Court finds fax to be a contract

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The Indiana Court of Appeals affirmed summary judgment in favor of a landlord in his breach of lease claims against the Indiana Bureau of Motor Vehicles, finding a faxed agreement amending the original terms of the lease constituted a contract.

In Indiana Bureau of Motor Vehicles c/o Joel L. Silverman, commissioner v. Ash, Inc., No. 74A01-0711-CV-518, the BMV appealed the grant of summary judgment and damages award of $95,854.40 plus interest at 8 percent per annum to Ash, Inc. The BMV argued a fax sent to Ash modifying the terms of the original lease didn't constitute a contract, so the BMV wasn't bound by it.

The BMV leased two buildings from Ash in southern Indiana. Under the terms of the lease agreement, the BMV could terminate the lease with a 60-day notice to Ash and any modifications of the lease must be written and signed by both the BMV and Ash.

In January 2003, the BMV's leasing director faxed to Ash's owner, George "Butch" Crone, proposed modifications of the lease asking Crone to create parking spaces and an ADA-compliant ramped walkway at its Mount Vernon location, and make other improvements to the Mount Vernon and Rockport locations. The modification also said after the work was completed the cancellation term in the original lease would be removed.

Crone faxed the document to the leasing director, writing "I accept the above conditions" and signed his name. Crone completed the work and two years later, the BMV notified him they would be terminating the leases under the original cancellation term in the contract.

The BMV argued the January 2003 fax between the leasing director and Ash didn't constitute a contract, so it could cancel its lease with 60-days notice as under the original contract. The Court of Appeals ruled the fax was binding because it was in writing, both the BMV's leasing agent and Crone signed the fax, and the Statute of Frauds doesn't apply in this case, wrote Judge Carr Darden. As such, the cancellation term was no longer available to the BMV.

Even if the fax wasn't considered a contract, Ash would still be entitled to summary judgment under the doctrine of promissory estoppel, the judge continued.

The appellate court also affirmed the trial court denial of future damages to Ash because Crone failed to prove at trial what his future damages would be. The Court of Appeals remanded to the trial court to reduce the interest on the judgment from 8 percent to 6 percent pursuant to Indiana statute.


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  1. This is ridiculous. Most JDs not practicing law don't know squat to justify calling themselves a lawyer. Maybe they should try visiting the inside of a courtroom before they go around calling themselves lawyers. This kind of promotional BS just increases the volume of people with JDs that are underqualified thereby dragging all the rest of us down likewise.

  2. I think it is safe to say that those Hoosier's with the most confidence in the Indiana judicial system are those Hoosier's who have never had the displeasure of dealing with the Hoosier court system.

  3. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  4. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  5. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.