Lucas v. U.S. Bank, N.A.
2011 Ind. LEXIS 786
| Ind. | 2011Background
- Foreclosure action filed by U.S. Bank on property; Lucases asserted numerous defenses and counterclaims against Bank and third-party claims against Litton; Bank claimed default on loan and sought foreclosure; Lucases sought jury trial on legal claims; trial court struck jury demand, holding claims were equitable; Court of Appeals reversed, ordering jury trial on legal claims; Indiana Supreme Court granted transfer to decide jury-right under Songer framework; majority holds core issues are intertwined with foreclosure and equity applies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether foreclosure invokes equity and subsumes legal claims | Lucases: claims are separable legal rights | U.S. Bank: foreclosure is essentially equitable and subsumes related claims | Equity subsumes the core legal claims under Songer framework |
| Whether Lucases are entitled to a jury trial on any legal claims | Lucases seek jury for legal claims | Bank argues no jury where equity controls | No; equity took jurisdiction over essential features, no jury for those claims |
| What is the proper Songer-based analysis to determine overlap | Lucases: use case-by-case distinct/severable test | Bank: focus on overlap with foreclosure | Court applies Songer factors (substance, rights, relief) to assess overlap; if significantly intertwined, equity controls |
Key Cases Cited
- Songer v. Civitas Bank, 771 N.E.2d 61 (Ind. 2002) (establishes the equitable clean-up doctrine and testing)
- Carmichael v. Adams, 91 Ind. 526 (1883) (closely blended questions: no severance)
- Towns v. Smith, 115 Ind. 480, 16 N.E. 811 (1888) (when one claim is equitable, the legal claim may be drawn into equity)
- Field v. Brown, 146 Ind. 293, 45 N.E. 464 (1896) (equity determines the whole controversy when essential features lie in equity)