Smith v. Smith

854 N.E.2d 1, 2006 Ind. App. LEXIS 1399, 2006 WL 2052667
CourtIndiana Court of Appeals
DecidedJuly 25, 2006
Docket03A05-0601-CV-44
StatusPublished
Cited by21 cases

This text of 854 N.E.2d 1 (Smith v. Smith) 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
Smith v. Smith, 854 N.E.2d 1, 2006 Ind. App. LEXIS 1399, 2006 WL 2052667 (Ind. Ct. App. 2006).

Opinion

*3 OPINION

VAIDIK, Judge.

Case Summary

J. Gregory Smith ("Greg") appeals the dissolution court's order dividing the marital assets he shared with Shirley A. Smith ("Shirley"). Specifically, Greg contends that the court abused its discretion in barring the introduction of certain evidence as a sanction for discovery violations without first holding a hearing. He also contends that the court abused its discretion by dividing the assets unjustly. We find the court did not abuse its discretion when it issued the sanction and that the division of property is reasonable. However, because of mistakes in the division of rental properties in the dissolution decree, we remand with instructions for the court to correct the dissolution decree.

Facts and Procedural History

Greg and Shirley Smith began living together in 1972. Starting in 1978, the parties began buying real estate together. Greg and Shirley were married on September 3, 1981. By the time of the final hearing, the parties were the joint owners of ten parcels of real estate. Shirley participated in the management and maintenance of the properties from 1973 until 1997. At one point, the parties operated a glass business, SAS Glass, together out of the marital residence. Shirley stopped working at the glass business in 1997. The parties had no children together.

Shirley, with counsel, filed a petition for dissolution of marriage in March 2005. In that petition, she affirmed that the parties separated in November 2002, when she moved out of the marital residence. Greg's counsel entered an appearance on April 11, 2005. On April 19, Shirley served Greg a set of interrogatories and a request for production. The cause was set for a final hearing on July 12, 2005, but the hearing had to be continued because Greg failed to answer the discovery requests.

On July 8, Shirley filed a motion to compel discovery and continue the final hearing because Greg had not responded to either the original request for production or two letters from Shirley's counsel requesting the discovery. Greg responded on July 19 with his own request for production, but he still did not respond to Shirley's requests for discovery. On July 25, the court granted Shirley's motion to compel discovery and ordered Greg to respond to the discovery requests by August 8. On August 10, Shirley sought a second motion to compel and sought to bar him from introducing the evidence that should have been included in the discovery if he did not comply with the dissolution court's order this time. The court granted this second motion to compel on August 11 and ordered Greg to respond to the discovery requests by September 5. 1

Because of Greg's continuing failure to respond to her discovery requests, on September 20 Shirley filed a motion to bar introduction of documents or evidence not produced in discovery requests and a motion for final hearing. On September 22, the court granted Shirley's motion and issued a bar of evidence on Greg for the following subjects: personal tax returns for the last six years; corporate returns for SAS Glass for the last six years; source documents used to prepare SAS Glass tax returns; income and expense ledgers on all the rental properties for the last six years; all insurance policies for motor vehicles, residences, and rental *4 properties; pay stubs for the last four months; and any written employment contract in which Greg had entered. On September 29, Greg's attorney filed a motion to withdraw his appearance, which the court granted on September 30.

The final hearing was held on November 22, 2005. The only ones to testify were a realtor, Shirley, and Greg. The appraisals the realtor conducted were entered into evidence without objection from Greg. Shirley's Exhibit 2 was entered into evidence over Greg's objection. Shirley's Exhibit 2 includes her proposal for the property division and lists ten deeds, confirming that there are ten parcels of property at issue. Shirley proposed the real estate be split in the following way: Shirley would receive the marital residence and the rental properties at 2272 Indiana Avenue, 2252/2262 Indiana Avenue, 2 and 615 McClure Road; Greg would receive the rental properties at 634 Rosemary Road, 732 Jewell Street, 742 Werner Street, 465 Morningside, 644 Rosemary Road, and 5280 S 275 W. Thus, Shirley would receive four properties, Greg would receive six properties, and Greg would owe Shirley a $35,825.13 equalization payment to ensure each party receives a 50/50 split of the value of the marital property.

The court then granted the dissolution. At the end of the hearing, the judge stated that he would divide the property in the following way: Shirley received the marital residence and the properties at 2272 Indiana Avenue, 2252 Indiana Avenue, 2262 Indiana Avenue, and 615 McClure Road; Greg received the properties at 634 Rosemary Road, 782 Jewell Street, 742 Werner Street, 465 Morningside, and 644 Rosemary Road. The court ordered Shirley's proposal, including the equalization payment, which was a 50/50 property split. The court's division omitted the property at 5280 S 275 W and mistakenly split the single parcel at 2252/2262 Indiana Avenue into two properties. The dissolution decree makes the same error and also mistakenly lists the property at 782 Jewell Street as 782 Reed Street. Greg now appeals.

Discussion and Decision

Greg raises two issues on appeal. He argues that the court abused its discretion by barring the introduction of evidence as a sanction for his discovery violations without a hearing. He also argues that the court abused its discretion in dividing the marital property. We address each issue in turn.

I. Court's Discretion in Imposing Sanctions

Greg first argues that the court abused its discretion by issuing, without a hearing, a bar of evidence as a sanction for discovery violations. A trial court enjoys broad discretion when ruling upon discovery matters, and we will interfere only when an abuse of discretion is apparent. Davidson v. Perron, 756 N.E.2d 1007, 1012 (Ind.Ct.App.2001). An abuse of discretion occurs when the decision is against the logic and natural inferences to be drawn from the facts of the case. Id. Because of the fact-sensitive nature of discovery issues, a trial court's ruling is given a strong presumption of correctness. Id.

Further, a trial court enjoys broad discretion in determining the appropriate sanctions for a party's failure to comply with discovery orders. Vernon v. Kroger, 712 N.E.2d 976, 982 (Ind.1999). Absent clear error and resulting prejudice, the trial court's determinations with re *5 spect to violations and sanctions should not be overturned. Davidson, 756 N.E.2d at 1013. One sanction available in cases where a party fails to comply with discovery orders is a bar of evidence. See Ind. Trial Rule 37(B)(2)(b); Davidson, 756 N.E.2d at 1018. No hearing is required before this sanction is imposed. See Ind. Tr. R.

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Cite This Page — Counsel Stack

Bluebook (online)
854 N.E.2d 1, 2006 Ind. App. LEXIS 1399, 2006 WL 2052667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-smith-indctapp-2006.