Lily, Inc. d/b/a Weinbach Cafeteria and Fernando Tudela v. Silco, LLC.

997 N.E.2d 1055, 2013 WL 5276028, 2013 Ind. App. LEXIS 451
CourtIndiana Court of Appeals
DecidedSeptember 19, 2013
Docket82A05-1209-PL-459
StatusPublished
Cited by17 cases

This text of 997 N.E.2d 1055 (Lily, Inc. d/b/a Weinbach Cafeteria and Fernando Tudela v. Silco, LLC.) 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
Lily, Inc. d/b/a Weinbach Cafeteria and Fernando Tudela v. Silco, LLC., 997 N.E.2d 1055, 2013 WL 5276028, 2013 Ind. App. LEXIS 451 (Ind. Ct. App. 2013).

Opinions

OPINION

BROWN, Judge.

Lily, Inc., d/b/a Weinbach Cafeteria and Fernando Tudela (collectively, the “Appellants”) appeal the trial court’s September 6, 2012 order granting summary judgment to Silco, LLC (“Silco”). The Appellants raise seven issues which we consolidate and restate as whether the court erred in granting Silco’s motion for summary judgment. We affirm in part, reverse in part, and remand.

FACTS AND PROCEDURAL HISTORY

In 2003, Four O Three, Inc., and David Nelson, the “owner, member and sole unit holder” of Silco, signed a lease agreement (the “Lease”) dated March 25, 2003, in which Four O Three, Inc. became the tenant of certain property in the Weinbach Shopping Center in Evansville.1 Appellants’ Appendix at 121. In August 2004, [1060]*1060Tudela purchased the Weinbach Cafeteria for an amount between $90,000 and $100,000.

On August 13, 2004, Four O Three, Inc. and Tudela signed an “Assignment and Assumption of Building Lease” (the “Assignment”) related to “a certain Lease Agreement with Silco, LLC, dated March, 25, 2003, for the lease of property commonly described as 1 N. Weinbach, Evansville, Indiana.” Id. at 78. The Assignment stated in part that Four O Three, Inc. assigned to Tudela all of its right, title, and interest in the Lease. That same day, Silco and Tudela entered into a “Consent to Assignment of Lease Agreement and Release” (the “Consent”) in which Sil-co consented to the assignment of the Lease, and Tudela agreed to be responsible for the upkeep, maintenance, and repairs of the area inside the building on the leased premises from the top of the stairs to the cafeteria, the area from the freight elevator to the entrance of the main service corridor, and the 700 square foot common area outside of the building in front of the drive-through counter. Id. at 79. That same day, Tudela and Silco signed a Mortgage in which Tudela granted a security interest in certain properties to Silco, and the Mortgage stated: “THIS MORTGAGE IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE LEASE.” Id. at 108.

Under the Lease, monthly rent was due and payable in advance, and by the end of July 2006, Tudela owed Silco $5,892.75 and was in default of the Lease from that date forward. In September 2006, Tudela and Nelson had a conversation in which Tudela described his business activities as struggling and agreed to perform some work around the complex in order to reduce his rent. The agreement included picking up trash from the parking lot, emptying the trash on a daily basis, and cleaning the common areas inside the building containing the cafeteria. This agreement continued through June 2007.

In October 2006, Silco leased other space in the Weinbach Shopping Center to a blood plasma center. In a fax dated August 2007, Tudela informed Nelson of problems with respect to the patrons of the blood plasma center. Tudela indicated that the blood plasma center had a negative effect on the cafeteria business. Specifically, Tudela wrote:

We have customers that have call [sic] us and tell us they are not coming because of the Blood Plasma Center. They do not feel safe and that [e]ven when they try to come in there are no spaces to park other than spaces near Wesselmans which are very unrealistic for Senior Citizens to park that far away. I have documentation of no parking available, I have a video of people in the parking lot waiting with their trunk open and there [sic] stereo playing loud while waiting their turn to go into the Blood Bank. People not only congregate outside the door but also in their cars taking up parking spaces. I have called the police many times because they park their cars in the handicapped parking spaces.... My business decreased substantially after the opening of this facility.... I will enclose the Cafeteria sales the year prior Blood Plasma Center and the sales after. You will see a significant difference.

