Payton v. Hadley

819 N.E.2d 432, 2004 Ind. App. LEXIS 2476, 2004 WL 2890120
CourtIndiana Court of Appeals
DecidedDecember 15, 2004
Docket49A02-0403-CV-211
StatusPublished
Cited by22 cases

This text of 819 N.E.2d 432 (Payton v. Hadley) 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
Payton v. Hadley, 819 N.E.2d 432, 2004 Ind. App. LEXIS 2476, 2004 WL 2890120 (Ind. Ct. App. 2004).

Opinion

OPINION

NAJAM, Judge.

STATEMENT OF THE CASE

Roger E. Harvey sold the same parcel of property first to James Payton and then to Clarence Hadley and Melvin Moore ("the Subsequent Purchasers"). Both deeds were recorded on different dates in 2000. Thereafter, the Subsequent Purchasers filed, in part, a quiet title and declaratory judgment action and moved for summary judgment. The trial court granted the summary judgment motion declaring that Payton's deed for the parcel in question was void and quieted title in the' Subsequent Purchasers. Payton and his wife Jessie (collectively "the Paytons") now appeal, and we address the following dis-positive issue: whether the trial court erred as a matter of law when it concluded that Payton's deed to the disputed parcel was void ab initio.

We reverse and remand.

FACTS AND PROCEDURAL HISTORY

Until late 1996, Harvey and his now former wife Sandra owned approximately *434 four acres on West Washington Street in Indianapolis. Included in those four acres were three parcels: (1) the bookstore parcel; (2) the parking lot parcel; and (8) the south parcel. Both the bookstore parcel and the parking lot parcel front West Washington Street, with the bookstore parcel situated east of the parking lot parcel. In between those parcels, there is a twenty-foot driveway used for ingress and egress. The south parcel is situated directly south of the bookstore parcel, the parking lot parcel, and the twenty-foot driveway. 1

In November 1996, the Harveys conveyed the bookstore parcel by Warranty Deed to Jessie Payton, and that deed was recorded in the Marion County Recorder's Office in December 1996. 2 Thereafter, in January 1999, Harvey entered into a land sale contract with James Payton to sell him the parking lot parcel, which provided in relevant part:

[Harvey] hereby agrees to sell [Payton], and [Payton] hereby agrees to purchase from [Harvey], the following described real estate situated in Marion County, State of Indiana, more specifically defined as the present property directly adjacent to (west of) 4908 W. Washington Street, Indianapolis, Marion County, State of Indiana, which presently constitutes the "parking" lot for the business and building, an area approximately one hundred [sic] (120) feet by one hundred [sic] (120) feet, which is the subject of a pending contract (lease) by and between these parties; with [Payton] receiving a permanent easement for ingress and egress over a twenty (20) foot driveway to be owned and retained by [Harvey].

Appellants' App. at 59.

James made all payments required under the contract. In August 1999, Harvey and James executed another agreement which incorporated the first contract by reference and in which Harvey agreed to execute and deliver a Warranty Deed by no later than November 1, 1999. Around that time, Harvey was in the midst of a divorce and had suffered a personal tragedy. Harvey did not provide a deed as required, and James filed his Complaint for Specific Performance of Contract, Damages, and Attorney's Fees in the Marion Superior Court ("specific performance suit"). As part of his prayer for relief in the specific performance suit, James asked the trial court to order Harvey to execute a Warranty Deed or, in the alternative, to appoint a Commissioner "for the limited purpose of executing a deed, and any and all documents necessary in order to transfer ownership, possession and control of the property as set forth in the contract[.]" Appellees' App. at 3.

Harvey did not file an Answer in the specific performance suit. In May 2000, the trial court in that case issued its Order Granting Default Judgment and for Appointment of Commissioner, in which the court (1) entered a default judgment against Harvey; (2) appointed Lynn Jackson as Commissioner for the sole purpose of "executing a warranty deed for transfer of the property set forth in [James'] Complaint and attached exhibits, in order to accomplish 'Specific Performance' of the contract between the parties[,]" Appellants' App. at 178; (8) ordered James' *435 counsel, Stuart L. Bench, to prepare a warranty deed sufficient for signature and transfer of said property; and (4) scheduled a hearing on damages and attorney's fees.

On May 16, 2000, Commissioner Jackson executed a Warranty Deed er's Deed") transferring the parking lot parcel not to James but to his wife. 3 The description of the fee simple title conveyed by the Commissioner's Deed includes the property over which the twenty-foot ingress and egress easement is located. The Commissioner's Deed was recorded in the Marion County Recorder's Office on May 17, 2000.

Thereafter, Harvey, who had other contracts with James, informed James that he had no cash, money, or other assets. James agreed with Harvey that he "would not proceed any further towards damages against him{[.]" Appellants' App. at 185. James then asked his counsel to dismiss any pending claims against Harvey. In October 2000, James moved to dismiss his pending suit, and the trial court issued its Order of Dismissal the following month.

Approximately three months before the dismissal of James' suit against Harvey, Harvey executed a Warranty Deed transferring to the Subsequent Purchasers all three parcels, namely, the bookstore parcel, the parking lot parcel, and the south parcel, including the twenty-foot ingress and egress easement. Harvey executed the Warranty Deed conveying these parcels to the Subsequent Purchasers on July 28, 2000, which was two months after the Commissioner's Deed had been recorded. At the time Harvey executed the Warranty Deed, the Subsequent. Purchasers understood that they would be purchasing the entire four-acre tract except the bookstore parcel. 4

On June 2002, the Subsequent Purchasers filed their Complaint against the Pay-tons, the Harveys, and Commissioner Jackson, and the complaint contained the following claims: Count I, Quiet Title against all defendants; Count II, Declaratory Judgment that the Commissioner's Deed is null and void; Count III, Slander of Title against Commissioner Jackson and the Paytons; Count IV, Breach of Warranty against Harvey; and Count V, Fraud against Harvey. The Paytons answered and filed a Third Party Complaint against the Harveys. In February 2008, the Subsequent Purchasers moved for summary judgment on Count II of their complaint, seeking a declaratory judgment that the Commissioner's Deed "is null and void and has no legal effect" on the disputed parcel in question. Appellants' App. at 182. The Paytons filed a cross-motion for summary judgment on Counts I, II, and III of the Subsequent Purchasers' complaint. Harvey responded that genuine issues of material fact precluded summary judgment.

The trial court held a hearing on the summary judgment motions in July 2008. In December 2008, the court issued its Entry of Summary Judgment and Decree Quieting Title, which provides in relevant part as follows:

3. On July 28, 2000, Roger Harvey executed a Warranty Deed transferring the following described real estate to Clarence Hadley and Melvin Moore:

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Bluebook (online)
819 N.E.2d 432, 2004 Ind. App. LEXIS 2476, 2004 WL 2890120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/payton-v-hadley-indctapp-2004.