Lori Nicklas v. Von Tobel Corporation, Individually, and d/b/a Von Tobel Lumber and Von Tobel Lumber Company, Inc.

10 N.E.3d 575, 2014 WL 2515715, 2014 Ind. App. LEXIS 249
CourtIndiana Court of Appeals
DecidedJune 4, 2014
Docket64A03-1310-CC-429
StatusPublished
Cited by1 cases

This text of 10 N.E.3d 575 (Lori Nicklas v. Von Tobel Corporation, Individually, and d/b/a Von Tobel Lumber and Von Tobel Lumber Company, Inc.) 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
Lori Nicklas v. Von Tobel Corporation, Individually, and d/b/a Von Tobel Lumber and Von Tobel Lumber Company, Inc., 10 N.E.3d 575, 2014 WL 2515715, 2014 Ind. App. LEXIS 249 (Ind. Ct. App. 2014).

Opinion

*577 OPINION

ROBB, Judge.

Case Summary and Issue

Lori Nicklas (“Lori”) appeals the trial court’s grant of summary judgment in favor of Von Tobel Corporation (“Von To-bel”) and its denial of her summary judgment motion. Lori raises three issues for review, which we consolidate and restate as whether the trial court erred when it granted summary judgment in favor of plaintiff Von Tobel and against Lori after Von Tobel had obtained a judgment against her co-defendant, Shawn Nicklas (“Shawn”) in the same proceeding. Concluding summary judgment in favor of Von Tobel was proper, we affirm.

Facts and Procedural History

The facts in this case are undisputed. In July 2009, Lori and Shawn executed a promissory note in favor of Von Tobel with a principle amount of $35,000. The note was to be paid in full by January 15, 2012. When the note matured and a balance remained, Von Tobel sought to obtain a judgment on the note in the amount of $30,548.22 plus interest and attorney fees as permitted by the note’s terms. Von Tobel named both Shawn and Lori as defendants, as the two were jointly and severally liable to Von Tobel under the note. Shawn entered into an Agreed Judgment with Von Tobel for the full amount of the principal owed, in addition to interest and attorney fees, for a total of $34,696.89. 1 After Lori filed her answer, Von Tobel moved for summary judgment against her, seeking a judgment on the principal and for interest and attorney fees. Lori filed a cross-motion for summary judgment arguing Von Tobel had been fully compensated through its settlement with Shawn, and was not entitled to any further recovery. 2 After a hearing, the trial court granted summary judgment in favor of Von Tobel and denied Lori’s cross-motion for summary judgment. Lori now appeals.

Discussion and Decision

I. Standard of Review

When reviewing a summary judgment ruling, we apply the same standard as the trial court. F.B.I. Farms, Inc. v. Moore, 798 N.E.2d 440, 444 (Ind.2003). A party is entitled to summary judgment only upon a showing that there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(C). All facts and inferences are to be construed in favor of the non-moving party. Meredith v. Pence, 984 N.E.2d 1213, 1218 (Ind.2013). When there are competing summary judgment motions, our analysis is unchanged: each motion will be considered separately and we will determine whether each moving party is entitled to judgment as a matter of law. Id.

II. Summary Judgment Grant in Favor of Von Tobel

Lori urges that the summary judgment grant in favor of Von Tobel was contrary to law because it effectively would allow Von Tobel to recover $73,552.85 collectively between Lori and Shawn on a debt with a principal balance of approximately $30,000. Lori makes three arguments to *578 this point: 1) any claim against Lori was merged and extinguished by the agreed judgment with Shawn; 2) res judicata precluded Von Tobel from litigating the case further against Lori after the agreed judgment with Shawn had been entered; and 3) contract principles prohibit this type of recovery. Von Tobel, on the other hand, argues it is not seeking a double recovery; rather, it is merely exercising its rights under the contract to have the indebtedness adjudicated against either or both parties, and seeks only one satisfaction from the judgments.

A. Merger and Extinguishment

Lori first argues Von Tobel’s agreed judgment against Shawn merged and extinguished any claims Von Tobel had against Lori. Lori relies on Lawrence v. Beecher, 116 Ind. 312, 19 N.E. 143 (1888), for the proposition that “if a plaintiff names all obligors as defendants and desires to take judgment against all of them, the plaintiff should secure that judgment when it has the opportunity, or forever lose that right.” Appellant’s Brief at 15. However, the procedural posture of Lawrence is quite distinguishable from the present case. In Laurrence, the plaintiff/appellant sued a number of makers on a several promissory note, and a personal judgment was entered against one of the defendants. Id. at 144. The court then barred and foreclosed the equity of redemption against the other defendants. Id. The plaintiff/appellant then sued the appellee on the same promissory note. The court held that this type of collateral action is not permissible based on the doctrine of merger:

[H]ere the question comes up in a collateral action.... Here we are met by the question whether a plaintiff, having voluntarily elected to take judgment against all of several defendants then in court, can subsequently sue upon the cause of action on which that judgment was rendered. We can see no escape from the conclusion that the judgment operated as a merger of the whole cause of action against all of the defendants in court. The general rule undoubtedly is that a final judgment extinguishes and merges the cause of action.

Id. at 145. Thus, Lawrence is inapplicable to the present situation.

Similarly, Mutual Ben. Life Ins. Co. v. Bachtenkircher, 209 Ind. 106, 198 N.E. 81 (1935), is of no help to Lori. In that case, the court determined a promissory note executed by an individual and a bank who both agreed to pay on the note was a joint obligation. The court found there was only one contract by which both parties were liable, so the judgment against one joint party barred the claim against another. Id. at 111, 198 N.E. at 83. It has long been held, though, “that the rule that a judgment upon a joint obligation works a release of a joint obligor does not apply when the obligors’ liabilities are separate and several.” Consol. Rail Corp. v. Travelers Ins. Cos., 466 N.E.2d 709, 712 (Ind.1984) (citing Giles v. Canary, 99 Ind. 116 (1884)).

Von Tobel argues State ex rel. Griswold v. Roberts, 40 Ind. 451 (1872), supports its position that a judgment against one obli-gor upon a joint and several obligation does not effectuate a release of another obligor. Lori argues Roberts is inapplicable because the court was citing a statute that is no longer in effect. Lori is correct that the statute in Roberts is no longer in effect, but we find the legal principle is unchanged. In Roberts, the treasurer of DeKalb County and others executed a joint and several bond. The treasurer and the other makers were named as defendants in the same suit. After a jury trial, judgment was entered against the treasurer only, and in favor of the other defen

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10 N.E.3d 575, 2014 WL 2515715, 2014 Ind. App. LEXIS 249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lori-nicklas-v-von-tobel-corporation-individually-and-dba-von-tobel-indctapp-2014.