Brian K. Southard v. Keltner Property Group, LLC

CourtIndiana Court of Appeals
DecidedJune 25, 2020
Docket19A-PL-2560
StatusPublished

This text of Brian K. Southard v. Keltner Property Group, LLC (Brian K. Southard v. Keltner Property Group, LLC) 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
Brian K. Southard v. Keltner Property Group, LLC, (Ind. Ct. App. 2020).

Opinion

FILED Jun 25 2020, 8:42 am

CLERK Indiana Supreme Court Court of Appeals and Tax Court

ATTORNEY FOR APPELLANT ATTORNEY FOR APPELLEE Jeffrey M. Heinzmann Curtis E. Shirley, Esq. Heinzmann Law Office LLC Indianapolis, Indiana Fishers, Indiana

IN THE COURT OF APPEALS OF INDIANA

Brian K. Southard, June 25, 2020 Appellant, Court of Appeals Case No. 19A-PL-2560 v. Appeal from the Hamilton Superior Court Keltner Property Group, LLC, The Honorable Gail Bardach, Appellee. Judge Trial Court Cause No. 29D06-1809-PL-9198

Brown, Judge.

Court of Appeals of Indiana | Opinion 19A-PL-2560 | June 25, 2020 Page 1 of 18 [1] Brian K. Southard appeals from the trial court’s judgment in favor of Keltner

Property Group, LLC (“Keltner Property” or “Plaintiff”). We affirm.

Facts

[2] In March 2013, “K & E KELTNER PROPERTY GROUP, LLC,” as the

landlord and “ABELARD LLC” (“Abelard”) and Southard as the tenants

entered into a lease related to real property on Main Street in Carmel, Indiana.

Plaintiff’s Exhibit 1-A at 1. The opening paragraph of the agreement states:

“THIS LEASE, entered into by the K & E KELTNER PROPERTY GROUP,

LLC, an Indiana limited liability company (‘Landlord’) and ABELARD LLC

& Brian Southard – Social Security No. [Redacted] (‘Tenant’).” 1 Id. The term

of the lease was for three years beginning on May 1, 2013, and the lease

provided for rent increases in May 2014 and May 2015. At the end of the lease

document and below the word “Tenant,” Southard’s signature appears and, on

a line below his signature for his “Title,” the word “Tenant” appears. Id. at 16.

Kenneth Keltner (“Kenneth”) signed the lease on behalf of K & E Keltner

Property Group, LLC.

[3] A lease dated January 29, 2015, was executed related to real property on

Carmel Drive in Carmel, Indiana, and the opening paragraph of the agreement

states:

1 Brackets in exhibit.

Court of Appeals of Indiana | Opinion 19A-PL-2560 | June 25, 2020 Page 2 of 18 THIS LEASE, entered into by the KELTNER PROPERTY GROUP, LLC, an Indiana limited liability company (“Landlord”) and Restor Company an Indiana [corporation], & Brian Southard – Social Security No. [Redacted] Tenant.

Plaintiff’s Exhibit 1-B at 1. 2 Kenneth and his son Eric Keltner (“Eric”) were the

owners of Keltner Property. The lease form was similar to that used for the

2013 lease. The term of the lease was for five years and began on February 1,

2015. The lease provided that Tenant agreed to pay Landlord base annual rent

payable in monthly installments as follows:

Term Annual Rent Monthly Rent . . . Months 1-12[] $45,104.46 $3,758.71 Months 13-24 $60,104.12 $5,008.68 Months 25-36 $61,684.26 $5,140.36 Months 37-48 $63,306.94 $5,275.58 Months 49-60 $64,971.28 $5,414.27

Id. at 3. In addition to base annual rent, the lease provided Tenant agreed to

pay its proportionate share of certain other expenses including real estate taxes

and operating expenses for the building and common area (“CAM”). It

provided “[t]he current monthly CAM is $725.17.” Id. The lease also provided

that, upon the expiration or earlier termination of the lease, “Tenant shall

surrender to Landlord the Leased Premises . . . broom clean and in the same

order and condition in which Tenant received them.” Id. at 5. The lease

indicated that “[a]ny notices to be given hereunder shall be deemed sufficiently

2 Brackets in exhibit.

Court of Appeals of Indiana | Opinion 19A-PL-2560 | June 25, 2020 Page 3 of 18 given when . . . directed to the party to be notified at the following addresses . . .

