FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEE:
DAVID W. PERA JAMES W. MYERS, III
Buoscio, Pera, Krammer & Nowak Valparaiso, Indiana
Merrillville, Indiana
CHRISTINA L. MAAS
Valparaiso, Indiana
GEICO INSURANCE COMPANY, )
)
Appellant-Defendant, )
)
vs. ) No. 45A03-9806-CV-253
)
FREDA ROWELL, )
)
Appellee-Plaintiff. )
subrogation rights and agreed not to assert any claim for medical payments against the
settlement proceeds. R. at 184. Rowell then executed the release she received from
American States on September 25, 1997 which read, in pertinent part, as follows:
I, FREDA ROWELL, . . . hereby release and forever discharge JEAN L.
POULOS and AMERICAN STATES INSURANCE COMPANY, their
heirs, executors, administrators, agents and assigns, together with all other
persons, firms and corporations, from all claims, demands, debts, suits, actions
and causes of action, and for any injuries, damages, costs, loss of services,
expenses, and compensations whatsoever, at law or in equity, and however
arising, on account of or in any way growing out of an accident, casualty, or
event that occurred on or about the 17th day of October, 1995, at 5201
Indianapolis Boulevard in East Chicago, Lake County, State of Indiana,
and on account of which is asserted that the undersigned sustained injuries,
damages, and losses for which the parties hereby released are legally liable, all
of which is denied and disputed by them.
R. at 185. Rowell's counsel, Christina L. Maas, retained the release pending a review of the
stipulation for dismissal and order drafted by counsel for American States, Harry J. Jennings.
After reviewing the stipulation and order, Maas contacted her co-counsel, James W.
Myers, and advised him that it appeared that the stipulation and order forwarded with the
release would result in a dismissal of the entire case. Therefore, on September 25 and
October 1, Maas contacted Jennings and advised him that another stipulation and order was
necessary to correctly state that only American States and Poulos were dismissed. R. at 147.
GEICO's counsel, David Pera, was advised several times by telephone that Maas would be
redrafting the stipulation and order to make clear that the claims against Stasiak and GEICO
were still pending. R. at 147. In one of these conversations, Pera jokingly indicated to Maas
that he would not mind GEICO being released but that she might mind such a result. R. at
147. At no time did Pera raise any objections to the redrafting.
The same day, the trial court entered an order granting Rowell the ninety-day extension. On
December 9, 1997, GEICO filed an objection to Rowell's motion. In her response to
GEICO's objection, Rowell further explained the need for the extension as follows:
Issues in the case include, waiver, estoppel, equitable reliance, &
equitable estoppel. To prove the issues it will be necessary to take the
deposition of the attorneys who drafted the release as well as to discover any
correspondence between counsel for American States and Geico. Counsel has
spoken with attorneys for American States and they have agreed to be deposed
and to produce documents. Counsel for the plaintiff is unable to set those
deposition [sic] until after the holidays due to all counsel's schedule.
R. at 314. The trial court overruled GEICO's objection on December 19 and granted Rowell
an additional ninety days to respond. On February 26, 1998, Rowell filed a second motion
for extension of time, asserting the need to depose Pera and Pera's refusal to voluntarily
appear for deposition. R. at 75. While the record is unclear, it appears that an extension was
granted until April 2, 1998. R. at 72, 318. On March 23, 1998, GEICO filed a motion to
strike Rowell's first and second motions for extensions of time. Rowell then filed a third
motion for extension of timeSee footnote
2
which was similar to her previous motion, alleging Pera's
refusal to be deposed and adding that a power outage and a family vacation caused delay in
preparing her response. R. at 317-18. On March 26, 1998, the trial court entered the
following order:
The Court . . . grants the plaintiff an amount of time of at least 30 days and/or
an amount of time commensurate to obtain the deposition of David Pera and
to respond to the motion for summary judgment. The Court further grants the
plaintiff the right to take the deposition of David Pera . . . .
proposition, GEICO directs our attention to Seufert v. RWB Medical Income Properties I
Ltd. Partnership, 649 N.E.2d 1070, 1073 (Ind. Ct. App. 1995), and quotes the following
sentence from the case:
Should the party show by affidavit that he is unable to oppose the motion
without discovery, then T.R. 56(F) allows the court to order a continuance.
