Porter Hospital, LLC d/b/a Northwest Health Porter v. TRK Valpo, LLC

CourtIndiana Court of Appeals
DecidedJune 19, 2023
Docket22A-PL-02724
StatusPublished

This text of Porter Hospital, LLC d/b/a Northwest Health Porter v. TRK Valpo, LLC (Porter Hospital, LLC d/b/a Northwest Health Porter v. TRK Valpo, 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
Porter Hospital, LLC d/b/a Northwest Health Porter v. TRK Valpo, LLC, (Ind. Ct. App. 2023).

Opinion

FILED Jun 19 2023, 8:37 am

CLERK Indiana Supreme Court Court of Appeals and Tax Court

ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEES – Matthew C. Olsen CHAEL, IMBODEN AND Angela K. Hall KLECKNER Brian J. Paul Paul R. Chael, Receiver Emanuel L. McMiller Merrillville, Indiana Faegre Drinker Biddle & Reath LLP Indianapolis, Indiana Thomas E. Moss Portage, Indiana Patrick A. Mysliwy Hammond, Indiana

ATTORNEY FOR APPELLEE – RYAN FIRE PROTECTION, INC. Grantland M. Clapacs Dentons Bingham Greenebaum LLP Indianapolis, Indiana

ATTORNEY FOR APPELLEE – ADAMS MASONRY Kevin E. Steele Valparaiso, Indiana

ATTORNEYS FOR APPELLEE – C&C IRON, INC. Michael F. Drewry Christopher S. Drewry Jeffrey M. Kraft Drewry Simmons Vornehm, LLP Carmel, Indiana

ATTORNEYS FOR APPELLEE – KLECKNER INTERIOR SYSTEMS Patrick A. Mysliwy Stephen M. Maish

Court of Appeals of Indiana | Opinion 22A-PL-2724 | June 19, 2023 Page 1 of 18 Hammond, Indiana

ATTORNEY FOR APPELLEE – CIRCLE R MECHANICAL, INC. Matthew J. Hagenow Newby, Lewis, Kaminski & Jones, LLP LaPorte, Indiana

ATTORNEY FOR APPELLEE – MIDWESTERN ELECTRIC, INC. F. Joseph Jaskowiak Hoeppner Wagner & Evans LLP Merrillville, Indiana

ATTORNEY FOR APPELLEE – IMBODEN CONSTRUCTION CORPORATION Thomas E. Moss Portage, Indiana

IN THE COURT OF APPEALS OF INDIANA

Porter Hospital, LLC d/b/a June 19, 2023 Northwest Health-Porter, Court of Appeals Case No. Appellant-Plaintiff, 22A-PL-2724 Appeal from the Porter Superior v. Court The Honorable Jeffrey W. Clymer, TRK Valpo, LLC, Imboden Judge Construction Corporation, TRK- Trial Court Cause Nos. Construction-IN, LLC, Circle R 64D02-2109-PL-8763 Mechanical, Inc., Gluth Brothers 64D05-2109-PL-8802 Roofing Company, Inc., Kleckner Interior Systems, Inc., Midwestern Electric, Inc., Ryan

Court of Appeals of Indiana | Opinion 22A-PL-2724 | June 19, 2023 Page 2 of 18 Fire Protection, Inc., Trout Glass & Mirror, Inc., Shaffner Heaney Associates, Inc., Allied Door & Hardware, LLC, Adam’s Masonry, Inc., C&C Iron, Inc., Paul R. Chael, City of Valparaiso, Indiana, Appellees-Defendants.

Opinion by Judge Tavitas Judges Vaidik and Foley concur.

Tavitas, Judge.

Case Summary [1] Porter Hospital, LLC, d/b/a Northwest Health-Porter (“Hospital”) appeals the

trial court’s granting of a motion to set aside a judgment filed by Paul R. Chael

(“Receiver”) and various contractors. 1 This appeal concerns the relationship

between two actions filed against TRK Valpo, LLC (“TRK”). In the first

action, various contractors filed a mechanic’s lien foreclosure action against

property owned by TRK. In the second action, the Hospital filed an injunction

against TRK regarding its use of the same property. After the Receiver was

1 The contractors include Imboden Construction Corporation (“Imboden”); TRK; TRK-Construction-IN, LLC; Circle R Mechanical, Inc.; Gluth Brothers Roofing Company, Inc.; Kleckner Interior Systems, Inc.; Midwestern Electric, Inc.; Ryan Fire Protection, Inc.; Trout Glass & Mirror, Inc.; Shaffner Heaney Associates, Inc.; Allied Door & Hardware, LLC; Adam’s Masonry, Inc.; C&C Iron, Inc.; and the City of Valparaiso, Indiana.

