FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:
DELMAR P. KUCHAES RICHARD P. KOMYATTE
Whalley and Kuchaes ALFRED R. UZIS
Merrillville, Indiana Komyatte & Freeland, P.C.
Highland, Indiana
REBECCA BEASON-STRANGE-CLAUSSEN, )
)
Appellant-Plaintiff, )
)
vs. ) No. 64A03-9511-CV-387
)
CITY OF HAMMOND, INDIANA; CITY OF )
HAMMOND, INDIANA POLICE )
DEPARTMENT; HAMMOND POLICE )
DEPARTMENT; CITY OF HAMMOND )
BOARD OF PUBLIC WORKS & SAFETY; )
ANTHONY J. ADAM; and KURT J CLAUSSEN, )
)
Appellee-Defendants. )
ROBB, Judge
and filed a motion to stay the appeal on May 22, 1996.See footnote
3
The petition alleged that Rebecca
had filed a motion to reopen the bankruptcy on November 7, 1994, and that the bankruptcy
had been reopened on December 5, 1994. We stayed the appeal and remanded to the trial
court for a ruling on the trustee's petition for substitution or intervention filed in that court.
On June 29, 1998, the trustee petitioned this court to reinstate the appeal or to order the trial
court to permit substitution, alleging that the trial court had denied the petition to intervene
on October 24, 1996. We resumed jurisdiction on July 17, 1998, and Rebecca then filed her
reply brief.
party in interest, on the other hand, is the person who is the true owner of the right sought to
be enforced. Id. at 1030. Indiana Trial Rule 17(A) states that "[e]very action shall be
prosecuted in the name of the real party in interest." T.R. 17(A). This rule "encourages
allowing the real party in interest to be joined or substituted in the action." Hammes, 659
N.E.2d at 1029.
Indiana Trial Rule 17 also clearly states that the substitution of a real party in interest
relates back to the date the initial complaint was filed. Id. This rule further provides:
No action shall be dismissed on the ground that it is not prosecuted in the
name of the real party in interest until a reasonable time after objection has
been allowed for the real party in interest to ratify the action, or to be allowed
to be joined or substituted in the action.
T.R. 17(A) (emphasis added).
According to the rationale expressed in Hammes, Rebecca was not the real party in
interest. Rebecca's bankruptcy trustee was the real party in interest; however, Rebecca did
have standing to sue. See id. She had a demonstrable injury allegedly caused by the parties
she was suing. See id. Because the concepts of standing and real party in interest are similar,
and because the trial court's order predated the Hammes decision, we will assume that the
order was grounded on Rebecca not being the real party in interest. At the time of the trial
court's unentered order granting summary judgment, Rebecca was attempting to conduct
additional discovery regarding the bankruptcy proceedings with a view to reopen the
bankruptcy. Presumably, Rebecca wished to reopen the proceedings in order to schedule her
claim against Claussen and the Hammond Defendants.See footnote
4
As such, she should have been
permitted to amend her original complaint to add her bankruptcy trustee to be substituted as
real party in interest, and have that amendment relate back to the original filing within the
statute of limitations. In this light, we next address whether the period which transpired
following Rebecca's request for additional time constituted an unreasonable time in which
to substitute or join the real party in interest, pursuant to T.R. 17(A).
It is true, as Claussen and the Hammond Defendants point out, that Rebecca had not,
at the time of the trial court's October 7, 1994 unentered order, specifically requested to
substitute the trustee in bankruptcy. What is clear is that Rebecca requested additional time
to "cure the defense of lack of standing." R. 230. As with the trial court's order, we will
assume that Rebecca's motion was a request for additional time to cure the real party in
interest defect which necessarily required substitution or joinder. Because the trial court was
apprised of Rebecca's need to reopen the bankruptcy, r. 243, it was obligated to allow a
reasonable time. T.R. 17(A)(2).
We are not prepared to conclude, however, that the several months which transpired
between Rebecca's requests for additional time and the trial court's order granting summary
judgment constituted an unreasonable time. First, the trial court's order was not entered until
July 20, 1995.See footnote
5
At that time, Rebecca's bankruptcy had apparently been reopened, but
proceedings had been delayed until a successor trustee could be appointed after the original
trustee rejected his reappointment due to a conflict of interest: his law firm also represented
the Hammond Defendants. In addition, Claussen, originally a party to the joint bankruptcy
petition, was now an adverse party and could not be represented by the bankruptcy trustee.
Moreover, Rebecca's own attorney had no authority to act for the bankruptcy and was
dependent upon the bankruptcy court to appoint a successor trustee. In March of 1996, the
bankruptcy court finally appointed Rebecca's attorney as special counsel to the successor
trustee.
After initiation of this appeal, the trial court denied the successor trustee's petition to
intervene, apparently due to the delay between the appointment of the successor trustee and
the filing of the petition to intervene. As pointed out above, Rebecca's attorney was not
appointed special counsel to the successor trustee until many months later. "[W]e recognize
the bankruptcy court's preeminence in bankruptcy matters and hence we cannot frustrate the
bankruptcy court's intent to permit the debtors to proceed with their lawsuit[] by reopening
the estate[] to add the unlisted claim[]." Hammes, 659 N.E.2d at 1029. Because of the
peculiar circumstances of the delays in this case, we conclude that the period which
transpired between Rebecca's request for additional time and the petition to intervene was
not unreasonable.
We reverse the trial court's grant of summary judgment in favor of Claussen and the
Hammond Defendants and remand for further proceedings. We also direct the trial court to
permit Rebecca's successor trustee in bankruptcy to be substituted as the real party in interest
and to vacate all prior orders to the contrary.
Reversed and remanded with instructions.
STATON, J., and KIRSCH, J., concur.
order was July 20, 1995.
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