Hansford v. Maplewood Station Business Park

621 N.E.2d 347, 1993 Ind. App. LEXIS 1136, 1993 WL 358776
CourtIndiana Court of Appeals
DecidedSeptember 20, 1993
Docket22A05-9211-CV-00423
StatusPublished
Cited by13 cases

This text of 621 N.E.2d 347 (Hansford v. Maplewood Station Business Park) 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
Hansford v. Maplewood Station Business Park, 621 N.E.2d 347, 1993 Ind. App. LEXIS 1136, 1993 WL 358776 (Ind. Ct. App. 1993).

Opinion

SHARPNACK, Chief Judge.

James F. Hansford appeals the trial court's judgment in favor of David Ruck-man, Stephen E. Broadus, and David Hardy in their action to dissolve their partnership *349 with Hansford and to distribute the partnership's assets. We affirm.

The facts most favorable to the judgment are as follows. In 1988, Ruckman, Broadus, Hardy, and Hansford (hereinafter, "the partners'") agreed to purchase a tract of approximately twenty acres in Ed-wardsville, Indiana. The partners intended to develop, subdivide, and sell parcels of the property, which was to be called Maple-wood Station Business Park. The partners received financing from Old Capital Bank of Corydon, Indiana, in the full amount of the purchase price ($105,000). The loan was secured by the property and the personal indemnifications of the partners. Because the mortgage was for the full purchase price, the partners did not need to put up any money initially, and it was agreed at that time that partnership profits would be divided based on the amount of capital each partner envisioned subsequent ly contributing to the project. Ruckman and Broadus were to participate at 82.5% each, and Hardy and Hansford at 17.5% each. Beginning in 1989, the partners filed partnership tax returns with the IRS indicating each partner's share in the business.

The partners anticipated that they would be able to borrow additional development funds to pay the partnership expenses and the costs of constructing roadways and improvements. In May, 1989, the Partners approached Old Capital Bank ' 1 for additional funds, but were refused. Ruckman, Broadus, and Hardy then agreed to contribute their own funds to cover the development costs, including interest due on the mortgage. At this point, however, Hans-ford refused to contribute any funds, and the remaining three partners paid his share.

Over the next three years, the partners paid down the original note as parcels were sold. On May 28, 1991, the original note matured, and the bank wanted updated financial statements and new signatures on a new note for the remaining debt of $55,-000. Hansford refused to sign the new note or to provide the financial statements. The other partners then paid the remaining balance and interest on the note and received an assignment of the note and mortgage in return. In effect, Ruckman, Broa dus, and Hardy then owned a $55,000 mortgage with the partnership as mortgagor.

On September 9, 1991, Ruckman, Broa dus, and Hardy filed a petition for dissolution of partnership. Hansford, proceeding pro se, filed an answer and counterclaim on October 9, 1991. On December 16, 1991, Hansford filed a motion for order of accounting. On January 29, 1992, Ruckman, Broadus, and Hardy filed their accounting. Upon the motion of Ruckman, Broadus, and Hardy, and over Hansford's objection, a pre-trial conference was held on February 14, 1992, at which a date for final hearing was set and Ruckman, Broadus, and Hardy were asked to provide additional financial information, which they did on February 21, 1992. On May 29, 1992, the final hearing was held, at which Hansford filed a motion for default on his counterclaim. The trial court allowed the developers to enter their general denial to the counterclaim orally. After the hearing, the court requested the parties to file proposed findings of fact and conclusions of law. On July 18, 1992, the court adopted the findings of fact and conclusions of law proposed by Ruckman, Broadus, and Hardy. On July 18, 1992, Hansford filed a motion to partition the partnership property. On July 28, 1992, the court entered its judgment.

Hansford, who has continued pro se on appeal, filed his praecipe on August 27, 1992.

Hansford presents nine issues for our review, which we restate as:

1. whether the trial court committed reversible error in finding that Ruckman, Broadus, Hardy, and Hansford had formed a partnership;
2. whether the trial court's order that contributions made by Ruckman, Broa- *350 dus, and Hardy to satisfy Hansford's debt to the partnership be recovered from the proceeds of the sale of the partnership assets is contrary to law;
3. whether the court's order that proceeds of the sale of the partnership assets be paid to Ruckman, Broadus, and Hardy as assignees of the INB mortgage is contrary to law;
4. whether the trial court's appointment of a commissioner to convey Hans-ford's interest in the partnership assets is contrary to law;
5. whether the trial court committed reversible error in failing to follow pretrial procedure under Ind.Trial Rule 16;
6. whether the trial court committed reversible error in failing to rule on Hansford's motion for partition;
7. whether the trial court deprived Hansford of his right to cross-examine witnesses;
8. whether the trial court's judgment is outside the scope of the complaint; and
9. whether the trial court committed reversible error in allowing entry of a general denial at trial in response to Hansford's counterclaim.

Issue One

Hansford argues that the trial court committed reversible error in finding that a partnership existed between the parties. He contends, rather, that the four purchased the land as tenants-in-common.

When reviewing a trial court's findings of fact and conclusions thereon, we apply a two-tier standard of review: we inquire whether the evidence supports the findings and whether the findings support the judgment. TR. 52(A) National Advertising Co. v. Wilson Auto Parts, Inc. (1991), Ind. App., 569 N.E.2d 997. We neither reweigh the evidence nor rejudge the credibility of the witnesses and, unless the evidence viewed in a light most favorable to the trial court leads uncontrovertibly to a conclusion opposite to the one reached, we will not reverse the determination of the trial court. Kokomo Veterans, Inc. v. Schick (1982), Ind.App., 489 N.E.2d 639.

The Uniform Partnership Act ("UPA") defines "partnership" in Ind.Code § 23-4-1~6 as an "association of two (2) or more persons to carry on as co-owners a business for profit." The UPA also provides guidelines for determining the existence of a partnership in I.0. § 28-4-1~7, which reads, in pertinent part:

"(2) Joint tenancy, tenancy in common . or part ownership does not of itself establish a partnership, whether such co-owners do or do not share any profits made by the use of the property;
"(8) The sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived.
"(4) The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business...."

L.C. § 28-4-1-7(2)-(4).

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Bluebook (online)
621 N.E.2d 347, 1993 Ind. App. LEXIS 1136, 1993 WL 358776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hansford-v-maplewood-station-business-park-indctapp-1993.