Patterson v. Seavoy

• Decision Date: 09 February 2005
• Docket Number: No. 53A04-0404-CV-226.,53A04-0404-CV-226.
• Citation: 822 N.E.2d 206
• Parties: Steve PATTERSON, Appellant-Plaintiff, v. Ronald E. SEAVOY, Appellee-Defendant.
• Court: Indiana Appellate Court

822 N.E.2d 206

Steve PATTERSON, Appellant-Plaintiff, v. Ronald E. SEAVOY, Appellee-Defendant.

No. 53A04-0404-CV-226.

Court of Appeals of Indiana.

February 9, 2005.

Rudolph WM. Savich, Bloomington, IN, Attorney for Appellant.

Cynthia A. Muse, Indianapolis, IN, Attorney for Appellee.

OPINION

NAJAM, Judge.

STATEMENT OF THE CASE

Steve Patterson appeals the trial court's entry of summary judgment in favor of Ronald E. Seavoy and presents the following issues for our review:

1. Whether the grantee of an unrecorded deed is a real party in interest.

2. Whether Seavoy is entitled to summary judgment on the merits of Patterson's negligence claim.

We reverse.

FACTS AND PROCEDURAL HISTORY

On June 30, 1993, Patterson executed a warranty deed by which he conveyed the property located at 410 South Highland Avenue in Bloomington (the "property") to Daniel Bradley, subject to a second mortgage retained by Patterson. Bradley recorded the deed (the "first deed"). Bradley then re-conveyed the property to Patterson by warranty deed dated April 24, 1997 (the "second deed"), but Patterson did not record that deed until February 25, 2004.

On June 22, 1998, after Bradley had re-conveyed the property to Patterson but before Patterson had recorded the second deed, a hickory tree located on Seavoy's property was toppled by strong winds during a severe thunderstorm.¹ When the tree fell, it damaged the house on the property. Patterson then filed a complaint against Seavoy, alleging that Seavoy had negligently maintained the hickory tree. Seavoy filed a motion for summary judgment in which he asserted that he was entitled to judgment as a matter of law because (1) Patterson was not a real party in interest and lacked standing, and (2) there was no genuine issue of material fact that Seavoy had no actual or constructive knowledge of the hickory tree's allegedly defective root structure. On January 26, 2004, following argument, the trial court granted Seavoy's motion. A month later, on February 25, 2004, Patterson recorded the second deed. On the same day, Patterson also filed a motion to correct error, which the court later denied. This appeal ensued.

DISCUSSION AND DECISION

In negligence cases, summary judgment is rarely appropriate. Rhodes v. Wright, 805 N.E.2d 382, 387 (Ind.2004) (quotation omitted). This is because negligence cases are particularly fact sensitive and are governed by a standard of the objective reasonable person — one best applied by a trier of fact after hearing all of the evidence. See id. Nevertheless, a defendant is entitled to judgment as a matter of law when the undisputed material facts negate at least one element of the plaintiff's claim. Bernstein v. Glavin, 725 N.E.2d 455, 462 (Ind.Ct.App.2000),trans. denied. The moving party bears the burden of showing the absence of a factual issue and his entitlement to judgment as a matter of law. Colen v. Pride Vending Serv., 654 N.E.2d 1159, 1162 (Ind.Ct.App.1995). Negligence cannot be established by inferential speculation alone. Id. at 1163. The failure of an inference may occur as a matter of law when the intended inference can rest on no more than speculation or conjecture. Id. All facts and reasonable inferences drawn from those facts are construed in favor of the nonmoving party. Worman Enterprises, Inc. v. Boone County Solid Waste Mgmt. Dist., 805 N.E.2d 369, 373 (Ind.2004).² If the trial court's summary judgment can be sustained on any theory or basis in the record, we must affirm. Ebersol v. Mishler, 775 N.E.2d 373, 378 (Ind.Ct.App.2002),trans. denied.

Issue One: Real Party in Interest

The threshold issue is whether Patterson is a real party in interest entitled to bring suit against Seavoy.³ Seavoy contends that Patterson cannot be a real party in interest because Patterson did not prove that he owned the property. The issue of whether the grantee in an unrecorded deed is a real party in interest entitled to sue for damage to the property described in the deed is a matter of first impression for our court.

Indiana Trial Rule 17(A) states that "[e]very action shall be prosecuted in the name of the real party in interest." Standing is similar to, although not identical with, real party in interest requirements of Indiana Trial Rule 17. Hammes v. Brumley, 659 N.E.2d 1021, 1029 (Ind.1995). Standing refers to the question of whether a party has an actual demonstrable injury for purposes of a lawsuit. Id. A real party in interest, on the other hand, is the person who is the true owner of the right sought to be enforced. Id. at 1030. He or she is the person who is entitled to the fruits of the action. Id. When property is injured by the negligence of another, the owner of that property is the one who should bring suit. See Leeds v. City of Richmond, 102 Ind. 372, 1 N.E. 711, 719 (1885).

