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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  2. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

  3. While this right is guaranteed by our Constitution, it has in recent years been hampered by insurance companies, i.e.; the practice of the plaintiff's own insurance company intervening in an action and filing a lien against any proceeds paid to their insured. In essence, causing an additional financial hurdle for a plaintiff to overcome at trial in terms of overall award. In a very real sense an injured party in exercise of their right to trial by jury may be the only party in a cause that would end up with zero compensation.

  4. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

  5. This article proved very enlightening. Right ahead of sitting the LSAT for the first time, I felt a sense of relief that a score of 141 was admitted to an Indiana Law School and did well under unique circumstances. While my GPA is currently 3.91 I fear standardized testing and hope that I too will get a good enough grade for acceptance here at home. Thanks so much for this informative post.

ADVERTISEMENT