Thence N. 72 degrees W., along the southwestern line of said lot
230 feet, more or less, to THE PLACE OF BEGINNING. Containing 1.12[See footnote ]
acres, more or less, and being subject to all easements of record.
Id. at 64. The Warranty Deed for the Meyers Property, which was
recorded on August 8, 2000, specifically excludes the property previously conveyed by Knauss
to MBI.
IV. Conveyance of the Vogts Property: 406 Shore Acres Drive
On August 14, 2000, MBI conveyed a parcel of the property that it
acquired from Knauss, i.e., property located at 406 Shore Acres Drive, to the
Vogts. The Vogts Property is more particularly described as:
A part of Lot 25 and part of Lot 26 and part of
Lot 13 and part of Lot 14 of Shore Acres. Plat Book
6, Page 16, Clark County, Indiana, more particularly described as follows: Commencing
at an iron pin marking the Northwest corner the plat of Shore Acres
and running thence South 72ÚSee footnote East along the Southern Line of Church Street
for a distance of 31.5 feet to the Northwest Corner of Lot 29
of Shore Acres; thence running 18ÚSee footnote West along the Western line of Lots
29, 28, 27 and 26 for a distance of 170 feet and 5/8
rebar wit I.D. cap (T.J. Boofter, L.S.), THE TRUE PLACE OF BEGINNING
OF THE TRACT HEREIN DESCRIBED:
Thence severing Lot 26 and running South 72ÚSee footnote East
for a distance of 132.5 feet to a spike in Lot 13 and
in the center of a certain 25 foot wide easement; thence running South
18ÚSee footnote West along the center of said 25 foot wide easement for a
distance of 50 feet to a spike in Lot 14; thence running North
72ÚSee footnote West (crossing into Lot 25 at 12.5 feet) for a distance of
132.5 feet to a rebar in the West line of Lot 25; thence
running North 18ÚSee footnote East along the Western line of Lots 25 and 26
for a distance of 50.0 feet to a 5/8 rebar with I.D.
cap, THE TRUE PLACE OF BEGINNING, subject to an easement in favor of
the residents of Shore Acres, said easement being for ingress and egress and
for the installation and maintenance of public utilities, said easement being 25 feet
in width and the centerline of which easement is coincident with the Eastern
line of the above-described tract.
Appellants App. at 10. The Warranty Deed for the Vogts Property was
recorded on August 14, 2000.
V. Commencement of the Present Litigation
As described in the Warranty Deeds, the Vogts Property includes a parcel of
real estate that is also included in the Meyers Property description. In
particular, the Warranty Deeds for both the Vogts and the Meyers Properties, as
executed and recorded, purport to convey the same parcel of land located in
parts of Lots 25 and 26.
On March 26, 2002, after discovering that the two warranty deeds include a
parcel of the same property, MBI filed an Amended Verified Complaint requesting that
the trial court quiet title in its name and revise the legal description
of the property represented by the Warranty Deed between MBI and Knauss, in
part, as follows:
Being all of Lot 26 and part of Lots 12,
13, 14, 25 and 27 . . . and being further described as
follows:
Beginning at the southwest corner of lot number 6, Thence N 72 degs.
W, 117.15 feet to a PK rail, The True Point of Beginning for
the following described tract; Thence N 72 degs. W, 127.85 feet to a
point; Thence N 18 degs. E, 100.00 feet to a point; thence S
72 degs E, 127.85 feet to point marked by a PK nail; Thence
S 18 degs. W, 100.00 feet to point, the true of beginning, containing
0.2935 acres more or less. Subject to a roadway easement as described
in Deed Drawer 2, Instrument No. 6566.
Id. at 22 (emphasis added).
See footnote On April 9, 2002, in their Answer
to the Amended Complaint, the Meyers asserted several defenses including, in relevant part,
that: (1) MBIs claim was barred by the statute of frauds; (2) MBIs
claim was barred pursuant to Indiana Code Section 32-1-2-16, because the Meyers interest
in the property was superior to any interest claimed by MBI; (3) MBI
has no standing to bring a cause of action because it no longer
holds title to the real estate subject to the controversy; and (4) MBIs
claim was barred by the doctrine of res judicata.
