Indy Auto Man, LLC v. Keown & Kratz, LLC, and Dustin Stohler
84 N.E.3d 718
| Ind. Ct. App. | 2017Background
- Indy Auto Man, LLC (IAM) was sued by customers over vehicle purchases and retained attorney Dustin Stohler, who was affiliated with Keown & Kratz, LLC (K&K) as "of counsel."
- Stohler abandoned his duties; he failed to respond to discovery and a motion for default, resulting in a default judgment (including treble damages) against IAM.
- IAM later hired new counsel who settled the default judgments for reduced amounts and then sued K&K and Stohler for legal malpractice.
- K&K filed for summary judgment arguing it owed no duty to IAM because IAM was not the firm’s client and any agency was limited to Stohler’s role; K&K also asserted a counterclaim for attorney fees.
- The trial court granted summary judgment for K&K on IAM’s malpractice claims and for IAM on K&K’s fee counterclaim, but did not adjudicate claims against Stohler and did not include the Trial Rule 56(C) "magic language."
- IAM appealed; the Court of Appeals concluded the summary-judgment order was not a final, appealable judgment and dismissed the appeal for lack of jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court s summary-judgment order was final and appealable | IAM treated the summary-judgment ruling for K&K as appealable and argued merits (genuine issues of fact exist) | K&K proceeded as if its summary judgment was dispositive; jurisdictional issue not addressed by parties | Order was not final because it disposed of claims as to only one of two defendants and lacked Trial Rule 56(C) "no just reason for delay" language; appeal dismissed for lack of jurisdiction |
| Whether K&K owed a duty of care to IAM (merits of malpractice claim) | IAM contended K&K could be liable for malpractice arising from Stohler s conduct | K&K argued IAM was not the firm s client and any agency with Stohler was limited, so no duty | Court did not reach the merits due to lack of appellate jurisdiction over non-final order |
Key Cases Cited
- In re Estate of Botkins, 970 N.E.2d 164 (Ind. Ct. App. 2012) (discussing final-judgment requirement and appellate jurisdiction)
- Front Row Motors, LLC v. Jones, 5 N.E.3d 753 (Ind. 2014) (appellate jurisdiction governs appeals from final judgments)
- Georgos v. Jackson, 790 N.E.2d 448 (Ind. 2003) (parties and trial court cannot confer jurisdiction over non-appealable orders)
- Martin v. Amoco Oil Co., 696 N.E.2d 383 (Ind. 1998) (requiring strict compliance with Trial Rule 54(B) to render partial judgments final)
- Bueter v. Brinkman, 776 N.E.2d 910 (Ind. Ct. App. 2002) (definition of final judgment)
- In re D.J., 68 N.E.3d 574 (Ind. 2017) (timeliness of notice of appeal vs. appellate jurisdiction)
