Siwinski v. Town of Ogden Dunes

• Decision Date: 29 June 2011
• Docket Number: No. 64S03–1010–CV–599.,64S03–1010–CV–599.
• Citation: 949 N.E.2d 825
• Parties: Steven SIWINSKI and Lauren Siwinski, Appellants (Defendants below),v.Town of Ogden DUNES, Appellee (Plaintiff below).
• Court: Indiana Supreme Court

949 N.E.2d 825

Steven SIWINSKI and Lauren Siwinski, Appellants (Defendants below),

v.Town of Ogden DUNES, Appellee (Plaintiff below).

No. 64S03–1010–CV–599.

Supreme Court of Indiana.

June 29, 2011.

Nelson D. Alexander, Carl W. Butler, Maggie L. Smith, Indianapolis, IN, Attorneys for Appellants.Jan M. Carroll, Paul L. Jefferson, Indianapolis, IN, L. Charles Lukmann, III, Charles F.G. Parkinson, Chesterton, IN, Attorneys for Appellee.

On Petition to Transfer from the Indiana Court of Appeals, 64A03–0909–CV–00429

DAVID, Justice.

The Town of Ogden Dunes sued the homeowners for a permanent injunction and monetary fines, alleging the homeowners' short-term rental of their home was a violation of the town's ordinance against commercial use of property.

Facts and Procedural History

Steven and Lauren Siwinski (the Siwinskis) own a home at 126 Shore Drive in Ogden Dunes, Indiana. According to the zoning maps, the house is located in an “R–Residential District” in the Town of Ogden Dunes (the Town). The Siwinskis advertised their home for rent on the internet website “Vacation Rentals By Owner,” utilizing the domain name VRBO.com. In April 2007, the Town Marshall sent a cease and desist letter advising the Siwinskis that renting their property is prohibited by the Ogden Dunes Zoning Ordinances and further advising them that their failure to immediately stop any rental activity would result in enforcement of the ordinances. Nonetheless, on five separate occasions in 2007, the Siwinskis rented their home to people who had contacted them via the website and contracted for stays of between two and eleven days. The Siwinskis rented their home from June 26, 2007, through June 28, 2007; again from July 10, through July 17; again from July 28, through August 5, again from August 7, through August 13; and from August 15, through August 26. Rental agreements between the Siwinskis and the five renters were signed between May 15 and May 26, 2007.

In August 2007, the Town filed suit against the Siwinskis for violating Chapter 152 of the Town Code, specifically ordinance section 152.032. In April 2009, both the Siwinskis and the Town filed separate motions for summary judgment.¹ Thereafter, the trial court heard arguments from each side on the motions. In June 2009, the trial court entered its order denying the Siwinskis' motion for summary judgment and granting the Town's motion for summary judgment and injunctive relief. In August 2009, the trial court heard arguments on the issue of monetary fines and that day entered judgment against the Siwinskis in the amount of $40,000 plus costs, plus interest at the rate of 8% per annum. In March 2010, the Court of Appeals reversed the trial court's decision and remanded with instructions that the trial court enter summary judgment in favor of the Siwinskis. We granted transfer. We hold the Siwinskis impermissibly rented their dwelling in violation of the Town's ordinances. We further hold the fine for violating this ordinance should not have exceeded $32,500. We remand to the trial court to enter judgment against the Siwinskis and to impose a fine of not more than $32,500.

I. Summary Judgment

When we review a trial court's decision to grant or deny summary judgment, we apply the same standard as the trial court. Bank of New York v. Nally, 820 N.E.2d 644, 648 (Ind.2005). We must decide if there is a genuine issue of material fact and if the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(C); Carie v. PSI Energy, Inc., 715 N.E.2d 853, 855 (Ind.1999). If the parties have filed cross-motions for summary judgment, then we consider each motion individually to determine if the moving party is entitled to summary judgment, while construing the facts most favorably to the nonmoving party in each matter. Young v. City of Franklin, 494 N.E.2d 316, 317 (Ind.1986). The review of summary judgment is limited to the materials designated to the trial court. Ind. T.R. 56(H); Fraternal Order of Police, Lodge No. 73 v. City of Evansville, 829 N.E.2d 494, 496 (Ind.2005). In resolving the matter, the Court will accept as true the facts established by evidence in favor of the nonmoving party while resolving all doubts against the moving party. Nally, 820 N.E.2d 644, 648 (Ind.2005).

Whenever, as here, the facts are not in dispute and our only duty is the interpretation of an ordinance, the appeal presents a pure issue of law reserved for the courts. Story Bed & Breakfast, LLP v. Brown County Area Plan Comm'n, 819 N.E.2d 55, 65 (Ind.2004). When the issue on appeal is a pure question of law, we review the matter de novo. State v. Moss–Dwyer, 686 N.E.2d 109, 110 (Ind.1997).