: If to Landlord at: Keltner Property Group, LLC . . . If to Tenant at: Brian

Southard [personal address] . . . .” Id. at 14. The lease also provided: “If there

is more than one Tenant, their obligation shall be joint and several.” Id. At the

end of the lease document, the parties’ signatures appear as follows:

Plaintiff’s Exhibit 1-B at 17.

[4] Keltner Property received rent payments under the 2015 lease from February

2015 through August 2018. 3 However, following the first year of the lease

term, Keltner Property continued to receive base rent payments equal to the

amounts due during the first year of the term and which did not reflect the

scheduled annual rent increases. 4

3 Kenneth indicated rent payments were received from Restor or one of Southard’s other companies. 4 Keltner Property presented an exhibit indicating the total amounts paid and shortages for each year of the lease term which indicated $53,800.08 was paid during the first three years of the lease.

Court of Appeals of Indiana | Opinion 19A-PL-2560 | June 25, 2020 Page 4 of 18 [5] On September 26, 2018, Keltner Property filed a Complaint for Breach of Lease

Agreement against Southard and Restor Company (“Restor,” and together with

Southard, “Defendants”) alleging they failed to pay installments of rent when

due.

[6] On August 22, 2019, the court held a bench trial at which it heard testimony

from Kenneth, Eric, and Southard. The court also admitted twenty-three

exhibits including the 2013 and 2015 lease agreements, photographs of the

leased premises, invoices for services to clean and repair the premises, and

attorney fee invoices. It also admitted an email message from Kenneth to

Southard in January 2016 stating that February 1st was the anniversary of the

lease and that, on that day, the lease would adjust such that base rent would be

$5,008.68 and CAM would be $725.17. A reply from Southard to Kenneth

Keltner stated: “Is there anyway we can keep my lease at its current level?

There is no way I can afford this under the current circumstances . . . we are

barely hanging on as it is. Please, lets [sic] discuss.” Plaintiff’s Exhibit 2.

[7] Kenneth testified regarding meeting Southard in 2013, approaching him

regarding renting the premises on Main Street, and the 2013 lease. He testified

regarding his further discussions and negotiations with Southard regarding

leasing the premises on Carmel Drive in 2015. In particular, he testified that

Southard had concerns “about if things went south with his company” and that,

as a result, he offered Southard an option which was incorporated into the

agreement. Transcript Volume II at 13. He testified that, under the option,

Southard “would have . . . 10 months in the new location to get adjusted to the

Court of Appeals of Indiana | Opinion 19A-PL-2560 | June 25, 2020 Page 5 of 18 rent and also to see if business continued to grow, and also if it didn’t, we

would take a haircut, reduce the rent, and extend the months from 60 to 72.” 5

Id. He indicated the option was required to be exercised by November 15,

2015, and Southard did not exercise the option. He testified that, after the 2015

lease was signed, he exchanged numerous emails with Southard concerning the

lease and had a phone conversation regarding the scheduled rent increases.

Kenneth testified that Southard had started a new company, “said he was

running short,” and “was writing checks from two different companies.” Id. at

19. He testified regarding the amounts of unpaid rent, when the premises were

vacated, the condition of and damage to the premises, the unauthorized

alterations made to the premises, and the amounts expended to clean and repair

the premises. Kenneth further testified as follows:

Q. Did there come a time when this [2015] lease agreement . . .

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Brian K. Southard v. Keltner Property Group, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brian-k-southard-v-keltner-property-group-llc-indctapp-2020.