While we agree that a continuance pursuant to T.R. 56(F) requires the filing of an
affidavit indicating why the facts necessary to justify opposition are unavailable, GEICO has
ignored the next sentence in Seufert: Similarly, T.R. 56(I) allows the court, for cause found,
to alter time limits.See footnote
5
This rule specifically provides that [t]he Court, for cause found, may
alter any time limit set forth in this rule. T.R. 56(I) (emphasis added). As we noted in
Seufert, the decision of whether to order a continuance or to alter any time limit is within the
trial court's discretion. Seufert, 649 N.E.2d at 1072. Here, the record reveals that the trial
court had ample cause to grant each extension of time. Therefore, we find that the trial court
did not abuse its discretion in granting Rowell's motions for extension of time.
to a release which had similar language to that in the instant case.See footnote
6
In that case, while finding
that the language in the release clearly released all persons, we stated that:
A release executed in exchange for proper consideration works to release only
those parties to the agreement unless it is clear from the document that others
are to be released as well.
If the language of an instrument is unambiguous, the intent of the
parties is determined from its four corners. . . . A release is plain and
unambiguous as to who the parties intended to release where its terms provide
that all claims are given up against all persons in consequence of an
accident. Language which releases all persons does just that and is clear as
long as no other terms are contradictory.
Id. (citations omitted).
GEICO would have us stop our inquiry here and hold that because the language of
the release in the instant case is essentially identical to that in Dobson, all persons,
including GEICO, were released. Appellant's Brief at 18. However, we refuse to close our
eyes to the stipulation which was signed by GEICO and to counsel's participation therein.See footnote
7
There was a time in the practice of law when an attorney's word was his bond.See footnote
8
Here, the
trial court correctly found that Pera and GEICO knew full well that the release was
specifically directed toward Poulos and Defendant American States according to the
stipulation signed by Geico. R. at 309.
The release in Dobson is distiguishable because in that case, there was no mention of
attorney misconduct or a stipulation for dismissal signed by the party attempting to enforce
the release. Initially, we note that the doctrine of judicial estoppel is appropriate here.
Judicial estoppel protects the essential integrity of the judicial process by preventing a party
and its counsel, from playing fast and loose with the courts. See Shewmaker v. Etter, 644
N.E.2d 922, 931 (Ind. Ct. App. 1994) adopted, 659 N.E.2d 1021 (Ind. 1995) (discussing
judicial estoppel with respect to bankruptcy proceedings). A party may not assume a position
in a legal proceeding inconsistent with one previously asserted. Id. Here, GEICO signed a
stipulation for dismissal which specified that only American States and Poulos were being
dismissed, and the trial court entered an order pursuant to that stipulation. Thereafter,
GEICO proceeded to take the inconsistent position that it was entitled to summary judgment
because the release also applied to it. The trial court was unwilling to accept this type of
gamesmanship, and we too will not condone such behavior.
Moreover, we are not bound by the four corners of the release agreement because we
find that the stipulation was a contemporaneous document. This special rule of contract
construction provides that [i]n the absence of anything to indicate a contrary intention,
writings executed at the same time and relating to the same transaction will be construed
together in determining the contract. Salcedo v. Toepp, 696 N.E.2d 426, 435 (Ind. Ct. App.
1998). Additionally, as long as the documents are part of the same transaction, different
execution times will not prohibit them from being construed together. McCae Management
Corp. v. Merchants Nat. Bank and Trust Co. of Indianapolis, 553 N.E.2d 884, 887 (Ind. Ct.
App. 1990), trans. denied. The application of this rule depends on the facts of each particular
case. Ruth v. First Fed. Sav. and Loan Ass'n of LaPorte County, 492 N.E.2d 1105, 1107
(Ind. Ct. App. 1986).
a course of conduct for no good purpose other than to obfuscate the issues, delay the
proceedings and circumvent the meaning and intent of the Rules of Appellate Procedure.
