Yoder Grain, Inc. v. Antalis

722 N.E.2d 840, 2000 Ind. App. LEXIS 61, 2000 WL 49321
CourtIndiana Court of Appeals
DecidedJanuary 20, 2000
Docket02A03-9905-CV-186
StatusPublished
Cited by13 cases

This text of 722 N.E.2d 840 (Yoder Grain, Inc. v. Antalis) 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
Yoder Grain, Inc. v. Antalis, 722 N.E.2d 840, 2000 Ind. App. LEXIS 61, 2000 WL 49321 (Ind. Ct. App. 2000).

Opinion

OPINION

GARRARD, J.

Case Summary

Yoder Grain, Inc., Edward Springer, Ruth Springer, and Gregg Springer (collectively, “Investors”) appeal the trial court’s grant of Gregory M. Antalis’ mo *844 tion to dismiss based on the Investors’ failure to state a claim upon which relief could be granted. We affirm.

Issues

Investors raise the following issues for our review:

I. Whether the complaint states a claim under the Indiana and federal Racketeer Influenced and Corrupt Organizations (RICO) statutes; and
II. Whether the complaint states a claim under the Indiana Crime Victims Relief Act.

Facts and Procedural History

In July 1995, the Investors filed a complaint for rent and storage against Bay-singer Automotive. In June 1996, the Investors and the Baysingers entered into an Agreed Judgment for $143,000, thereby settling any claims the Investors may have had against Baysinger Automotive and the Baysingers. In August 1997, the trial court granted the Investors’ motion to file an amended complaint, which was further amended with permission from the court in November 1997. The complaint alleged that Antalis violated the Indiana and federal civil RICO provisions as well as the Indiana Crime Victims Relief Act. In February 1998, Antalis moved to dismiss the complaint for failure to state a claim upon which relief could be granted. The court granted Antalis’ motion to dismiss on August 10,1998.

On August 20, 1998, as a matter of right, the Investors filed their Third Amended Complaint. The Investors alleged that in April 1993, Antalis deposited money orders totaling $49,200 in his client trust account in Ohio for the benefit of his client, Lee Wayne Baysinger. Thereafter, in April through June 1993, Antalis distributed the money from the trust account to the Bay-singers pursuant to Lee Baysinger’s instructions. From this series of events, the Investors allege that Antalis violated state and federal civil RICO provisions and the Indiana Crime Victims Relief Act. Specifically, they allege that Baysinger Automotive constituted an enterprise and Antalis participated in the operation or management of the enterprise through a pattern of racketeering activity. They assert that Antalis committed or aided his clients in committing the following predicate acts: criminal conversion, deception, theft, forgery, fraud, money laundering, mail and wire fraud, and structuring to evade reporting requirements. In particular, the Investors allege that Antalis knew that the money orders were to be applied directly to the purchase of automobiles and that by holding the money orders in his client trust account and paying the money back to Baysinger, Antalis assisted Baysinger in defrauding Yoder Grain and the Springers of their investment.

Again, Antalis moved to dismiss the complaint for failure to state a claim for relief. The trial court granted Antalis’ motion to dismiss on February 26, 1999. The Investors now appeal the dismissal of their third amended complaint.

Discussion and Decision

Standard of Review

Our standard of review of a dismissal granted pursuant to Trial Rule 12(B)(6) is well-settled:

A trial rule 12(B)(6) motion to dismiss for failure to state a claim upon which relief can be granted tests the sufficiency of a claim, not the facts supporting it. Therefore, we view the pleadings in the light most favorable to the nonmoving party and draw every reasonable inference therefrom in favor of that party. When reviewing a ruling on a motion to dismiss, we stand in the shoes of the trial court and must determine if the trial court erred in its application of the law.

Borgman v. Aikens, 681 N.E.2d 213, 216-17 (Ind.Ct.App.1997), trans. denied. When reviewing a motion to dismiss for failure to state a claim, “this court accepts as true the facts alleged in the complaint.” Minks v. Pina, 709 N.E.2d 379, 381 (Ind. *845 Ct.App.1999), reh’g denied. However, only well-pleaded material facts must be taken as admitted. Anderson v. Anderson, 399 N.E.2d 391, 406 (Ind.Ct.App.1979). Furthermore, a court should not accept as true allegations that are contradicted by other allegations or exhibits attached to or incorporated in the pleading. 5A WRIGHT AND Miller, Federal Practice and Procedure, Civil Section 1363, p. 464. “We will affirm a successful T.R. 12(B)(6) motion when a complaint states a set of facts, which, even if true, would not support the relief requested in that complaint.” Minks, 709 N.E.2d at 381. Furthermore, we will affirm the trial court’s ruling if it is sustainable on any basis found in the record. Id.

The Investors contend that their third amended complaint adequately alleges a cause of action under federal and state RICO provisions, as well as the Indiana Crime Victims Relief Act. We shall address the sufficiency of the Investors’ allegations under each provision in turn.

I. State and Federal RICO Claims

First we note that Indiana RICO is patterned after federal RICO and thus we discuss the Investors’ federal and state RICO claims jointly. See State v. Allen, 646 N.E.2d 965 (Ind.Ct.App.1995) (noting that state RICO is patterned after federal RICO statute), trans. denied; Mendenhall v. Goldsmith, 59 F.3d 685 (7th Cir.1995), cert. denied, 516 U.S. 1011, 116 S.Ct. 568, 133 L.Ed.2d 492 (“Under Indiana law, Indiana Civil Remedies for Racketeering Activity and Racketeer Influenced and Corrupt Organizations Acts were patterned after the federal anti-racketeering laws, which were designed to provide new weapons of unprecedented scope for an assault upon organized crime and its economic roots.”). The Investors allege that Antalis violated Ind.Code § 35-45-6-2(3) 1 and 18 U.S.C. §§ 1962(c) 2 and (d). 3

A. Employed by or Associated with an Enterprise: 18 U.S.C. § 1962(c) and IC § 35^5-6-2-(3)

In their third amended complaint, the Investors allege that Antalis violated the provisions of subsection (c) in that he “was employed by and associated with the Baysinger enterprise and unlawfully, directly or indirectly, conducted and participated in the conduct of the enterprise’s affairs through a pattern of racketeering.” Record at 237.

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Bluebook (online)
722 N.E.2d 840, 2000 Ind. App. LEXIS 61, 2000 WL 49321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yoder-grain-inc-v-antalis-indctapp-2000.