Turnpaugh v. Wolf

482 N.E.2d 506, 1985 Ind. App. LEXIS 2768
CourtIndiana Court of Appeals
DecidedSeptember 11, 1985
Docket4-185A17
StatusPublished
Cited by31 cases

This text of 482 N.E.2d 506 (Turnpaugh v. Wolf) 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
Turnpaugh v. Wolf, 482 N.E.2d 506, 1985 Ind. App. LEXIS 2768 (Ind. Ct. App. 1985).

Opinion

CONOVER, Judge.

Appellant-Defendant David V. Turn-paugh (Turnpaugh) appeals the denial of his Ind.Rules of Procedure, Trial Rule 60(B)(7) motion for relief from judgment.

We affirm in part and reverse in part.

ISSUES

The issues, restated, are:

1. Whether the court erred by admit ting parol evidence concerning the intent of the parties.
2. Whether the release agreement executed by the parties could be voided for mutual mistake or fraud.
3. Whether the trial court erred in awarding attorney fees to appellees.

FACTS

Richard C. Wolf, Margaret E. (a/k/a Grady) Wolf (together Wolfs), John Rhodes 1 (Rhodes), and Turnpaugh were partners in a partnership known as Logan Center.

Turnpaugh borrowed money from Wolfs and signed a promissory note. Upon nonpayment, Wolfs sued Turnpaugh and obtained an agreed judgment in the amount of $10,789.57, which included $9,894 principal, $895.87 interest, and $500 attorney fees.

Later, Rhodes, Turnpaugh and Wolfs entered into a "Retirement Agreement" (Agreement) dissolving the partnership and restructuring it as a partnership of Rhodes and Turnpaugh. The Agreement included a provision releasing and discharging past and present claims and obligations.

Soon after execution of the Agreement Turnpaugh moved for relief from judgment under TR. 60(B)(7) claiming the judgment was released by the Agreement. Following argument of counsel, the trial court determined the release provisions were ambiguous, then held a hearing at which evidence concerning the intent of the parties was admitted. The court denied Turn-paugh's motion and assessed additional attorney fees of $4,500 against him. He appeals.

DISCUSSION AND DECISION

I. Ambiguity and Parol Evidence

Where the terms of a contract are clear the court merely applies its provisions. Unambiguous language is conclusive upon the parties to the contract and the courts. See, eg., Scott v. Anderson Newspapers, Inc. (1985), Ind.App., 477 N.E.2d 553, 559; McEntire v. Indiana National Bank (1984), Ind.App., 471 N.E.2d 1216, 1222; Orkin Exterminating Co. v. Walters (1984), Ind.App., 466 N.E.2d 55, 60. If the language of the instrument is unambiguous the intent of the parties is determined from its four corners. Parol or extrinsic evidence is inadmissible to expand, vary or explain the instrument unless there has been a showing of fraud, mistake, ambiguity, illegality, duress or undue influence. See, eg., Orme v. Estate of Kruwell (1983), Ind.App., 453 N.E.2d 355, 356, Orkin Exterminating Co., 466 N.E.2d at 60; Ethyl Corp. v. Forcum-Lan *509 nom Associates (1982), Ind.App., 433 N.E.2d 1214, 1217 (reh. denied). A contract is ambiguous only if a reasonable person could find its terms susceptible to more than one interpretation. See, eg., Scott, 477 N.E2d at 559; Indiana-Kentucky Electric Corp. v. Green (1985), Ind.App., 476 N.E.2d 141, 145. The release says:

5. Release. The execution and delivery of this Retirement Agreement and acceptance thereof by the Continuing Partners [Turnpaugh and Rhodes] shall operate as a full mutual release and discharge of all past and present claims and obligations whatsoever as between the partnership, the Retiring Partners [Wolfs] and each of them, and the Continuing Partners and each of them. (Emphasis supplied).

Turnpaugh argues the trial court erred in finding an ambiguity in the Retirement Agreement and then permitting parol evidence regarding the intention of the parties concerning the release provision. Wolfs argue the provision is ambiguous because (a) a judgment is not a "claim or obligation"; (b) if inclusion of the judgment had been intended the release would have so stated; and (c) the release operated to release only partnership obligations.

