Metropolitan School District of Southwest Allen County, Indiana v. Crown Enterprises

Indiana Court of Appeals·Decided December 31, 2025·No. 25A-PL-00290·Published·Judge Felix

Opinion

IN THE

Court of Appeals of Indiana Metropolitan School District of Southwest Allen County, Indiana,

FILED

Appellant-Plaintiff Dec 31 2025, 8:44 am

CLERK

v. Indiana Supreme Court Court of Appeals

and Tax Court

Crown Enterprises,

Appellee-Defendant

December 31, 2025

Court of Appeals Case No.

25A-PL-290

Appeal from the Allen Circuit Court The Honorable Ashley N. Hand, Judge Trial Court Cause No.

02C01-2406-PL-000278

Opinion by Judge Felix

Judge Vaidik concurs in result with separate opinion.

Judge Tavitas dissents with separate opinion.

Felix, Judge.

Statement of Case [1] The Metropolitan School District of Southwest Allen County, Indiana (the

“District”) brought a condemnation action against Crown Enterprises (“Crown”) to acquire Crown’s real estate. Crown filed objections to the District’s action, and the trial court sustained those objections. The District now appeals, and the parties raise two issues for our review, one of which is dispositive: Whether the trial court erred by sustaining Crown’s objections.

[2] We reverse and remand.

Facts and Procedural History [3] Crown owns three parcels of real estate near Winters Road in Allen County,

Indiana, (the “Property”). 1 The District is a public school corporation. On June 12, 2024, the District filed a complaint for condemnation in which it sought to take the Property “for furtherance of necessary school corporation purposes,” including “to construct one or more school buildings and related outdoor structures and improvements on the Property.” Appellant’s App. Vol. II at 20. The District also alleged that it had “negotiated in good faith in an effort to purchase the Property,” “made the required written offer to purchase

1 Parcels 02-16-08-400-002.000-048, 02-16-08-300-007.000-048, and 02-16-08-300-006.000-048.

Court of Appeals of Indiana | Opinion 25A-PL-290 | December 31, 2025 Page 2 of 29 the Property,” and “provided [Crown] with a copy of the appraisals which were used to establish the amount on which the offer was based.” Id. at 22.

[4] Crown filed an answer and objection to the taking, denying the District’s allegation that the taking was necessary and objecting on the basis that the District “has no current need to take Crown’s land,” Appellant’s App. Vol. II at 162. The District filed a motion to overrule Crown’s objections, arguing in relevant part that the District is not required to demonstrate a present need for the Property and even if it was so required, it could make that showing.

[5] After a hearing, the trial court sustained Crown’s objections. The trial court determined that Crown’s objection based on the District’s alleged “lack of present need for the taking is a proper objection,” Appellant’s App. Vol. II at 14, and that Crown’s “designated evidence” established that the taking was “not for a present need but to satisfy a remote, speculative need,” id. at 18. This appeal ensued.

Discussion and Decision The Trial Court Erred by Sustaining Crown’s Objections to the Taking

