Marsym Development Corp. v. Winchester Economic Development Com'n

• Decision Date: 19 April 1983
• Docket Number: No. 1-682A152,1-682A152
• Parties: MARSYM DEVELOPMENT CORP. Appellant (Plaintiff Below), v. WINCHESTER ECONOMIC DEVELOPMENT COMMISSION: Gene Gulley, Member; Bill Geyer, Member; Robert Pugh, Member; Richard Walker, Member; Common Council of the City of Winchester, Indiana: Arthur P. Cassidy, Councilman; Charles W. Wolf, Councilman; Robert Baker, Councilman; James Blansett, Councilman; Helen Segraves, Councilman; City of Winchester, Indiana; Jack Fowler, Mayor of the City of Winchester, Indiana; Marsh Supermarkets, Inc.; Appellees (Defendants Below).
• Court: Indiana Appellate Court

Page 1138

447 N.E.2d 1138

39 A.L.R.4th 1087

MARSYM DEVELOPMENT CORP. Appellant (Plaintiff Below), v. WINCHESTER ECONOMIC DEVELOPMENT COMMISSION: Gene Gulley,

Member; Bill Geyer, Member; Robert Pugh, Member; Richard

Walker, Member; Common Council of the City of Winchester,

Indiana: Arthur P. Cassidy, Councilman; Charles W. Wolf,

Councilman; Robert Baker, Councilman; James Blansett,

Councilman; Helen Segraves, Councilman; City of

Winchester, Indiana; Jack Fowler, Mayor of the City of

Winchester, Indiana; Marsh Supermarkets, Inc.; Appellees

(Defendants Below).

No. 1-682A152.

Court of Appeals of Indiana,

First District.

April 19, 1983.

William A. Waddick, Willis K. Kunz, Kunz & Kunz, Indianapolis, for appellant.

Michael C. Williams, Winchester, G. Daniel Kelley, Jr., Jeffrey O. Lewis, Ice, Miller, Donadio & Ryan, Indianapolis, George F. Daly, Daly & Daly, Winchester, for appellees.

ROBERTSON, Presiding Judge.

The plaintiff-appellant, Marsym Development Corporation (Marsym), appeals the granting of summary judgment on behalf of the defendants, the Winchester Economic Development Commission (EDC), the Common Council of the City of Winchester (Council), the Mayor of Winchester, and Marsh Supermarkets, Inc. (Marsh) on their complaint for a declaratory judgment. The complaint sought construction of Ind.Code 18-6-4.5-1 et seq. ¹ which concerns the issuance of economic development bonds. The trial court held that Marsym did not have standing to pursue its complaint. We reverse and remand.

Marsym owns and operates a shopping center in Winchester, Indiana. For 19 years Marsh was the major tenant in the center. The current lease was to expire at the end of 1983. Marsh decided that it needed a much larger space for its supermarket and that it would build its own facility on property near Marsym's shopping center. Marsh applied to the EDC for financing to construct its proposed new store. The EDC adopted an inducement resolution which granted preliminary approval for the project and indicated its present intent to issue bonds at a later date, as well as authorizing Marsh to make expenditures which would be reimbursed from proceeds of bonds to be issued in the future. Shortly thereafter, the Council passed a similar resolution.

Thereafter, Marsym filed a complaint for declaratory judgment against EDC, asking the court to declare illegal the EDC's actions in the adoption of its resolution approving the issuance of bonds to finance the construction of the facility to be leased by the City of Winchester to Marsh Supermarket.

Subsequently, the Council passed an ordinance which approved sale of the bonds. Marsym filed a second complaint for declaratory judgment against the EDC and its members, and against the Council and its members, asking the trial court to declare the actions of the EDC and the Council, which culminated in passage of the ordinance, illegal.

On Marsym's motion, both cases were venued from Randolph County to Wayne County and on EDC's motion the cases were consolidated. Marsh was permitted to intervene as a party defendant. Then Marsym was allowed to file an amended complaint. Count I of Marsym's amended complaint is the subject of this appeal.

Count I alleged both the EDC and the Council failed to comply with I.C. 18-6-4.5-1 in passing the inducement resolution and the ordinance. Among several allegations, the complaint alleged that the EDC failed to consider whether the proposed Marsh facility would have an adverse competitive effect on similar existing facilities as required by I.C. 18-6-4.5-14. ²

All parties filed motions for summary judgment. ³ The trial court entered partial summary judgment for Marsym on some issues, which primarily dealt with the EDC's failure to approve the complete terms for issuing bonds in its resolution and therefore, the Council's failure to approve all those terms in its ordinance. The trial court enjoined further action by the EDC and the Council except for resubmission of the bond proposal for EDC approval. The trial court also entered partial summary judgment for Marsh holding that I.C. 18-6-4.5-14 is not a specific prerequisite to approval of economic development bonds, that the proposed facility would have no adverse competitive effect on similar facilities because Marsh operated the existing store, and that the record supported the EDC's and the Council's actions.

