Scott A. Pitcher v. Eugertos B. Zimmerman, Jr. (mem. dec.)

Indiana Court of Appeals·Decided March 24, 2020·No. 18A-PL-2175·Published

Opinion

MEMORANDUM DECISION Pursuant to Ind. Appellate Rule 65(D), FILED

this Memorandum Decision shall not be Mar 24 2020, 7:46 am

regarded as precedent or cited before any CLERK Indiana Supreme Court

court except for the purpose of establishing Court of Appeals and Tax Court

the defense of res judicata, collateral estoppel, or the law of the case.

ATTORNEY FOR APPELLANT ATTORNEYS FOR APPELLEE Dan J. May Robert J. Nice Kokomo, Indiana Tara L. Cragen Hayleigh J. Neumann

The Nice Law Firm, LLP

Indianapolis, Indiana

IN THE

COURT OF APPEALS OF INDIANA

Scott A. Pitcher, March 24, 2020 Appellant-Defendant, Court of Appeals Case No.

18A-PL-2175

v. Appeal from the Howard Circuit Eugeurtos B. Zimmerman, Jr., Court

Appellee-Plaintiff. The Honorable James K.

Muehlhausen, Special Judge Trial Court Cause No.

34C01-1706-PL-531

Mathias, Judge.

[1] Scott Pitcher (“Pitcher”) appeals from an order of the Howard Circuit Court awarding possession of a backhoe, damages for the loss of use thereof, and

Court of Appeals of Indiana | Memorandum Decision 18A-PL-2175 | March 24, 2020 Page 1 of 20 attorney fees in favor of Eugeurtos Zimmerman, Jr. (“Junior”). Pitcher’s arguments on appeal can be consolidated as:

I. Whether, under a general judgment standard of review, the trial court’s judgment was in error;

II. Whether there was any other basis on which Pitcher’s motion to correct errors should have been granted; and,

III. Whether the matter of attorney fees is moot.

[2] We affirm.

Facts and Procedural History [3] This litigation involves the disputed ownership of two pieces of construction

equipment: a Lull forklift (“the forklift”) and a CASE 580-M backhoe (“the backhoe”). The forklift and backhoe were among Junior’s construction business’s inventory that was on the brink of repossession and sale by Community First Bank, which held a secured interest in Junior’s equipment. To avoid the forced sale, Junior sought financial assistance from his brother, John Zimmerman. Community First agreed to assign ownership of the equipment to John upon John’s payment of $120,000 to the bank. John took out a $100,000 loan from Chase Bank to do so, and Junior provided the remaining $20,000. John then leased the equipment to Junior for $2,000 per month, which allowed Junior to continue operating his business for a time. This occurred in early 2012.

Court of Appeals of Indiana | Memorandum Decision 18A-PL-2175 | March 24, 2020 Page 2 of 20

[4] In July 2013, Junior could no longer make payments to his brother and decided to find a buyer for the equipment. Junior contacted Pitcher d/b/a Fortune Companies as a potential buyer because Pitcher was also in the construction business. Junior and Pitcher had had prior business dealings. Pitcher agreed to help, and with John’s approval, the men inventoried and set prices for the equipment in Junior’s possession. The understanding between John, Junior, and Pitcher was that Pitcher would try to select equipment for purchase whose total value approximated the amount that John still owed to Chase Bank—at the time, about $75,000. Accordingly, Pitcher marked several items on the inventory list that he wished to purchase with his initials, “SP.” Pitcher agreed to pay John $2,000 per month until the equipment was paid for in full.

[5] The forklift and the backhoe were subsequently delivered by an associate of Junior’s to a Fortune Companies worksite in Lafayette, Indiana. Pitcher made regular, monthly payments to John, and by January 2017, John had repaid his Chase debt in full, and Pitcher had fulfilled his end of the deal. When John received the last of Pitcher’s payments, he created a bill of sale transferring ownership of the equipment to Pitcher. The bill of sale did not include the forklift or the backhoe, and Pitcher did not alert John to the fact that the items were omitted from the bill of sale.

[6] The facts up to this point are undisputed. On June 6, 2017, Junior filed a complaint in the Howard Circuit Court seeking an order granting him immediate possession of the forklift and the backhoe. According to Junior, there was an oral lease agreement between himself and Pitcher in addition to

Court of Appeals of Indiana | Memorandum Decision 18A-PL-2175 | March 24, 2020 Page 3 of 20 the purchase agreement between John and Pitcher. The lease agreement allegedly provided that Pitcher would pay Junior $2,000 per month for the use of the forklift and the backhoe on construction projects for which Pitcher’s company was a subcontractor. Junior alleged that Pitcher breached the oral agreement by failing to make monthly lease payments and refusing to return the equipment. Junior’s complaint sought relief based on breach of contract and posited the alternative theories of promissory estoppel, unjust enrichment, conversion, offense against property, and replevin. Junior subsequently filed a request for hearing.

[7] Pitcher responded on September 29, 2017, with an Indiana Trial Rule 12(B)(6) motion to dismiss for failure to join a party in interest, which Pitcher alleged was John, as the owner of the forklift and the backhoe, in the event Pitcher himself was not the owner. The trial court held a hearing on November 3, 2017, and heard testimony from Pitcher, Junior, Junior’s business associate, and John. The trial court denied Pitcher’s motion to dismiss, determining that John was not a party in interest. As to the forklift, the trial court denied Junior’s claim for immediate possession thereof. The court scheduled further proceedings for February 2018 to determine which party was entitled to possession of the backhoe.

[8] Pitcher and his counsel failed to appear at the February hearing. The trial court continued the hearing to April 6, 2018, and awarded $1,000 in attorney fees to Junior. On April 24, Pitcher filed his answer to Junior’s complaint with affirmative defenses and a motion for judgment on the pleadings. Junior

Court of Appeals of Indiana | Memorandum Decision 18A-PL-2175 | March 24, 2020 Page 4 of 20 responded with a motion to strike Pitcher’s motion for judgment on the pleadings and counterclaims.

[9] In May, the trial court scheduled a hearing for June 27, 2018, to consider all remaining matters and pending motions. At the June hearing, the trial court granted Junior’s motion to strike in part and declined to rule on Pitcher’s motion for judgment on the pleadings. The trial court then granted Junior’s motion for immediate possession as to the backhoe and, because Pitcher had sold the backhoe, heard testimony regarding its fair market and rental value to determine what damages Pitcher owed Junior. The trial court’s final order was entered on June 27, 2018, and read in operative part:

Court finds Plaintiff to be the owner of the 580M backhoe and that Plaintiff is entitled to final possession thereof.

Court finds Defendant sold the 580M backhoe and that Plaintiff shall recover $17,000 for the loss of the backhoe plus $6,500 for the loss of use for a total judgment of $23,500. Plaintiff is also awarded $340 attorney fees.

Defendant is found to be the owner of the Lull [forklift] and entitled to final possession thereof.

Appellant’s App. p. 8.

[10] Pitcher’s motion to correct errors was denied after hearing. Pitcher filed a notice of appeal on September 10, 2018, and also sought a stay of further collection proceedings pending appeal. The trial court granted the stay on October 17, 2018. This appeal followed.

Court of Appeals of Indiana | Memorandum Decision 18A-PL-2175 | March 24, 2020 Page 5 of 20

I. The trial court’s order can be sustained under our general judgment standard of review.

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