State Ex Rel. Sekerez v. Lake Superior Court, Room 4

335 N.E.2d 199, 263 Ind. 601, 1975 Ind. LEXIS 337
Indiana Supreme Court·Decided October 16, 1975·No. 275S50·Published·Cited by 12 cases

Opinions

Hunter, J.*

The General Assembly has granted the citizens of Indiana standing either as citizens or taxpayers of municipal corporations1 to challenge:

“. . . the validity, location, wisdom, feasibility, extent or character of construction, financing or leasing of any public improvement by any municipal corporation * * * including but not limited to suits for declaratory judgments or injunctions to declare invalid or to enjoin such construction, financing or leasing. . . .”2

The legislative intent in permitting any citizen of a local community to test the need for and the extent of proposed improvements is founded on the singular hope that such actions will bring to light — prior to construction — any facts which would render the project unnecessary or improper. The desirability of discovering such problems prior to construction lies in the power of the court to enjoin or order appropriate modification of the proposed plans, thereby preventing the squandering away of the community’s limited fiscal resources. It follows that a citizen who brings a public lawsuit does so on behalf of all fellow citizens,3 for it is to their benefit which any judgment shall accrue. Thus, the Public Lawsuit Statute does not provide a new vehicle for disgruntled bidders, Gariup v. Stern, (1970) 254 Ind. 563, 261 N.E.2d 578, or landowners seeking to vindicate their own property interests, City of Elkhart v. Curtis Realty Co., (1970) 253 Ind. 619, 256 N.E.2d 384. In short, the act which authorizes public lawsuits . . shall not be construed to broaden any right of action as is now validly limited by applicable law.”4

[603] The grant of standing to one who has no legal injury in fact is not without its downside risks. The General Assembly was aware that Machiavelians — who would use the public lawsuit machinery to serve these ends while purportedly suing on behalf of their fellow citizens — live in Utopian communities. The General Assembly was also aware that those with pure hearts but empty heads might bring such lawsuits, although not in the public interest. To protect the citizens of the community against these hazards, the legislature provided:

“At any time prior to the final hearing in a public lawsuit, the defendant may petition for an order of the court that the cause be dismissed unless the plaintiff shall post a bond with surety to be approved by the court payable to defendant for the payment of all damages and costs which may accrue by reason of the filing of the lawsuit in the event the defendant prevails. A hearing shall be had on such petition in the same manner as the hearing on temporary injunctions under IC 1971, 34-1 (formerly Acts 1881 (Spec. Sess.), ch. 38). If at the hearing the court determines that the plaintiff cannot establish facts which would entitle him to a temporary injunction, the court shall set the amount of bond to be filed by the plaintiff in an amount found by the judge to cover all damage and costs which may accrue to the defendants by reason of the pendency of the public lawsuit in the event the defendant prevails. In the event such bond is not filed by the plaintiff with sureties approved by the court within ten [10] days after such order is entered the suit shall be dismissed. Either plaintiff or defendant may appeal such order to the Indiana Supreme Court within such ten [10] day period by notice of appeal and a statement of error in the same manner as is provided in a petition for mandate or prohibition. The Supreme Court may stay the lower court order pending its own decision, may set a bond to be filed by the plaintiff in connection therewith, may modify the order of the lower court, or may enter its order as a final order in a case. In the event no bond is filed as provided in this section, the public lawsuit shall be dismissed and no court shall have further jurisdiction of the public lawsuit or any other public lawsuit involving any issue which was or could have been raised therein. Provided, That nothing in this section is intended to create nor shall it be construed as creating, any additional cause of action on the part of any municipal [604] corporation, person, partnership, or corporation, unless the defendant is required to and does post bond.” [Emphasis added.]5

This protection was invoked against the first two lawsuits commenced by citizen Sekerez. A hearing was held and it was determined that a bond was required to protect the public’s interest pendente lite. Such decision was subsequently affirmed. Sekerez v. Bd. of San. Comm’rs., (1974) Ind. App., 309 N.E.2d 460. When the bond was not filed, the suits were dismissed, as required by the statute. Sekerez v. Bd. of San. Comm’rs., supra.

When relator instituted his third action, several avenues were open to the Board. First, the Board might have asserted the defense of res judicata before the Lake Circuit Court, based upon the Court of Appeals’ decision, supra, and relying upon that portion of Ind. Code § 34-4-17-5, Burns § 3-3305 (Code Ed.) which provides, “In the event no bond is filed as provided in this section, the public lawsuit shall be dismissed and no court shall have further jurisdiction of the public lawsuit or any public lawsuit involving any issue which was or could have been raised therein.” [Emphasis added.] Secondly, the Board might have petitioned the Court of Appeals for a writ of prohibition restraining the Lake Circuit Court from exercising jurisdiction in disregard of the Court of Appeals’ opinion and order affirming the dismissal of appellant’s public lawsuits, based upon the inherent powers of an appellate tribunal to see that its orders are effectuated. See INDIANA EULES OF APPELLATE PKOCEDUEE, Ind. E. Ap. P. 15 (M) (6) ; see, also, Union Trust Co. v. Curtis, (1917) 186 Ind. 516, 116 N.E. 916. Instead, the Board sought and was granted dismissal of relator’s third suit under Ind. Code §19-2-14-10, Burns §48-4208 (1963 Eepl.), a statute which provides remonstrators the right of review of actions of sanitary boards before the superior court of the [605] county, and concludes that the “. . . judgment of said court shall be final and conclusive upon all persons whomsoever, and no appeal shall lie from the judgment of said court.”

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State Ex Rel. Sekerez v. Lake Superior Court, Room 4, 335 N.E.2d 199, 263 Ind. 601, 1975 Ind. LEXIS 337 (Ind. 1975).

335 N.E.2d 199 (State Ex Rel. Sekerez v. Lake Superior Court, Room 4) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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State Ex Rel. Sekerez v. Lake Superior Court, Room 4
335 N.E.2d 199 (Indiana Supreme Court, 1975)