FOR PUBLICATION
ATTORNEYS FOR APPELLANTS: ATTORNEY FOR APPELLEES:
THOMAS A. CARTON ANTHONY ASHFORD
NICHOLAS J. PAROLISI Ruman Clements Tobin & Holub
Bullaro & Carton Hammond, Indiana
Munster, Indiana
IN THE COURT OF APPEALS OF INDIANA
RED ARROW STABLES, LTD., RED )
ARROW TRAIL RIDERS, INC., INDIANA )
AND ILLINOIS, INC., GIRL SCOUTS OF )
CALUMET COUNCIL, GIRL SCOUT )
CORPORATION, MICHAEL B. WELLS, )
CLAUDIA LANGMAN and )
CAROL EASTON, )
)
Appellants-Defendants, )
)
vs. ) No. 46A03-9907-CV-270
RITA VELASQUEZ and TONY VELASQUEZ, )
)
Appellees-Plaintiffs. )
APPEAL FROM THE LaPORTE SUPERIOR COURT
The Honorable Paul J. Baldoni, Judge
Cause No. 46D03-9804-CT-162
March 10, 2000
OPINION - FOR PUBLICATION
SHARPNACK, Chief Judge
Record, p. 88. The second letter, addressed to Whom it May Concern,
advised the recipient that: I represent Rita Velasquez in a claim arising
out of the accident that occurred on May 19, 1996 and that a
claim for damages is hereby being made on behalf of my client for
injuries arising out of the above-stated accident. Record, p. 90. Kristoff
faxed both letters to St. Paul Fire & Marine Insurance Company (St. Paul),
Calumet Councils insurance carrier, on January 14, 1998. On that same date,
St. Paul confirmed with Velasquezs attorney that it was the liability carrier for
this insured. Record, p. 98. In this letter, the insured had
previously been set forth as Girl Scouts of Calumet Council. Record, p.
98. The letter further advised Velasquezs attorney to [p]lease direct all future
correspondence to my attention at the address listed above. Record, p. 98.
Velasquezs attorney wrote back to St. Paul on January 19, 1998, acknowledging
receipt of its January 14, 1998 letter.
The next event disclosed by the record occurred on April 27, 1998, when
Velasquez, acting through her attorney, filed a complaint for damages regarding the May
19, 1996, horse riding incident. The complaint named Girl Scout Corporation, among
others, as a defendant. Record, p. 457. A copy of the
complaint with a summons was issued to the Girl Scout Corporations registered agent,
Marie Pikens. Velasquezs attorney also sent a copy of the complaint and
summons, along with a letter dated May 4, 1998, to St. Paul.
In his letter to St. Paul, Velasquezs attorney identified Girl Scouts Corp. as
the insured and gave a claim number that was incorrect by one number.
On June 12, 1998, defendant Girl Scout Corp. filed its answer and affirmative
defenses. It raised the following affirmative defense:
Plaintiffs have sued the wrong group of Girl Scouts. Defendant Girl Scout
Corporation is a holding company where the only activity is that it owns
land in Marion County, Indiana. The land is a camp run by
Hoosier Capital Girl Scout Council, Inc. (HCGSC). Neither Defendant Girl Scout Corporation
nor HCGSC have any knowledge of the plaintiffs, the other defendants, or the
events referred to in plaintiffs Complaint. There are 14 separate Girl Scout
Councils in Indiana. All 14 are separate corporations. Plaintiffs have sued
the wrong group of Girl Scouts.
Record, p. 109. Upon receipt of the Girl Scout Corporations answer to
Velasquezs complaint, Velasquezs attorney realized that he had mistakenly named the wrong defendant.
He then filed a motion on July 7, 1998, seeking to amend
Velasquezs complaint to add Girl Scouts of Calumet Council as a defendant.
The trial court granted the motion on July 9, 1998. Calumet Council
received a copy of the summons and Velasquezs amended complaint on July 14,
1998.