GEICO initially notes that on July 16, 1998, Rowell filed a motion to dismiss this
interlocutory appeal, claiming that GEICO's request for certification with this court only
referred to the release and failed to notify this court of the stipulation. Specifically, GEICO
argues that the motion to dismiss, which was denied by this court on September 29, 1998,
was groundless and represented nothing more than a mere recitation of her core argument.
Further, GEICO alleges that Rowell has now filed a motion to strike portions of GEICO's
brief, and this motion is groundless and an attempt to circumvent the Rules of Appellate
Procedure by responding to an appellant's reply brief. While we have denied Rowell's
motion to dismiss and now deny her motion to strike, we also deny GEICO's motion to
impose sanctions against Rowell.
Furthermore, we find it ironic that GEICO is requesting the imposition of sanctions
against Rowell. In light of the actions of GEICO's counsel and pursuant to our authority
under App. R. 15 (G),See footnote
11
we find sua sponte that damages should be assessed against GEICO's
counsel in the amount of Rowell's appellate attorney fees.See footnote
12
See Catellier v. Depco, Inc., 696
N.E.2d 75, 78-80 (Ind. Ct. App. 1998) (assessing appellate attorney fees against appellant's
counsel for bad faith). Upon remand, the trial court shall determine the appropriate amount
of damages to be awarded to Rowell for the defense of this appeal.
Reese . . . and all other persons, firms or corporations liable or who might be claimed to be
liable . . . on account of all injuries . . . .
Dobson, 634 N.E.2d at 1345.
A lawyer should use the law's procedures only for legitimate purposes and not to harass or
intimidate others. A lawyer should demonstrate respect for the legal system and for those
who serve it, including judges, other lawyers and public officials. . . . [A] lawyer should seek
improvement of the law, the administration of justice and the quality of service rendered by
the legal profession.
Ind. Professional Conduct Preamble: A Lawyer's Responsibilities.
A lawyer is required to be truthful when dealing with others on a client's behalf . .
. . A misrepresentation can occur if the lawyer incorporates or affirms a statement of another
person that the lawyer knows is false. Misrepresentation can also occur by failure to act.
It is professional misconduct for a lawyer to:
. . . .
(c) engage in conduct involving dishonesty, fraud, deceit or misrepresentation;
(d) engage in conduct that is prejudicial to the administration of justice;
. . . .
Prof. Cond. R. 8.4.
The reliability and trustworthiness of attorney representations constitute an important
component of the efficient administration of justice. A lawyer's representations have long
been accorded a particular expectation of honesty and trustworthiness.
Commitment to these values begins with the oath taken by every Indiana lawyer; it
is formally embodied in rules of professional conduct . . . and it is repeatedly emphasized and
reinforced by professional associations and organizations. The Indiana Oath of Attorneys
includes the promise that a lawyer will employ such means only as are consistent with truth.
Ind. Admission and Discipline Rule 22.
. . . .
Similarly, the Tenets of Professional Courtesy adopted by the Indianapolis Bar Association
declare, A lawyer should never knowingly deceive another lawyer or the court, and A
lawyer should honor promises or commitments to other lawyers and to the court, and should
always act pursuant to the maxim, 'My word is my bond.' . . . The International Association
of Defense Counsel likewise emphasizes that [w]e will honor all promises or commitments,
whether oral or in writing, and strive to build a reputation for dignity, honesty and integrity.
Id. at 312-13 (emphasis in original).
Every pleading or motion of a party represented by an attorney shall be signed by at least one [1] attorney of record . . . . The signature of an attorney constitutes a certificate by him that he has read the pleadings; that to the best of his knowledge, information, and belief, there is good ground to support it; and that it is not interposed for delay. If a pleading or motion is . . . signed with intent to defeat the purpose of the rule, it may be stricken as a sham and false and the action may proceed as though the pleading had not been served. For a wilful
violation of this rule an attorney may be subjected to appropriate disciplinary action.
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