Farming dispute creates first impression issue

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In a ruling from the Indiana Supreme Court on an issue of first impression, two of the state's five justices fear a new holding will have far-reaching impact not only on the forfeiture cases at issue, but also mortgage foreclosure cases impacting the commercial and industrial real estate world.

Justices issued a ruling Thursday in Keith Myers v. Wesley C. Leedy, No. 85S02-0808-CV-478, unanimously granting transfer and agreeing in result, but disagreeing on the scope of the ruling issued by the court.

Deciding a Wabash County case, the justices held that a tenant's leasehold interest in a forfeiture action survives when a land contract vendor files suit and knows or should have known that the tenant has possession of the property. Unless of course, that tenant is made a party to pending litigation.

While all five agreed with the end result, Chief Justice Randall T. Shepard and Justice Frank Sullivan issued a concurring opinion that said the majority went too far in issuing a rule that impacts not only forfeiture cases, but also mortgage cases, and the court shouldn't have used this case to "alter the property interests of owners and lenders in billions of dollars of commercial and industrial real estate."

The case involves 200 acres of Fulton County farmland, which Eli John Yoder was buying from Keith Myers in installments. The land included crops that Yoder was supposed to own as soon as the crops came in for the season. Of that total acreage, about 160 acres were tillable soil and Myers then entered a lease agreement with Wesley Leedy to get $100 per acre for the land Leedy was farming. But in late 2004, Myers filed a complaint against Yoder for a breach of the original land sale contract; Leedy wasn't a party to that action. Settlement agreements didn't materialize and Leedy continued farming the property for the 2005 season and the early part of 2006.

Yoder was later found in default of that land sale contract, and the trial court decided his forfeiture of any interest in the property was the most appropriate remedy. When Leedy began farming the property following the court ruling in May 2006, Myers ordered him off the property and then rented the property to someone else for $125 an acre. Claiming damages of $36,760, Leedy filed a complaint against Myers for not allowing him to finish his farming - as the agreement with Yoder would have allowed. The trial court later came back with a judgment in Leedy's favor, finding that Yoder had the right to cash rent the real estate prior to the court ruling and that, since Leedy had started planting in March 2006, his interest survived the later ruling in May - he should have been able to finish the season out, the court ruled.

On appeal, the Indiana Court of Appeals issued a memorandum decision in April 2008 that reversed on grounds the tenancy didn't survive because Leedy had both constructive and actual notice of the breach of contract when he entered into the 2006 lease.

The justices granted transfer and affirmed the trial court, finding that Leedy's property interest wasn't extinguished because he wasn't included in the original breach of land contract action between Myers and Yoder.

But while concurring in result, Chief Justice Shepard and Justice Sullivan disagreed with how far the majority used it to alter the landscape on this issue and even for mortgage foreclosure cases.

"Principles from mortgage foreclosure laws are thus helpful to resolving the present case," the chief justice wrote. "By the same token, the majority makes it quite clear that it intends the legal rule announced in this case to govern future decisions in mortgagor/mortgagee cases, a vastly larger and more complex part of the state's economy."

He continued, "Importing the open-ended idea of equity into the complicated, largely statutory system which governs the massive interests of commercial real estate mortgages, applying it to past and present financial commitments, and declaring that all subordinate unrecorded or informal possessors survive unaffected by foreclosure unless the lender undertakes to obtain service of process on all of them is really quite remarkable.

"I perceive that today's ruling is not really consonant with prevailing national doctrine on mortgages, but would put off that debate until such moment as we might have before us parties like mortgage lenders and owner/mortgagors of apartment buildings, shopping centers, or other commercial or industrial real estate whose world is being altered by today's declaration."


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  1. 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?)

  2. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

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

  4. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  5. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.