Astral Electric Co. v. Bob Wells Construction Co.

538 N.E.2d 986, 1989 Ind. App. LEXIS 404, 1989 WL 58393
CourtIndiana Court of Appeals
DecidedMay 31, 1989
DocketNo. 10A04-8811-CV-386
StatusPublished
Cited by1 cases

This text of 538 N.E.2d 986 (Astral Electric Co. v. Bob Wells Construction Co.) 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
Astral Electric Co. v. Bob Wells Construction Co., 538 N.E.2d 986, 1989 Ind. App. LEXIS 404, 1989 WL 58393 (Ind. Ct. App. 1989).

Opinion

CONOVER, Presiding Judge.

Defendant-Appellant Astral Electric Company (Astral) appeals an order granting Plaintiff-Appellee Bob Wells Construction Company, Inc.'s (Wells') motion to correct error. Ind.Rules of Procedure, Trial Rule 59(F).

We affirm.

Astral presents two issues, which we reorder and rephrase as three:

1. whether the trial court abused its discretion when it considered, on Appellee's motion to correct error, an issue of law not argued and, in fact, conceded by the Appel-lee at the hearing on Appellant's motion for summary judgment;

2. whether Astral was dissolved by the administrative revocation of its certificate of incorporation and, if so, whether Astral can be sued; and

8. if Astral was dissolved, whether Wells's claim of indemnity accrued before Astral's dissolution.

The parties agree about the relevant facts. On February 20, 1987, Wells sued Astral, a Kentucky Corporation. Wells claimed Astral was obliged to indemnify Wells for an April 28, 1986, judgment. This judgment, in the amount of $1,005, 718.00, was taken against Wells by Isaiah and Evelyn Thornton in a case in which Astral was not a party. The Thornton case against Wells was filed in 1980.

In the case now before us Astral moved for summary judgment against Wells. In support of its motion Astral submitted, inter alia, a "Certificate of Revocation of Certificate of Incorporation" issued by the Secretary of State of the Commonwealth of Kentucky. The certificate of revocation was dated May 6, 1985, and revoked Astral's certificate of incorporation "in accordance with the provisions of Kentucky Revised Statutes Chapter 271A." In sum, Astral argued (1) Astral's amenability to suit must be determined by Kentucky law; (2) Astral was a dissolved corporation, no longer amenable to suit under Kentucky law unless the cause accrued before dissolution; and (8) Wells's cause accrued after dissolution.

Wells responded with a memorandum, but without affidavits or other evidence. Wells's memorandum (1) assumed Astral was a dissolved corporation; (2) agreed the effect of dissolution must be determined by Kentucky law; and (8) argued Wells's indemnity claim accrued before Astral was dissolved because the claim could have been asserted in the Thornton case under our Trial Rule 14.

Astral replied with a memorandum. It argued, in the main, TR. 14 does not alter the time at which a cause of action accrues, but merely allows contemporaneous adjudication of common questions of fact.

The trial court found no genuine issues of material fact and decided Astral was entitled to judgment as a matter of law. It granted Astral's motion for summary judgment. Ind.Rules of Procedure, Trial Rule 56. It dismissed Wells's claims with prejudice.

Wells moved to correct error, claiming the judgment was contrary to law. Wells argued the court erred by finding and holding (1) Astral was a dissolved corporation; (2) Wells's purported indemnity claim did not accrue before revocation of Astral's certificate of incorporation; and (8) Wells's claim was preserved by Kentucky Revised. Statutes 271A.515. Wells also asserted there was a genuine issue of material fact as to whether Astral was a dissolved corporation. However, at the hearing below and in this appeal Wells concedes Astral's corporate status is an issue of law, not fact.

[988]*988Astral filed a statement in opposition to Wells's motion to correct error. In sum, Astral argued Wells's arguments to correct error were both wrong and untimely. In particular, Astral noted Wells had not until then contested Astral's status as a dissolved corporation. Astral opined Wells could not raise any issue about Astral's status for the first time in a motion to correct error.

After hearing, the trial court granted Wells's motion to correct error. The trial court found, inter alia, (1) revocation of Astral's certificate of incorporation was not a dissolution of Astral, and (2) the trial court had committed an error of law by holding Astral was a dissolved corporation, not subject to suit.

Astral appeals. Additional facts as nee-essary are included below.

I. Waiver

Wells's motion to correct error did not specify the subpart of T.R. 59(A) on which it was based. However, the language of the motion is the language of T.R. 59(A)(8).1 As noted, Wells's response to Astral's motion for summary judgment conceded Astral was a dissolved corporation.

Astral, noting current versions of T.R. 59 were not in effect2 when Wells filed its motion to correct error, argues Wells could not first assert issues about Astral's status in its motion to correct error. Astral cites Siebert Oxidermo, Inc. v. Shields (1983), Ind., 446 N.E.2d 332; Criss v. Bitzegaio (1981), Ind., 420 N.E.2d 1221; Van Bibber v. Norris (1981), Ind., 419 N.E.2d 115; and State Farm v. Flynn (1988), Ind.App., 531 N.E.2d 527.

Wells argues summary judgment is proper only if there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. Wells argues T.R. 56 did not require it to respond to all issues and potential issues, whether based in law or fact, citing State, Department of Mental Health v. Allen (1982), Ind.App., 432 N.E.2d 435. Without citation to authority, Wells asserts, "[i)f the trial court improperly applies the law to the undisputed facts, the nonmoving party may certainly address the Court's error for the first time in its motion to correct error." Wells asserts "... the issue of Astral's dissolution was squarely before the Court [on summary judgment] and was necessarily decided by [it]." Wells concludes, again without citation to authority, it could "raise this error of law for the first time in its Motion to Correct Errors."

We think the trial court did not abuse its discretion when it considered, on Wells's motion to correct error, an issue of law not raised by Wells in its response to Astral's motion for summary judgment. Each of the cases cited by Astral may be distinguished. In Siebert Oxidermo, supra, the trial court denied Defendant-Appellant's motions to set aside default judgment and denied its motions to correct error. Our Supreme Court said the movant could have asserted an issue in its motion to set aside the default judgment and therefore could not first assert the issue in its motion to correct error. Here, however, it is the Movant-Appellant, Astral, who claims the Nonmovant-Appellee, Wells, waived an issue of law by failing to assert it in response to Astral's motion for summary judgment. At first glance, Criss, supra, lends some weight to Astral's argument. However, upon further analysis, Criss provides little support for Astral's position because in Criss the Nonmovant-Appellant failed to raise an issue of fact, not an issue of law, in response to a motion for summary judgment. See also, Collins v. Dunifon (1975), 163 Ind.App. 201, 206, 323 N.E.2d 264

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
538 N.E.2d 986, 1989 Ind. App. LEXIS 404, 1989 WL 58393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/astral-electric-co-v-bob-wells-construction-co-indctapp-1989.