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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. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  4. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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