Tacco Falcon Point, Inc. v. Atlantic Ltd. Partnership XII
2010 Ind. App. LEXIS 2167
| Ind. Ct. App. | 2010Background
- TacCo Falcon Point, Inc. appeals a trial court ruling deeming the Indiana Consent Judgment satisfied.
- Consent Judgment arose from a 1999 mortgage foreclosure; Inland Mortgage Company sought satisfaction against Clapper Parties, ART Country Squire, LLC, and ART.
- ART negotiated a Settlement Agreement in 2002, paying and crediting funds to extinguish the judgment and designate TacCo as purchaser.
- TacCo was formed March 1, 2002; Inland issued an Assignment of Judgment to TacCo in March 2002.
- ART allegedly funded the purchase of the judgment through TacCo and Inland, with TacCo acting as a strawman for ART; various proceedings occurred in Texas, Michigan, and Indiana.
- The trial court granted the Clapper Parties’ motion for satisfaction, TacCo appealed, and the Indiana Court of Appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata barred the satisfaction ruling | TacCo argues previous decisions resolved the strawman issue | Clapper Parties argue issue decided in prior fora | No res judicata; no prior merits decision on strawman issue. |
| Whether the judgment was satisfied by ART’s payment via TacCo | TacCo contends TacCo paid; ART undisputedly bound | ART funded payment and TacCo merely held assignee status | Judgment deemed satisfied; ART paid and TacCo designated as purchaser. |
Key Cases Cited
- Zimmerman v. Gaumer, 53 N.E.829 (Ind. 1899) (payment by liable party satisfies judgment despite assignment)
- Montgomery v. Vicory, 11 N.E.38 (Ind. 1887) (payment by obligor ends liability despite assignment)
- Lillie v. Dennert, 232 F.1 (6th Cir.1916) (assignment does not prevent satisfaction when payment by obligor occurs)
- Essary v. Chicago & North Western Transp. Co., 618 F.2d 13 (7th Cir.1980) (precludes res judicata based on administrative decision whether merits were reached)
- Reising v. Guardianship of Reising, 852 N.E.2d 644 (Ind.Ct.App.2006) (final judgments dispose of subject matter as to parties with power to dispose)
- Merkor Mgmt. v. McCuan, 728 N.E.2d 209 (Ind.Ct.App.2000) (standard for relief from judgment under Rule 60(B)(7))
- Zaremba v. Nevarez, 898 N.E.2d 459 (Ind.Ct.App.2008) (abuse of discretion standard on Rule 60(B) motion)