On August 31, 1998, Calumet Council filed a motion for summary judgment on
statute of limitation grounds, which was denied on November 25, 1998.
See footnote
Calumet
Council filed a second motion for summary judgment, also on statute of limitations
grounds, on January 29, 1999. The trial court denied Calumet Councils second
summary judgment motion on June 8, 1999, holding that Velasquezs amendment to her
complaint to add Calumet Council as a party defendant was proper pursuant to
Indiana Trial Rule 15(C).
When reviewing the denial of a motion for summary judgment, we apply the
same standard as the trial court. Trotter v. Nelson, 684 N.E.2d 1150,
1152 (Ind. 1997). Therefore, summary judgment should only be granted when the
designated evidentiary material demonstrates that there is no genuine issue as to any
material fact and the moving party is entitled to judgment as a matter
of law. Id. We resolve any doubt as to any fact,
or inference to be drawn therefrom, in favor of the nonmoving party.
Id. In a summary judgment proceeding in which the movant raises an
affirmative defense based on the statute of limitations, the movant need only make
a prima facie showing that the cause of action was filed beyond the
statutory period. Hutchison v. Old Indiana Ltd. Liability Co., 714 N.E.2d 789,
792 (Ind. Ct. App. 1999), trans. denied. The burden then falls on
the opponent of the motion to establish the existence of a material fact
in avoidance of the statute of limitations defense. Id.
Here, Calumet Council presented prima facie evidence that Velasquezs complaint was filed beyond
the statutory two-year time limit for personal injury claims: Velasquez was injured
on May 19, 1996, and the amended complaint against Calumet Council was filed
July 7, 1999. However, the trial court denied Calumet Councils motion for
summary judgment, finding that Velasquezs amended complaint related back to the date of
the filing of the original complaint. The relation back of an amended
complaint is governed by Indiana Trial Rule 15(C), which provides in relevant part:
Whenever the claim or defense asserted in the amended pleading arose out of
the conduct, transaction, or occurrence set forth or attempted to be set forth
in the original pleading, the amendment relates back to the date of the
original pleading. An amendment changing the party against whom a claim is
asserted relates back if the foregoing provision is satisfied and, within the period
provided by law for commencing the action against him, the party to be
brought in by amendment:
has received such notice of the institution of the action that he will
not be prejudiced in maintaining his defense on the merits; and
knew or should have known that but for a mistake concerning the identity
of the proper party, the action would have been brought against him.
Ind. Trial Rule 15(C).
The key element to relation back under Trial Rule 15(C) is notice.
Soley v. VanKeppel, 656 N.E.2d 508, 511 (Ind. Ct. App. 1995). Mere
awareness that an injury has occurred or that the injured party has retained
counsel is insufficient to satisfy the requirements of Rule 15(C). Hutchison, 714
N.E.2d at 793. Rather, the notice must be such that the party
named in the amended pleadings received either actual or constructive notice of the
institution of the legal action. Id. Moreover, such notice must be
received within the time period provided by law for commencing the action.
Gulley v. Winter, 686 N.E.2d 176, 180 (Ind. Ct. App. 1997) (quoting Fifer
v. Soretore-Dodds, 680 N.E.2d 889, 891 (Ind. Ct. App. 1997), rehg denied, trans.
denied, 698 N.E.2d 1182). The purpose behind this notice requirement is to
ensure that the defendant will not be prejudiced in maintaining his defense on
the merits. Soley, 656 N.E.2d at 511.
Calumet Council contends that the requirements of Rule 15(C) were not met because
it did not receive notice of the instant lawsuit until July 14, 1998,
almost two months after the statute of limitations had expired. Velasquez does
not contest Calumet Councils assertion that it did not receive actual notice until
July 14, 1998; however, she does claim that Calumet Council received constructive notice
of the lawsuit prior to the tolling of the limitations period. Calumet
Council received constructive notice of the lawsuit, Velasquez claims, when her attorney served
St. Paul with notice of the suit. Calumet Council counters by arguing
that St. Paul was not an agent for Calumet Council and therefore notice
to St. Paul cannot be imputed to it.
