ILNews

COA affirms use of equitable subrogation

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals affirmed the trial court’s decision to award title over a disputed piece of property, but reversed regarding the order the defendant pay the plaintiff’s attorney fees.

Lori Eifrid filed claims against Daniel Millikan for foreclosure, specific performance and promissory estoppel regarding a certain parcel of real property. The trial court applied the doctrine of equitable subrogation and awarded the property to Eifrid.

The property in question is a parcel of land directly to the south of Eifrid’s parcel (Parcel A), which is referred to as the Triangle. Without it, Eifrid’s ingress and egress to the cul-de-sac is effectively prevented. Millikan owns property adjacent to Eifrid’s property.

In 2001, Millikan’s brother executed a warranty deed transferring and conveying Eifrid’s parcel and the Triangle to Roger Maxey. Those two pieces were identified as single parcels of property. Maxey got a mortgage on those properties. Maxey agreed to swap with Millikan the Triangle for a 4-foot-wide strip of land just east of Parcel A.  Eventually, Maxey executed a warranty deed in lieu of foreclosure in favor of the Secretary of Veterans’ Affairs on Parcel A and the Triangle, which then sold the property to Eifrid in 2006. She was given a deed that said Parcel A and the Triangle were a single tract, so she believed she was buying land that included access to the cul-de-sac.

Eifrid learned of the issues caused by the attempted “swap” of the properties between Millikan and Maxey when she received notice that a mortgage company was seeking to foreclose on the strip, which is a 4-foot-wide strip of land directly east of Parcel A. She sought to foreclose on the mortgage on the strip, and she purchased the land at a sheriff’s sale. She then filed her complaint of foreclosure, specific performance and promissory estoppel against Millikan for a determination that her legal title to the Triangle is superior to any right, title or interest Millikan might claim and that Millikan exchange the Triangle for the strip of land.

The trial court originally gave Millikan clear title to the Triangle and Eifrid title to the strip. She filed a motion to correct error, which the trial court granted. It then ruled in favor of Eifrid and awarded her legal title of the Triangle. It also ordered Millikan pay Eifrid’s attorney fees even though it did not find he committed fraud.

In Daniel P. Millikan v. Lori A. Eifrid, No. 92A03-1109-PL-433, the COA affirmed, finding the trial court did not err in determining that the doctrine of equitable subrogation applied in these circumstances. There is no showing that Eifrid or the SVA are culpably negligent in failing to discover the improper swap of the property, wrote Judge John Baker.

The trial court did abuse its discretion in ordering Millikan to pay Eifrid’s attorney fees because it did not find Millikan committed fraud or conversion and there’s no statement that Millikan was litigating the matter in bad faith. The judges remanded with instructions to vacate the award of attorney fees.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Bill Satterlee is, indeed, a true jazz aficionado. Part of my legal career was spent as an associate attorney with Hoeppner, Wagner & Evans in Valparaiso. Bill was instrumental (no pun intended) in introducing me to jazz music, thereby fostering my love for this genre. We would, occasionally, travel to Chicago on weekends and sit in on some outstanding jazz sessions at Andy's on Hubbard Street. Had it not been for Bill's love of jazz music, I never would have had the good fortune of hearing it played live at Andy's. And, most likely, I might never have begun listening to it as much as I do. Thanks, Bill.

  2. The child support award is many times what the custodial parent earns, and exceeds the actual costs of providing for the children's needs. My fiance and I have agreed that if we divorce, that the children will be provided for using a shared checking account like this one(http://www.mediate.com/articles/if_they_can_do_parenting_plans.cfm) to avoid the hidden alimony in Indiana's child support guidelines.

  3. Fiat justitia ruat caelum is a Latin legal phrase, meaning "Let justice be done though the heavens fall." The maxim signifies the belief that justice must be realized regardless of consequences.

  4. Indiana up holds this behavior. the state police know they got it made.

  5. Additional Points: -Civility in the profession: Treating others with respect will not only move others to respect you, it will show a shared respect for the legal system we are all sworn to protect. When attorneys engage in unnecessary personal attacks, they lose the respect and favor of judges, jurors, the person being attacked, and others witnessing or reading the communication. It's not always easy to put anger aside, but if you don't, you will lose respect, credibility, cases, clients & jobs or job opportunities. -Read Rule 22 of the Admission & Discipline Rules. Capture that spirit and apply those principles in your daily work. -Strive to represent clients in a manner that communicates the importance you place on the legal matter you're privileged to handle for them. -There are good lawyers of all ages, but no one is perfect. Older lawyers can learn valuable skills from younger lawyers who tend to be more adept with new technologies that can improve work quality and speed. Older lawyers have already tackled more legal issues and worked through more of the problems encountered when representing clients on various types of legal matters. If there's mutual respect and a willingness to learn from each other, it will help make both attorneys better lawyers. -Erosion of the public trust in lawyers wears down public confidence in the rule of law. Always keep your duty to the profession in mind. -You can learn so much by asking questions & actively listening to instructions and advice from more experienced attorneys, regardless of how many years or decades you've each practiced law. Don't miss out on that chance.

ADVERTISEMENT