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