In making its argument that St. Paul was not its agent, Calumet Council
relies on the fact that an insurer is not an insureds agent for
purposes of receiving notice of the filing of a lawsuit. Appellants Brief,
p. 21. It is true that an insurer is not an insureds
agent for service of process unless so provided by rule, statute, or valid
agreement. Ind. Trial Rule 4.1(A); Poteet v. Bethke, 507 N.E.2d 652, 657
(Ind. Ct. App. 1987). However, Trial Rule 15(C) does not require
that the added defendant be served with process before the statute of limitations
has expired. Wathen v. Greencastle Skate Place, Inc., 606 N.E.2d 887, 891
(Ind. Ct. App. 1993). Notice that a lawsuit has been filed,
something less than service, is what is necessary to satisfy the rules requirements
regarding relation back of amendments. Id.; see, e.g., McCracken v. Brentwood United
Methodist Church, 958 S.W.2d 792, 797 (Tenn. Ct. App. 1997), appeal denied. Accordingly,
our decision does not does not rest upon principles of law established within
the context of service of process under Trial Rule 4.
The issue of whether constructive notice to the added defendant is sufficient to
satisfy the notice requirements of Trial Rule 15(C) has been answered affirmatively by
the courts of this state. See Logan v. Schafer, 567 N.E.2d 855,
857 n.2 (Ind. Ct. App. 1991) (noting that the notice requirement of Trial
Rule 15(C)(1) is satisfied, at least in some circumstances, by constructive notice); Creighton
v. Caylor-Nickel Hosp., Inc., 484 N.E.2d 1303, 1307 (Ind. Ct. App. 1985), rehg
denied, trans. denied (holding that added defendant had constructive notice of the suit
within the time period for commencing the action). However, the issue of
whether notice of the institution of a lawsuit given to the added defendants
insurance company, standing alone, constitutes adequate constructive notice to allow relation back under
Trial Rule 15(C) is less clear. Velasquez claims that our supreme court
clearly determined that notice to a partys liability insurance carrier is sufficient notice
for purposes of T.R. 15(C) in Waldron v. Wilson, 532 N.E.2d 1154 (Ind.
1989). Calumet Council, on the other hand, argues that Waldron is inapplicable
because it is a case of misnomer, not relation back.
In Waldron, the plaintiff filed suit against two individuals on the last day
of the limitations period. Id. at 1155. The defendants were served
the summons and the complaint the next day. Id. Although the
defendants initially admitted that they owned the property upon which the injury occurred,
they later filed an amended answer wherein they claimed that a corporation, not
themselves in their individual capacities, owned the property in question. Id.
The plaintiff then moved to amend his complaint to add the corporation as
a defendant. Id. In concluding that the plaintiffs amended complaint related
back, our supreme court noted that the original defendants, who were the sole
employees, officers, and directors of the corporation sought to be added as a
party defendant, received notice of the lawsuit one day after the statute of
limitations had expired. Id. at 1156. In so noting, the court
stated that [e]ven though there was a misnomer . . . the newly
named defendant clearly would have had notice the action was instituted and would
have known, but for the misnomer, they were the intended target defendants.
Id. The court went on to note that the added defendant received
notice that the lawsuit was instituted before the statute had run because its
liability insurance carrier was notified by the workmen's compensation carrier for the plaintiffs
employer, of its claim for subrogation. Id.
Confusion from Waldron seems to arise from the fact that in cases involving
misnomers, the plaintiff seeking to amend her complaint to add a new defendant
need only demonstrate that the claim in the amended complaint arose out of
the same conduct alleged in the original complaint.
See footnote
See Crosman Corp. v.
