AMW Investments v. The Town of Clarksville

CourtIndiana Court of Appeals
DecidedJanuary 19, 2024
Docket23A-PL-00508
StatusPublished

This text of AMW Investments v. The Town of Clarksville (AMW Investments v. The Town of Clarksville) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMW Investments v. The Town of Clarksville, (Ind. Ct. App. 2024).

Opinion

FILED Jan 19 2024, 9:18 am

CLERK Indiana Supreme Court Court of Appeals and Tax Court

ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEE AMW INVESTMENTS, INC. THE TOWN OF CLARKSVILLE Matthew J. Hoffer C. Gregory Fifer Shafer & Associates, P.C. Jeffersonville, Indiana Lansing, Michigan Scott D. Bergthold Law Office of Scott D. Berghold, Kenneth C. Pierce PLLC Blanton & Pierce, LLC Chattanooga, Tennessee Jeffersonville, Indiana

IN THE COURT OF APPEALS OF INDIANA

AMW Investments, Inc. et al., January 19, 2024 Appellants, Court of Appeals Case No. 23A-PL-508 v. Appeal from the Clark Circuit Court The Town of Clarksville, et al., The Honorable Marsha Owens Appellees. Howser, Special Judge Trial Court Cause No. 10C04-1905-PL-51

Opinion by Judge Bailey Judge May concurs. Judge Felix concurs in result with separate opinion.

Bailey, Judge.

Court of Appeals of Indiana | Opinion 23A-PL-508 | January 19, 2024 Page 1 of 20 Case Summary [1] AMW Investments, Inc. (“AMW”) appeals the trial court’s order finding it in

contempt of an order compelling discovery responses. AMW raises one

dispositive issue, which we restate as: whether the contempt order must be

reversed because the trial court abused its discretion when it issued an order

compelling AMW to respond to the Town of Clarksville’s (“Town”) discovery

requests without considering objections raised in AMW’s First Supplemental

Answers.

[2] We reverse and remand with instructions.

Facts and Procedural History [3] AMW owns real estate located at 4505 Highway 31 East, Clarksville, Indiana,

and it leases the property to Midwest Entertainment Ventures, Inc. (d/b/a

Theatre X) (“MEV”),1 an adult entertainment venue. AMW and MEV share

the same principal business address in Michigan.

[4] In May 2019, Town revoked Theatre X’s adult business license due to zoning

ordinance violations. On May 6, 2019, MEV filed a Petition of Appeal of

Revocation of Adult Entertainment License in the Clark Circuit Court. Town

filed an Answer to the Petition, as well as counterclaims against MEV and

1 MEV is not a party to this appeal, as Town’s contempt motion was filed against AMW only.

Court of Appeals of Indiana | Opinion 23A-PL-508 | January 19, 2024 Page 2 of 20 AMW, seeking, in part, a preliminary injunction enjoining MEV and AMW

from operating Theatre X in violation of zoning ordinances. MEV and AMW

then filed motions to dismiss Town’s counterclaims and motion for preliminary

injunction.

[5] In November 2019, the trial court denied the motions to dismiss and granted

Town’s motion for preliminary injunction. The preliminary injunction placed

specific operating restrictions upon Theatre X, including limiting its hours of

operation. On December 19, AMW and MEV filed an interlocutory appeal of

the preliminary injunction order.

[6] On December 17, 2019, Town filed a motion in which it sought an order

imposing fines for AMW’s and MEV’s ordinance violations. In February 2020,

AMW and MEV served discovery documents upon Town. On February 25,

the trial court issued an order on Town’s motion for fines, stating, in relevant

part, “[b]ecause the Court’s Order of November 21, 2019, is currently on

appeal, the Court finds it is without authority to order the relief sought by the

Town.” Town’s App. v. II at 194. However, because it found “these issues

may arise again,” the trial court made six pages of findings related to the Town

having “Satisfied Its Notice Obligations” and AMW being “jointly responsible

with MEV for the maintenance of Theatre X.” Id. at 194, 198.

[7] Town provided responses to AMW’s and MEV’s discovery requests. On May

28, 2020, Town propounded its own discovery requests upon AMW and MEV;

specifically, interrogatories, requests for production of documents, and requests

Court of Appeals of Indiana | Opinion 23A-PL-508 | January 19, 2024 Page 3 of 20 for admissions. Thereafter, AMW requested and obtained an extension of time

in which to respond to the discovery requests. On July 15, 2020, AMW

submitted its responses to discovery, and, for each and every discovery request,

replied only:

AMW objects on the basis that discovery is premature and inappropriate during the pendency of appeal. AMW has consistently challenged the propriety of ‘counterclaims’ in the context of an administrative or municipal appeal. That issue is currently on appeal in the context of AMW’S appeal of the Order Granting Preliminary Injunction on November 21, 2019. The Court explicitly noted in its February 25, 2020[,] Order Regarding Motion for Imposition of Fines that it presently lacks authority during the pendency of the Appeal. This discovery request was issued after the divesture of jurisdiction and during the period jurisdiction was divested by way of appeal. All further and additional objections are reserved.

August 12, 2021, Appealed Order Granting Motion to Compel at 2-3.

[8] After complying with the Trial Rule 26(F) requirement to attempt informal

resolution of the discovery dispute and reaching no such resolution, on August

28, 2020, Town filed a Motion to Compel discovery responses. In that motion,

Town noted, “Nor did MEV or AMW raise any substantive objection other

than ‘jurisdiction was divested’ by their appeal, and that the ‘discovery request

was issued after the divestiture of jurisdiction.’ … Thus, MEV and AMW have

waived any objection other than the jurisdictional one.” AMW App. v. II at

81. On September 4, 2020, AMW filed its response in which it argued only that

the trial court had been “divested of jurisdiction,” id. at 89, over the case

Court of Appeals of Indiana | Opinion 23A-PL-508 | January 19, 2024 Page 4 of 20 because AMW’s interlocutory appeal was pending, and that “any discovery”

regarding issues raised on appeal “is foreclosed as this Court currently lacks

jurisdiction over those issues,” id. at 91. In a docket entry on September 23, the

trial court stated: “Because this case is on appeal, the trial court will not rule on

matters until the appeal has been decided.” Id. at 16 (CCS).

[9] In October 2020, a panel of this Court affirmed the preliminary injunction in

Town’s favor, and in March 2021, the Supreme Court denied transfer. Midwest

Ent. Ventures, Inc. v. Town of Clarksville, 158 N.E.3d 787, 789 (Ind. Ct. App.

2020), trans. denied. On April 29, Town filed a reply brief in support of its

Motion to Compel Discovery. The reply brief argued that (1) the interlocutory

appeal had not stayed discovery, and (2) AMW had “waived all other

objections to the discovery requests” by failing to raise them in any of its

discovery responses. AMW App. v. II at 107. Town devoted a three-paragraph

section of its brief to the latter argument.

[10] On that same date, the trial court held a pretrial conference and scheduled a

June 21, 2021, hearing on the motion to compel discovery, which was

subsequently rescheduled to July 8, 2021. Prior to the July 2021 hearing,

AMW did not file any additional briefing or other documents in response to

Town’s claims that AMW had waived all objections other than jurisdiction.

On June 18, 2021, AMW tendered to Town its First Supplemental Responses

to Discovery, in which it raised multiple objections, including objections related

to relevance, attorney-client privilege, vagueness, overbreadth, unduly

burdensome requests, harassment, accountant-client privilege, and attorney

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