Id. at 25-26.
On August 14, 2002, the Vogts filed a cross-claim requesting that the
trial court quiet title in their name and reform the legal description of
the Vogts Property.
On October 21, 2002, the Vogts filed a motion for summary judgment.
Attached to their motion were the affidavits of Thomas J. Boofter (Boofter Affidavit)
and David W. Evanczyk (Evanczyk Affidavit). In response, the Meyers filed a
cross-motion for summary judgment and an objection to the Vogts motion for summary
judgment. The Meyers also filed motions to strike portions of the Boofter
and the Evanczyk Affidavits. In addition, attached to the Meyers cross motion
for summary judgment was an affidavit of Mr. Meyer (Meyer Affidavit). On
December 26, 2002, MBI filed a motion to join in the Vogts motion
for summary judgment, which the trial court granted.
VI. The Trial Courts Disposition of all Pending Motions
On January 9, 2003, after holding a hearing on the motion and cross-motion
for summary judgment, the trial court granted summary judgment to the Vogts and
MBI and denied the Meyers motion for summary judgment. In so doing,
the trial court denied the Meyers motion to strike certain portions of the
Boofter Affidavit. However, the trial court granted the Meyers motion to strike
the Evanczyk Affidavit, only as to the second full sentence of paragraph 6
and that shall read I was satisfied that the drawing of the tract
to be sold was accurate. Id. at 103. The trial court
also denied the Vogts motion to strike the Meyer Affidavit.
The trial court further reformed the Warranty Deed from Knauss to MBI as
follows:
A part of Lot 25, all of Lot 26 and a part of
Lot 27, and part of Lots 12, 13 and 14 of Shore Acres,
. . . more particularly described as follows:
Commencing at an iron pin marking the Northwest corner of the plat of
Shore Acres and running thence South 72ÚSee footnote East along the Southern Line of
Church Street for a distance of 31.5 feet to the Northwest corner of
Lot 29 of Shore Acres; thence running South 18ÚSee footnote West along the Western
line of Lots 29, 28 and 27 for a distance of 120 feet
to a point, the TRUE PLACE OF BEGINNING of the tract herein described:Thence
severing Lot 27 and running South 72ÚSee footnote East for a distance of 132.5
feet to a spike in Lot 12 and in the center of a
certain 25 foot wide easement (roadway right-of-way); thence South 18ÚSee footnote West along the
center of said 25-foot wide easement for a distance of 100 feet to
a spike in Lot 14; thence running North 72ÚSee footnote West (crossing into Lot
25 at 12.5 feet) for a distance of 132.5 feet to a rebar
in the West line of Lot 25; thence running North 18ÚSee footnote East along
the Western line of Lots 25, 26 and 27 for a distance of
100 feet to the true place of beginning. Id. at 106.
It is from this judgment that the Meyers now appeal.
See footnote
Discussion and Decision
I.
Summary Judgment Standard of Review
On review of a trial courts decision to grant
or deny summary judgment, we apply the same standard as the trial court:
we must decide whether there is a genuine issue of material fact
that precludes summary judgment and whether the moving party is entitled to judgment
as a matter of law. Carie v. PSI Energy, Inc., 715 N.E.2d
853, 855 (Ind. 1999). Once the moving party has sustained its initial
burden of proving the absence of a genuine issue of material fact and
the appropriateness of judgment as a matter of law, the party opposing summary
judgment must respond by designating specific facts establishing a genuine issue for trial.
Stephenson v. Ledbetter, 596 N.E.2d 1369, 1371 (Ind. 1992). We may
consider only those portions of the pleadings, depositions, and any other matters specifically
designated to the trial court by the parties for purposes of the motion
for summary judgment. Ind. Trial Rule 56(C), (H). Any doubt as
to the existence of an issue of material fact, or an inference to
be drawn from the facts, must be resolved in favor of the nonmoving
party. Cowe v. Forum Group, Inc., 575 N.E.2d 630, 633 (Ind. 1991).
Although the nonmovant has the burden of demonstrating that the grant of
summary judgment was erroneous, we carefully assess the trial courts decision to ensure
that the nonmovant was not improperly denied his or her day in court.
