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Thursday, October 15, 2009

Ind. Decisions - Supreme Court issues a 2nd opinion today

In Keith Myers v. Wesley C. Leedy, a 13-page, 2-opinion decision, Justice Rucker writes:

This case presents the question of whether a tenant's leasehold interest in property survives a land contract vendee's forfeiture when the tenant is not made a party to the forfeiture action and the vendor has actual knowledge that the tenant is in possession of the property. We conclude that in this case the tenant's leasehold interest survives. * * *

In this case of first impression we hold that where at the time a land contract vendor files suit seeking forfeiture it knows, or upon reasonable diligence should have known, that a tenant is in possession of the property, the tenant's leasehold interest survives the forfeiture action unless the tenant is made a party to the forfeiture litigation. Consistent with this holding the trial court entered judgment in favor of the tenant Leedy. We affirm the judgment of the trial court.

Dickson and Boehm, JJ., concur.
Shepard, C.J., concurs in result with separate opinion in which Sullivan, J., concurs. [CJ Shepard's concurring in result opinion begins, at p. 12] What we have here is an appeal involving a contract sale of 200 acres and a single tenant-farmer in a rural area. The court has used this case to alter the property interests of owners and lenders in billions of dollars of commercial and industrial real estate. There is no need for this sort of sua sponte expansiveness. * * *

[and concludes] I perceive that today's ruling is not really consonant with prevailing national doctrine on mortgages, but would put off that debate until such moment as we might have before us parties like mortgage lenders and owner/mortgagors of apartment buildings, shopping centers, or other commercial or industrial real estate whose world is being altered by today's declaration.

Posted by Marcia Oddi on October 15, 2009 04:05 PM
Posted to Ind. Sup.Ct. Decisions