Destination Yachts, Inc., and Sheldon Graber v. Jim R. Fine
22 N.E.3d 611
| Ind. Ct. App. | 2014Background
- Fine bought a houseboat from Destination Yachts and sued (small claims) alleging roof delamination and unpaid warranty repairs; initial claim named Sheldon Graber individually and later was amended to add Destination Yachts, Inc.
- The claim sought $6,000 plus materials; Small Claims Rule 8(C)(3) requires corporate parties to be represented by counsel when claims exceed $1,500.
- At the November hearing Fine appeared in person (traveled from Las Vegas); Graber appeared pro se and said his counsel had told him he did not need to attend.
- The court informed Graber a corporation must be represented by counsel; Fine declined to waive that requirement and the court denied a continuance to allow corporate counsel to appear.
- The court entered judgment against Destination for $6,000 without taking testimonial evidence; Destination and Graber later obtained counsel, moved to correct error, and appealed after the trial court denied relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court abused its discretion by denying a continuance when the corporation appeared without counsel | Fine argued denial was proper because he traveled far and the rule requires corporations to have counsel | Destination/Graber argued they were confused by amendment and counsel had previously advised no appearance; they requested a continuance to obtain counsel | Court held denial was an abuse of discretion and reversed and remanded for further proceedings |
Key Cases Cited
- Thurman v. Thurman, 777 N.E.2d 41 (Ind. Ct. App. 2002) (if appellee does not brief, court may reverse for prima facie error)
- Van Wieren v. Van Wieren, 858 N.E.2d 216 (Ind. Ct. App. 2006) (definition of prima facie error)
- Evans v. Thomas, 976 N.E.2d 125 (Ind. Ct. App. 2012) (continuance denied is abuse of discretion if good cause shown; consider deprivation of counsel at crucial stage)
- Yogi Bear Membership Corp. v. Stalnaker, 571 N.E.2d 331 (Ind. Ct. App. 1991) (corporate litigant should be given opportunity on remand to retain counsel before dismissal)
- Christian Bus. Phone Book, Inc. v. Indianapolis Jewish Cmty. Relations Council, 576 N.E.2d 1276 (Ind. Ct. App. 1991) (dismissal is disfavored; corporate party must be allowed to retain counsel)
- Sears v. Blubaugh, 613 N.E.2d 468 (Ind. Ct. App. 1993) (trial court must allow corporate party opportunity to rectify lack of counsel rather than enter default)