The trial court finalized its summary judgments pursuant to Ind.Rules of Procedure, Trial Rule 56(C). All parties filed motions to correct errors. The trial court completely reversed its original decision when it ruled on the motions. The trial court set aside its prior summary judgments; it denied Marsym's motion to correct errors which challenged its interpretation of I.C. 18-6-4.5-14 and it granted the defendants' prior motions for summary judgment based on Marsym's lack of standing.

Marsym alleges that it does have standing to challenge the bond procedures and that the trial court erred in its interpretation of I.C. 18-6-4.5-14 made in the original judgment.

Summary judgment is proper only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Ind.Rules of Procedure, Trial Rule 56(C). The party seeking the summary judgment has the burden of establishing that there are no material facts in controversy and any doubt will be resolved against the moving party. The evidentiary matters before the court are, therefore, to be construed in a light most favorable to the nonmoving party. Even if the facts are not in dispute, a summary judgment is inappropriate when the information before the court reveals a good faith dispute as to the inferences to be drawn from those facts. R.R. Donnelley & Sons v. Henry-Williams, Inc., (1981) Ind.App., 422 N.E.2d 353, 355.

Our standard of review is the same standard utilized by the trial court, Number One Beverage, Inc. v. Miller Brewing Company, (1982) Ind.App., 437 N.E.2d 508; we determine whether there are genuine issues of material fact and whether the moving party is entitled to judgment as a matter of law.

In the case at bar, we are confronted with two interrelated legal issues: Whether Marsym has standing and what interpretation should be given to I.C. 18-6-4.5-14. In order to resolve Marsym's standing, the statute must be interpreted. The facts are essentially undisputed as they relate to Count I of Marsym's complaint; instead, the dispute concerns the legal impact of the facts.

Our supreme court explained the general concept of standing in City of Indpls., et al. v. State Tax Comm'rs., et al., (1974) 261 Ind. 635, 308 N.E.2d 868 stating:

For the disposition of cases and controversies, the Court requires adverse parties before it. Standing focuses generally upon the question of whether the complaining party is the proper person to invoke the Court's power. However, more fundamentally, standing is a restraint upon this Court's exercise of its jurisdiction in that we cannot proceed where there is no demonstrable injury to the complainant before us.

In order for potential plaintiffs to satisfy the "demonstrable injury" requirement, they must show a substantial present interest in the relief sought and show that a question affecting their rights has arisen which should be decided to protect those rights. Lutheran Hospital, etc. v. Dept. P.W. etc., (1979) Ind.App., 397 N.E.2d 638. Plaintiffs must also show a "special injury" different from that suffered by the general public. Cablevision of Chicago v. Colby Cable Corp., (1981) Ind.App., 417 N.E.2d 348.

These concepts are reflected in our declaratory judgment act, Ind.Code 34-4-10-1 et seq., by section 2 which states:

Who may have determination and obtain declaration.--Any person interested under a deed, will, written contract or other writings constituting a contract, or whose rights status or other legal relations are affected by a statute, municipal ordinance contract or franchise, may have determined any question or construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status or other legal relations thereunder. (Emphasis added.)

Marsym of course filed its complaint pursuant to this act. The essence of Marsym's complaint is that its contractual relationship with Marsh, a lease, will be adversely affected by the ordinance authorizing Marsh's bond proposal and by the interpretation which the EDC, the Council, and the trial court gave to I.C. 18-6-4.5-14. Marsym asserts section 14 required the EDC to consider the potential adverse competitive effect Marsh's proposed facility would have on its existing shopping center as a prerequisite to the enabling resolution. Marsym also argues the trial court erred by finding that there would be no adverse competitive impact from the new facility because Marsh operated the existing store and would be operating the new store. Finally, Marsym contends the record of proceedings before the EDC does not support the trial court's finding that the EDC and the Council satisfied section 14.

The defendants' counterargument is that Marsym's actual claim, if any, concerns Marsym's lease with Marsh and whether Marsh has a right to move its supermarket under the lease. Thus, the defendants assert Marsym has failed to show a nexus between any injury it may suffer and the bond authorization procedures. Therefore, they conclude that any declaratory relief invalidating the bond ordinance will not protect Marsym from potential injury because it would not prevent Marsh from moving its store or compensate Marsym. Their argument is predicated on the premise that I.C. 18-6-4.5-14 is not a prerequisite to the EDC's approval of a bond proposal and that Marsym is simply complaining about losing its primary tenant. The defendants contend the bond proposal was simply one of several financing methods available to Marsh and had no other impact.

Although the...