We do not believe the trial court erred in finding the release provision ambiguous. Thus, parol evidence was admissible to explain the ambiguity.

Before discussing the ambiguous nature of the release we note a judgment is "an obligation (as a debt) created by a decree of a court ..." Webster's Third New International Dictionary (1976 unabridged) at 1223. We further note, the phrase "all past and present claims" is broad enough to include the judgment. See, Orme v. Estate of Kruwell, 453 N.E.2d at 356.

This release provision is ambiguous because a reasonable person could find it is subject to more than one interpretation.

The release clearly operates to release obligations between:

(1) The partnership and the retiring partners [Wolfs],
(2) The partnership and the continuing partners, [Turnpaugh and Rhodes]
(3) the partnership and retiring partners, and
(4) the partnership and each continuing partner.

The issue here is whether the release operates as to the obligation i.e., the judgment against Turnpaugh. While such an interpretation may be possible, we need make no further analysis along these lines because, if so, the release would be subject to more than one interpretation. Thus, by definition, it is ambiguous. E.g., Scott, 477 N.E.2d at 559; Indiana Electric Co., 476 N.E.2d at 145. Accordingly, the trial court's consideration of parol and extrinsic evidence to determine the intent of the parties was not error. Turnpaugh concedes the parol evidence, if admissible, was sufficient to sustain Wolfs' claim of no intent to release the judgment. (Reply Brief at 8).

Further, all ambiguities in a contract are to be strictly construed against the party who prepared the document. E.g., Osolo School Buildings, Inc. v. Thorleif Larsen & Son of Indiana, Inc. (1985), Ind.App., 473 N.E.2d 643, 645; Wabash Ford Truck Sales, Inc. v. Ford Motor Co. (1984), Ind.App., 472 N.E.2d 611, 614. Turnpaugh's attorney drafted the Agreement (Appellants Brief 4).

IL.

Upon Turnpaugh's motion for relief from judgment Wolfs asserted, in an attempt to avoid the effect of the release, defenses of mutual mistake, fraud and breach of fiduciary duty. Turnpaugh contends the evidence was insufficient to prove these defenses. The trial court did not void the Agreement, it merely decided the Agreement was not intended to release the judgment. Further, all of the argument contained under these headings actually discussed intent. No further discussion of intent is necessary here.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Peoples Bank & Trust Co. v. Price
714 N.E.2d 712 (Indiana Court of Appeals, 1999)
Martin v. City of Indianapolis
982 F. Supp. 625 (S.D. Indiana, 1997)
Bressler v. Bressler
601 N.E.2d 392 (Indiana Court of Appeals, 1992)
Fetz v. Phillips
591 N.E.2d 644 (Indiana Court of Appeals, 1992)
North American Roofing Co. v. Westmont Steel, Inc.
591 N.E.2d 629 (Indiana Court of Appeals, 1992)
Bratton v. Yerga
588 N.E.2d 550 (Indiana Court of Appeals, 1992)
Adams v. McClevy
582 N.E.2d 915 (Indiana Court of Appeals, 1991)
Smith v. Hansen
582 N.E.2d 446 (Indiana Court of Appeals, 1991)
Wedzeb Enterprises, Inc. v. Aetna Life & Casualty Co.
570 N.E.2d 60 (Indiana Court of Appeals, 1991)
St. Paul Fire & Marine Ins. Co. v. Nowlin
542 So. 2d 1190 (Supreme Court of Alabama, 1989)
Jordan v. Talaga
532 N.E.2d 1174 (Indiana Court of Appeals, 1989)
Lafayette Expo Center, Inc. v. Owens
531 N.E.2d 508 (Indiana Court of Appeals, 1988)
Miller v. Krause (In Re Krause)
114 B.R. 582 (N.D. Indiana, 1988)
Rose v. Rose
526 N.E.2d 231 (Indiana Court of Appeals, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
482 N.E.2d 506, 1985 Ind. App. LEXIS 2768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turnpaugh-v-wolf-indctapp-1985.