Millender, 701 N.E.2d 295, 297 (Ind. Ct. App. 1998), trans. denied, 714 N.E.2d
171 (citing Fifer v. Soretore-Dodds, 680 N.E.2d 889, 891 (Ind.Ct.App.1997), reh'g denied, trans.
denied, 698 N.E.2d 1182). That being the case, the discussion in Waldron
regarding notice, prejudice, and knowledge of the added defendant that the suit should
have been brought against him would be unnecessary if the case were truly
one of misnomer. See Crosman, 701 N.E.2d at 297. In addition
to discussing the requirements for adding a new defendant, our supreme court specifically
mentioned Trial Rule 15(C)(1) in its discussion in Waldron. Because both are
unnecessary in a case involving merely a misnomer, we conclude that Waldron is
actually a case involving the addition of a new party by an amended
complaint. But cf., Hutchison v. Old Indiana Ltd. Liability Co., 714 N.E.2d
789, 793 (Ind. Ct. App. 1999) (interpreting Waldron as impliedly based on the
identity of interest principle); Logan v. Schafer, 567 N.E.2d 855, 857 (Ind. Ct.
App. 1991) (citing Waldron as a case where the proper party was served
with a copy of the original complaint in which it was misnamed).
Moreover, due to its discussion of the pertinent issues, we further conclude that
we may properly look to Waldron for guidance in our resolution of this
issue regardless of whether Waldron is a case of misnomer or a case
concerning the applicability of Trial Rule 15(C)(1) and (2) when a new party
is added.
In Waldron, the party sought to be added did not receive actual notice
that the lawsuit had been filed until after the statute of limitations had
expired. Waldron, 532 N.E.2d at 1155-1156. However, our supreme court stated
that the added defendant had [constructive] notice that the action was instituted before
the statute had run because its insurance carrier had been notified by the
plaintiffs employer of its claim for subrogation. Id. at 1156.
Other jurisdictions addressing the issue of whether notice to a partys liability insurance
carrier, by itself, is sufficient to allow relation back of an amendment have
answered in the affirmative. In Smith, the plaintiff fell and suffered injuries
while at Hardees Restaurant. Smith v. TW Services, Inc., 142 F.R.D. 144,
145 (M.D. Tenn. 1991). Counsel for the plaintiff contacted the insurance adjusters
for Hardees, advising them of the accident and of counsels representation of the
plaintiff. Id. At some point, TW (Hardees licensee) assumed the handling
of plaintiffs claim, and plaintiffs counsel was advised to direct all future correspondence
to the claims representative of the liability insurer for TW. Id.
Approximately one week before the statute of limitations expired, plaintiff filed suit, naming
only Hardees as a defendant. Id. at 146. Despite naming only
Hardees as a defendant, plaintiff did mail TWs insurer a copy of the
complaint. Id. at 145. After the statute of limitations had expired,
plaintiff filed a motion to amend her complaint to add TW as a
defendant. Id. at 146. Because there was no dispute that the
defendant to be added did not have actual notice of the lawsuit within
the limitations period but that its insurer did, the only issue was whether
the notice to the insurer was sufficient to fulfill the requirements for relation
back under Rule 15(c) of the Federal Rules of Civil Procedure.
See footnote
Id.
at 147. In holding that plaintiffs motion to amend should be allowed
to relate back to the date of the original complaint, the court noted
that the plaintiff is only obligated to provide notice which is sufficient to
prevent prejudice in the maintenance of a defense. Id. at 149.
Intuitively, there is little prejudice to a defendant when his own liability insurer,
who will likely be heavily involved in the defense, has notice of a
suit within the limitations period. [The insurer] had full authority to investigate
and settle the claim and would play a key role in the impending
litigation. This is not a so-called identity of interest case, but there
is still a substantial unity of interests between [the insurer] and [the added
defendant] with respect to this litigation.
Id.
We find the reasoning in Smith to be sound. In the instant
case, Calumet Council was alerted to Velasquezs accident and her subsequent claim for
medical expenses by December 1997 at the latest. By January 1998, St.