II. Ordinance

No issue of material fact exists between the Siwinskis and the Town. The ordinances are our sole focus in deciding this dispute. The ordinance at issue defines permitted uses in a Residential District as follows:

In an R District, no building or premises shall be used and no building shall be erected which is arranged, designed or intended to be used for other than one or more of the following specified uses: (1) single-family dwellings; (2) accessory buildings or uses; (3) public utility buildings; (4) semi-public uses; (5) essential services; (6) special exception uses permitted by this Zoning Code.²

Town Code of the Town of Ogden Dunes, Indiana § 152.032(B).

A single-family dwelling is defined as, “A separate detached building designed for and occupied exclusively as a residence by one family.” Id. § 152.002. This Court uses the same methodology to interpret ordinances as it does to interpret statutes. 600 Land, Inc. v. Metro. Bd. of Zoning Appeals of Marion County, 889 N.E.2d 305, 309 (Ind.2008). The first step in statutory interpretation is determining if the legislature has spoken clearly and unambiguously on the point in question. Rheem Mfg. Co. v. Phelps Heating & Air Conditioning, Inc., 746 N.E.2d 941, 947 (Ind.2001). If a statute is clear and unambiguous on its face, no room exists for judicial construction. Poehlman v. Feferman, 717 N.E.2d 578, 581 (Ind.1999). However, if a statute contains ambiguity that allows for more than one interpretation, it opens itself up to judicial construction to effect the legislative intent. Amoco Prod. Co. v. Laird, 622 N.E.2d 912, 915 (Ind.1993).

If possible, every word must be given effect and meaning, and no part should be held to be meaningless if it can be reconciled with the rest of the ordinance. Spaulding v. Int'l Bakers Serv., Inc., 550 N.E.2d 307, 309 (Ind.1990). We are not at liberty to construe a facially unambiguous statute. Superior Constr. Co. v. Carr, 564 N.E.2d 281, 284 (Ind.1990). However, if ambiguity exists, it is then open to construction to effect the intent of the legislature. P.B. v. T.D., 561 N.E.2d 749, 750 (Ind.1990). Where ambiguity exists, to help determine the framers' intent, we must consider the statute in its entirety, and we must construe the ambiguity to be consistent with the entirety of the enactment. Hinshaw v. Bd. of Commissioners of Jay County, 611 N.E.2d 637, 639 (Ind.1993). It is of the utmost importance to consider the ambiguous section within the scope of the entire Act, as that allows us to better understand the reasons and policies underlying the Act. Simon v. Auburn Bd. of Zoning Appeals, 519 N.E.2d 205, 211 (Ind.Ct.App.1988).

We should also remember a cardinal rule of statutory construction, which is to “ascertain the intent of the drafter.” State v. Carmel Healthcare Mgmt., Inc., 660 N.E.2d 1379, 1386 (Ind.Ct.App.1996), trans. denied. We can ascertain intent “by giving effect to the ordinary and plain meaning of the language used.” Clifft v. Ind. Dep't of State Revenue, 660 N.E.2d 310, 316 (Ind.1995).

The Town of Ogden Dunes, like most of Indiana's municipalities, incorporates zoning ordinances to help shape and mold the community in a manner consistent with the wishes of its residents and the goals of its elected officials. In fact, the Town states that the ordinances provide for “the minimum standards for land use, land development and building standards for the protection of life, health, environment, public safety and general welfare of the community.” Town Code of the Town of Ogden Dunes § 152.001(B). Our State has recognized that the purpose of zoning ordinances is “to confine certain classes of uses and structures to designated areas.” Ragucci v. Metro. Dev. Comm'n of Marion County, 702 N.E.2d 677, 679 (Ind.1998). It is clear that the Town intended to have certain classes of uses in designated areas, by designating a Residential District and a Commercial District in its ordinances.

In the Residential District where the Siwinskis' home is located, the only permissible uses of a building are (1) single-family dwellings, (2) accessory buildings or uses, (3) public utility buildings, (4) semi-public uses, (5) essential services, or (6) special exception uses permitted by this zoning code. Town Code of the Town of Ogden Dunes § 152.032. Of these applicable uses, the only relevant use of the Siwinskis' home is as a single-family dwelling. Therefore, we must determine the definition of single-family dwelling. The Town's ordinances define a single family dwelling as “a separate detached building designed for and occupied exclusively as a residence by one family.” Id. § 152.002 (emphasis added).

From our reading of the definition, the critical phrase to interpret is “exclusively as a residence by one family.” The Siwinskis interpret the phrase to mean that “exclusively as a residence” does not prohibit them from renting their home to multiple families. The Siwinskis argue the home is still used for things such as eating and sleeping and other things typically associated with a family residence. Furthermore, the Siwinskis interpret “by one family” to mean one family at a time, as opposed to multiple families living in a home at the same time. Conversely, the Town argues the phrase “exclusively as...