Id. at 434-435.

In a letter dated March 6, 2008, and addressed to Tudela, Nelson stated that the letter would serve as default notice for failure to pay rent and charges totaling $63,323.82. The letter stated that the “charges must be paid within 5 business days of receipt of this letter to avoid termination and possibly eviction as provided in [1061]*1061the lease.” Id. at 104. A document attached to the letter contained a “Recap of Account” and listed the balance due from Tudela beginning on May 1, 2007. Id. at 29. Later that month, Tudela met with Nelson and discussed reducing the rent, and Nelson agreed to reduce the rent by half.

In September 2008, Silco locked Tudela out of the premises for nonpayment of rent. Nelson spoke to Tudela and said: “[Y]ou owe me a lot of money.... [W]e’re taking over.... [W]hat we’re going to do ... we’re going to have your equipment appraised, and if you owe me any money, you know, you’re going to settle up with me. If I owe you any money, we’re going to get settled up.” Id. at 406. Tudela worked at the cafeteria for three days and helped with the transition to “make sure that everything went smoothly.” Id. at 389. During 2008 and 2009, Nelson “owned and operated a restaurant.” Id. at 188.

In a letter addressed to Nelson and dated October 8, 2008, Tudela’s attorney wrote that Tudela had informed him that Silco had taken possession of the Wein-bach Cafeteria. The letter stated: “Mr. Tudela also advised me that you have reached an agreement to resolve this matter by applying the value of the assets in the Weinbach Cafeteria to the rental ar-rearage. If the value of the assets exceeds the rental arrearage, you will pay the excess value to Mr. Tudela.” Id. at 193. The letter also mentioned receiving appraisals for the equipment and concluded: “Mr. Tudela needs to obtain from you as soon as possible your calculation as to the amount of rental arrearage. As soon as you can provide this number, a meeting could be scheduled to determine the final calculation of what is owed for the assets of the Weinbach Cafeteria.” Id. at 194.

In a letter dated December 12, 2008, Tudela’s attorney wrote Nelson again indicating that he had not received a response to his October 8, 2008 letter. Tudela’s attorney again requested an accounting “of the back rent and any other expenses which you claim to be owed to you by Fernando Tudela.” Id. at 195. At one point during January and February 2009, Tudela drove by the Weinbach Cafeteria and witnessed Nelson and his employees removing restaurant equipment. Silco hired Sohn & Associates (“Sohn”) to consign and auction property of Tudela found in the Weinbach Cafeteria. On March 23, 2009, Sohn sold the equipment, and the total sales revenue less expenses and Sohn’s commission amounted to $43,173.59.

On April 20, 2009, Silco filed a complaint for breach of lease agreement, ejectment, foreclosure of Mortgage, and conversion. On July 8, 2009, Appellants filed their Answer and Affirmative Defenses.2 The [1062]*1062Appellants also filed a counterclaim alleging breach of contract and conversion and requesting an accounting. On August 31, 2009, Silco filed an answer to Appellants’ counterclaim.

On June 6, 2012, Silco filed a motion for summary judgment and to foreclose the Mortgage.

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

Related

Untitled Case
N.D. Indiana, 2026
Entm't USA, Inc. v. Moorehead Commc'ns, Inc.
897 F.3d 786 (Seventh Circuit, 2018)
The Care Group Heart Hospital v. Roderick J. Sawyer, M.D.
80 N.E.3d 190 (Indiana Court of Appeals, 2017)
Gold v. Rowland
156 A.3d 477 (Supreme Court of Connecticut, 2017)
Larry J. Jernas and R & R Horse Haven, Inc. v. Kevin J. Gumz
53 N.E.3d 434 (Indiana Court of Appeals, 2016)
Entertainment USA, Inc. v. Moorehead Communications, Inc.
93 F. Supp. 3d 915 (N.D. Indiana, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
997 N.E.2d 1055, 2013 WL 5276028, 2013 Ind. App. LEXIS 451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lily-inc-dba-weinbach-cafeteria-and-fernando-tudela-v-silco-llc-indctapp-2013.