Colonial Penn Ins. Co. v. Guzorek, 690 N.E.2d 664, 667 (Ind. 1997).
Specific findings and conclusions by the trial court are not required, and
although they offer valuable insight into the rationale for the judgment and facilitate
our review, we are not limited to reviewing the trial courts reasons for
granting or denying summary judgment. Bernstein v. Glavin, 725 N.E.2d 455, 458
(Ind. Ct. App. 2000). Rather, a grant of summary judgment may be
affirmed upon any theory supported by the designated materials. Id.
In addition, [t]he fact that the parties [made] cross-motions for summary judgment does
not alter our standard of review. Instead, we must consider each motion
separately to determine whether the moving party is entitled to judgment as a
matter of law. Ind. Farmers Mut. Ins. Group v. Blaskie, 727 N.E.2d
13, 15 (Ind. Ct. App. 2000).
II. Analysis
A. The Meyers Motion to Strike
As a preliminary matter, we address the Meyers contention that the trial court
abused its discretion when it denied their motion to strike portions of the
Boofter and Evanczyk Affidavits. We review a trial courts decision to admit
or exclude evidence for an abuse of discretion. Richardson v. Calderon, 713
N.E.2d 856, 860 (Ind. Ct. App. 1999). We will reverse such
an exercise of discretion only when the decision is clearly against the logic
and effect of the facts and the circumstances. Id. Affidavits in
support of or in opposition to a motion for summary judgment are governed
by Indiana Trial Rule 56(E), which provides, in relevant part: [s]upporting and
opposing affidavits shall be made on personal knowledge, shall set forth such facts
as would be admissible in evidence, and shall show affirmatively that the affiant
is competent to testify to the matters stated therein. Generally, [a]n affidavit
may not contain conclusions of law, and portions of an affidavit that do
so will not be considered in ruling on a motion for summary judgment.
Duncan v. Duncan, 764 N.E.2d 763, 766 (Ind. Ct. App. 2002).
Here, the Meyers maintain that the trial court abused its discretion by refusing
to strike portions of the Boofter and Evanczyk Affidavits that contained beliefs and
conclusory statements. We address the pertinent portions of each affidavit separately.
1. The Boofter Affidavit
The Meyers take issue with the following portions of the Boofter Affidavit:
I examined a drawing of a parcel of real property prepared by Elstone
& Luther, Land Surveyors dated June 4, 1999, which drawing the basis for
the legal description which appears in the deed from Knauss to [MBI.]
. . .
* * * * *
8. The Elstone & Luther drawing also depicts an iron pin found (existing), as
the point of beginning, and two P.K. nails set in the middle of
the roadway right-of-way. It appears from the drawing that Elstone & Luther
set pins or stakes to mark the Westerly edge of the ingress-egress easement,
thus marking the 4 corners of the subject parcel surveyed and drawn.
* * * * *
12. The starting point identified in the Elstone & Luther legal description was mis-identified
[sic] as the Southwest corner of Lot 6. As a result of
this mistake, the metes-and-bounds legal description developed by Elstone & Luther is not
congruent with the parcel staked by them and depicted in their drawing.
Appellants App. at 91-92 (emphasis added). The Meyers argue that the emphasized
portions of the Boofter Affidavit are not grounded in fact, but rather, in
speculation. As such, the Meyers argument continues, the emphasized portions are improper
material for an affidavit supporting a summary judgment motion and should have been
stricken by the trial court. We disagree.
First, we observe that, on appeal, the Meyers do not dispute Boofters professional
credentials and other qualifications as a land surveyor. Indeed, in the portion
of the Boofter Affidavit that the Meyers do not challenge, Boofter affirms that
he is a registered land surveyor and routinely performs surveys of real property.
Thus, Boofter qualifies as an expert witness. See, e.g., Romine v.
Gagle, 782 N.E.2d 369, 382 (Ind. Ct. App. 2003) (acknowledging that a professional
land surveyor who owns his own land surveying business is an expert); see
also Longabaugh v. Johnson, 163 Ind. App. 108, 111, 321 N.E.2d 865, 867
(1975) (recognizing that a surveyor was an expert witness).
