Gabriel v. Gabriel
2011 Ind. App. LEXIS 722
| Ind. Ct. App. | 2011Background
- Gabe's Pizza, Inc. was incorporated in 1969 with 1000 authorized shares; Gene and Loretta initially held 550 shares and Donahue family held 450.
- Gene and Loretta later acquired Donahues' stock, becoming the sole shareholders; Tony operated the restaurant after Gene fell ill in 1998.
- Gene died in 1998; no writing showed a transfer of stock to Tony and Loretta continued to manage the business and sign checks.
- Tony claimed ownership and was listed as president on subsequent business entity reports; Loretta remained an officer and managed finances for years.
- Loretta petitioned to determine heirs in 2008; Joni (Tony’s widow) sought to intervene and assert Tony owned Gabe's Pizza at his death; the trial court found no transfer evidence and treated the estate under intestate rules.
- The trial court distributed Gene's estate half to Loretta and one-tenth to each of Gene's heirs, finding Tony did not own the stock at Gene’s death; the court remanded for further allocation of stock and assets.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Stock transfer proof required | Joni: transfer occurred; Tax returns show ownership | Loretta: no transfer evidenced by writing | Transfer not proven; no writing shown |
| Laches apply to bar claim | Loretta delay harmed Tony’s heirs | Loretta acted timely upon discovery | Laches not applicable; court rejected delay as prejudice evidence |
| Six-year statute of limitations | Loretta’s action timed as a property-recovery claim | Action not for personal property; heirship is not time-barred | STAT not bar; petition to determine heirs allowed under 29-1-6-6(a) |
| Dead Man's Statute applicability | Loretta should be barred from testifying about Tony’s estate | Testimony allowed as not adverse to Tony's estate | Court properly allowed Loretta to testify; not a death-death adversarial scenario |
| Distribution of stock and assets | Loretta may own all or majority based on survivorship or tenancy in common | Unclear ownership at Gene’s death; need further evidence | Remand for evidence and to determine proper distribution among Loretta and heirs |
Key Cases Cited
- Atterholt v. Robinson, 872 N.E.2d 633 (Ind.Ct.App.2007) (standard for reviewing findings of fact; deference to trial court)
- Whitehouse v. Quinn, 477 N.E.2d 270 (Ind.1985) (determine nature of action; stat limitations rely on substance)
- In re Paternity of P.W.J., 846 N.E.2d 752 (Ind.Ct.App.2006) (laches analysis elements)
- Lowry v. Lowry, 590 N.E.2d 612 (Ind.Ct.App.1992) (laches requires inexcusable delay and prejudice)
- Senff v. Estate of Levi, 515 N.E.2d 556 (Ind.Ct.App.1987) (Dead Man's statute and admission of testimony against estate)
- Haskett v. Haskett, 327 N.E.2d 612 (Ind. Ct. App.1975) (heirship determination and absence of time-barred claims)