Bryan Manufacturing Co. v. Harris

459 N.E.2d 1199, 1984 Ind. App. LEXIS 2363
CourtIndiana Court of Appeals
DecidedFebruary 20, 1984
Docket2-883A306
StatusPublished
Cited by12 cases

This text of 459 N.E.2d 1199 (Bryan Manufacturing Co. v. Harris) 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
Bryan Manufacturing Co. v. Harris, 459 N.E.2d 1199, 1984 Ind. App. LEXIS 2363 (Ind. Ct. App. 1984).

Opinion

RATLIFF, Judge

(writing by designation).

STATEMENT OF THE CASE

In an action for breach of contract initiat ed by Bryan Manufacturing Company, the White Circuit Court dismissed the complaint on grounds it lacked personal jurisdiction over the defendants. The plaintiff now appeals.

We reverse and remand.

FACTS

The plaintiff, an Ohio corporation with its principal office in Michigan, contracted with the defendants, all residents of IIli-nois, for the sale of a parcel of real estate located in White County, Indiana. The contract, dated August 7, 1981, provided among other things, that each of the couples would possess an undivided half interest in the property as joint tenants. When the contract was executed, however, only Allen and Leonard affixed their signatures. 1

Prior to the execution of the contract, Allen and Leonard viewed the premises twice and three times respectively. The two made at least one of these visits together when they purchased some scrap metal located on the property for use in their business in Ilinois. In addition, Leonard appeared before the Monticello Common Council to seek approval of a bond issue relating to the property. Neither Beaty nor Eleanor ever visited the property.

After making an initial $14,000 down payment, the defendants refused to pay the balance of $126,000. The plaintiff then brought this action seeking specific performance.

ISSUES

The issues presented for review consist of the following:

1. Did the defendants, by contracting to purchase real property in this state, acquire an interest therein sufficient to subject themselves to the personal jurisdiction of this state's courts pursuant to Indiana Rules of Procedure, Trial Rule 4.4(A)(5)?
2, Were the defendants doing business in this state when they contracted in *1201 Illinois to purchase real property in Indiana so as to confer personal jurisdiction upon the White Circuit Court under Indiana Rules of Procedure, Trial Rule 4.4(A)(1)?
3. Were Allen and Leonard Harris acting as agents for their wives Beaty and Eleanor Harris when they signed the contract to purchase real property located in White County, Indiana?

DISCUSSION AND DECISION

Issue One

The plaintiff first argues the defendants were subject to the personal jurisdiction of the White Circuit Court because their contract to purchase real property in that county made them equitable owners and thus gave them an "interest" in the property as that term is used in Trial Rule 4.4(A)(5). 2 We agree.

In Skendzel v. Marshall, (1973) 261 Ind. 226, 301 N.E.2d 641, cert. denied, 415 U.S. 921, 94 S.Ct. 1421, 39 L.Ed.2d 476 (1974), our supreme court held that at the moment a contract for the sale of land is consummated, equitable title to the property vests in the buyer. Id. at 234, 801 N.E.2d at 646. As equitable owner, the court stated, the buyer assumes any risk of loss, is the recipient of any appreciation in value, and is responsible for any taxes. Id. In contrast, the court found, the seller merely retains the title as a security interest. Id. See also, Ridenour v. France, (1983) Ind.App., 442 N.E.2d 716; Reynolds v. Milford, (1978) 176 Ind.App. 336, 375 N.E.2d 265; Finley v. Chain, (1978) 176 Ind.App. 66, 374 N.E.2d 67, rev'd on other grounds, Morris v. Weigle, (1978) 270 Ind. 121, 383 N.E.2d 341.

While we recognize all of these cases involved real estate sold on a conditional sales contract, we believe they are sufficiently analogous to the instant case to support the conclusion that the defendants acquired an interest in the property as contemplated by Trial Rule 4.4(A)(5). Upon consummation of the contract, the defendants paid 10% of the $140,000 purchase price and agreed to submit the balance at the closing. At this juncture the provisions of the contract were certain and definite in every respect and capable of being performed by the parties. Thus, had the plaintiff refused to convey title to the defendants, they certainly would have possessed an interest sufficient to support an action for specific performance. Ridenour, 442 N.E.2d 716, 718; Spoden v. Krause, (1946) 117 Ind.App. 14, 68 N.E.2d 654, 656. Conversely, we believe their interest as equitable owners was sufficient to satisfy the requirements for personal jurisdiction under Trial Rule 4.4(A)(5).

This finding notwithstanding, the crucial question is whether the defendants' interest in the real estate and their related contacts with this state were sufficient to satisfy due process. Condos v. Sun State Painting, Inc., (1983) Ind.App., 450 N.E.2d 86, 88; Tietloff v. Lift-A-Loft Corp., (1982) Ind.App., 441 N.E.2d 986, 988. In other words, did the defendants have sufficient "minimum contacts" with Indiana to subject them to the personal jurisdiction of our courts. International Shoe Co. v. Washington, (1945) 826 U.S. 810, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95, 102.

Within the context of Trial Rule 4.4(A)(5), this precise question has not been addressed by our courts. However, we recently discussed the requirements of due process as they apply to the long-arm rule generally in the case of Tietloff.

"To exercise jurisdiction consonant with due process over a non-resident [sic] defendant, 'certain minimum contacts' must exist between the non-resident [sic] defendant and the forum 'such that the maintenance of the suit does not offend "traditional notions of fair play and substantial justice."" International Shoe Co. v. Washington|,] (1945) 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95, [102], *1202 quoting Milliken v. Meyer|,] (1940) 311 U.S. 457, 468, 61 S.Ct. 339, 343, 85 L.Ed. 278. A mechanical or quantitative evaluation of a defendant's activities in a 'state cannot resolve the question of the reasonableness of the exercise of personal jurisdiction. Rather, it depends upon the quality and nature of the defendant's activity in relation to the matter under litigation. Hutson v. Fehr Bros., (8th Cir.1978) 584 F.2d 833 (construing Arkansas law). The facts of each case must be weighed. At a minimum, the court must find 'some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.' Hanson v. Denckla [,] (1958) 357 U.S. 235, 253, 78 S.Ct. 1228, 1240, 2 LEd.2d 1283.

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459 N.E.2d 1199, 1984 Ind. App. LEXIS 2363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryan-manufacturing-co-v-harris-indctapp-1984.