Indiana Evidence Rule 702 governs expert testimony and provides that:
(a) If scientific, technical, or other specialized knowledge will assist the trier of
fact to understand the evidence or to determine a fact in issue, a
witness qualified as an expert by knowledge, skill, experience, training, or education, may
testify thereto in the form of an opinion or otherwise.
As an expert witness, Boofter was able to testify in the form of
an opinion. Thus, the disputed portions of the Boofter Affidavit were admissible
under Indiana Evidence Rule 702. Accordingly, the trial court did not abuse
its discretion by denying the Meyers motion to strike portions of the Boofter
Affidavit that contain opinion testimony.
2. The Evanczyk Affidavit
The Vogts also attached the Evanczyk Affidavit to their motion for summary judgment.
Evanczyk is the president of MBI and, while acting in that capacity,
he personally negotiated with Knauss for the purchase of the MBI property.
The Meyers take issue with the following portions of the Evanczyk Affidavit:
8. . . . Based on the foregoing, I believe that the location of
the tract described by metes and bounds within the legal description is 25
feet further East than that contemplated by [Knauss] and me in our sale
transaction.
9. . . . I now believe that the metes and bounds portion of
the legal description drawn by Elstone & Luther does not describe the tract
which appears in the drawing.
Appellants App. at 96-97 (emphasis added and internal citations omitted).
The Meyers contend that the trial court abused its discretion by refusing to
strike the emphasized portions of the Evanczyk Affidavit because they express opinions and
conclusions not grounded in fact and because they constitute inadmissible hearsay. Evanczyk
is not a land surveyor or an expert witness. Rather, he is
a lay witness and, as such, is generally not permitted to provide opinion
testimony.
However, Indiana Evidence Rule 701 provides that:
If the witness is not testifying as an expert, the witnesss testimony in
the form of opinions or inferences is limited to those opinions or inferences
which are (a) rationally based on the perception of the witness and (b)
helpful to a clear understanding of the witnesss testimony or the determination of
a fact in issue.
An opinion under Indiana Evidence Rule 701 is rationally based, for purposes of
the rule, if it is one that a reasonable person normally could form
from the perceived facts. Mariscal v. State, 687 N.E.2d 378, 380 (Ind.
Ct. App. 1997). In addition, an opinion is helpful, for purposes of
the rule, if the testimony gives substance to facts, which were difficult to
articulate. Id.
In the present case, the controversial portions of the Evanczyk Affidavit meet the
requirements of Indiana Evidence Rule 701 because the opinions expressed are ones that
a reasonable person could normally form from the perceived facts. In particular,
in the unchallenged portions of his affidavit, Evanczyk affirms that:
During 1999 I negotiated with [Knauss] to purchase a tract approximately three tenths
of an acre, in Shore Acres. The tract . . . extended
from the edge of the 31.5 foot ingress/egress easement to the Ohio River.
I made an agreement to purchase that portion of that real estate
that extended from the easement to the center of Shore Acres Drive.
* * * * *
5. [Knauss] and I visited the property, and walked and discussed its dimensions together
as part of our negotiation for the sale to [MBI.]
6. Both [Knauss] and I viewed the drawing of the property prepared by Elstone
& Luther before the sale was consummated. [I was satisfied that the
drawing of the tract to be sold was accurate.
See footnote ] . . .
[MBI] paid consideration for and intended to receive a tract of land approximately
100 feet wide, extending from the edge of the 31.5 foot ingress/egress easement
to the center of Shore Acres Drive. That tract would include all
of Lot 26, and parts of Lots 25 and 27 in the original
plat of Shore Acres Drive.
Now, I am informed and believe there is a blunder in the legal
description written by Elstone & Luther. . . .
Appellants App. at 95-97.
Evanczyks undisputed perceived facts could lead a reasonable person to express the opinion
that the metes and bounds portion of the legal description drawn by Elstone
& Luther does not describe the tract which appears in the drawing.
Id. at 97. They could further prompt a reasonable person to conclude
that the location of the tract described by metes and bounds within the
legal description is 25 feet further East than that contemplated by [Knauss] and
[Evanczyk] in [the] sale transaction. Id. at 96-97. Accordingly, the controversial
portions of the Evanczyk Affidavit that constitute opinion testimony are rationally based upon
the perception of Evanczyk. They are also helpful in providing a clear
understanding of Evanczyks testimony. As such, the trial court did not abuse
its discretion by denying the Meyers motion to strike the controversial portions of
the Evanczyk Affidavit.
