Eagle Aircraft, Inc. v. Trojnar

• Decision Date: 28 February 2013
• Docket Number: No. 64A04–1207–SC–386.,64A04–1207–SC–386.
• Parties: EAGLE AIRCRAFT, INC., Appellant, v. Anthony TROJNAR, Appellee.
• Court: Indiana Appellate Court

983 N.E.2d 648

EAGLE AIRCRAFT, INC., Appellant,

v.Anthony TROJNAR, Appellee.

No. 64A04–1207–SC–386.

Court of Appeals of Indiana.

Feb. 28, 2013.

Megan L. Craig, John R. Craig, Craig, Craig & Maroc, LLC, Crown Point, IN, Attorneys for Appellant.

OPINION

BROWN, Judge.

Eagle Aircraft, Inc. (“Eagle Aircraft”) appeals the small claims judgment in favor of Anthony Trojnar and order denying in part its motion to correct errors. Eagle Aircraft raises three issues on appeal which we revise and restate as:

I. Whether the court, in taking Eagle Aircraft's Ind. Trial Rule 41(B) motion under advisement and subsequently adjourning the hearing, denied it an opportunity to introduce evidence;

II. Whether the court abused its discretion or erred in finding, as amended by its order on Eagle Aircraft's motion to correct errors, in Trojnar's favor; and III. Whether Trojnar was unjustly enriched by the court's order.

We affirm.

FACTS AND COURSE OF PROCEEDINGS

Over a period of several years, Trojnar rented planes from Eagle Aircraft, and he would periodically put money into an account “so [he] wouldn't have to pay every time [he] came in....” Trial Transcript at 4. Trojnar became dissatisfied with Eagle Aircraft's service because “it seemed every time that [he] would book a plane, or several times, [he] would get a call the night before that the plane wasn't available” and “[i]t would be suggested that [he] was being done a favor by giving [him] aircraft that was thirty five (35) some years old, and had problems.” Id. at 5. Trojnar asked Eagle Aircraft to close out his account and for the money to be returned. Trojnar did not receive a refund of the money in his account which totaled $1,855.88.

On June 13, 2011, Trojnar filed a notice of claim naming Eagle Aircraft, as well as “John Siegers” and “Lenore Joy Segers [sic]” as defendants, and demanding $1,855.88 plus interest. Appellant's Appendix at 1. On April 20, 2012, a small claims trial was held in which Trojnar appeared pro se and Eagle Aircraft appeared by counsel. At trial, Trojnar began by testifying as to his version of the facts. Afterwards, Eagle Aircraft was given the opportunity to cross-examine Trojnar, and it introduced a document titled “Refund Policy and Pricing Guidelines” which stated in part, under the heading “ Course Refund Policy.” that “[p]repaid flight accounts are NON REFUNDABLE, according to the guidelines below,” and noted that “[a]ccording to IN Law, courses are fully refundable within 72hrs of prepayment, less any hours used or pilot supplies purchased,” and “[i]f over 72hrs, then no refund applies, except under extenuating circumstances.” Defendant's Exhibit A. The document was signed by Trojnar, on the line “Student Signature,” on January 6, 2006, and also was signed by Eagle Aircraft. Id. The document also stated that “[e]xceptions to this policy can ONLY be made for extenuating circumstances, which will be reviewed and decided upon by Management.” Id. Eagle Aircraft also introduced documents titled “Eagle Aircraft Renter Compliance Agreement” and “Eagle Aircraft Rental Policy.” Defendant's Exhibits B, C. Eagle Aircraft also introduced as Defendant's Exhibit D a ledger detailing Trojnar's account with Eagle Aircraft.

Following Eagle Aircraft's cross-examination of Trojnar, it moved for dismissal pursuant to Ind. Trial Rule 41(B), arguing that Trojnar “failed to overcome the clear burden of ... Exhibit A,” and the court took the motion under advisement.¹ The court then briefly discussed Exhibit A with Trojnar and asked Trojnar about his theory of recovery, and afterwards the court asked Eagle Aircraft: “Do you want to present any evidence?” Trial Transcript at 12. Counsel for Eagle Aircraft responded: “The documents speak for themselves,” and the court replied: “All right, I'll read over what you have and make a ruling before the end of the business day, you'll get it in the mail, okay?” Id.

Later that same day, the court issued its small claims judgment in favor of Trojnar in the amount of $1,855.88 plus eight percent interest per annum. The court also issued a decision and judgment in which it recited facts, which it noted “are NOT to be considered Special Findings but are for the convenience of the litigants,” and which stated that Eagle Aircraft “presented no evidence but relied upon its exhibits,” that “[a]lthough in small claims court, [Eagle Aircraft] moved for judgment after the presentation of [Trojnar's] case without calling any witnesses,” and that the court examined “the exhibits and found no document which allowed [Eagle Aircraft] to keep [Trojnar's] money” because “Exhibit A[ ] only pertains to [Trojnar] if he was taking a course or flying lessons from [Eagle Aircraft], and does not pertain to a seasoned flyer's credit account.” Appellant's Appendix at 5. The decision and judgment also stated that even if Exhibit A was applicable to Trojnar, “the documents allowed for refunds under ‘special circumstances.’ ” Id.

