FOR PUBLICATION
ATTORNEYS FOR APPELLANTS: ATTORNEYS FOR APPELLEE:
RICHARD W. MORGAN DAVID M. HASKETT
Sweeney Pfeifer Morgan & Stesiak LUCY R. DOLLENS
South Bend, Indiana Locke Reynolds
Indianapolis, Indiana
STANLEY C. FICKLE
Barnes & Thornburg
Indianapolis, Indiana
JESSE M. BARRETT
Barnes & Thornburg
South Bend, Indiana
IN THE COURT OF APPEALS OF INDIANA
RUETH DEVELOPMENT COMPANY, )
HAROLD RUETH and HELEN RUETH, )
)
Appellants-Plaintiffs, )
)
vs. ) No. 45A05-0402-CV-62
)
MICHAEL L. MUENICH, )
)
Appellee-Defendant. )
APPEAL FROM THE LAKE CIRCUIT COURT
The Honorable Lorenzo Arredondo, Judge
October 27, 2004
OPINION - FOR PUBLICATION
SHARPNACK, Judge
Rueth Development Company, Harold Rueth, and Helen Rueth (collectively, the Rueths) appeal the
trial courts dismissal of their attorney malpractice complaint against Michael L. Muenich.
The Rueths raise one issue, which we restate as whether the trial court
abused its discretion by granting Muenichs motion to dismiss where the trial court
had ordered the Rueths to file an amended complaint and the Rueths filed
their amended complaint either one or three days late.
See footnote We reverse and
remand.
The relevant facts follow. On May 19, 2002, the Rueths filed a
complaint against Muenich that alleged Muenich represented the [Rueths] in connection with an
action brought by the United States on behalf of the United States Environmental
Protection Agency and [a]s a result of [Muenichs] negligence during the course of
said representation, the [Rueths] sustained damages in excess of $4 million dollars.
Appellants Appendix at 6-7. Muenich filed a motion for a more definite
statement under Ind. Trial Rule 12(E) and sought the dates on which the
alleged acts of negligence occurred. The trial court granted the motion on
March 3, 2003, and ordered the Rueths to amend their complaint within twenty
days.
The Rueths counsel did not properly calendar the date on which the amended
complaint was due. On March 26, 2003, the Rueths counsel realized the
error, called Muenichs counsel, and left a voicemail message advising that the Rueths
had not yet filed the amended complaint but would do so the next
day and requesting Muenichs counsel to call if counsel for [Muenich] had a
problem with that.
Id. at 120. On March 27, 2003, the
Rueths filed an amended complaint, and on the same day, Muenich filed a
motion to dismiss the Rueths complaint with prejudice under Ind. Trial Rule 12(E)
because the Rueths had failed to file a timely amended complaint. Muenich
later filed a motion to strike the Rueths amended complaint. After a
hearing, the trial court granted Muenichs motion as follows: The Court hereby
finds that [Muenichs] Motion to Dismiss [the Rueths] Complaint with Prejudice shall be
granted for the reason that [the Rueths have] failed to comply with the
deadlines imposed pursuant to this Courts Order of March 3, 2003. Id.
at 5.
The issue is whether the trial court abused its discretion by granting Muenichs
motion to dismiss where the trial court had ordered the Rueths to file
an amended complaint and the Rueths filed their amended complaint either one or
three days late. The trial court granted Muenichs motion for a more
definite statement under Ind. Trial Rule 12(E), which provides:
If a pleading to which a responsive pleading is permitted is so vague
or ambiguous that a party cannot reasonably be required to frame a responsive
pleading, he may move for a more definite statement before interposing his responsive
pleading. The motion shall point out the defects complained of and the
details desired. If the motion is granted and the order of the
court is not obeyed within twenty [20] days after notice of the order
or within such other time as the court may fix, the court may
strike the pleading to which the motion was directed or make such order
as it deems just.
We have held that Ind. Trial Rule 41(E) is applicable where a party
fails to amend its complaint pursuant to a trial courts order under Ind.
Trial Rule 12(E). See Yaksich v. Gastevich, 440 N.E.2d 1138, 1140 (Ind.
Ct. App. 1982). Ind. Trial Rule 41(E) provides that:
Whenever there has been a failure to comply with these rules or when
no action has been taken in a civil case for a period of
sixty [60] days, the court, on motion of a party or on its
own motion shall order a hearing for the purpose of dismissing such case.