B. The Agreed Judgment: Res Judicata
The Meyers next argue that the trial courts entry of summary judgment in
favor of the Vogts and MBI was erroneous because the Agreed Judgment served
as res judicata against portions of the current action. Appellants Br. at
9. The doctrine of res judicata prevents the repetitious litigation of that
which is essentially the same dispute. Scott v. Scott, 668 N.E.2d 691,
699 (Ind. Ct. App. 1996). The principle of res judicata is divided
into two distinct branches: claim preclusion and issue preclusion. Eichenberger v.
Eichenberger, 743 N.E.2d 370, 374 (Ind. Ct. App. 2001). Claim preclusion applies
where a final judgment on the merits has been rendered which acts as
a complete bar to a subsequent action on the same issue or claim
between those parties and their privies. Id. Issue preclusion bars
the subsequent relitigation of the same fact or issue where that fact or
issue was necessarily adjudicated in a former suit and the same fact or
issue is presented in a subsequent action. Id. Where issue preclusion
applies, the previous judgment is conclusive only as to those issues actually litigated
and determined therein. Id. Here, the Meyers challenge to the trial
courts entry of summary judgment relies upon claim, as opposed to issue, preclusion.
The prior action upon which the Meyers rely to support their contention that
res judicata bars the Vogts and MBIs claim is the Agreed Judgment between
several parties, including MBI and Kunz. The Agreed Judgment, which was entered
on April 3, 1990, concerned the placement of a road easement owned by
MBI. The pertinent provisions of the Agreed Judgment provides as follows:
* * * * *
WHEREFORE IT IS ORDERED, ADJUDGED AND DECREED by [the trial court] that:
8. Any rights that . . . [Kunz] . . . [his] successors, heirs
and assigns have regarding the [MBIs] road or its present location . .
. are hereby terminated.
. . . The lines of lot nos. 28 and 29 and part
of lots nos. 25, 26 and 27 owned by [Kunz] are hereby extended
into the Easement for Ingress and Egress . . . up to the
present location of [MBIs] road and fee simple title to said real estate
is quieted in [Kunz. MBI] its successors, heirs and assigns are hereby
granted an easement over the said extension of the real estate of .
. . [Kunz, his] successors, heirs and assigns for the purpose of complying
with any sight and sound barrier required by the U.S. Army Corps of
Engineers. [MBI] shall not dispute with . . . [Kunz] the present
location of [his] lot lines in Shoreacres which run in the east-west direction
and perpendicular to the Ohio River.
* * * * *
11. This [A]greed [J]udgment is the settlement of disputed claims between the parties hereto.
Said [A]greed [J]udgment shall in no way affect any rights or claims
[MBI] may have against other landowners in Shoreacres or to those portions of
the Easement for Ingress and Egress which are unaffected by this [A]greed [J]udgment.
Appellants App. at 16-17.
Although MBI and Kunz, i.e., the Meyers and the Vogts predecessor in interest,
were subject to the Agreed Judgment, the doctrine of res judicata does not
operate, on these facts, to bar the present litigation. The Agreed Judgment
merely extended Kunzs property up to the road owned by MBI and, simultaneously,
granted MBI an easement over the extension. The claim of who owned
the disputed parcel of property, i.e., a parcel that includes Kunzs extended lot
lines, was not, and could not have been, addressed in the Agreed Judgment.
At the time of the Agreed Judgment, Kunz owned the disputed parcel
of property free of any cloud of title. Thus, the doctrine of
res judicata does not apply to the present litigation.
C. Reformation: Warranty Deed Between Knauss and MBI
The Meyers also contend that the trial court erroneously reformed the Warranty Deed
between Knauss and MBI because the Vogts failed to prove that such reformation
was necessary by clear and convincing evidence. Reformation, when granted in equity,
overcomes the Statute of Frauds and the presumption that the written instrument expresses
the parties intentions. Colbo v. Buyer, 235 Ind. 518, 528, 134 N.E.2d
45, 50 (1956). Reformation also has the potential to affect others beyond
any immediate dispute via the recording system. Estate of Reasor v. Putnam
County, 635 N.E.2d 153, 160 (Ind. 1994). Accordingly, our supreme court has
held that to succeed in a reformation action a party must show either
mutual mistake or fraud by clear and convincing evidence. Id. A
party seeking reformation must further show the original intent or agreement of the
parties by clear and convincing evidence. Id.