On May 21, 2012, Eagle Aircraft timely filed a motion to correct errors alleging errors by the court including that the court was required to rule on its Trial Rule 41(B) motion, that Exhibit A was an enforceable contract, and that the small claims judgment results in unjust enrichment in Trojnar's favor. ² On June 29, 2012, the court held a hearing on Eagle Aircraft's motion and Eagle Aircraft pointed to Exhibit D and explained that whenever Trojnar would pay $1,250 dollars into his account, it would post an additional $100 credit to the account which “was part of the arrangement between the parties as a part of the agreement to have that amount become non-refundable,” and that “over the years these credits have built up.” June 29, 2012 Hearing Transcript at 5. Eagle Aircraft argued that because the court threw out the contract at the trial, “the benefit of the contract should also be thrown out....” Id. The court responded that it did not throw the contract out and that it “found that under the contract he was entitled to get any money he had as credits refunded back to him.” Id. at 6. After a discussion regarding Eagle Aircraft's Ind. Trial Rule 41(B) motion at trial, Eagle Aircraft addressed the amount the court ordered it to pay over to Trojnar, noting that Exhibit D demonstrates that on fifteen occasions Eagle Aircraft credited $100 to Trojnar's account, for a total of $1,500, and that accordingly the $1,855.88 owed should be reduced by $1,500.

Eagle Aircraft also explained at the hearing that although Exhibit A's refund policy is titled “ Course Refund Policy ” and the signature line is labeled as “Student Signature,” this was the document governing the relationship between Trojnar and Eagle Aircraft, that Eagle Aircraft is a school and many of the accounts they issue are for students, and that the document “is a standard form that [it] received from the Cessna Association Groups ... and they provide these forms to schools, and places of that nature, and that's basically where they took this....” Id. at 15.

Trojnar testified that Eagle Aircraft had a “club” where if you paid $1,200 down it would credit that person's account $100 “which is like paying less per hour per plane” and that he used various credited amounts over the course of five years. Id. at 17. Trojnar indicated to the court that each time he flew, his account would drop to a small amount and then he would replenish the funds prior to the next fight, that the money currently in his account was mostly comprised of funds he placed into the account prior to his last scheduled flight, that Eagle Aircraft did not provide him with the plane he wanted, and that he subsequently asked to close his account. Trojnar also indicated that the most recent $100 credit should be credited back to Eagle Aircraft because it “wasn't flown off in that particular period,” and that he “should have only gotten” $1,755.88. Id. at 20.

That same day, the court issued an order on Eagle Aircraft's motion stating:

... Rule 41B is not applicable to Small Claims Court. Rule 41b, as effectuated by [Eagle Aircraft] runs afoul of Small Claims Rule 8(A) which reads:

The trial shall be informal, with [the] sole objective of dispensing speedy justice between the parties according to the rules of substantive law, and shall not be found [sic] by the statutory provisions or rules of practice, PROCEDURE, pleadings or evidence ...” (emphasis added),

It was [Eagle Aircraft's] strategy to rely upon the contract and move for judgment and not present a defense. When the Court found that the contract at issue (Defendant's Exhibit A) does not apply to [Trojnar], [Eagle Aircraft] was left without argument or evidence to the Court.

At hearing on this Motion however, [Trojnar] did proffer that the contract was applicable to him. The Court accepts that testimony. He testified, however, and the Court finds it credible, that he met the terms of the contract allowing for exceptional circumstances and that he should have [been] given a refund of his money in account with Eagle Aircraft. He stipulates that a $100 debit from his account is applicable.

The Court now corrects its error, and amends the Judgment to be $1855.88 minus the $100, for a new judgment of $1755.88 and costs.

Appellant's Appendix at 18.

Before addressing the issues raised on appeal, we observe that Trojnar elected not to file a brief in this matter. “When an Appellee fails to submit an appellate brief, it is within this court's discretion to reverse the trial court's ruling if the appellant makes a prima facie showing of reversible error.” Auto–Owners Ins. Co. v. Cox, 731 N.E.2d 465, 467 (Ind.Ct.App.2000) (citing Santana v. Santana, 708 N.E.2d 886, 887 (Ind.Ct.App.1999)). “If the appellant is unable to meet this burden, we will affirm.” Id. “Prima facie error in this context is defined as, at first sight, on first appearance, or on the face of it.” Tisdial v. Young, 925 N.E.2d 783, 785 (Ind.Ct.App.2010) (quotation omitted)....