SCI Indiana Funeral Services, Inc. v. D.O. McComb & Sons, Inc.

820 N.E.2d 700, 2005 Ind. App. LEXIS 23, 2005 WL 78299
CourtIndiana Court of Appeals
DecidedJanuary 14, 2005
Docket02A03-0401-CV-22
StatusPublished
Cited by5 cases

This text of 820 N.E.2d 700 (SCI Indiana Funeral Services, Inc. v. D.O. McComb & Sons, 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
SCI Indiana Funeral Services, Inc. v. D.O. McComb & Sons, Inc., 820 N.E.2d 700, 2005 Ind. App. LEXIS 23, 2005 WL 78299 (Ind. Ct. App. 2005).

Opinion

OPINION

BAKER, Judge.

Appellant-defendant SCI Indiana Funeral Services, Inc. (SCT) appeals from the grant of summary judgment in favor of the appellees-plaintiffs D.O. McComb & Sons, Inc. (McComb) and Terra Services, Inc. (Terra) (collectively referred to as McComb). Specifically, SCI argues that: (1) the trial court erred in determining that McComb was entitled to specific performance by SCI pursuant to an agreement that McComb had previously entered into with another party; (2) a supplemental affidavit that SCI had submitted relating to the parties' motions for summary judgment was erroneously stricken by the trial court; (8) the agreement was not enforceable in either law or equity; and (4) a genuine issue of material fact exists as to whether the agreement "runs with the land" so as to bind subsequent parties. Finally, SCI argues that summary judgment was improper because ordering specific performance of the agreement would subject it to criminal prosecution under *702 Indiana Code section 23-14-46-7, the Exclusive Rights Act, which affords a cemetery owner the exclusive right to perform certain functions, including the opening and closing of a gravesite.

We conclude that the trial court erred in striking the supplemental affidavit that was submitted by SCI, and that McComb failed to show that it was entitled to specific performance under the agreement. Moreover, we conclude that our legislature's enactment of the Exclusive Rights Act did not violate the Contracts Clause as set forth in Article 1, Section 24 of the Indiana Constitution. Hence, the entry of summary judgment for McComb on the basis that the application of the Exclusive Rights Act is unconstitutional also amounted to error. We therefore reverse the judgment of the trial court and remand with instructions that summary judgment be entered in favor of SCI.

FACTS 1

On June 29, 1989, McComb initiated an antitrust action in the United States District Court against a number of defendants, including Highland Park Cemetery (Highland Park). McComb and Terra are both duly organized Indiana corporations, and McComb is engaged in the business of undertaking, embalming and directing funerals of deceased individuals. Its business includes the related services of selling caskets, vaults, opening and closing gra-vesites, and selling and installing monuments. Terra is a wholly owned subsid-lary of McComb that is also engaged in the business of opening and closing grave sites and selling and installing monuments.

Highland Park owned and operated a cemetery consisting of approximately 126 acres in Fort Wayne. The cemetery engaged in, among other things, the sale of gravesites, cemetery maintenance, interment and the sale of vaults and monuments. In the antitrust suit, McComb alleged in part that Highland Park and the other cemeteries "had illegally restricted [McComb's] ability to open and close graves and had illegally tied the opening/closing service to the purchase of a cemetery lot-a market over which [Highland Park] held a monopoly." Appellant's App. p. 37.

In 1998, McComb and Highland Park settled the antitrust action and executed a written "Agreement of Settlement and Release" (the Agreement). Addendum to Appellant's Br. p. 104-29. The Agreement sets forth a business relationship of unlimited duration between MeComb and Highland Park, requiring both parties to perform various duties that involved marketing, selling, paying for, and insuring each other's products and services.

Some specific examples of the parties' obligations under the Agreement included McComb's right to sell, open and close the cemetery's gravesites. McComb's employees could open and close the gravesites, or they could subcontract that service to Highland Park for a fee that was established in the Agreement. McComb was also granted the right to sell, excavate and construct foundations for monuments or markers, and they had the non-exclusive right to sell cemetery gravesites with remuneration to Highland Park. It was also agreed that Highland Park would conduct training sessions with McComb personnel, for which McComb would pay Highland Park the sum of $1500 per class. Highland Park was also responsible for marketing MceComb's funeral services to members of families whose deceased relatives might be interred at Highland Park.

*703 McComb also agreed to exchange current and updated retail price lists and commission schedules to facilitate the cross-marketing services. MeComb was to name Highland Park on an indemnification insurance policy in the amount of $10,000, or post an equivalent cash bond with a third party bank "to serve as security for the conduct of McComb and Terra on [Highland Park's] property." Appellant's App. p. 115. The Agreement further provided that McComb could file documentation with the county recorder "which states that the cemetery operations are subject to the terms and conditions of the [AJgreement." Appellant's App. p. 117. Finally, the Agreement provided that it was to be binding upon Highland Park's assigns, successors in interest of any kind, and purchasers of any of Highland Park's assets.

Over the next three and one-half years, McComb did not file any documentation with the county recorder to make the Agreement a matter of public record. Also, at no time during the pendency of the Agreement did McComb actually open or close any graves at Highland Park.

On or about May 8, 1997, the President of Highland Park, Martin E. Staehlin, sent a letter to McComb, notifying it that Highland Park's assets were being acquired by SCI, and that it would no longer abide by the Agreement. Such arrangements included "openings and closings, monument foundations, and pre-need sales and services." Appellant's App. p. 136. On that same day, a corporate deed conveying the real estate where Highland Park is located was filed in the Allen County Recorder's Office wherein Highland Park was named as the grantor and SCI was named as the grantee. Later that month, SCI acquired Highland Parks' assets and began operating the cemetery. After May 8, 1997, McComb demanded SCI's compliance with the Agreement to the extent that McComb could continue to use Highland Park under the terms of the Agreement. However, SCI refused McComb's demands.

Approximately two months later, on July 1, 1997, our legislature enacted the Exelu-sive Rights Act, which provides in pertinent part that "Because the owner of a cemetery is responsible for the performance of the care and maintenance of the cemetery, a cemetery owner has the exclusive right to," among other things, "open and close a grave or grave space, burial space, erypt, or niche in the cemetery." Ind.Code § 28-14-46-7 (emphasis added). The General Assembly also determined that violations of the Act would result in criminal prosecution under Indiana Code section 23-14-46-8 and Indiana Code seetion 35-50-3-3.

On September 15, 2000, McComb filed a complaint against SCI for breach of the Agreement, as well as intentional interference with a contractual relationship. An amended complaint was filed on March 7, 2001, claiming entitlement to damages, along with equitable and injunctive relief to compel compliance with the terms of the Agreement.

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Bluebook (online)
820 N.E.2d 700, 2005 Ind. App. LEXIS 23, 2005 WL 78299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sci-indiana-funeral-services-inc-v-do-mccomb-sons-inc-indctapp-2005.