First National Bank of Illinois v. Blaine O'Neill-Perez (mem. dec.)

Indiana Court of Appeals·Decided June 13, 2018·No. 45A03-1710-CT-2453·Published

Opinion

MEMORANDUM DECISION Pursuant to Ind. Appellate Rule 65(D), FILED this Memorandum Decision shall not be Jun 13 2018, 9:19 am regarded as precedent or cited before any CLERK

court except for the purpose of establishing Indiana Supreme Court Court of Appeals

the defense of res judicata, collateral and Tax Court

estoppel, or the law of the case.

ATTORNEY FOR APPELLANT ATTORNEY FOR APPELLEE Scott A. Pyle Sophia J. Arshad Rubino, Ruman, Crosmer & Polen Arshad, Pangere and Warring, Dyer, Indiana LLP Merrillville, Indiana

IN THE

COURT OF APPEALS OF INDIANA

First National Bank of Illinois, June 13, 2018 Appellant-Defendant, Court of Appeals Case No.

45A03-1710-CT-2453

v. Appeal from the Lake Superior Court

Blaine O’Neill-Perez, The Honorable John R. Pera, Appellee-Plaintiff. Judge Trial Court Cause No.

45D10-1401-CT-6

Brown, Judge.

Court of Appeals of Indiana | Memorandum Decision 45A03-1710-CT-2453 | June 13, 2018 Page 1 of 17

[1] First National Bank of Illinois (“FNBI”) appeals the trial court’s denial of its motion to set aside default judgment. We affirm.

Facts and Procedural History [2] On January 10, 2014, Blaine O’Neill-Perez filed a complaint against FNBI and Homewood Disposal Service, Inc. (“Homewood Disposal”) which alleged in part that FNBI owned certain property in Dyer, Indiana; that on or about January 13, 2012, FNBI invited the public, including him, to its property; that as a result of FNBI’s negligence, he fell on the premises and suffered injuries; and that his damages included but were not limited to loss of income, medical expenses and treatment, and permanent scarring.

[3] An entry in the chronological case summary (“CCS”) dated January 21, 2014, states that summons and complaint were issued by certified mail to FNBI and Homewood Disposal and provided tracking numbers. The entry indicates that the summons was sent to FNBI, “C/O Thomas Cornwell,” at 54 East Road, Chesterton, Indiana. Appellant’s Appendix Volume II at 9. An entry in the CCS dated February 21, 2014, states “Return: 01/30/2014” and “Unsuccessful – Unable to forward” with respect to the tracking number associated with the summons sent by certified mail to FNBI. Id. at 8.

[4] An entry in the CCS dated December 30, 2014, states: “Mail filed in Clerk’s office on 12-30-14 Plaintiff, Blaine O’Neill-Perez files Alias Summons. (2 fs shrf, 1-7-15).” Id. An entry in the CCS dated January 7, 2015, states “Issue Date: 01/07/2015,” “Service: Alias Summons and Complaint,” “Method:

Court of Appeals of Indiana | Memorandum Decision 45A03-1710-CT-2453 | June 13, 2018 Page 2 of 17

Service by Foreign Sheriff Porter Co Sh,” listed FNBI, “C/O Thomas Cornwell, 54 East Road, Chesterton, IN,” and provided a tracking number of F000020046. Id. at 7. An entry in the CCS dated January 30, 2015, states:

Copy left at address. Copy mailed.

Method: Service by Foreign Sheriff Issued: 01/07/2015

Service: Alias Summons and Complaint Served: 01/14/2015

Return: 01/23/2015

On: First National Bank Illinois Signed By:

Reason: Copy left at address. Copy Mailed.

Comment:

Tracking #: F000020046

Id. An entry in the CCS dated February 17, 2015, states:

Copy Left / Copy Mailed Mail Returned Method: Service by Foreign Sheriff Issued: 01/07/2015

Service: Alias Summons and Complaint Served:

Return: 02/06/2015

On: First National Bank Illinois Signed By:

Reason: Copy Left / Copy Mailed Mail Returned

Comment: Temporarily away Tracking #: F000020046

Id. at 6.

