FOR PUBLICATION
ATTORNEY FOR APPELLANT
: ATTORNEYS FOR APPELLEES:
CLAUDE M. WARREN, JR. ROBERT S. HULETT
Indianapolis, Indiana ELLEN MORRISON TOWNSEND
JOSEPH M. HENDEL
Hackman Hulett & Cracraft, LLP
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
KAREN L. VANNATTA, )
)
Appellant-Plaintiff, )
)
vs. ) No. 29A02-0311-CV-1000
)
PATRICIA CHANDLER, )
J. MICHAEL SCHEETZ, and )
SCHEETZ CO, INC., )
)
Appellees-Defendants. )
APPEAL FROM THE HAMILTON SUPERIOR COURT
The Honorable William J. Hughes, Judge
Cause No. 29D03-0305-PL-413
June 29, 2004
OPINION FOR PUBLICATION
DARDEN, Judge
STATEMENT OF THE CASE
Karen Vannatta appeals the trial court's order dismissing with prejudice her complaint brought
in Hamilton County Superior Court against Patricia Chandler, J. Michael Scheetz, and Scheetz
Co., Inc. (collectively, "Scheetz").
We reverse.
ISSUE
Whether the trial court erred in dismissing Vannatta's complaint with prejudice.
FACTS
Vannatta owned a residence ("the real estate") in Marion County which she listed
for sale with F.C. Tucker Co. On May 6, 2001, Trent Knox
and Diana Knox ("the Knoxes"), with the assistance of Chandler, a sales agent
with Scheetz, submitted an offer to purchase the real estate along with an
earnest money deposit. On May 7, 2001, Vannatta and the Knoxes reached
an agreement whereby the Knoxes would purchase the real estate for a certain
sum. However, the sale was never consummated.
On June 28, 2001, Vannatta filed suit in Marion Superior Court No. 3
against the Knoxes and F.C. Tucker (which held the earnest money deposit).
See footnote
Her complaint sought an order of specific performance and damages resulting from the
defendants' breach of contract. The Knoxes filed a third party complaint against
Scheetz, alleging that Chandler had breached her statutory duty of care and skill
in preparing and submitting the offer to purchase on their behalf.
On May 16, 2003, Vannatta filed a separate complaint against Scheetz -- "for
tortious interference and breach of duty" -- in Hamilton Superior Court. (Tr.
7). Vannatta alleged that Scheetz had "intentionally induced" the Knoxes "to breach
their contract" to purchase the real estate from her. (App. 8).
She also alleged that the Scheetz defendants "breached the duty they owed" to
Vannatta.
Id.
On July 9, 2003, Scheetz filed a motion to dismiss the Hamilton Superior
Court complaint "pursuant to Trial Rule 12(B)(8) of the Indiana Rules of Trial
Procedure," arguing that the claims asserted by Vannatta therein concerned the "same residential
real estate transaction" and involved "the same facts and parties as the action
pending in the Marion Superior Court." (App. 10, 14). Vannatta opposed
the motion, arguing that it was "not the same action" because this was
"a tort case" whereas the Marion Superior Court case was "a breach of
contract case"; there were "different defendants"; and the Knoxes' presence was "not needed
for just adjudication" of the tort case against Scheetz. (App. 33).
Scheetz's reply asserted that Vannatta sought "the same remedy against the Knoxes in
the Marion Superior Court suit as . . . against [Scheetz] in the
[Hamilton] Superior Court case" and that the parties were "substantially the same in
both suits." (App. 39, 40).
On August 19, 2003, the Hamilton Superior Court heard arguments on Scheetz's motion.
See footnote
On August 28, 2003, it granted the motion and ordered Vannatta's complaint
to be dismissed with prejudice. On September 22, 2003, Vannatta filed a
motion to correct errors, again arguing that the two cases were different and
further arguing that the dismissal "with prejudice" served to deny her due process.
(App. 62). The court denied Vannatta's motion.
DECISION
Vannatta contends that the trial court erred in granting Scheetz's T.R. 12(B)(8) motion
to dismiss "because the cases are not the same." Vannatta's Br. at
2. We agree.
A general principle of Indiana law is that when an action is pending
before one Indiana court, other Indiana courts must defer to that court's authority
over the case.
Davidson v. Perron, 716 N.E.2d 29, 35 (Ind. Ct.
App. 1999), trans. denied. Trial Rule 12(B)(8) implements this principle by allowing
dismissal of an action on the grounds that the same action is pending
in another Indiana court. Id. The determination of whether two actions
being tried in different state courts constitute the same action depends on whether
the outcome of one action will affect the adjudication of the other.
Id. The rule applies and an action should be dismissed where the
parties, subject matter, and remedies are precisely or even substantially the same in
both suits. Id. Thus, when faced with a challenge to a
trial court's dismissal on the basis of T.R. 12(B)(8), the critical question before
us is "whether the parties, subject matter, and remedies are either precisely or
substantially the same." Id. at 36.
Scheetz notes that Vannatta, the Knoxes, and Scheetz are parties to the Marion
Superior Court action, and Vannatta and Scheetz are parties to the Hamilton Superior
Court action. After acknowledging that the Knoxes are not parties in the
Hamilton Superior Court action, Scheetz nevertheless argues that the parties in the two
actions "are substantially the same." Scheetz's Br. at 10. We find
that Scheetz's perspective is too narrow, in that it fails to consider the
context in which the parties are named in the two different causes.
