Indiana State Highway Commission v. Pappas

349 N.E.2d 808, 169 Ind. App. 611, 1976 Ind. App. LEXIS 959
CourtIndiana Court of Appeals
DecidedJune 30, 1976
Docket2-1074A252
StatusPublished
Cited by21 cases

This text of 349 N.E.2d 808 (Indiana State Highway Commission v. Pappas) 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
Indiana State Highway Commission v. Pappas, 349 N.E.2d 808, 169 Ind. App. 611, 1976 Ind. App. LEXIS 959 (Ind. Ct. App. 1976).

Opinion

Sullivan, J.

This appeal arises from an award of damages to appellee James Pappas (Pappas) for the wrongful interruption of special electrical service to his machine shop by the appellant State Highway Commission (Commission).

The facts most favorable to Pappas reveal that he lived in a home on Pine Street in Indianapolis. Located on the same property was Pappas’ machine shop, where he performed subcontracted work, designing and building fixtures - and parts for heavy machinery. In 1968, the State began buying and condemning property in Pappas’ neighborhood for a highway construction project. A representative of the Commission approached Pappas and offered him $12,600 for his property. Pappas accepted, deeding the property to the State on July 17, 1968. It was Pappas’ understanding at that time that if he did not accept the State’s offer he would be evicted within 30 days and would have to go to court to receive compensation for his property, a procedure that would take at least a year.

*614 Thirty days after Pappas transferred the property to the State, a representative of the Commission told him he could remain there, paying rent of $84.00 a month, until he found replacement property. Pappas signed a lease for one year. Pie paid rent for that year, after which the Commission refused to accept any more rent. The first of what was to be many eviction notices was sent to Pappas shortly after he made his last rent payment.

Pappas began looking for replacement property immediately after deeding his property to the State, spending all of his daylight hours at the task under threat of eviction if he did not do so. He did, however, continue to do some sub-contracting work at night. Pappas quickly discovered that his original property was quite unique in that a grandfather clause allowed him to have his business and residence on the same lot in an area zoned light industrial. Replacement cost of such property was $35,000 to $45,000.

At the end of the lease year, the Commission gave him permission to stay at the original property for another 30 days, provided he continue to look for new property on a full-time basis. Each month thereafter he would talk to a representative of the Commission, showing him properties he had considered and problems he had encountered with them. The Commission would then give him another 30-day extension. This continued for almost three years, when Pappas finally bought recolation property in May 1972. He paid $20,000 for the property, spent $23,000 renovating, and needed $18,000 more to install the required special wiring in the shop. The State reimbursed him for some of his expenses searching for replacement property and for his moving costs. Including the original purchase price, Pappas received altogether about $23,000 from the State.

In order to run the machines in his shop, Pappas needed 400 amp, 3 phase, 4 wire Delta wiring. This special service was provided to him at his original shop pursuant to a contract between Indianapolis Power and Light Co. and himself. *615 Sometime in April or May of 1970, the Commission cut the lines carrying this power to his shop and removed the transformer on the pole. Someone from the Commission told Pappas it would cost $9000 to restore the service and that he would be evicted within 24 hours if he demanded that it be done. Pappas did not make such a demand, and was thereafter unable to conduct his business at all at his original shop.

In March 1973 Pappas filed a complaint in three paragraphs against the Commission. The first two alleged that fraudulent misrepresentations by the Commission induced Pappas to convey the real estate, and asked that the conveyance be set aside and that he be awarded special damages for lost income and paid-out expenses looking for replacement property. The third paragraph alleged unauthorized termination of the special electrical service by the Commission and asked for $12,000 in damages.

The trial court entered the following findings and conclusions after hearing all the evidence:

“FINDINGS OF FACT
1. That there is no evidence in support of Paragraph I of plaintiffs’ Complaint.
2. That there is no evidence in support of Paragraph II of plaintiffs’ Complaint.
3. That the plaintiff, James Pappas, had special threephase heavy voltage electrical service running to his machine shop in the rear of 619 North Pine, Indianapolis, Indiana, and this service was terminated by the defendant on or about April 16, 1970.
. 4. That the replacement cost of the electrical service of the plaintiff, James Pappas, is $18,000.00.
5. That the plaintiff, James Pappas, was unable to operate his machine shop for two and one-third years because of the unauthorized acts of the defendant, consisting of the termination of James Pappas, electrical service.
6. That the yearly net income of the plaintiff, James Pappas, from his machine shop was in the sum of $5,000.00.
*616 CONCLUSIONS OF LAW
1. The law is with the plaintiff and the defendant is liable for damages to the plaintiff, James Pappas, for the replacement cost of his. special electrical service.
2. The law is with the plaintiff and the defendant is liable for damages to the plaintiff, James Pappas, for loss of earnings for two and one-third years.
3. There is no evidence that the defendant made false representations to the plaintiffs as alleged in Paragraph I of plaintiffs’ Complaint.
4. There is no evidence as to Paragraph II of plaintiffs’ ' Complaint.”

The court then entered judgment dismissing paragraphs one and two of the complaint and awarding Pappas $30,000 under the third paragraph. The Commission perfected this appeal, alleging that the evidence does not support a finding that the Commission is liable to Pappas for damages, that no legal theory can support the judgment, and that the trial court’s findings and conclusions are insufficient to support the judgment. Pappas did not appeal the dismissal of the first two paragraphs of his complaint.

I.

THE COMMISSION IS LIABLE TO PAPPAS FOR TORTIOUS INTERFERENCE WITH HIS POSSESSORY INTEREST IN THE MACHINE SHOP

In. its attack upon the findings made by the trial court, the Commission suggests that as a matter of law it could not be held liable to Pappas. The court’s finding number five, set out in its entirety, supra, found that the Commission’s acts were “unauthorized.” The Commission argues first that unauthorized acts are not necessarily wrongful acts, and second that the court could not find the acts to be wrongful without making findings as to ownership of the building, the ownership of the wiring, and Pappas’ possessory interest in the property.

In the context of all the findings, the Commission’s argument that “unauthorized” does not equate with “wrongful” is un *617 tenable.

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Bluebook (online)
349 N.E.2d 808, 169 Ind. App. 611, 1976 Ind. App. LEXIS 959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-state-highway-commission-v-pappas-indctapp-1976.