Blakley Corp. v. Klain

538 N.E.2d 304, 1989 Ind. App. LEXIS 396, 1989 WL 56458
CourtIndiana Court of Appeals
DecidedMay 30, 1989
DocketNo. 49A02-8806-CV-00210
StatusPublished

This text of 538 N.E.2d 304 (Blakley Corp. v. Klain) 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
Blakley Corp. v. Klain, 538 N.E.2d 304, 1989 Ind. App. LEXIS 396, 1989 WL 56458 (Ind. Ct. App. 1989).

Opinion

SHIELDS, Presiding Judge.

Blakley Corporation appeals an order granting summary judgment.

We affirm in part and reverse in part.

FACTS

Plaintiff-appellant Blakley Corporation (Blakley) is an Indiana corporation engaged in supplying and installing flooring and carpeting in residential and commercial projects. S & K Construction Company, Inc. (§ & K) was an Indiana corporation engaged in the construction of houses until it commenced bankruptcy proceedings in 1985. Defendant-appellee Stanley H. Klain (Klain) was the president and sole shareholder of S & K.

[305]*305During 1985, S & K engaged Blakley to install flooring in several houses S & K built in the Indianapolis area. This appeal concerns seven houses for which Blakley supplied labor and materials. Two of the seven houses were built on land owned by $ & K. S & K subsequently sold the improved real estate. For its work on these two houses, Blakley billed S & K $3,238.75, which S & K did not pay. The other five houses were built by S & K under contracts with lot owners. Blakley billed S & K $10,664 for its work on these houses which S & K also did not pay. The record does not reveal whether Blakley ever filed notices of intent to hold liens against any of the real estate. At each of the seven closings, Klain, as president of S & K, executed a vendor's affidavit which represented that "[tlhere are no unpaid claims for labor done upon or materials furnished for the Real Estate in respect of which liens have been or may be filed." Record at 42-55.

Blakley seeks to hold Klain personally liable. Blakley sued Klain for damages under IC 34-4-30.5-5(b) (1988) and IC 34-4-30-1 (Supp.1984) (amended 1987). The trial court granted Klain's motion for summary judgment, and Blakley appeals.

ISSUES

Blakley contends the trial court erred in granting summary judgment because genuine issues of material fact exist as to the falsity of the vendor's affidavits signed by Klain. Klain contends the undisputed evidence establishes he did not know that notices of intent to hold liens could be filed, an essential element of Blakley's causes of action. He further contends that Blakley is estopped from challenging the vendor's affidavits. For these reasons, he claims the trial court properly granted him judgment. >

DECISION

In reviewing a trial court's award of summary judgment, we apply the same standard as that court. Summary judgment is appropriate only where there is no material issue of fact, and the moving party is entitled to judgment as a matter of law. High v. United Form Bureau Mutual Insurance Co. (1989), Ind.App., 533 N.E.2d 1275, 1276, transfer pending; Progressive Construction and Engineering Co. v. Indiana and Michigan Electric Co. (1989), Ind.App., 533 N.E.2d 1279, 1282, transfer pending. The judgment will be reversed if the record discloses a genuine dispute over a material fact or inference, or an incorrect application of the law. Pugh's IGA, Inc. v. Super Food Services, Inc. (1988), Ind. App., 531 N.E.2d 1194, 1196-97, transfer pending. However, summary judgment is proper where there is no dispute regarding facts which are dispositive of the matter and the movant is entitled to judgment as a matter of law. Lee v. Schroeder (1988), Ind.App., 529 N.E.2d 349, 350, transfer pending. Summary judgment will be affirmed on any theory or basis supported by the record. Watson v. Medical Emergency Services Corp. (1989), Ind.App., 532 N.E.2d 1191, 1198, transfer pending.

Blakley seeks to recover under two Indiana statutes. IC 84-4-80-1 provides that "a person [who] suffers a pecuniary loss as a result of a violation of IC 85-48 . may bring a civil action against the person who caused the loss...." 1 Indiana's civil RICO statute, IC 34-4-80.5-5(b), provides that "[aln aggrieved person may bring an action against a person who has violated IC 35-45-6-2 ... for damages suffered as a result of corrupt business influence."2

[306]*306I.

The essence of Blakley's claims is that it was injured as a result of Klain's conduct in executing the vendor's affidavits because the affidavits extinguished Blak-ley's ability to assert liens against the real estate.

Its argument is without merit as to the five houses built by S & K as a general contractor for the owners of the lots on which the houses were built.

IC 82-8-3-1 (1988) provides that a subcontractor who performs labor or furnishes materials in the erection of a house, may acquire a lien upon the house and upon the interest of the owner of the land on which the house stands. Whether the claim is due or not, the lien is perfected by filing a notice of intent to hold a lien in the recorder's office of the county within sixty (60) days after performing the labor or providing the materials. IC 82-8-8-8 (1988).3 However, an exception to the sixty (60) day time period applies if the house is a single or double family residence. Under IC 32-8-8-1, para. 5 (1988):

No lien for material or labor in original construction shall attach to real estate purchased by an innocent purchaser for value without notice, provided said purchase is of a single or double family dwelling for occupancy by the purchaser, unless notice of intention to hold such lien be recorded as provided in this chapter prior to the recording of the deed by which such purchaser takes title.

Due to this provision, the time for filing a notice of intent to hold a lien may be substantially less than sixty (60) days in order to put an otherwise innocent purchaser on notice of the existing or pending claim.

Here, five of the seven houses at issue were built by S & K as a general contractor for the owners of the lots on which the houses were built. Blakley's reliance on the innocent purchaser for value exception as a basis for his claim that the vendor's affidavits extinguished his lien rights is meritless as to these five houses. These lot owners were not purchasers of the improved real estate by deed as required by IC 32-8-8-1, para. 5 and hence, the protection afforded by paragraph 5 was not available to them. Therefore, Klein's affidavits did not affect Blakley's right to perfect liens; accordingly, the affidavits were not the cause of Blakley's injuries and the grant of summary judgment was proper as to these five houses. However, this is not true as to the remaining two houses. The record is devoid of facts negating Blakley's claim that the individuals who purchased improved real estate from S & K were innocent purchasers. Thus Klain's argument that his conduct did not injure Blak-ley does not entitle him to summary judgment as to those two houses.

II.

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

Related

Watson v. Medical Emergency Services, Corp.
532 N.E.2d 1191 (Indiana Court of Appeals, 1989)
Lee v. Schroeder
529 N.E.2d 349 (Indiana Court of Appeals, 1988)
Pugh's IGA, Inc. v. Super Food Services, Inc.
531 N.E.2d 1194 (Indiana Court of Appeals, 1988)
High v. United Farm Bureau Mutual Insurance
533 N.E.2d 1275 (Indiana Court of Appeals, 1989)
Turner v. Town of Speedway
528 N.E.2d 858 (Indiana Court of Appeals, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
538 N.E.2d 304, 1989 Ind. App. LEXIS 396, 1989 WL 56458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blakley-corp-v-klain-indctapp-1989.