The court shall enter an order of dismissal at plaintiffs costs if
the plaintiff shall not show sufficient cause at or before such hearing.
Dismissal may be withheld or reinstatement of dismissal may be made subject to
the condition that the plaintiff comply with these rules and diligently prosecute the
action and upon such terms that the court in its discretion determines to
be necessary to assure such diligent prosecution.
Thus, a complaint may be dismissed under Ind. Trial Rule 41(E) for failure
to prosecute for sixty days or for a failure to comply with the
rules.
We will reverse a ruling under Ind. Trial Rule 41(E) only where there
is an abuse of discretion. Gray v. Westinghouse Elec. Corp., 624 N.E.2d
49, 55 (Ind. Ct. App. 1993), rehg denied, trans. denied. An abuse
of discretion occurs if the decision of the trial court is against the
logic and effect of the facts and circumstances before it. Grant v.
Wal-Mart Stores, Inc., 764 N.E.2d 301, 303 (Ind. Ct. App. 2002).
The Rueths acknowledge that their amended complaint was filed either one or three
days late.
See footnote The Rueths argue that even though their amended complaint was
late, the trial court abused its discretion by dismissing their complaint because our
courts disfavor dismissal for a technicality and [d]ismissal for a miniscule delay is
the epitome of resolution on a technicality. Appellants Brief at 10.
Muenich argues that the dismissal was permitted under the trial rules and that
the trial court did not abuse its discretion.
Our supreme court has held that the rules of trial procedure are intended
to standardize the practice within the court, facilitate the effective flow of information,
and enable the court to rule on the merits of the case.
S.T. v. State, 764 N.E.2d 632, 635 (Ind. 2002). As a general
proposition, . . . all litigants, as well as the court, are bound
by the rules. Id. However, a court should not blindly adhere
to all of its rules. Id.
Although our procedural rules are extremely important, it must be kept in mind
that they are merely a means for achieving the ultimate end of orderly
and speedy justice. We must examine our technical rules closely when it
appears that invoking them would defeat justice; otherwise we become slaves to the
technicalities themselves and they acquire the position of being the ends instead of
the means.
Id. (quoting American States Ins. Co. v. State ex rel. Jennings, 258 Ind.
637, 640, 283 N.E.2d 529, 531 (1972)). Certainly, the orderly procedure of
our judicial system calls for adherence to rules designed to achieve that goal.
Soft Water Utilities, Inc. v. Le Fevre, 261 Ind. 260, 269, 301
N.E.2d 745, 750 (1973). However, we should never ignore the plain fact
that the consequence of strict adherence to procedural rules may occasionally defeat rather
than promote the ends of justice. Id. Although Indiana does not
require trial courts to impose lesser sanctions before applying the ultimate sanctions of
default judgment or dismissal, Lee v. Friedman, 637 N.E.2d 1318, 1320-1321 (Ind. Ct.
App. 1994), we view dismissals with disfavor, and dismissals are considered extreme remedies
that should be granted only under limited circumstances. Beemer v. Elskens, 677
N.E.2d 1117, 1119 (Ind. Ct. App. 1997), rehg denied, trans. denied.
In determining whether a trial court has abused its discretion by dismissing a
case under Ind. Trial Rule 41(E) for failure to prosecute, we generally balance
several factors, including: (1) the length of the delay; (2) the reason for
the delay; (3) the degree of personal responsibility on the part of the
plaintiff; (4) the degree to which the plaintiff will be charged for the
acts of his attorney; (5) the amount of prejudice to the defendant caused
by the delay; (6) the presence or absence of a lengthy history of
having deliberately proceeded in a dilatory fashion; (7) the existence and effectiveness of
sanctions less drastic than dismissal which fulfill the purposes of the rules and
the desire to avoid court congestion; (8) the desirability of deciding the
case on the merits; and (9) the extent to which the plaintiff has
been stirred into action by a threat of dismissal as opposed to diligence
on the plaintiffs part. Belcaster v. Miller, 785 N.E.2d 1164, 1167 (Ind.
Ct. App. 2003), trans. denied. The weight any particular factor has in
a particular case appears to depend upon the facts of that case.
Id.
The Rueths argue that these factors are applicable to this case. Muenich
argues that the factors are applicable only to cases involving failure to prosecute
under Ind. Trial Rule 41(E) and not the failure to comply with the
trial rules under Ind. Trial Rule 41(E).
