ILNews

Court must consider loss of use when determining damages in a replevin action

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals Tuesday ordered a trial court to factor in the loss of use of a semi-tractor in a replevin action. It emphasized to the lower court that the amount of damages in a replevin action must be limited to a reasonable amount.

Red Husky LLC filed a complaint against the Roy Bayer Trust and trustee Penny Harris seeking replevin of a Kenworth semi-tractor and damages. Red Husky leased the Kenworth to Daniel Bowne and Bowne Transport, but Bowne defaulted on his lease for the Kenworth and stopped paying rent on a building owned by the trust. He abandoned the building, leaving the Kenworth behind. From September 2011 to September 2012, Red Husky tried to retrieve the Kenworth, but Harris refused, believing the trust had a lien against the semi-tractor.

The trial court ruled the trust did not have a valid lien against the semi-tractor and ordered it released. The trial court found Red Husky was entitled to $10,000 in damages due to deterioration during the time Harris refused to release the Kenworth.

“Harris is correct that Red Husky neglected to provide the trial court with a certificate of title to the Kenworth. Nevertheless, we conclude the evidence designated by Red Husky was sufficient to establish its ownership of the Kenworth, and thus the trial court did not err by awarding summary judgment to Red Husky,” Judge Margret Robb wrote in Roy Bayer Trust and Penny Harris v. Red Husky, LLC, 18A02-1307-PL-581. The judges pointed to evidence such as sworn statements claiming ownership, a lease to purchase agreement, and a form filed with the Bureau of Motor Vehicles indicating Red Husky was the lessor of the Kenworth.

They also ruled the $10,000 damages award was supported based on the fair-market value of the Kenworth of $16,000 and that it was sold for $6,000 due to deterioration that occurred while Harris held the semi-tractor for a year.

The COA believed the trial court should have also considered loss of use in its damages award, and ordered the trial court to do so. The judges cited McCready v. Harrison, 1:05-CV-1359-DFH-WTL, 2009 WL 62260 (S.D. Ind. 2009), in which the court held in a replevin action that loss of use damages must be reasonable in relation to the fair-market value of the property.

“We recognize that McCready is not binding precedent, but we believe the rule it espouses is a prudent one and should be considered in determining damages in a replevin action. The amount of damages in a replevin action must be limited to a reasonable amount — both as a general matter and in relation to the fair market value of the property. And although deterioration and loss of use are separate theories of recovery, we believe the total damages award is subject to a requirement of reasonableness,” Robb wrote.

 

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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

  2. Seventh Circuit Court Judge Diane Wood has stated in “The Rule of Law in Times of Stress” (2003), “that neither laws nor the procedures used to create or implement them should be secret; and . . . the laws must not be arbitrary.” According to the American Bar Association, Wood’s quote drives home this point: The rule of law also requires that people can expect predictable results from the legal system; this is what Judge Wood implies when she says that “the laws must not be arbitrary.” Predictable results mean that people who act in the same way can expect the law to treat them in the same way. If similar actions do not produce similar legal outcomes, people cannot use the law to guide their actions, and a “rule of law” does not exist.

  3. Linda, I sure hope you are not seeking a law license, for such eighteenth century sentiments could result in your denial in some jurisdictions minting attorneys for our tolerant and inclusive profession.

  4. Mazel Tov to the newlyweds. And to those bakers, photographers, printers, clerks, judges and others who will lose careers and social standing for not saluting the New World (Dis)Order, we can all direct our Two Minutes of Hate as Big Brother asks of us. Progress! Onward!

  5. My daughter was taken from my home at the end of June/2014. I said I would sign the safety plan but my husband would not. My husband said he would leave the house so my daughter could stay with me but the case worker said no her mind is made up she is taking my daughter. My daughter went to a friends and then the friend filed a restraining order which she was told by dcs if she did not then they would take my daughter away from her. The restraining order was not in effect until we were to go to court. Eventually it was dropped but for 2 months DCS refused to allow me to have any contact and was using the restraining order as the reason but it was not in effect. This was Dcs violating my rights. Please help me I don't have the money for an attorney. Can anyone take this case Pro Bono?

ADVERTISEMENT