COA upholds eviction action

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A trial court properly treated a couple's action against the man who agreed to purchase a house from them as an eviction, the Indiana Court of Appeals concluded. The court also analyzed for the first time the nature and effect of a pre-closing possession agreement like the one in the instant case.

In Frank Chiprean v. Brody and Lacy Stock, No. 48A04-0907-CV-389, Frank Chiprean appealed the $6,000 judgment against him in favor of the Stocks. Chiprean executed a purchase agreement for a house owned by the Stocks and completion of the sale was contingent upon Chiprean getting a mortgage to buy the house. The parties also entered into an agreement that allowed Chiprean to take possession of the home and make monthly payments to the Stocks. He also agreed to accept the property in its current condition with no further responsibility to the seller for maintenance or repair and didn't have an inspection done of the home.

While living there, part of the roof collapsed, which caused Chiprean to only be able to live in a small part of the home. He stopped making payments even though the Stocks had made arrangements to have the roof repaired.

The Stocks then filed a small claims action to evict Chiprean; Chiprean filed a counterclaim to recover his $5,000 deposit. The trial court entered judgment in favor of the Stocks and denied Chiprean's counterclaim.

Chiprean argued on appeal that the trial court should have foreclosed his interest in the property, but he waived that argument because he never requested the property be foreclosed. Citing Skendzel v. Marshall, 261 Ind. 226, 301 N.E.2d 641 (1973), the appellate court noted there must be a "consummated" land sale contract with respect to a piece of land and that didn't happen here because completion was contingent upon Chiprean getting financing.

The possession agreement also appears to be more in the nature of a lease than a land sale contract, wrote Judge Michael Barnes, noting the court couldn't find any Indiana cases analyzing the nature and effect of a pre-closing possession agreement like this one.

"We reviewed one case from New York wherein the court held that payments made under a pre-closing possession agreement did not create an equitable interest in the property because there was a lack of 'clear intent between the parties that such property be held, given or transferred as security for an obligation . . . .,'" he wrote. "We conclude that there likewise is a lack of such clear intent in this case."

There's nothing in either agreement indicating that the monthly payments were intended to pay down the contract balance owed to the Stocks. The agreements don't constitute a land sale contract or reflect intent by the parties that Chiprean have an equitable interest in the property, and he's not entitled to the benefit for foreclosure proceedings, wrote the judge.

The appellate court also upheld the denial of Chiprean's counterclaim, ruling he wasn't permitted to avoid liability for payments under the possession agreement, despite his argument the house was largely unlivable after the roof collapsed.


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  1. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  2. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  3. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.

  4. rensselaer imdiana is doing same thing to children from the judge to attorney and dfs staff they need to be investigated as well

  5. Sex offenders are victims twice, once when they are molested as kids, and again when they repeat the behavior, you never see money spent on helping them do you. That's why this circle continues