Fike Investments, LLC v. Gregory L. Wilson, Sr., Executive Director of the Indiana Civil Rights Commission

CourtIndiana Court of Appeals
DecidedJanuary 23, 2025
Docket23A-EX-03091
StatusPublished

This text of Fike Investments, LLC v. Gregory L. Wilson, Sr., Executive Director of the Indiana Civil Rights Commission (Fike Investments, LLC v. Gregory L. Wilson, Sr., Executive Director of the Indiana Civil Rights Commission) 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
Fike Investments, LLC v. Gregory L. Wilson, Sr., Executive Director of the Indiana Civil Rights Commission, (Ind. Ct. App. 2025).

Opinion

IN THE

Court of Appeals of Indiana Fike Investments, LLC, FILED Jim Fike, and Kim Fike, Jan 23 2025, 9:50 am

CLERK Appellants-Respondents, Indiana Supreme Court Court of Appeals and Tax Court

v.

Gregory L. Wilson, Sr., Executive Director of the Indiana Civil Rights Commission, Appellee-Complainant.

January 23, 2025

Court of Appeals Case No. 24A-EX-3091

Appeal from the Indiana Civil Rights Commission

Court of Appeals of Indiana | Opinion 24A-EX-3091 | January 23, 2025 Page 1 of 18 The Honorable Beth A. Butsch, Administrative Law Judge

Adrianne L. Slash, Chairperson Steven A. Ramos, Commissioner Holli Harrington, Commissioner Terry Tolliver, Commissioner

ICRC Nos. HOra15070510 HOrt15090649

Opinion by Senior Judge Najam Judges Pyle and Kenworthy concur.

Najam, Senior Judge.

Statement of the Case [1] Fike Investments, LLC, Jim Fike, and Kim Fike (collectively, the Fikes) appeal

the order of the Ultimate Authority of the Indiana Civil Rights Commission

(Commission) finding they violated both the Indiana Fair Housing Act (IFHA)

and the Indiana Civil Rights Law (ICRL), awarding damages for moving

expenses and emotional distress, and imposing a civil penalty. Concluding the

evidence supports the determination of liability, the award of damages, and the

imposition of the penalty, we affirm and remand with instructions.

Issues [2] The Fikes present three issues, which we restate as:

Court of Appeals of Indiana | Opinion 24A-EX-3091 | January 23, 2025 Page 2 of 18 I. Whether the Ultimate Authority’s exemption determination is supported by substantial evidence.

II. Whether the award of emotional distress damages is supported by substantial evidence.

III. Whether the imposition of a civil penalty was arbitrary and capricious.

Statement of the Facts [3] Fike Investments is a limited liability company in which Jim Fike and his wife,

Kim, are the only members. Fike Investments owns a single-family residence

on Hamilton Street in Granger that was listed for rent on Zillow.com. John

Chubb found the rental listing on the website, submitted an application to rent

the property, and eventually entered into a residential lease.

[4] Thereafter, Chubb, who is disabled, requested Jim and Kim to modify his lease

to allow him to have a live-in caregiver and to waive the pet deposit and

monthly pet fee for his support animal as reasonable accommodations for his

disability. When Jim and Kim denied Chubb’s requests, he filed a complaint 1 with the Commission claiming he experienced discrimination by the Fikes.

Following the filing of that complaint, Jim and Kim initiated an eviction action

against Chubb. Chubb then filed a second complaint asserting retaliatory

eviction for the prior complaint, and the two complaints were subsequently

1 Under the IFHA, it is unlawful to discriminate based on disability. I.C. § 22-9.5-5-5.

Court of Appeals of Indiana | Opinion 24A-EX-3091 | January 23, 2025 Page 3 of 18 consolidated. The Commission investigated and determined that reasonable

cause existed to support both complaints.