Court of Appeals of Indiana | Opinion 22A-PL-2724 | June 19, 2023 Page 3 of 18 appointed in the mechanic’s lien foreclosure action, a stipulated order was

entered in litigation between the Hospital and TRK. Because the Receiver did

not receive notice of the stipulated order and the stipulated order adversely

impacted the property at issue, the trial court granted the motion to set aside the

stipulated order. We conclude that the trial court did not abuse its discretion by

granting the Receiver’s motion to set aside the stipulated order. Accordingly,

we affirm.

Issue [2] The Hospital raises one issue, which we restate as whether the trial court erred

by granting the motion to set aside the judgment.

Facts [3] The Hospital owned property located at 1425 Glendale Boulevard in Valparaiso

(“Property”). In May 2016, the Hospital sold the Property to NWI Medical

Realty, LLC (“NWI”). Certain use restrictions (“Use Restrictions”) were

negotiated and included as Exhibit B to the parties’ contract. The purpose of

the Use Restrictions was “to prevent future development on or use of the

Property that would harm and materially impact [the Hospital’s] business and

its operation of medical facilities in close proximity to the Property.”

Appellant’s App. Vol. II p. 127. During negotiation of the contract and Use

Restrictions, TRK was “brought in by NWI as a potential future developer for

the Property.” Id. TRK was “an active participant in the negotiation and

consummation of the Property’s sale to NWI . . . .” Id.

Court of Appeals of Indiana | Opinion 22A-PL-2724 | June 19, 2023 Page 4 of 18 [4] The Use Restrictions provided, in part:

The covenants, restrictions and rights of first refusal provided for in Article I shall be effective upon the date hereof and shall run with the Land. The agreements provided for herein shall inure to the benefit of and be binding upon (a) Grantor and its successors and assigns; (b) the Hospital Parcel Owner; (c) the Grantee, and (d) the respective successors, successors-in-title, assigns, heirs and lessees of Grantor, the Hospital Parcel Owner and the Grantee, and their respective agents, employees, lessees and invitees. The covenants and restrictions provided for in Article I shall remain in full force and effect and shall be unaffected by any change in ownership of the Property, or any portion thereof, or by any change of use, demolition, reconstruction, expansion or other circumstances, except as specified herein. Irreparable harm will result to Grantor and the Hospital Parcel Owner by reason of any breach of the agreements, covenants and restrictions set forth in this Deed and, therefore, Grantor and the Hospital Parcel Owner shall be entitled to relief by way of injunction or specific performance to enforce the provisions of this Deed, as well as any other relief available at law or equity.

Appellant’s App. Vol. II p. 105. A Special Warranty Deed regarding the sale

was recorded with the Porter County Recorder’s Office on July 13, 2016. The

Use Restrictions, however, were not attached to the recorded deed.

[5] In 2017, NWI sold the Property to TRK. The Warranty Deed provided that the

conveyance was “subject to . . . the Use Restrictions and Covenants appended

to the Deed dated 6/27/16 recorded 7/13/16 as Document No. 2016-016994

from [the Hospital] to [NWI] . . . .” Id. at 107.

Court of Appeals of Indiana | Opinion 22A-PL-2724 | June 19, 2023 Page 5 of 18 [6] At some point, TRK began to develop the Property. In 2021, the Hospital

learned that “TRK intended to lease, use, or convey space in the Property to

one or more physician groups competitive to [the Hospital], which is a violation

of the Covenants.” Appellant’s App. Vol. II p. 128. The Hospital then

repeatedly expressed concerns to TRK that it was or would be violating the Use

Restrictions.

[7] Separately, after TRK allegedly failed to pay contractors for work performed on

the Property, multiple contractors recorded mechanic’s liens against the

Property. On September 27, 2021, Imboden filed a complaint in Porter

Superior Court II for, in part, foreclosure of its mechanic’s lien and named

TRK and the other contractors with mechanic’s liens on the Property as

Defendants (“Mechanic’s Lien Foreclosure Action”). The next day, on

September 28, 2021, Imboden recorded a notice of lis pendens at 3:15 p.m.

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Porter Hospital, LLC d/b/a Northwest Health Porter v. TRK Valpo, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porter-hospital-llc-dba-northwest-health-porter-v-trk-valpo-llc-indctapp-2023.