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City of Terre Haute v. Bass Enterprises, LLC, and VCA, LLC (mem. dec.)
84A01-1512-MI-2185
Ind. Ct. App.
Nov 4, 2016
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Background

  • Bass Enterprises, LLC and VCA, LLC (Owners) own a rental house in Terre Haute; tenant (Codi Evans) accrued unpaid sewer charges of $988.88 covering Feb 1, 2013–Oct 17, 2014.
  • The City of Terre Haute sent a "Notice to Property Owner" on April 10, 2015 (Owners received it April 20, 2015) threatening a lien if unpaid; Owners had not previously been notified and had not provided the utility a forwarding address.
  • Owners filed for a temporary restraining order and declaratory judgment on April 21, 2015 to prevent a sewer lien; the trial court granted declaratory relief prohibiting the City from placing a lien.
  • The statutory question centered on Indiana Code § 36-9-23-32(c), which was amended effective July 1, 2014 to remove a requirement that non-occupant owners first provide the utility written notice of an address before the utility must send delinquency notice.
  • The City argued the trial court improperly applied the amended (post–July 1, 2014) statute to fees that accrued partly before that effective date (i.e., asserted improper retroactive application).
  • The court considered when the balance was fully accrued and when the City attempted to file a lien (April 2015) to determine which statute applied.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the trial court erred by applying the amended § 36-9-23-32(c) instead of the prior version Owners: The statute in effect when the City attempted to file the lien controls; City failed to provide the required notice under the current statute City: The earlier statute should apply because delinquent fees accrued before the amendment, so applying the amendment is retroactive Court: No error—apply the statute in effect when the balance was fully accrued and when City sought to file the lien (post-amendment); City did not provide the required notice under the current statute

Key Cases Cited

  • Pinnacle Properties Dev. Grp., LLC v. City of Jeffersonville, 893 N.E.2d 726 (Ind. 2008) (explains statutory scheme for municipal sewer liens and enforcement mechanisms)
  • Robinson v. Valladares, 738 N.E.2d 278 (Ind. Ct. App. 2000) (statutory retroactivity depends on legislative intent)
  • Chesnut v. Roof, 665 N.E.2d 7 (Ind. Ct. App. 1996) (presumption against retrospective application of statutes absent clear legislative intent)
  • Gosnell v. Ind. Soft Water Serv., 503 N.E.2d 879 (Ind. 1987) (discusses prospective application of statutes)
Read the full case

Case Details

Case Name: City of Terre Haute v. Bass Enterprises, LLC, and VCA, LLC (mem. dec.)
Court Name: Indiana Court of Appeals
Date Published: Nov 4, 2016
Docket Number: 84A01-1512-MI-2185
Court Abbreviation: Ind. Ct. App.