[5] During the administrative proceedings, both parties moved for summary

judgment. The Administrative Law Judge (ALJ) issued two orders on

summary judgment collectively concluding that the Fikes discriminated and

retaliated against Chubb in violation of both the IFHA and the ICRL and that

the Fikes were not exempt from application of the IFHA. The ALJ also

awarded Chubb damages for moving expenses and determined he was entitled

to an award for emotional distress, the extent of which remained to be

determined.

[6] The ALJ held an evidentiary hearing to determine the amount of emotional

distress damages and whether any statutory penalties should be imposed. The

ALJ issued a Recommended Order awarding Chubb $25,000 for emotional

distress but not imposing any civil penalty against the Fikes. On Chubb’s

behalf, the Commission objected to the ALJ’s order arguing, in pertinent part,

that the award for emotional distress damages should be increased and that a

civil penalty should be imposed against the Fikes.

[7] The Ultimate Authority heard oral argument on the Commission’s objections

and issued its final order affirming the ALJ’s order with modifications, the most

substantial and pertinent being that it imposed a $10,000 civil penalty against

the Fikes. The Fikes now appeal.

Court of Appeals of Indiana | Opinion 24A-EX-3091 | January 23, 2025 Page 4 of 18 Discussion and Decision [8] Judicial review of an administrative agency’s action is governed by the Indiana

Administrative Orders and Procedures Act (AOPA). 255 Morris, LLC v. Ind.

Alcohol & Tobacco Comm’n, 93 N.E.3d 1149, 1152-53 (Ind. Ct. App. 2018).

Under the version of the AOPA in effect during these proceedings, we may set

aside an agency action only if we determine the party seeking relief has been

prejudiced by such action that is “(1) arbitrary, capricious, an abuse of

discretion, or otherwise not in accordance with law; (2) contrary to

constitutional right, power, privilege, or immunity; (3) in excess of statutory

jurisdiction, authority, or limitations, or short of statutory right; (4) without

observance of procedure required by law; or (5) unsupported by substantial 2 evidence.” Ind. Code § 4-21.5-5-14(d) (1987).

[9] Our review of an agency’s action is purposely limited in recognition of the

agency’s expertise in its field and the public’s reliance on its authority to govern

in that area. Brookston Res., Inc. v. Dep’t of Nat. Res., 243 N.E.3d 1127, 1139

(Ind. Ct. App. 2024) (quoting Moriarity v. Ind. Dep’t of Nat. Res., 113 N.E.3d 614,

619 (Ind. 2019)). Accordingly, when we review an agency’s decision, we do

not reweigh the evidence, judge witness credibility, or substitute our judgment

for that of the agency. Ind. Dep’t of Nat. Res. v. Prosser, 132 N.E.3d 397, 401

2 Effective July 1, 2024, Section 4-21.5-5-14(d)(5) was amended to require the party seeking judicial relief to demonstrate that the agency action is “unsupported by a preponderance of the evidence” rather than “unsupported by substantial evidence.”

Court of Appeals of Indiana | Opinion 24A-EX-3091 | January 23, 2025 Page 5 of 18 (Ind. Ct. App. 2019), trans. denied. And we are bound by the agency’s findings

of fact if they are supported by substantial evidence. Id. The party seeking

judicial review bears the burden of demonstrating the invalidity of the agency’s

action. Id.; I.C. § 4-21.5-5-14(a).

I. Exemption Determination [10] The Fikes contend the Ultimate Authority’s exemption determination is not

supported by substantial evidence. The Ultimate Authority affirmed the ALJ’s

determination that the Fikes do not qualify for the exemption from application

of the IFHA. The Fikes, however, assert they fulfill the requirements of the

exemption set out in Indiana Code section 22-9.5-3-1(a) (1990).

[11] Indiana Code section 22-9.5-3-1(a) supplies, in certain circumstances, an

exemption under the IFHA. The statute provides, in pertinent part, that the

IFHA does not apply to:

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Fike Investments, LLC v. Gregory L. Wilson, Sr., Executive Director of the Indiana Civil Rights Commission, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fike-investments-llc-v-gregory-l-wilson-sr-executive-director-of-the-indctapp-2025.