ILNews

Couple not a 'successful party' in settlement

Back to TopCommentsE-mailPrintBookmark and Share

Despite a lack of Indiana caselaw addressing the use of the term "successful party" for an award of attorney fees after a settlement, the Indiana Court of Appeals deemed the term interchangeable with the term "prevailing party."

In Francisco and Alisa Delgado v. Peter Boyles, et al., No. 64A04-0911-CV-657, the Delgados appealed the denial of their request for attorney fees following a settlement on a failed real estate transaction with Peter Boyles. They claimed per the provisions of their vacant land purchase agreement, they were the "successful party" under the terms of the agreement and should be able to recoup attorney fees.

As part of the agreement, it said "If either party sues the other to collect said damages, the unsuccessful party shall be obligated to pay the successful party's reasonable costs and attorney fees as part of any judgment recovered ..."

The Delgados failed to secure financing to purchase the land, so they sought the return of their $5,000 earnest money and attorney fees. Boyles counterclaimed for more than $30,000 in damages and attorney fees per the agreement.

A settlement was reached returning the $5,000 to the Delgados, with the parties submitting briefs on attorney fees. The trial court concluded that because there was no judgment recovered in the case, there was no prevailing party, so no attorney fees could be awarded under the agreement.

There isn't a case addressing the application of a contractual characterization of a "successful party" to an award of attorney fees, but Indiana has repeatedly ruled on the issue regarding the prevailing party. The prevailing party in the context of attorney fees is the one who successfully prosecutes his or claim or asserts his defense, so there is no difference in the meaning of the two terms.

Relying on Daffron v. Snyder, 854 N.E.2d 52, 53 (Ind. Ct. App. 2006), and Reuille v. E.E. Brandenberger Construction Inc., 888 N.E.2d 770 (Ind. 2008), the Court of Appeals affirmed the lower court's decision that the Delgados can't be considered the prevailing party under the vacant land purchase agreement. The Delgados' land agreement didn't define what constituted a successful party.

"Moreover, in the absence of a contractual definition of prevailing or successful party and a trial on the merits, as in Reuille, we conclude that litigation which is resolved by mediation or private settlement cannot result in a winner or loser," wrote Judge Patricia Riley.

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
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I have dealt with more than a few I-465 moat-protected government attorneys and even judges who just cannot seem to wrap their heads around the core of this 800 year old document. I guess monarchial privileges and powers corrupt still ..... from an academic website on this fantastic "treaty" between the King and the people ... "Enduring Principles of Liberty Magna Carta was written by a group of 13th-century barons to protect their rights and property against a tyrannical king. There are two principles expressed in Magna Carta that resonate to this day: "No freeman shall be taken, imprisoned, disseised, outlawed, banished, or in any way destroyed, nor will We proceed against or prosecute him, except by the lawful judgment of his peers or by the law of the land." "To no one will We sell, to no one will We deny or delay, right or justice." Inspiration for Americans During the American Revolution, Magna Carta served to inspire and justify action in liberty’s defense. The colonists believed they were entitled to the same rights as Englishmen, rights guaranteed in Magna Carta. They embedded those rights into the laws of their states and later into the Constitution and Bill of Rights. The Fifth Amendment to the Constitution ("no person shall . . . be deprived of life, liberty, or property, without due process of law.") is a direct descendent of Magna Carta's guarantee of proceedings according to the "law of the land." http://www.archives.gov/exhibits/featured_documents/magna_carta/

  2. I'm not sure what's more depressing: the fact that people would pay $35,000 per year to attend an unaccredited law school, or the fact that the same people "are hanging in there and willing to follow the dean’s lead in going forward" after the same school fails to gain accreditation, rendering their $70,000 and counting education worthless. Maybe it's a good thing these people can't sit for the bar.

  3. Such is not uncommon on law school startups. Students and faculty should tap Bruce Green, city attorney of Lufkin, Texas. He led a group of studnets and faculty and sued the ABA as a law student. He knows the ropes, has advised other law school startups. Very astute and principled attorney of unpopular clients, at least in his past, before Lufkin tapped him to run their show.

  4. Not that having the appellate records on Odyssey won't be welcome or useful, but I would rather they first bring in the stray counties that aren't yet connected on the trial court level.

  5. Aristotle said 350 bc: "The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of an modes of getting wealth this is the most unnatural.

ADVERTISEMENT