943 N.E.2d 394
Ind. Ct. App.2011Background
- Walsh & Kelly appeals a trial court judgment favoring Signature on two claims: lack of full indemnity under Signature's collateral assignment and Walsh's slander of title against Signature.
- Signature obtained a collateral assignment from International's principal (Waldo) to secure payment for International's failure to pay Walsh, but Walsh had not been paid in full on the underlying contract.
- Walsh filed a mechanic’s lien on undeveloped Signature lots; Signature demanded release after paying International, which Walsh refused, prompting litigation.
- Interim rulings included partial summary judgment in Signature’s favor regarding the illegality/deftness of the lien, and Walsh’s continued pursuit of foreclosure.
- The bench trial in 2010 concluded Signature suffered slander of title and damages, and that the collateral assignment did not fully indemnify Signature for Walsh’s lien losses.
- On appeal, the court affirmed, holding the collateral agreement did not fully indemnify Signature and Walsh liable for slander of title.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Signature's collateral assignment fully indemnify? | Walsh argues the collateral agreement fully indemnifies Signature. | Walsh contends Signature bears no remaining pecuniary loss. | Collateral assignment not full indemnity |
| Was Walsh liable for slander of title? | Walsh disputes liability for false, malicious lien statements. | Walsh asserts not liable due to lack of malice or falsity. | Walsh liable for slander of title |
Key Cases Cited
- Davis v. Sponhauer, 574 N.E.2d 292 (Ind.Ct.App.1991) (elements of slander of title; pecuniary loss required)
- Lee and Mayfield, Inc. v. Lykowski House Moving Engineers, Inc., 489 N.E.2d 603 (Ind.Ct.App.1986) (malice may be inferred from knowingly filing unfounded liens)
- Freiburger v. Fry, 439 N.E.2d 169 (Ind.Ct.App.1982) (reckless disregard shown when proper investigation is ignored)
- INS Investigations Bureau, Inc. v. Lee, 784 N.E.2d 566 (Ind.Ct.App.2003) (windfall/double recovery considerations in indemnity contexts)
- Pardue v. Perdue Farms, Inc., 925 N.E.2d 482 (Ind.Ct.App.2010) (standard of review and deference to trial court credibility)