A dissolved corporation that did not object sooner cannot now demand payment on an old debt, the Indiana Court of Appeals has ruled.
Memory Gardens Management Corp., a wholly-owned subsidiary of Ansure Mortuaries of Indiana LLC, faltered financially and went into receivership. Under the authorization of the Receivership Court, the assets of Ansure were liquidated while MGMC wound down and dissolved.
Nearly three years after MGMC’s dissolution, the sole shareholder of Ansure and MGMC filed a complaint against Liberty Equity Partners LLC and Old Bridge Funeral Home LLC for nonpayment of a $450,000 loan made in 2006.
The Old Bridge parties countered by filing a motion for summary judgment.
Marion Superior Court granted summary judgment, finding, in part, since none of the MGMC parties filed an objection to the receiver’s inventory and final report, MGMC is forever barred from its claim as to the $450,000 demand note.
On appeal, MGMC asserted the demand note was never included in the receiver’s final report. Therefore, MGMC was not under obligation to object.
The Court of Appeals disagreed. It affirmed the summary judgment in Memory Gardens Management Corp. Inc. v. Liberty Equity Partners, LLC, and Old Bridge Funeral Home, LLC, 49A02-1501-CC-1.
It noted the receiver was ordered to take control of MGMC and its assets which would have included the demand note. Moreover, the receiver was vested with the power to collect all debts, and the demand note would have been collectible.
Echoing the trial court, the Court of Appeals found MGMC did not object to either the absence of the demand note in the receiver’s final report or the receiver’s failure to collect the demand note. Consequently MGMC’s claims under the demand note are barred.