Cato v. David Excavating Co., Inc.

435 N.E.2d 597, 1982 Ind. App. LEXIS 1227
CourtIndiana Court of Appeals
DecidedMay 27, 1982
Docket1-1081A311
StatusPublished
Cited by9 cases

This text of 435 N.E.2d 597 (Cato v. David Excavating Co., Inc.) 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
Cato v. David Excavating Co., Inc., 435 N.E.2d 597, 1982 Ind. App. LEXIS 1227 (Ind. Ct. App. 1982).

Opinion

RATLIFF, Presiding Judge.

STATEMENT OF THE CASE

Defendants-appellants Darrell Cato and Linda Cato appeal from the judgment of the Gibson Circuit Court in favor of David Excavating Co., Inc., on its complaint for foreclosure on a mechanic’s lien and on the Catos’ counterclaim. We affirm in part and reverse in part.

STATEMENT OF THE FACTS

During July and August of 1978, the Ca-tos entered into a contract with David Excavating, by its president, Jerry L. David, for certain excavation and construction work at a residential subdivision which the Catos were developing. In August of 1978 a dispute arose over the Catos’ payment for the project and David Excavating’s compliance with contractual terms regarding the construction of a roadway.

On August 30, 1978, David Excavating filed a notice of intention to hold a mechanic’s lien against the property. David Excavating filed its complaint on account and to foreclose the mechanic’s lien on December 11, 1978. After obtaining an enlargement of time, the Catos filed their answer and counterclaim on January 23, 1979. David Excavating did not answer the counterclaim until the day of trial, May 21, 1981, when the trial court granted it leave to answer the counterclaim orally. During the trial the Catos orally amended their counterclaim to include a count alleging trespass by representatives of David Excavating who went onto the property and dug holes in the road.

After a trial to the court, judgment was entered in favor of David Excavating on its complaint and it was awarded sums of $3,248 and $1,752. The mechanic’s lien was ordered foreclosed and David Excavating was awarded $1,500 in attorney’s fees pursuant to that foreclosure. The trial court awarded the Catos $500 on their counterclaim for trespass but nothing on the other allegations of the counterclaim.

ISSUES

1. Whether the trial court erred in denying the Catos’ motion that all allegations of their counterclaim except those regarding damages be deemed admitted for failure to file a timely answer, in granting leave to David Excavating to answer the counterclaim orally on the day of trial, and in denying the Catos’ motion for continuance.

2. Whether the notice of intention to hold a mechanic’s lien is invalid for failure to state accurately the reason for which the lien was sought.

3. Whether the trial court erred in awarding damages of $500 to the Catos on their counterclaim for trespass.

DISCUSSION AND DECISION

Issue One

The Catos assert that the trial court erred in permitting David Excavating, over their objection, to file its answer to their denominated counterclaim on the day of trial and in then denying the Catos’ motion for continuance once the trial court had permitted David Excavating to answer.

David Excavating had filed its complaint on December 11, 1978, and, after an enlargement of time, the Catos filed their *600 answer and counterclaim on January 23, 1979. A pre-trial conference was held on November 7, 1980, and an order book entry indicates that the court set the cause for trial on May 21, 1981, and set another pretrial conference for April 10, 1981. On March 24 the Catos filed a motion for summary judgment, which the court set for hearing on April 10. The order book entry indicates that at the April 10 pre-trial conference, both sides successfully moved for publication of depositions, and the trial court heard argument on the motion for summary judgment and then denied the motion. This entry also indicates that a further entry would be furnished. However, none of the order book entries indicates whether David Excavating’s failure to answer the counterclaim was discussed at either of the pre-trial conferences or what issues were involved in the Catos’ motion for summary judgment.

On the day of trial, before any evidence was introduced, the trial judge stated: “Civil Cause 79 at 79, David Excavating Co., Inc. versus Cato. Show pre-trial conference had. Court indicates rulings. Parties now request they be allowed to make record in reponse [sic] to pre-trial conference.” Record at 58. Counsel for the Catos then asked the court to deem all matters in the counterclaim admitted inasmuch as David Excavating failed to respond to the counterclaim. Counsel for David Excavating then said:

“Yes, Your Honor, on behalf of the Plaintiff we’ve indicated to the Court that by error and omission the counterclaim was in fact not answered. It has been taken as denied by the plaintiff in all respects and discovery has been completed in that respect and at this time we would request leave to dictate to the Court the answer and admission and denial to that counterclaim.”

Record at 59. Counsel for the Catos objected to the request, but the trial court overruled the objection and granted David Excavating leave to answer the counterclaim. Counsel for the Catos subsequently requested a continuance for further discovery and trial preparation on the ground that he was not prepared to try the matters on which David Excavating had just then pleaded in answering the counterclaim. This request was denied.

The Catos maintain that their denominated counterclaim was a pleading which was required to be filed by Ind. Rules of Procedure, Trial Rule 7(A)(2), and that the failure to answer within twenty days after service of the counterclaim, Ind. Rules of Procedure, Trial Rule 6(C), constitutes an admission of the allegations of the counterclaim except as to the amount of damages, Ind. Rules of Procedure, Trial Rule 8(D). Consequently, they argue that the only issue before the trial court on the date of trial was the matter of the Catos’ damages.

However, as David Excavating points out, Ind. Rules of Procedure, Trial Rule 15(A) permits a party to amend his pleading after the usual time limits by leave of court, “and leave shall be given when justice so requires.” Expanding on this rule, the Court of Appeals has said,

“The stated policy of this court and the Supreme Court of Indiana is to freely allow such amendments in order to bring all matters at issue before the court. Huff v. Travelers Indemnity Co. (1977), 266 Ind. 414, 363 N.E.2d 985. Inasmuch as the rule contains no time proscription, the matter of timeliness is within the trial court’s discretion. Henline, Inc. v. Martin (1976), 169 Ind.App. 260, 348 N.E.2d 416. The grant or denial of leave to amend is therefore reviewable only for an abuse of discretion and, unless prejudice is shown, it will be presumed there was no error. Selvia v. Reitmeyer (1973), 156 Ind.App. 203, 295 N.E.2d 869.”

State Farm Mutual Automobile Insurance Co. v. Shuman, (1977) 175 Ind.App. 186, 192-93, 370 N.E.2d 941, trans. denied.

In addition, Ind.

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Bluebook (online)
435 N.E.2d 597, 1982 Ind. App. LEXIS 1227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cato-v-david-excavating-co-inc-indctapp-1982.