Gerstbauer v. Styers

898 N.E.2d 369, 2008 Ind. App. LEXIS 2590, 2008 WL 5247716
CourtIndiana Court of Appeals
DecidedDecember 18, 2008
Docket50A03-0707-CV-340
StatusPublished
Cited by22 cases

This text of 898 N.E.2d 369 (Gerstbauer v. Styers) 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
Gerstbauer v. Styers, 898 N.E.2d 369, 2008 Ind. App. LEXIS 2590, 2008 WL 5247716 (Ind. Ct. App. 2008).

Opinions

OPINION

NAJAM, Judge.

STATEMENT OF THE CASE

Terry P. Gerstbauer and Capitol Speedway, Inc. (“Capitol” ’) appeal from the trial [371]*371court’s order on attorneys’ fees. They raise three issues for our review, which we consolidate and restate as whether the trial court abused its discretion in determining the reasonableness of Gerstbauer and Capitol’s attorneys’ fees. On cross-appeal, Stephen W. Styers also challenges the trial court’s award of fees as well as its judgment that he cannot recover on his statutory trespass claim.

We affirm in part and reverse and remand in part.

FACTS AND PROCEDURAL HISTORY

The facts relevant to this appeal were stated in our prior memorandum decision in Capitol Speedway, Inc. v. Styers, 837 N.E.2d 229, No. 50A03-0409-CV-390, at 2-6 (Ind.Ct.App. Oct. 26, 2005) (“Capitol Speedivay /”), aff'd on reh’g (Feb. 16, 2006) (“Capitol Speedivay II”):

Gerstbauer purchased a racetrack in Plymouth in the fall of 1994 and formed Capitol within one month after his acquisition of the racetrack. Gerstbauer is the president and sole shareholder of Capitol. Following the formation of Capitol, Gerstbauer leased the racetrack to Capitol, and Capitol made regular lease payments to Gerstbauer.
On April 3, 1998, Gerstbauer, as president of “A new Corporation to be formed,” and Styers, as president of Plymouth Motor Speedway, Inc. (“Plymouth”), entered into a three-year lease agreement for the racetrack. The agreement required Styers to pay $12,000 upon execution of the lease, which he did, and an additional $90,000 in regular rental payments from July 5, 1998, through September 6, 2000, for a total of $102,000. In addition, the lease granted Styers an option to purchase the racetrack for $300,000 at any time during the course of the lease. Importantly, the lease also contained a section describing Gerstbauer’s remedies upon Styers’ default. Specifically, that section provides in relevant part that:
Upon the occurrence of any Event of Default Landlord may, at its option, in addition to any other remedy or right it has hereunder or by law:
(1) Re-enter the Leased Property, without demand or notice, and resume possession by an action in law or equity or by force or otherwise and without being liable in trespass or for any damages and without terminating this Lease. Landlord may remove all persons and property from the Leased Property and such property may be removed and stored at the cost of Tenant.
On July 5, 1998, the day that the first of the regular rent payments was due, Styers informed Gerstbauer that the “necessary funds were not immediately available” and he indicated a desire to negotiate a modification. The parties agree that they did orally modify their agreement, but they disagree on the exact terms of the modification. Styers maintains that the new payment schedule required him to pay $1,692.31 each week in which an event occurred at the track. Conversely, Gerstbauer claims that the modification required Styers to pay $1,692.31 each week for thirteen weeks and make a “balloon payment on November 1, to catch up the entire balance of the lease payments due.”
Thereafter, Styers made nine rent payments to Gerstbauer, but failed to make any payments after September 14, 1998. Gerstbauer became concerned about the non-payments and received information from vendors and others that Styers was not current with his bills. Subsequently, Gerstbauer declared the “contract [372]*372forfeited and seized possession of the property.” Then; on October 12, 1998, Styers demanded that Gerstbauer return his property. Gerstbauer refused and, at the time of this appeal, still retained Styers’ property in storage.
On October 30, 1998, Styers filed a complaint against Gerstbauer, which principally alleged breach of quiet enjoyment, trespass, and conversion. Gerstbauer claimed that Styers had improperly sued Gerstbauer in his individual capacity. Consequently, Gerstbauer answered and filed a counterclaim on behalf of Capitol and claimed that Styers had breached the lease. Styers then filed an amended complaint and named Gerstbauer and Capitol as defendants. Prior to trial, both parties filed numerous motions to compel discovery. Styers also sought discovery sanctions against Gerstbauer, and Gerstbauer filed one motion for discovery sanctions against Styers. In response to Styers’ motion for sanctions, the trial court pierced the corporate veil on the stated grounds that Gerstbauer had failed to “provide meaningful discovery response in spite of numerous requests and Motions to Compel for the production of materials pertaining to the financial activities of Capitol Speedway, Inc. and Terry Gerstbauer.”
Following a bench trial, the trial court entered findings and conclusions. Ultimately, the trial court agreed with Gerstbauer that payments were due each week for thirteen weeks, regardless of whether an event occurred at the track. In particular, the court noted, “the parties acted as if Gerstbauer’s concept of the contract was the one in place. In either event, Styers materially breached the contract by failing to make the payments timely.”
Nevertheless, the trial court ruled against Gerstbauer on his counterclaim for breach of the lease agreement, in effect, holding that since Gerstbauer had sold the real estate for more than the option price, he had come out “ahead” and had not been damaged by Styers’ breach of the lease. The trial court also concluded that Gerstbauer had “improperly and illegally converted personal property of Styers, still having not returned it, which the Court values at $27,476.” The court elaborated, stating that, “[njothing in the contract gives Gerstbauer even a colorable claim to keep Styers’ personal property and the Court finds that Styers had an immediate and unqualified right to possession.” Therefore, the trial court awarded “treble damages [against both Capitol and Gerstbauer] totaling $82,428, attorney fees in the sum of $22,750 and sanctions of $1,400 all plus the costs of the action.” In addition, the court imposed prejudgment interest on the amount of $82,428 at the rate of 8% from October 12, 1998, until paid. This appeal ensued.