See T.R. 41(E) (Whenever there
has been a failure to comply with these rules or when no action
has been taken in a civil case for a period of sixty [60]
days, the court . . . shall order a hearing for the purpose
of dismissing such case.). However, we conclude that these factors are pertinent
even in failure to comply with the trial rules cases under Ind. Trial
Rule 41(E).
Each of these factors favors allowing the Rueths to prosecute their amended complaint.
The error here caused a minimal delay of three days. The
missed deadline resulted from a calendaring error, not from an intentional violation of
the trial courts order. Further, the missed filing deadline was not caused
by the Rueths. Rather, the delay was caused by their attorneys calendaring
error. The Rueths counsel was not stirred into action by a threat
of dismissal.
Belcaster, 785 N.E.2d at 1167. Rather, he caught his
error, notified opposing counsel of the mistake, and filed the amended complaint the
next day. Muenich has identified no prejudice caused by the delay.
Additionally, there is no evidence that the Rueths had previously violated a trial
rule or a trial courts order. Less drastic sanctions were available to
the trial court, such as a verbal warning as suggested by the Rueths
counsel at oral argument. Lastly, as noted above, we have a preference
for deciding cases on their merits.
Despite the fact that the Ind. Trial Rule 41(E) factors support the Rueths,
Muenich argues that the trial court properly dismissed the Rueths complaint and relies
in part upon Gray, 624 N.E.2d at 49. There, Gray and Griffin
individually filed their complaints against Westinghouse, and the trial court later consolidated the
complaints. Id. at 51-52. The trial court granted Gray and Griffin
leave to amend their complaints on November 23, 1987. Id. On
June 4, 1991, the trial court ordered both Gray and Griffin to file
amended complaints or contentions within 30 days. Id. The court also
ordered both plaintiffs to extend a good-faith offer of settlement to the [d]efendant
on or before September 1, 1991. Id. On July 8, 1991,
Griffin filed amended contentions, but Gray failed to file an amended contention.
Id. Neither plaintiff made a good-faith offer of settlement to Westinghouse.
Id. On August 30, 1991, Westinghouse filed a motion to dismiss Grays
complaint pursuant to Ind. Trial Rule 41(E) for failure to prosecute. Id.
Gray eventually filed his amended contentions on June 19, 1992, the day
of the dismissal hearing, but the trial court granted the motion to dismiss
on June 26, 1992. Id.
On appeal, Gray argued that the consolidation with Griffins complaint created a single
dispute, thereby making his compliance with the court orders unnecessary and that the
trial court abused its discretion because his failure to comply did not prejudice
Westinghouse. Id. at 55. We held that the evidence supports the
trial courts decision in that Gray blatantly failed to comply with two of
the courts orders. Id. However, it is proper for the trial
court and the reviewing court to consider all of the circumstances surrounding the
dismissal. Id. Absent the filing of Grays contentions, the trial court
and Westinghouse had no way of knowing if Gray and Griffins specific contentions
would be similar. Id. Therefore, compliance with the trial courts order
was an important part of the pretrial process, not just a formality.
Id. The consolidation did not have the effect of merging the two
claims into one or relieving Gray of the duty to abide by the
trial courts orders. Id. Further, we held that whether Westinghouse was
prejudiced by Grays failure to comply was not the controlling factor for the
trial court or reviewing court. Id. Rather, the circumstances as a
whole must be considered. Id. Consequently, we held that the trial
court did not abuse its discretion by dismissing Grays complaint. Id.
We find Gray distinguishable. First, there is a stark contrast in the
length of delay in complying with the trial courts order to amend.
Gray failed to comply with the order for almost a year, while the
Rueths were only three days late in complying with the trial courts order.
Furthermore, Gray had to be stirred into action by the threat of
dismissal while the Rueths act of complying with the trial courts order was
due to diligence on their part. After Westinghouse moved to dismiss, Gray
finally filed his amended complaint on the day of the dismissal hearing and
nearly ten months after the motion to dismiss had been filed. However,
as soon as the Rueths discovered their error of not complying with the
trial courts order to amend, they immediately notified opposing counsel and promptly filed
their amended complaint the following day. Finally, Gray had a history of
proceeding in a dilatory fashion because he had failed to comply with a
second trial court order. There is no evidence here that the Rueths
have failed to comply with other trial court orders.