Paul, the insurance carrier for Calumet Council, was aware that Velasquez had obtained
counsel and was making a claim for damages. Record, p. 90.
Upon receipt of this information, St. Paul requested that Velasquezs counsel direct
all future correspondence to it. Record, p. 98. Approximately three weeks
before the statute of limitations expired, Velasquez, acting through her attorney, filed suit,
incorrectly naming the Girl Scout Corporation as a defendant rather than the Girl
Scouts of Calumet Council. Within days, Velasquezs attorney notified St. Paul of
the impending suit by sending a copy of the complaint and summons, along
with a letter that stated, Please find enclosed a file-stamped copy of the
Complaint and Summons which were filed by our client against your insured in
the above-named cause. Record, p. 100. Although Calumet Council did not
receive actual notice of the lawsuit until almost two months after the statute
had run, its insurer, the entity with the right to investigate any claim
or suit, the right and duty to defend any claim or suit, and
the right to settle any claim or suit, did receive notice of the
lawsuit before the tolling of the statute. Record, p. 135. Accordingly,
for the same reasons set forth in Smith, we hold that notification of
the lawsuit to St. Paul was constructive notice to Calumet Council so as
to satisfy the requirement of Trial Rule 15(C)(1); namely, that it received notice
of the institution of the action such that it will not be prejudiced
in the maintenance of its suit.
See footnote
See id.; see also Waldron, 532
N.E.2d at 1156.
Having determined that Calumet Council received notice, within the time period provided by
law for commencing the action, of the institution of the action and that
it will not be prejudiced in maintaining its defense on the merits, we
now turn to the issue of whether it knew or should have known
that but for a mistake concerning the identity of the proper party, the
action would have been brought against it. See Ind. T.R. 15(C)(2).
In this case, we must judge the knowledge of the mistake from the
perspective of St. Paul. See Smith, 142 F.R.D. at 149. When
St. Paul received a copy of Velasquezs complaint, accompanied by a cover letter,
on May 6, 1998, it knew, or should have known, that the naming
of Girl Scouts Corporation as the defendant rather than Girl Scouts of Calumet
Council was the result of a simple mistake. In so holding, we
acknowledge that the cover letter [to St. Paul informing it of the lawsuit]
incorrectly stated that the insured was Girl Scouts Corp. and gave an incorrect
claim number. Appellants Brief, pp. 7-8. In the cover letter, wherein
the claim number given was only one number off of the correct one,
Velasquez was identified as the client and May 19, 1996 was identified as
the date of the incident. Velasquezs attorney had also given this identical
information, written by the same law firm on the same letterhead, in his
previous communications with St. Paul regarding Velasquezs claim for damages. Record, p.
90. Additionally, Velasquezs attorney had previously identified Red Arrow Trails as the
location of the accident, and the complaint, which St. Paul received a copy
of, alleged that Velasquez was a business invitee at the premises of Red
Arrow. Record, pp. 90, 458. While we acknowledge that the incorrect
claim number, and to a lesser extent the incorrect name of the insured,
on the cover letter informing St. Paul of the lawsuit may have caused
a momentary confusion, it certainly cannot be said that [t]here was no evidence
in St. Pauls hands to suggest that Girl Scouts of Calumet Council was
the correct party. Appellants Brief, p. 29. Therefore, we hold that
St. Paul knew or should have known shortly after receiving the letter and
a copy of the complaint from Velasquezs attorney that the omission of the
Girl Scouts of Calumet Council as a defendant was the result of a
mistake. See id. at 150; see also Waldron, 532 N.E.2d at 1156.
Having determined that all the requirements of Trial Rule 15(C) have been met,
we conclude that Calumet Council is not entitled to judgment as a matter
of law.
See footnote
For the foregoing reasons, we affirm the judgment of
the trial court.
Affirmed.
Riley, J., and Kirsch, J. concur.