[5] On May 27, 2015, O’Neill-Perez and Homewood Disposal reported that they

reached a settlement, and the court ordered the matter dismissed with prejudice Court of Appeals of Indiana | Memorandum Decision 45A03-1710-CT-2453 | June 13, 2018 Page 3 of 17 as to Homewood Disposal and that the case remained pending as to FNBI. On May 28, 2015, O’Neill-Perez filed a praecipe for service by publication pursuant to Ind. Trial Rule 4.13. On August 5, 2016, O’Neill-Perez filed a proof of publication which indicated that a notice to FNBI of the complaint filed against it on January 10, 2014, was published in the Crown Point Star newspaper on July 14, 21, and 28, 2016.

[6] On November 10, 2016, O’Neill-Perez filed a motion for default judgment against FNBI. On November 15, 2016, the court entered a default judgment against FNBI and scheduled a damages hearing. On January 17, 2017, the court held a damages hearing, and on January 25, 2017, it entered a judgment in favor of O’Neill-Perez and against FNBI in the amount of $75,000. On May 5, 2017, O’Neill-Perez filed a motion for proceedings supplemental to enforce judgment. A CCS entry dated May 12, 2017, states: “Court grants order 5-9-17, received 5-10-17 for the defendant, to appear in Court. Matter is hereby set for hearing on 7-7-17 at 9 a.m. (mailed 5-12-17).” Id. at 4.

[7] On June 28, 2017, FNBI filed a motion to set aside default judgment and requested that the court set aside the November 15, 2016 default judgment and the January 25, 2017 judgment. FNBI argued that the default judgment against it should be deemed void, that “[t]he method of service relied upon by [O’Neill- Perez] is publication” and that publication was not a valid method of service. FNBI asserted that this is not an in rem action, that Trial Rule 60(B)(4) permitted relief when service was made only by publication, and that Trial Rule 60(B)(6) required the court to set aside a default judgment obtained without Court of Appeals of Indiana | Memorandum Decision 45A03-1710-CT-2453 | June 13, 2018 Page 4 of 17 ever obtaining valid service. Id. at 34. FNBI also stated that, on or about May 19, 2016, it became an inactive entity in the records of the Indiana Secretary of State based upon a May 2013 merger with Old Plank Trail Community Bank, N.A., (“Old Plank”) as shown in the documents attached to the motion as Exhibit A. It argued that O’Neill-Perez resorting to service by publication without setting forth the efforts made to obtain proper service through its merged surviving entity Old Plank establishes that he did not show the diligence required to ascertain a party’s whereabouts.

[8] The documents attached to FNBI’s motion to set aside default judgment as Exhibit A included a record from the Indiana Secretary of State for FNBI dated June 26, 2017, identifying a principal office address in Lansing, Illinois, and indicating “Creation Date: 02/12/2007”; “Business Status: Merged”; “Inactive Date: 05/19/2016”; and, under the heading “Registered Agent Information,” “Type: Individual,” “Name: Thomas C. Cornwell, Attorney at Law,” and “Address: 54 East Road, Chesterton, IN 46304, USA.” Id. at 39. The exhibit further included a filing history record for FNBI dated June 26, 2017, showing that a Certificate of Admission was filed and became effective on February 12, 2007, and that Articles of Merger were filed on May 24, 2016, and became effective on May 19, 2016. Also, the exhibit included a letter dated May 19, 2016, on letterhead stating “Wintrust,” addressed to the Indiana Secretary of State, stating in part “[t]hank you for discussing the mechanics of correctly reflecting with the Indiana Secretary of State the acquisition[] of [FNBI] by Old Plank . . . effective as of May 1, 2013,” that a copy of an official certification

Court of Appeals of Indiana | Memorandum Decision 45A03-1710-CT-2453 | June 13, 2018 Page 5 of 17 issued by the Office of the Comptroller of the Currency to merge FNBI with and into Old Plank was attached to the letter, and that “Old Plank would very much like for the service of processes to be forwarded to its registered agent . . . located at . . . Indianapolis, IN . . . rather than [FNBI’s] registered agent, Thomas C. Cromwell,[1] because it hinders Old Plank’s response time.” Id. at 43. A file-stamp on this letter indicates that it was filed with the Indiana Secretary of State on May 19, 2016.

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