Initially, however, we observe that Indiana courts apply the clear and convincing standard
only at a trial on the merits. Comfax Corp. v. N. Am.
Van Lines, Inc., 587 N.E.2d 118, 128 (Ind. Ct. App. 1992). Indeed,
Indiana law is clear that whether the evidence meets the clear and convincing
standard is not the proper inquiry on a summary judgment motion because such
inquiry merely invites a weighing of the evidence. Chester v. Indianapolis Newspapers,
Inc., 553 N.E.2d 137, 140-141 (Ind. Ct. App. 1990) (noting that, when reviewing
a grant of summary judgment, an appellate court is only concerned with the
existence of factual questions, not litigants ability to sustain burden of proof on
those issues); see also Bandidos, Inc. v. Journal Gazette Co., Inc., 575 N.E.2d
324, 327 (Ind. Ct. App. 1991) (noting that to ask the trial court
to find that the plaintiffs have been unable to prove their case is
to request the trial court to weigh evidence, which is not the function
of a trial court on a motion for summary judgment), but see Heeb
v. Smith, 613 N.E.2d 416, 420 (Ind. Ct. App. 1993) (suggesting that the
modern approach is that a trial court must take a heightened standard of
proof into account when ruling on a motion for summary judgment, particularly with
respect to a media defendant). Consequently, the Vogts were not required to
prove the necessity of reforming the Warranty Deed between Knauss and MBI by
clear and convincing evidence at the summary judgment stage of the proceedings.
See, e.g., Chester, 553 N.E.2d at 140-141. Thus, the question before us
becomes whether the trial court erred by reforming the Warranty Deed in dispute.
Reformation is an extreme equitable remedy to relieve the parties of mutual mistake
or of fraud. Estate of Reasor, 635 N.E.2d at 158 (citations omitted).
The remedy of reformation is extreme because written instruments are presumed to
reflect the intentions of the parties to those instruments. Id. As
such, in Indiana, courts may reform written contracts only if: (1) there has
been a mutual mistake; or (2) one party makes a mistake while the
other party commits fraud or inequitable conduct. Estate of Spry v. Greg
& Ken, Inc., 749 N.E.2d 1269, 1275 (Ind. Ct. App. 2001). Because
the Meyers do not allege that a fraud occurred, we turn our analysis
to whether a mutual mistake occurred. A mutual mistake arises if there
has been a meeting of the minds, an agreement actually entered into, but
the document in its written form does not express what the parties actually
intended. Plumlee v. Monroe Guar. Ins. Co., 655 N.E.2d 350, 356 (Ind.
Ct. App. 1995). However, reformations for mutual mistakes are only available if
they are mistakes of fact, as opposed to mistakes of law. Gierhart
v. Consol. Rail Corp.-Conrail, 656 N.E.2d 285, 287 (Ind. Ct. App. 1995).
In addition, equity should not intervene and courts should not grant reformation where
the complaining party failed to read the instrument, or, if he read it,
failed to give heed to its plain terms. Id.
Moreover, in a reformation action, it is the intent of the parties that
controls. Estate of Reasor, 635 N.E.2d at 161. To determine the
true intent of the parties, we may look to their conduct during the
course of the contract. Peterson v. First State Bank, 737 N.E.2d 1226,
1229-30 (Ind. Ct. App. 2000). With this law as our guide, we
now address the issue of whether the trial court erroneously reformed the Warranty
Deed from Knauss to MBI.
Here, the Meyers argue that the designated record is devoid of any evidence
demonstrating that Knauss and MBI were mutually mistaken about the property description contained
in the Warranty Deed. We disagree. The Evanczyk Affidavit, which was
properly designated to the Vogts motion for summary judgment, provides, in relevant part,
as follows:
3. During 1999 I negotiated with [Knauss] to purchase a tract approximately three tenths
of an acre, in Shore Acres. The tract . . . extended
from the edge of the 31.5 foot ingress/egress easement to the Ohio River.
