Lock Realty Corporat v. U.S. Health, LP
2013 U.S. App. LEXIS 2877
| 7th Cir. | 2013Background
- 20-year nursing home lease from Lock Realty IX to U.S. Health, later assigned to Americare without Lock's consent.
- Two related lawsuits (Lock I and Lock II) arising from breach, remedies, and collection efforts.
- District court: initial judgments, fee awards, and post-judgment proceedings spanning years.
- Americare and U.S. Health appealed; district court rulings on expert testimony, damages, and setoff challenged.
- Appellate court exercises jurisdiction over three intertwined appeals and affirms all district court rulings.
- Overall, the court holds no reversible error and affirms the judgments in all three appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Daubert admissibility of Tipton’s testimony | Lock: Tipton reliable; bases valid under Indiana practice | Americare: Tipton unreliable and methods flawed | Tipton excluded; no reversible error in denial of further evidence |
| Future rent damages and summary judgment | Lock: sufficient evidence to prove $6,092,153 | Americare: should be denied due to unreliable evidence | No genuine issue; court denied summary judgment on that figure |
| Setoff defense admissibility and discovery | Lock: setoff waived, discovery not needed | Americare: setoff timely and discovery permissible | Court allowed setoff defense; no abuse of discretion |
| Admission of Maher’s affidavit for fees | Lock: affidavit admissible; rates supported | Americare: challenges to credibility | Affidavit admissible under Rule 602; proper for fee determination |
| Reasonableness and amount of attorneys’ fees | Lock: fees reasonable given outcome; lodestar supported | Americare: fee award excessive given partial success | District court’s fee award affirmed; no abuse of discretion |
Key Cases Cited
- Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (U.S. 1993) (admissibility standards for expert testimony)
- Bogard v. Wright, 159 F.3d 1060 (7th Cir. 1998) (treating post-judgment proceedings as standalone actions)
- Carver v. Condie, 169 F.3d 469 (7th Cir. 1999) (timeliness and scope of appellate review in related matters)
- Curtis v. Timberlake, 436 F.3d 709 (7th Cir. 2005) (affirmative defenses timeliness and prejudice considerations)
- Pickett v. Sheridan Health Care Ctr., 664 F.3d 632 (7th Cir. 2011) (attorney’s fees; reasonableness and deference to district court)
- State v. Bishop, 800 N.E.2d 918 (Ind. 2003) (three methods of fair market value assessment for property)
- Scott-Reitz Ltd. v. Rein Warsaw Assoc., 658 N.E.2d 98 (Ind. Ct. App. 1995) (citations on valuation methods for property)