[6] The District challenges the trial court’s decision to sustain Crown’s present need objection. The decision to overrule or sustain objections to a taking is part of the first of two stages in condemnation proceedings. In particular, such proceedings consist of two distinct phases: (1) “the legislative determination of the necessity of the taking,” and (2) “the judicial determination of just compensation for the taking.” Util. Ctr., Inc. v. City of Fort Wayne, 985 N.E.2d 731, 733 (Ind. 2013) (citing Bragg v. Weaver, 251 U.S. 57, 58–59 (1919); Monongahela Nav. Co. v. U.S., 148 U.S. 312, 327 (1893); State ex rel. Bd. of Aviation Comm’rs of City of Warsaw v. Kosciusko Cnty. Sup. Ct., 430 N.E.2d 754, 755 (Ind. 1982)). “During the initial or summary phase of the proceedings, the action consists solely of legal issues which are decided by the trial court.” Bd. of Aviation Comm’rs of City of Warsaw, 430 N.E.2d at 755. That is, the trial court considers only “the legality of the action and any objections which may have been filed.” Id. The focus of judicial review in the first phase is thus restricted to “whether the condemnation proceedings were legal, whether the [condemnor] had authority to condemn [the] property, and if the property was to be taken for private or public purposes.” State ex rel. Ind. Dep’t of Conservation v. Barber, 246 Ind. 30, 35–36, 200 N.E.2d 638, 640 (1964) (citing Cemetery Co. v. Warren Sch. Twp. of Marion Cnty., 236 Ind. 171, 188, 139 N.E.2d 538, 546 (1957)), reh’g denied. Accordingly, we review de novo a trial court’s decision to sustain or overrule objections to a condemnation action. See Thomas v. Foyst, 260 N.E.3d 887, 893 (Ind. 2025) (citing In re Ma.H., 134 N.E.3d 41, 45 (Ind. 2019)) (holding legal questions are reviewed de novo); see also Ind. Fam. & Soc. Servs. Admin. v. Meyer, 927 N.E.2d 367, 370 (Ind. 2010) (citing Wayne Cnty. Prop. Tax Assessment Bd. of Appeals v. United Ancient Order of Druids-Grove No. 29, 847 N.E.2d 924, 926 (Ind. 2006)) (holding rulings on paper records are reviewed de novo).

[7] The Indiana Supreme Court has been clear that courts may not substitute their judgment for that of the condemning authority regarding what is needed to accomplish that authority’s purpose. See Wampler v. Trs. of Ind. Univ., 241 Ind. 449, 454, 172 N.E.2d 67, 70 (1961) (citing Cemetery Co., 236 Ind. at 188, 139 N.E.2d at 546; Richland Sch. Twp. v. Overmyer, 164 Ind. 382, 388, 73 N.E. 811, 813 (1905), disapproved of on other grounds by Cemetery Co., 236 Ind. at 189, 139 N.E.2d at 546; Dahl v. N. Ind. Pub. Serv. Co., 239 Ind. 405, 409, 411, 157 N.E.2d 194, 197, 198 (1959), reh’g denied; 11 Indiana Law Encyclopedia Eminent Domain § 18, at 585; 1 NICHOLS ON EMINENT DOMAIN § 4.11, at 373), reh’g denied. 2 “The question of the necessity or expediency of a taking in eminent domain lies within the discretion of the Legislature and is not a proper subject for judicial review.” Id. Courts nonetheless retain the ability to prevent condemnors from abusing their eminent domain power. For these reasons, in the initial phase of condemnation proceedings, trial courts do not have “the power to inquire into the wisdom or propriety of [a condemnor’s necessity] judgment” unless the objecting party demonstrates fraud, bad faith, capriciousness, or illegality in the taking, such “as where an attempt is made to show that the property taken will not be used for a public purpose, or the

2 See also Lewis v. Bunnell, 190 Ind. 585, 593, 131 N.E. 386, 389 (1921) (citing Westport Stone Co. v. Thomas, 175 Ind. 319, 321, 94 N.E. 406, 408 (1911)); Henderson v. City of Lexington, 111 S.W. 318 (Ky. 1908)) (“So long as private property is taken only for public use, and the damage caused by taking it is compensated, the legislature has power to determine, either directly or through agencies chosen by it, when convenience or necessity requires that such property be taken, and what particular property shall be taken.”); cf. Brookston Res., Inc. v. Dep’t of Nat. Res., 243 N.E.3d 1127, 1139 (Ind. Ct. App. 2024) (quoting Moriarity v. Ind. Dep’t of Nat. Res., 113 N.E.3d 614, 619 (Ind. 2019)) (“[Judicial] review of agency action is intentionally limited, as we recognize an agency has expertise in its field and the public relies on its authority to govern in that area.”), trans. denied, 253 N.E.3d 521 (Ind. 2025); Ind. Off. of Util. Consumer Couns. v. Duke Energy Ind., LLC, 248 N.E.3d 1205, 1215–16 (Ind. 2024) (Molter, J., concurring) (explaining that “while we do not defer to the [agency]’s statutory interpretation, we still ‘defer[] to agency expertise’” (second alteration in original)).

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