In the Marion Superior Court action, Vannatta brought a cause of action for
breach of contract against the Knoxes, alleging that they breached the contract for
purchase of the real estate; the Knoxes then named Scheetz as a third-party
defendant, alleging its negligence -- the breach of a duty owed to the
Knoxes in the preparation of their purchase offer and that the Knoxes had
suffered damages as the result of Scheetz's negligence. In the Hamilton Superior
Court, Vannatta brought a cause of action sounding in tort against Scheetz; she
sought damages based on her allegations that Scheetz (1) tortiously interfered in the
"valid and enforceable contract" between her and the Knoxes by "intentionally induc[ing]" the
Knoxes to breach that contract, and (2) breached a duty owed to Vannatta.
Scheetz also contends the subject matter of both actions "is substantially the same."
Scheetz's Br. at 12. It asserts that both lawsuits concern "a
failed real estate transaction involving Vannatta and the Knoxes" and that Vannatta seeks
"damages as a result of the failed transaction." Id. However, even
though the lawsuits both evolved from the failed real estate action, they represent
separate efforts by Vannatta to seek legal redress through discrete causes of action.
See Songer v. Civitas Bank, 771 N.E.2d 61, 66 (Ind. 2002) ("cause"
and "cause" of action not interchangeable terms; "cause" is a lawsuit, and "cause
of action" is a legal theory of a lawsuit). As already discussed,
the Marion Superior Court action seeks damages from the Knoxes based upon their
breach of contract, with the Knoxes asserting that Scheetz was negligent and breached
a duty owed to them. Hence, the issues in that matter are
whether the Knoxes breached the terms of a contract with Vannatta, and whether
Scheetz was negligent in that it breached a duty owed to the Knoxes.
The Hamilton Superior Court action seeks damages in tort arising from the
Scheetz's alleged negligence as to Vannatta, with the issue being whether Scheetz was
negligent as to a duty owed to Vannatta.
Scheetz also argues that "the remedies sought by Vannatta in each action are
substantially the same." Scheetz's Br. at 14. This is true, it
asserts, because what Vannatta seeks is "a remedy that will make her whole
or otherwise satisfy any deficiency that she has sustained as a result of
the real estate transaction's failure." Id. However, the argument again fails
to recognize that the lawsuits assert different causes of actions against different defendants.
That she brought both lawsuits with the goal of making herself whole
does not mean that they are "the same" for the purposes of T.R.
12(B)(8).
Finally, Scheetz asserts that "the outcome of one of the pending actions will
affect the adjudication of the other action." Scheetz's Br. at 14.
The argument in this regard is simply that there is an "overlap" between
a claim for breach of contract and one for tortious interference with a
contract in that both require proof that "a contract existed; . . .
there was a breach of the contract; and that damages resulted from the
alleged breach." Id. at 15. As with the preceding arguments, we
are not persuaded. Inter alia, Scheetz fails to recognize that Vannatta's lawsuit
in Hamilton Superior Court asserted two tort claims not just tortious interference
with a contract but also the breach of a duty "owed to [Vannatta]
as the Seller of real estate listed through another real estate broker."
(App. 8). Moreover, a finding in the Marion Superior Court action that
Scheetz was not negligent as to a duty owed to the Knoxes would
not necessarily preclude a finding in the Hamilton Superior Court action that Scheetz
was negligent as to a duty owed to Vannatta.
Article 1 Section 12 of the Indiana Constitution provides to Vannatta that the
courts shall be open for her to "have remedy by due course of
law" for injury done to her. Vannatta correctly notes that the dismissal
with prejudice of the tort action she brought in Hamilton Superior Court means
that she will not be able to pursue her tort claim against Scheetz.
See footnote
Thus, when Vannatta's tort action was dismissed, she was effectively denied access
to the court to seek a remedy for the damages she claims were
the result of negligence by Scheetz when it breached a duty owed to
her.
Scheetz does not dispute that the Hamilton Superior Court has subject matter jurisdiction
to consider the tort claim brought by Vannatta; nor does it dispute the
court's personal jurisdiction and jurisdiction of the case. The facts before us
lead us to conclude that neither the parties, the subject matter nor the
remedies of the two actions brought by Vannatta are "substantially the same" so
as to warrant invocation of T.R. 12(B). Therefore, we cannot find that
T.R. 12(B)(8) prevents Vannatta from pursuing her causes of action against different defendants
in two different courts. Accordingly, we find that the dismissal with prejudice
was error and must be reversed.See footnote
We reverse.
SHARPNACK, J., and BAILEY, J., concur.
Footnote: Scheetz's Brief suggests that although the record does not so
indicate, F.C. Tucker is no longer a party to this cause of action.
Footnote: Vannatta's Appendix does not include a transcript of those arguments.
Footnote: If Vannatta attempted to amend her complaint in the Marion Superior
Court to add her negligence claims, Scheetz would contend that it was barred
by the statute of limitation is borne out by Scheetz's statement that "Vannatta
cannot re-file this action as a result of the statute of limitations having
run on her" tort claim. Scheetz's Br. at 18.
Footnote: We note that if the reasoning of the Hamilton Superior
Court was a concern for judicial economy, consolidation of the two causes pursuant
to Trial Rule 40 may be appropriate.