Boswell v. Lyon

401 N.E.2d 735, 74 Ind. Dec. 677, 1980 Ind. App. LEXIS 1377
CourtIndiana Court of Appeals
DecidedMarch 24, 1980
Docket2-1076A387
StatusPublished
Cited by61 cases

This text of 401 N.E.2d 735 (Boswell v. Lyon) 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
Boswell v. Lyon, 401 N.E.2d 735, 74 Ind. Dec. 677, 1980 Ind. App. LEXIS 1377 (Ind. Ct. App. 1980).

Opinion

BUCHANAN, Chief Judge.

CASE SUMMARY

Appellants Charles E. Boswell (Boswell) and Stephen J. Snyder (Snyder) appeal from the trial court’s summary judgment establishing their liability on a land sale contract in the amount of $21,896 plus interest and attorneys fees (a total of $29,-406), claiming that there were genuine issues of material fact as to (1) whether “assignment” was an ambiguous term in the 1960 land sale contract, (2) whether a novation occurred, and (3) whether there was a discharge of the surety relationship.

We affirm.

FACTS

Boswell and Snyder entered into a contract with Martha S. Hadley on September 9, 1960, for the conditional sale of an apartment building located at 2208 Park Avenue in Indianapolis (the 1960 contract). The contract was a standard form contract prepared by the Indianapolis Bar Association. Purchase price was $30,000, to be paid by a $3,000 down payment, and monthly payments of $135. The unpaid balance was to bear interest at five (5%) percent per an-num. A final balloon payment of the remaining balance was due not later than March 9, 1974.

The contract contained this provision as to assignment:

6. Assignment of contract. Neither this contract, Purchaser’s interest therein, nor Purchaser’s interest in the Real Estate, shall be sold, assigned, pledged, mortgaged, or transferred by Purchaser without the written consent of vendor.

In 1962, Boswell and Snyder entered a “contract on a contract” to sell their interest under the 1960 contract to Robert E. and Marcia S. Brazelton. In 1964, this contract was mutually terminated, and Boswell and Snyder resumed management and possession of the property.

On September 25, 1964, Boswell and Snyder assigned their rights under the contract to Mark D. Batties, also a defendant, and *738 Hadley consented to the assignment. The transaction was accomplished by an instrument which stated:

Assignment
September 25, 1964
This is to certify that for value received and subject to the consent of the owner of the property described in the within Conditional Sales Contract, the undersigned do hereby sell, assign, transfer and set over unto MARK D. BAT-TIES all of his right, title and interest in and to the said conditional Sales Contract.
/s/ CHARLES E. BOSWELL
Charles E. Boswell
/s/ STEPHEN J. SNYDER
Stephen J. Snyder
ACCEPTANCE
September 25, 1964
The undersigned hereby accept the above assignment of the within Conditional Sales Contract and hereby expressly agree to be bound by all of the terms and conditions of said Conditional Sales Contract.
' /s/ MARK D. BATTIES
Mark D. Batties
CONSENT
September 25, 1964
The undersigned, owner of the property described in the within Conditional Sales Contract, hereby consents to the above assignments and acceptance thereof.
/s/ MARTHA S. HADLEY
Martha S. Hadley
By Elmer E. Lyon
Attorney in Fact

Hardley assigned her rights as owner and vendor under the contract to Marcia K. Lyon (Lyon), on July 10, 1968. No issue concerning this assignment of the vendor’s rights has been presented.

On February 1,1969, Batties assigned his rights under the contract to Charles E. Roberts, Jr., also a defendant. Lyon consented to that assignment. The instrument used was the same form as used in the 1964 assignment, with Batties as the assignor, Roberts as the assignee, and Lyon as the vendor giving consent.

In March, 1973, Lyon’s attorney notified Snyder by letter that the final payment on the 1960 contract was due March 9, 1974, and that Boswell and Snyder may face potential liability under the contract because of the apparent likelihood of a .default. The letter indicated that the small payments under the contract had left a large balance due on the final payment. Furthermore, the current assignee under the contract, Roberts, did not appear to be in a financial position to meet the large balloon payment.

Boswell, Snyder and Batties were all notified by letter of Roberts’ default on two monthly payments in 1973.

The last payment under the contract was made January 9, 1974. On March 9, 1974, the remaining contract balance of $21,896 came due, but remained unpaid. Suit was then filed by Lyon against Boswell, Snyder, Batties and Roberts.

After the initial filing of a motion for summary judgment by Lyon, seven affidavits were filed: two by Elmer E. Lyon, the plaintiff’s attorney, one by Martha S. Had-ley, and two each by defendants Boswell and Snyder.

A default judgment for $29,406 plus costs and interest was entered against Batties on June 7,1974. A summary judgment for the same total was entered against Roberts on July 22, 1975; the property at 2208 Park Avenue was ordered sold and the proceeds applied to the judgment. Finally, on September 8, 1976, a final judgment was entered against Boswell and Snyder on Lyon’s motion for summary judgment. Damages of $29,406 plus costs and interest were awarded, and the property at 2208 Park Avenue was again ordered sold and the proceeds applied toward the judgment. It is from this judgment that Boswell and Snyder appeal.

*739 To further put this case in perspective, we should disclose the condition of the apartment house at 2208 Park Avenue. In April, 1975, nearly a year after this action was commenced, an order to demolish the apartment building was issued by the Division of Code Enforcement of the City of Indianapolis. The order stated that the building was dangerous and unsafe.

On May 29, 1975, the Division of Public Health of the Health and Hospital Corporation of Marion County cited the apartment building for numerous violations of the minimum standards for housing, and prohibited occupation of the dwelling unless all defects were corrected. Failing such corrections, the building was ordered razed by August 5, 1975.

As of September 1, 1976, the property, which was ordered sold to satisfy a nearly $30,000 judgment, had a fair market value of $3,000.

ISSUES

ISSUE ONE — Was the “assignment” clause of the 1960 contract ambiguous, thereby creating a material issue of fact as to the intent of the parties in using that clause?

ISSUE TWO — Was there a genuine issue of material fact as to whether ther was a novation when the 1960 contract was assigned, accepted, and consented to in 1964?

ISSUE THREE

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Bluebook (online)
401 N.E.2d 735, 74 Ind. Dec. 677, 1980 Ind. App. LEXIS 1377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boswell-v-lyon-indctapp-1980.