To determine the owner of the property in this case, we must first examine Indiana's law of conveyances. For a valid transfer of legal title, the grantor must make, execute, and deliver a deed to the grantee containing words of conveyance and describing the property and the interest to be conveyed. See 10 I.L.E. Deeds §§ 11, 33 (1983); see also Ind.Code §§ 32-17-1-2, 32-21-1-15; Bercot v. Velkoff, 111 Ind.App. 323, 41 N.E.2d 686, 689 (1942). And "[t]he possession by the grantee of a deed regularly executed is prima facie evidence of its delivery." Squires v. Summers, 85 Ind. 252, 254 (Ind.1882); see Lewis v. Burke, 248 Ind. 297, 226 N.E.2d 332, 335 (1967)

. Absent evidence of the date of actual delivery, the grantee's possession of a deed creates a rebuttable presumption that the deed was delivered to the grantee on the date of the deed. See Scobey v. Walker, 114 Ind. 254, 15 N.E. 674, 676 (1888). In this case, Patterson held an unrecorded warranty deed to the property.⁴ Seavoy does not dispute the validity of that deed, nor does he dispute that Patterson possessed it.

Still, Seavoy contends that Patterson has not proved that he was the owner of the property when the damage occurred. In support, he cites Allen v. Moran, 760 N.E.2d 198, 202 (Ind.Ct.App.2001), for the proposition that "legal record title is the highest evidence of ownership." He further points out that Bradley was listed as the record owner of the property until February 25, 2004, approximately one month after the trial court granted summary judgment in Seavoy's favor. Seavoy also presented evidence that Patterson did not reside in the house located on that property and that Patterson did not carry insurance on the property.

We agree with Seavoy that record title is evidence of ownership. But recording does not establish ownership, and whether or not a deed is recorded has no effect on its validity. See Book v. Hester, 695 N.E.2d 597, 600 (Ind.Ct.App.1998)

("As a general rule, a party to a deed, mortgage or other instrument concerning an interest in real estate is bound by the instrument whether or not it is recorded."). It has long been recognized that "[t]he registration of a deed adds nothing to its effectiveness as a conveyance; all that it accomplishes is to impart notice." Shirk v. Thomas, 121 Ind. 147, 22 N.E. 976, 976-77 (1889) (emphasis added). Indeed, "[t]he purpose of the recording statute is to provide protection to subsequent purchasers, lessees, and mortgagees." Meyer v. Marine Builders, Inc., 797 N.E.2d 760, 774 (Ind.Ct.App.2003) (citing Szakaly v. Smith, 544 N.E.2d 490, 491 (Ind.1989)).⁵ That is, when multiple parties claim adverse interests in the same land, the date of recording provides a means to determine priority among those claims. See, e.g., Petz v. Estate of Petz, 467 N.E.2d 780, 782 (Ind.Ct.App.1984).

The date that Patterson recorded the second deed is immaterial. Bradley transferred title to the property to Patterson when he made, executed, and delivered a valid warranty deed on April 27, 1997, and that alone was sufficient to establish Patterson's ownership of the property. As of that date, Patterson held legal title to the property, and Bradley could not have brought an action for damage to the property. Rather, as "the true owner of the right sought to be enforced," Patterson is the real party in interest and is entitled to bring suit against Seavoy. See Hammes, 659 N.E.2d at 1030

.

Issue Two: Negligence

A. Duty

Next, Patterson contends that summary judgment is improper because Seavoy failed to establish that he did not owe a duty to Patterson. To recover in negligence, the plaintiff must establish: (1) a duty on the part of the defendant to conform his conduct to a standard of care arising from his relationship with the plaintiff; (2) a failure on the part of the defendant to conform his conduct to the requisite standard of care; and (3) an injury to the plaintiff proximately caused by the breach. Nance v. Holy Cross Counseling Group, 804 N.E.2d 768, 771 (Ind.Ct.App.2004),trans. denied. Absent a duty, there can be no breach and, therefore, no recovery in negligence. Sheley v. Cross, 680 N.E.2d 10, 12 (Ind.Ct.App.1997), trans. denied. Generally, the court decides as a matter of law whether a duty exists. Spears v. Blackwell, 666 N.E.2d 974, 977 (Ind.Ct.App.1996),trans. denied. However, at times the fact finder must determine a preliminary factual issue, the existence of which will lead the trial court to determine the legal issue of whether a duty of care arises. Id. In such cases, the determination of the existence of a duty becomes a mixed question of law and fact, which the fact finder ultimately resolves. Id.

In Indiana, a duty is owed regarding an artificial condition of the land about which the landowner knew or should have known. Id. But the general rule is that a landowner is not liable for harm caused outside his land by a natural condition thereon. See Valinet v. Eskew, 574 N.E.2d 283, 285 (Ind.1991)

; see also Sheley, 680 N.E.2d at 13. Courts have imposed liability, however, when landowners had actual knowledge of a dangerous natural condition. Valinet,...