. . .
* * * * *
5. [Knauss] and I visited the property, and walked and discussed its dimensions together
as part of our negotiation for the sale to [MBI.]
6. Both [Knauss] and I viewed the drawing of the property prepared by Elstone
& Luther before the sale was consummated.
7. [MBI] paid consideration for and intended to receive a tract of land approximately
100 feet wide, extending from the edge of the 31.5 foot ingress/egress easement
to the center of Shore Acres Drive. That tract would include all
of Lot 26, and parts of Lots 25 and 27 in the original
plat of Shore Acres Drive.
Appellants App. at 95-97. From these excerpts, it is clear that MBIs
intent in executing the Warranty Deed with Knauss was to purchase the parcel
of real estate in dispute, i.e., a parcel of land that extends to
and borders the easement for ingress and egress. It is also clear
from these portions of the Evanczyk Affidavit that, prior to executing the Warranty
Deed, Knauss and Evanczyk walked along the property together and discussed the dimensions
of the property.
Moreover, the Evanczyk Affidavit demonstrates that the contracting parties relied upon the land
survey prepared by Elstone & Luther when they executed the Warranty Deed.
However, the Boofter Affidavit, which was also attached to the Vogts motion for
summary judgment and properly designated to the trial court, reveals that Boofter, a
land surveyor, followed the metes-and-bounds description in the Knauss-to-[MBI] deed. Id. at
91. In so doing, Boofter discovered that [i]f the calls and distances
set out in the Elstone-Luther legal description are traced from the Southwest corner
of Lot Number 6, then the resulting parcel does not reach the line
of the ingress-egress easement on the West . . . . Id.
at 91-92. Moreover, when Boofter personally inspected the land, he found that
[t]he starting point identified in the Elstone & Luther legal description was mis-identified
[sic] as the Southwest corner of Lot 6, and as a result, the
metes-and-bounds legal description developed by Elstone & Luther is not congruent with the
parcel staked by them and depicted in their drawing. Id. at 92-93.
Accordingly, the designated evidence reveals that the legal description contained in the
survey performed by Elstone & Luther and the parcels staked by them do
not dovetail.
Although the survey performed by Elstone & Luther is prima facie evidence of
the lot lines intended by Knauss and MBI when they executed the Warranty
Deed, its legal effect is merely to furnish one species of evidence, which
may or may not be material, in the determination of a question of
title, and which may be entirely controlled and overcome by evidence of another
kind. Spacy v. Evans, 152 Ind. 431, 433-34, 52 N.E. 605, 606
(1899). The evidence of another kind, in this case, reflects that the
Elstone & Luther survey was inaccurate.
We further note that an inaccurate survey may go undetected by interested parties,
who are not professional land surveyors or otherwise accustomed to reviewing land surveys,
until a subsequent survey reveals the error. Such is the case here.
Although Knauss did not testify as to whether he intended to convey
the parcel of property in dispute to MBI when the parties executed the
Warranty Deed, the designated evidence is sufficient to establish Knausss intent. Because
Knauss and MBI, through its agent Evanczyk, both relied upon the inaccurate survey
and because the resulting Warranty Deed does not express the contracting parties intent,
a mutual mistake occurred in the execution of the Warranty Deed as a
matter of law. Accordingly, the trial court properly reformed the Warranty Deed
between Knauss and MBI to more accurately reflect the contracting parties intent.
See footnote
As such, we find no error.See footnote
D. Indiana Code Section 32-1-2-16: Indianas Race-Notice Statute
Lastly, the Meyers argue that the trial court erroneously entered judgment in
favor of the Vogts and MBI because the Vogts Warranty Deed is void
pursuant to Indianas race-notice statute. Indiana Code Section 32-1-2-16 provides that:
(a) A:
(1) conveyance or mortgage of land or of any interest in land; and
(2) a lease for more than three (3) years;
must be recorded in the recorders office of the county where the land
is situated.