(Footnotes and citations to the record omitted.)

More specifically, the trial court’s original order stated, in relevant part, as follows:

1.The contract ... is an otherwise generally normal contract for a lease purchase....
* * *
7. The fair market value of the personal property was identified by Styers ... and the Court heard virtually no separate evidence upon that topic....
* * *
13. Styers filed his suit and, after an amendment of the complaint, ultimately has alleged nine paragraphs of complaint against Gerstbauer. [373]*373Paragraph I alleges a violation of a breach of the contract term for quiet enjoyment. Paragraph II alleges trespass. Paragraph III alleges a common law conversion of the personalty. Paragraph IV alleges tortious interference with the personalty and, depending upon how the provision is read, with the realty.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lee Johnson v. Hassan Shanehsaz
Indiana Court of Appeals, 2020
Michael Hays and Caryn Hays v. Amanda Hockett
94 N.E.3d 300 (Indiana Court of Appeals, 2018)
Techna-Fit, Inc. and Stuart Trotter v. Fluid Transfer Products, Inc.
45 N.E.3d 399 (Indiana Court of Appeals, 2015)
Robert A. Masters v. Leah Masters
20 N.E.3d 158 (Indiana Court of Appeals, 2014)
Goodrich Quality Theaters, Inc. v. Fostcorp Heating & Cooling, Inc.
16 N.E.3d 426 (Indiana Court of Appeals, 2014)
Inner Circle Properties, LLC v. George Lease
Indiana Court of Appeals, 2014
Hahnel v. Duchesne Land, LC
2013 UT App 150 (Court of Appeals of Utah, 2013)
JPMCC 2006-CIBC14 Eads Parkway, LLC v. DBL Axel, LLC
977 N.E.2d 354 (Indiana Court of Appeals, 2012)
Brotherhood Mutual Insurance Co. v. Michiana Contracting, Inc.
971 N.E.2d 127 (Indiana Court of Appeals, 2012)
Christy v. Sebo
930 N.E.2d 1154 (Indiana Court of Appeals, 2010)
Delgado v. Boyles
922 N.E.2d 1267 (Indiana Court of Appeals, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
898 N.E.2d 369, 2008 Ind. App. LEXIS 2590, 2008 WL 5247716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerstbauer-v-styers-indctapp-2008.