Indy Diamond, LLC v. The City of Indianapolis

CourtIndiana Court of Appeals
DecidedAugust 15, 2019
Docket18A-OV-2552
StatusPublished

This text of Indy Diamond, LLC v. The City of Indianapolis (Indy Diamond, LLC v. The City of Indianapolis) 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
Indy Diamond, LLC v. The City of Indianapolis, (Ind. Ct. App. 2019).

Opinion

FILED Aug 15 2019, 8:34 am

CLERK Indiana Supreme Court Court of Appeals and Tax Court

ATTORNEYS FOR APPELLANT ATTORNEY FOR APPELLEE Craig E. Beougher Deborah L. Law Eric C. Welch Office of Corporation Counsel Welch & Company, LLC Indianapolis, Indiana Muncie, Indiana

IN THE COURT OF APPEALS OF INDIANA

Indy Diamond, LLC, August 15, 2019 Appellant-Defendant, Court of Appeals Case No. 18A-OV-2552 v. Appeal from the Marion Superior Court The City of Indianapolis, The Honorable Carol J. Orbison, Appellee-Plaintiff Senior Judge Trial Court Cause No. 49D04-1311-OV-42176

Crone, Judge.

Court of Appeals of Indiana | Opinion 18A-OV-2552 | August 15, 2019 Page 1 of 19 Case Summary [1] Indy Diamond, LLC (“Indy Diamond”),1 is the owner of a large parcel of

property located in Marion County (“the Real Estate”). The Real Estate

consists of a severely dilapidated former apartment complex that is currently

vacant aside from criminals and squatters who frequent the property. After

years of fighting with the City of Indianapolis (“the City”) over numerous

municipal code violations, the parties entered into an agreed judgment that was

adopted by the trial court, whereby Indy Diamond agreed to secure and

maintain the Real Estate. Indy Diamond failed to do so, and the City filed a

contempt petition. The trial court subsequently found Indy Diamond in

contempt and, as a sanction, ordered Indy Diamond to demolish the buildings

located on the Real Estate.

[2] On appeal, Indy Diamond contends that the trial court abused its discretion in

ordering demolition as a contempt sanction. Indy Diamond further asserts that

it has been denied due process and that the trial judge was personally biased

against it. Finding neither an abuse of discretion nor a due process violation,

and concluding that there is no evidence of personal bias, we affirm.

Facts and Procedural History [3] The convoluted history of this case began in November 2013, when the City

filed a complaint for injunction, fines, and damages against Indy Diamond

1 The record indicates that Indy Diamond is a foreign limited liability company based in England.

Court of Appeals of Indiana | Opinion 18A-OV-2552 | August 15, 2019 Page 2 of 19 alleging that Indy Diamond was maintaining a public nuisance in violation of

Indiana statutory law and municipal codes. Specifically, the City alleged that

Indy Diamond was neglecting the Real Estate, commonly known as Oaktree

Apartments, and that the Real Estate’s deteriorated condition “unreasonably

harms the City and citizens it serves and represents by contributing to the urban

blight, depressing property values, discouraging development, imperiling the

public, and consuming substantial public resources.” Appellee’s App. Vol. 2 at

2.2 The City alleged that from July 26, 2012, to August 27, 2013, there had

been at least 372 police runs to the Real Estate and 125 police reports for

criminal activity including crimes of rape, arson, domestic battery, public

intoxication, child abduction, child abuse, burglary, armed robbery, aggravated

assault, vandalism, intimidation, and trespassing. The City further alleged that,

during the same time period, there had been fifty Department of Code

Enforcement and Marion County Public Health Department cases opened

against Indy Diamond and at least 146 inspections conducted of and relating to

the poor condition of the Real Estate.

[4] In January 2014, the Health and Hospital Corporation of Marion County filed

a complaint for injunction and fine against Indy Diamond. Following a

hearing, Indy Diamond was ordered to vacate and board all occupied

apartment units located on the Real Estate. Consequently, in February 2014,

the City filed a request for preliminary injunction to prohibit Indy Diamond

2 The Real Estate, located on Pinehurst Drive in Indianapolis, consists of approximately nineteen acres of land with at least twenty-six buildings situated thereon.

Court of Appeals of Indiana | Opinion 18A-OV-2552 | August 15, 2019 Page 3 of 19 from using the Real Estate for rental purposes and to require Indy Diamond to

keep the property fully secured. Thereafter, following a hearing, the trial court

granted the City’s request, entered a permanent injunction, and, in the City’s

words, the Real Estate was essentially “condemned.” Appellee’s Br. at 11.3

[5] After the condition of the Real Estate deteriorated further, in August 2015, the

City filed an “Emergency Motion for Order Compelling Maintenance of the

Property.” Appellee’s App. Vol. 2 at 25. The City’s motion alleged that

although Indy Diamond had removed all residents from the Real Estate, it had

since failed to maintain the Real Estate in accordance with the municipal code.

The allegations of code violations included: (1) the grass and weeds exceeded

twelve inches in height; (2) doors and windows on the buildings were not

equipped with proper hardware for locking to prevent unauthorized entry; (3)

there were several broken windows; and (4) junk, trash, and debris littered the

Real Estate. The City also alleged that local police and fire officials had been

forced to respond to and address significant public safety concerns at the Real

Estate, including two fires on the property and numerous squatters living inside

unsafe structures. The City’s motion included photographs of the poor

conditions of the Real Estate as well as emails from the City to Indy Diamond

urging its attention to these matters. Following a hearing, the trial court

entered an order compelling Indy Diamond to secure the Real Estate in

3 The trial court found that at least two of the buildings on the property were wholly unfit for habitation due to extensive fire damage. Other buildings had broken windows, mold, and no water service. As of February 2014, only one unit out of 348 was occupied.

Court of Appeals of Indiana | Opinion 18A-OV-2552 | August 15, 2019 Page 4 of 19 accordance with municipal code boarding standards, maintain the Real Estate

in a safe and sanitary condition, and to remove any and all unauthorized

persons found on the Real Estate. The court set the matter for a September

2015 compliance hearing.

[6] A September compliance hearing was held, after which the trial court found

that the evidence presented established that Indy Diamond had failed, without

good cause, to comply with the court’s previous order. Accordingly, the trial

court assessed a $15,000 fine against Indy Diamond, and again ordered Indy

Diamond to comply with the previous order to secure and maintain the Real

Estate. The matter was set for another compliance hearing on October 7, 2015.

Both parties appeared by counsel at that hearing and stipulated that the Real

Estate was not in compliance with the court’s order. The court gave Indy

Diamond two additional weeks to bring the property into compliance. At the

next compliance hearing, the trial court found that the evidence presented

established that Indy Diamond had again failed, without good cause, to comply

with the court’s order. The trial court assessed a $30,000 fine against Indy

Diamond and ordered Indy Diamond to comply with the previous orders to

secure and maintain the Real Estate. The matter was set for a December 2015

compliance hearing, which was subsequently vacated by the parties for

unknown reasons.

[7] On July 15, 2016, the City filed a motion for pretrial conference on its original

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