(b) A conveyance, mortgage, or lease takes priority according to the time of
its filing. The conveyance, mortgage, or lease is fraudulent and void as
against any subsequent purchaser, lessee, or mortgagee in good faith and for a
valuable consideration if the purchasers, lessees, or mortgagees deed, mortgage, or lease is
first recorded.
The purpose of the recording statute is to provide protection to subsequent purchasers,
lessees, and mortgagees. Szakaly v. Smith,
Footnote: 44 N.E.2d 490, 491 (Ind. 1989).
Instruments will have priority according to the time of the filing thereof.
Id. A record outside the chain of title does not provide
notice to bona fide purchasers for value. Id. However, a lan
Footnote: owner
will be held to have constructive notice of any instrument recorded within his
or her chain of title. McIntyre v.
Footnote: Baker, 660 N.E.2d 348, 352 (Ind.
Ct. App. 1996).
The present case does not involve a partys failure to properly record a
conveyance or lease. Rather, the present dispute involves whether a deed that
was properly recorded, but improperly described the property because of a mutual mistake,
can be reformed to more accurately reflect the parties intent, even if such
reformation may affect a subsequent landowners interest. We have alr
Footnote: ady held that
it can.
Footnote: See supra Part II.C. Indeed, as previously mentioned, reformation has
the potential to affect others beyond any immediate dispute via the recording system.
Estate of Reasor, 635 N.E.2d at 160. Accordingly, India
Footnote: a Code Section
32-1-2-16 is inapplicable to the circumstances presented before us because they do not
in
Footnote: olve a failure to properly record a conveyance or lease. See, e.
Footnote: .,
Ebersol v. Mishler, 775 N.E.2d 373, 382 (Ind. Ct. App. 2002).
Conclusion
The trial court did not abuse its discretion by denying the Meyers motions
to strike selected portions of the Boofter and Evanczyk Affidavits. The Agreed
Judgment does not bar the present cause of action under the doc
Footnote: rine of
res judicata. In addition, because there were no issues of material fact,
the grant of summary judgment was appropriate as a matter of law and,
as a consequence, the trial court did not err by providing equitable relief
in reforming the Warranty Deed in light of the evidence presented. The
race-notice statute, i.e., Indiana Code Section 32-1-2-16, does not apply to the particular
dispute because the controversy does not involve the failure to properly record a
conveyance. Accordingly, the trial court did not err by denying the Meyers
motion for summary judgment and motions to strike, and by granting summary judgment
to the Vogts and MBI.
Affirmed.
KIRSCH, J., and VAIDIK, J., concur.
In their appellants brief, the Meyers assert that their Warranty Deed has
priority over MBIs Warranty Deed. However, we believe that the Meyers argument
is that their Warranty Deed has priority over the Vogts Warranty Deed.
The pertinent provisions of the Agreed Judgment wil
Footnote: be further scrutinized in
the Analysis section of this opinion.
The Warranty Deed incorrectly identifies the seller of 407 Shore Acres Drive
as William, as opposed to Winston, Knauss. The Warranty Deed also describes
407 Shore Acres Drive as being a part of Lot 6. On
December 11, 2000, a Deed of Correction was executed and reco
Footnote: de
Footnote: , which correctly
identifies the seller of 407 Shore Acres Drive as Winston Knauss and describes
the property as being a part of Lot 8. Appellants App. at
12-13.
See supra note 1.
From the copy of the Warranty Deed contained in the Appellants Brief,
we were unable to discern the whole number associated with the acreage amount.
However, the Deed of Correction lists the acreage as 1.12.
The underlined portions of the property description reflect the proposed changes to
the Warranty Deed.
On July 17, 2003, MBI joined in the Vogts appellants brief.
In partially granting the Meyers motion to strike, the trial court modified
this sentence in the Evanczyk Affidavit. Before the modification, the sentence provided
as follows: [Knauss] and I were each satisfied that the drawing of
the tract to be sold was accurate. Appellants App. at 96.
In their appellants brief, the Meyers contend that Knauss did not intend
to convey the disputed parcel of property to MBI as evidenced by his
subsequent conveyance of the property to the Meyers, which explicitly conveyed the remainder
of his real estate to the Meyers. We are unpersuaded by this
argument, however, because the Warranty Deed between Knauss and the Meyers