United Farm Family Mutual Insurance Co. v. Michalski

814 N.E.2d 1060, 2004 Ind. App. LEXIS 1831, 2004 WL 2086022
CourtIndiana Court of Appeals
DecidedSeptember 20, 2004
Docket45A03-0310-CV-00393
StatusPublished
Cited by24 cases

This text of 814 N.E.2d 1060 (United Farm Family Mutual Insurance Co. v. Michalski) 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
United Farm Family Mutual Insurance Co. v. Michalski, 814 N.E.2d 1060, 2004 Ind. App. LEXIS 1831, 2004 WL 2086022 (Ind. Ct. App. 2004).

Opinion

OPINION

SULLIVAN, Judge.

Following a bench trial, Appellant, United Farm Family Mutual Insurance Company ("United"), appeals from the trial court's adverse judgment in an action for replevin of a boat known as Velocity brought by Riverside Lounge & Marina, Inc. ("Riverside") and Riverside's owner, Harold Michalski. Upon appeal, United presents four issues for our review, one of which we find dispositive: whether the trial court erred in finding for and awarding damages to Michalski and Riverside in their action for replevin.

We reverse and remand.

This litigation centers around who, between the parties, has proper legal title and a right to possession of a 1988, thirty foot, Regal cigarette boat, HIN RGMT1085KT788, known as Velocity. The facts most favorable to the trial court's judgment reveal that Harold Urbanski, Sr. ("Urbanski") purchased Velocity on May 13, 1994 and was issued a watercraft certificate of title in Illinois. Urbanski had insurance coverage on Velocity through United under policy number 1455551. On June 11, 1998, Urbanski filed a claim with United asserting that Velocity and its trailer had been stolen on or about June 5, 1998, 1 from Doyne's Marina in Portage, Indiana, the marina which he regularly *1063 used for summer storage." 2 United conducted its own investigation into the alleged theft and coneluded that Urbanski's theft claim was legitimate. On July. 25, 1998, United and Urbanski executed a final settlement under which United paid Ur-banski's theft claim loss in the amount of $40,32.50, 3 and in exchange Urbanski transferred his ownership interest in Velocity and its trailer by signing the title to both over to United. 4

According to records submitted by Mi-chalski and Riverside, Robert Krzesinski dropped Velocity off for storage at Riverside's marina in October 1997. 5 Krzesinski claimed that a friend of a friend, an individual whom he did not know, had contacted him about purchasing a boat motor and installing that boat motor, as well as one to be supplied by the individual, on a boat. The boat, identified as Velocity, was dropped off at the home of Krzesinski's parents by an individual Krzesinski knew only as "Bob." When Velocity was dropped off, Krzesinski observed that it had no motors, no seats, no cover, and no out-drives. The individual Krzesinski knew as "Bob" 'left his cell phone number and agreed to return with the second boat motor so that Krzesinski could install it on Velocity. Over the next several months, Krzesinski spoke with "Bob" on one other occasion, but he never saw him again. Krzesinski never completed the work on Velocity because "Bob" never delivered the second boat motor and did not pay for the services Krzesinski was willing to provide. In attempting to contact "Bob," Krzesinski learned from a friend that the individual he knew as "Bob" perhaps lived at a certain location in Calumet City: Krzesinski went to that location, but no one was ever there.

Approximately four to six months after Velocity was dropped off by "Bob," Krzes-inski hauled Velocity to Riverside for storage. Upon dropping Velocity off, Kellie Nowakowski, an employee of Riverside, provided Krzesinski with Riverside's vessel storage agreement. 6 Krzesinski signed the agreement which provided that the storage fee was eighteen dollars per foot for the thirty-foot boat, or $540 per season. *1064 7 When Velocity was dropped off at Riverside, it was nothing more than a hull. Velocity sat idle at Riverside for over sixteen months, and no one ever paid the storage fees. 8 Over the course of two winter storage seasons and one summer storage season, the total storage bill for Velocity accumulated to $1,944, including interest. Riverside maintained that pursuant to Illinois law, it held a lien against Velocity in that amount. 9

In February 1999, after Velocity had been stored at the Riverside marina for sixteen months without payment, Michal-ski employed Marion Weglarz of Title Services of Tilinois, Inc., to assist in satisfying the lien or in obtaining a new certificate of title for Velocity. Mr. Weglarz began by requesting a title search on Velocity. Pursuant to his request to the Illinois Department of Natural Resources, Mr. Weglarz learned that Urbanski was the registered owner of Velocity and that the registration for Velocity under his name was to expire on June 30, 2000. On March 4, 1999, Mr. Weglarz sent a letter to Urbanski via certified mail to the address on Urbanski's title to Velocity-601 Burnham Avenue, Calumet City, Illinois, 60409-informing him that Velocity was going to be disposed of at a public sale in thirty days 10 under the provisions of what was referred to as the Illinois Mechanie's Lien law 11 if he did not pay the lien amount and take possession of Velocity within that time. 12 The letter to Urbanski was returned as undeliverable. Mr. Weglarz also had a notice of the sale published in the March 11, 1999 issue of Star Publications, a local newspaper.

Apparently, the sale was conducted at the time and place indicated in the notices, but no one appeared in order to bid on Velocity, except for Michalski who submitted a paper bid in the amount of Riverside's claimed lien. Thereafter, Ms. Nowakowski signed a Mechanic's Lien Affirmation in which she affirmed that "[the . storage furnished for [Velocity] was completed at the request of or with the consent of its owner, authorized agent of the owner, or lawful possessor thereof in accordance with Illinois Compiled Statutes." 13 Plaintiffs Exhibit 5. Ms. Nowa-kowski also affirmed that the notice requirements of the applicable statutes had been complied with. According to Mr. Weglarz, this document was prepared and submitted to the Illinois Department of Natural Resources in order to obtain a new title after the sale pursuant to the provisions of the Labor and Storage Lien (Small Amount) Act was completed. 14 *1065 Thereafter, on May 21, 1999, the Ilinois Department of Natural Resources issued a watercraft certificate of title for Velocity to Riverside.

Only after a title was issued to Riverside for Velocity did Michalski begin restoring and repairing Velocity. On May 5, 2000, Michalski obtained a loan using Velocity as collateral. Prior to obtaining the loan, Mi-chalski assigned the title to Velocity from Riverside to himself. . Michalski estimated that he had installed on Velocity parts with an estimated value of $34,675 and that a total of ninety-five hours of labor, at a. rate of $65.00 per hour, were expended in restoring Velocity to a usable condition. In total, the estimated value of the repairs made to Velocity was $40,850.

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Cite This Page — Counsel Stack

Bluebook (online)
814 N.E.2d 1060, 2004 Ind. App. LEXIS 1831, 2004 WL 2086022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-farm-family-mutual-insurance-co-v-michalski-indctapp-2004.