We find our decision in Beemer, 677 N.E.2d 1117, which involved a late
submission of evidence to a medical review panel in a medical malpractice case,
more persuasive. The plaintiffs submission to the panel was due on September
11, 1995, but on September 15, 1995, the plaintiffs counsel called the chairman
of the panel and informed him that the submission was near completion but
that counsel was starting an unrelated jury trial that was expected to last
two weeks. Id. at 1118. On October 13, 1995, the chairman
sent a letter to the parties confirming his prior telephone communication with plaintiffs
counsel and requesting that plaintiffs counsel let him know when the submission would
be complete. Id. Plaintiffs counsel failed to respond to the chairmans
letter, but sent the submission of evidence on January 22, 1996. Id.
On February 1, 1996, the doctor filed a motion for preliminary determination
of law and a motion to dismiss with the trial court, and the
trial court granted the doctors motion to dismiss. Id. at 1118-1119.
On appeal, we held that the trial court should consider the entire record
of facts and circumstances surrounding the particular case when determining whether dismissal of
a proposed complaint is an appropriate sanction. Id. at 1120. We
concluded that the chairman did not deny the plaintiffs request for additional time,
no new deadline was imposed, there was other evidence that also indicated the
plaintiffs submission was provided as soon as practicable by counsel, the record did
not show that the plaintiffs deliberately submitted their evidence in a dilatory fashion,
and there was an absence of any history of repeated failures to comply
with submission deadlines. Id. at 1120-1121. Consequently, we held that the
trial court abused its discretion by dismissing the plaintiffs proposed medical malpractice complaint
as an appropriate sanction. Id. at 1121.
We conclude that these circumstances are more like those in Beemer than Gray.
Like the plaintiff in Beemer, there is no evidence that the Rueths
deliberately submitted their amended complaint in a dilatory fashion or that the Rueths
repeatedly failed to comply with deadlines. Moreover, the Rueths delay in filing
was much less than the delay in Beemer.
We find further support for our decision in Christian Bus. Phone Book, Inc.
v. Indianapolis Jewish Cmty. Relations Council, 576 N.E.2d 1276, 1277 (Ind. Ct. App.
1991). There, the corporation filed a complaint against the council, and the
complaint was signed by the president of the corporation. Id. at 1276.
The complaint was not signed by an attorney, and no attorney appeared
for the corporation at the time it filed the complaint. Id.
On July 9, 1990, the attorneys for the council filed an answer and
a motion to dismiss, which was based on the failure of the corporation
to appear by attorney as required by Ind. Code § 34-1-60-1. Id.
The trial court set the matter for hearing on September 10, 1990,
and counsel filed an appearance for the corporation on the same day as
the hearing. Id. After the hearing, the trial court granted the
motion to dismiss. Id.
On appeal, the council argued that because the corporation filed its complaint without
the benefit of an attorney, the trial court properly dismissed the case even
though an attorney had appeared for the corporation in the case prior to
the hearing on the dismissal. Id. at 1277. We disagreed and
reversed the trial courts decision as follows:
We cannot support such a terminal result here. Dismissal is a remedy
which is not favored in this state because in our system of justice
the opportunity to be heard is a litigants most precious right and should
be sparingly denied. In numerous cases, our appellate courts have held that
dismissal should not be granted unless less drastic sanctions will not suffice.
Id. (internal citations omitted). We noted that in previous cases where we
had affirmed a trial courts dismissal after a corporations failure to retain counsel,
the trial court had given the corporation the opportunity, which the corporation refused,
to retain proper representation before dismissing the action. Id. (citing Jones v.
Niagara Frontier Transp. Auth., 722 F.2d 20 (2nd Cir. 1983), and Strong Delivery
Ministry Assoc. v. Bd. of Appeals, 543 F.2d 32 (7th Cir. 1976)).
Thus, a corporate litigant must be given a fair opportunity to correct its
error and retain competent counsel before dismissal is appropriate. Id. Therefore,
we held that the trial court abused its discretion by dismissing the corporations
complaint after the attorney had appeared for the corporation. Id.
Similarly, we cannot support such a terminal result here. After analyzing the
Ind. Trial Rule 41(E) factors and determining that each of the factors favors
allowing the Rueths to prosecute their complaint, we conclude that the trial court
abused its discretion by dismissing the Rueths complaint. See, e.g., id.
For the foregoing reasons, we reverse the trial courts dismissal of the Rueths
complaint and remand for proceedings consistent with this opinion.
Reversed and remanded.
BAILEY, J. and MAY, J. concur