Juan Vega v. City of Hammond and City of Hammond Board of Public Works and Safety ( 2017 )


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  •                                                                      FILED
    Jul 07 2017, 5:32 am
    CLERK
    Indiana Supreme Court
    Court of Appeals
    and Tax Court
    ATTORNEY FOR APPELLANT                                      ATTORNEYS FOR APPELLEES
    P. Jeffrey Schlesinger                                      John M. McCrum
    Merrillville, Indiana                                       Robert J. Feldt
    Kevin T. McNamara
    Eichhorn & Eichhorn, LLP
    Hammond, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    Juan Vega,                                                  July 7, 2017
    Appellant-Plaintiff,                                        Court of Appeals Case No.
    45A03-1605-MI-1067
    v.                                                  Appeal from the Lake Superior
    Court
    City of Hammond and City of                                 The Honorable Calvin D.
    Hammond Board of Public                                     Hawkins, Judge
    Works and Safety,                                           Trial Court Cause No.
    Appellees-Defendants.                                       45D02-1507-MI-9
    Brown, Judge.
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017                  Page 1 of 20
    [1]   Juan Vega appeals the trial court’s order and ruling on his motion to correct
    errors in favor of the City of Hammond and the City of Hammond Board of
    Public Works and Safety (the “Board,” and collectively with the City of
    Hammond, the “Appellees”). Vega raises three issues, one of which we find
    dispositive and revise and restate as whether the court abused its discretion in
    granting the Appellees’ motion for directed verdict. We reverse and remand.
    Facts and Procedural History
    [2]   Vega owns 4839 Elm Street, located in Hammond, Indiana. In 2012, Vega
    permitted Matt Saliga, an inspector for Hammond, to inspect the home, and
    afterward, on November 9, 2012, the City issued a Notice of Violation to Vega
    identifying various violations, such as the presence of unsafe conditions and the
    absence of proper building permits. The property was found to contain an
    unsafe second floor apartment lacking proper dwelling unit fire protection
    separation and proper fire resistance rating. The notice also stated that the
    property was contrary to Hammond zoning laws as to the number of units
    permitted in the district in question.1 The Notice stated that Vega must repair
    1
    The City’s Notice of Violation sent to Vega on November 9, 2012, stated the following:
    Your property at 4839 Elm St. has been inspected and found to be an UNSAFE BUILDING in
    violation of Indiana Code 36-7-9 et seq. and Sections 96, 150, 151, 156, and 158 of the
    Hammond City Code and International Residential [Code].
    This building is deemed unsafe based on the following:
    2nd Floor Apartment:
    International Residential Code §317.7, Dwelling Unit Separation, specifically dwelling units
    shall be separated from each other by wall and / or floor assemblies having not less than 1 –
    hour fire-resistance rating when tested in accordance with ASTM E 119.
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017                             Page 2 of 20
    or demolish the building to bring it into compliance within thirty days and that
    failure to do so would result in the Building Commissioner instituting legal
    proceedings against him.
    [3]   A hearing before the Board on the Notice of Violation was originally set for
    November 29, 2012, but the hearing was continued multiple times, first to
    January 17, 2013, and then to March 14, 2013, as well as May 30, 2013, and
    August 8, 2013. At that point, the matter “kind of fell into the void for a while
    and nobody remembered anything about it.”2 Transcript at 121. Eventually, it
    was set for a hearing before the Board on September 18, 2014, and Vega and his
    counsel requested a continuance due to a scheduling conflict and because “there
    is incomplete discovery in this cause,” which was granted. Appellant’s
    Appendix Volume 2 at 51. On November 13, 2014, Saliga and Kris Kantar,
    Hammond Municipal Code §150.003 Building Permit Fees, specifically any person desiring to
    work on a building must obtain a building permit.
    Hammond Municipal Code §150.017 Contractor License, specifically no permit for plumbing
    work was issued and no license was obtained to do the work.
    Hammond Municipal Code §151.16, et seq., Electrical Inspection Department, specifically no
    permit was obtained to do the work.
    Hammond Municipal Code §151.34, et seq., License Required/Displayed, specifically no
    license was obtained to do the work.
    Hammond Municipal Code §158.01 Zoning, specifically pursuant to the City of Hammond
    Zoning Code, Ordinance o. 8514, Section 25.20, no request was made to the Appellees of
    Zoning to convert attic into two apartments.
    Hammond Municipal Code §156.10 Plumbing, specifically no license was obtained by the
    State’s Plumbing Commissioner to do the work.
    Hammond Municipal Code §156.20 Plumbing, specifically no plumbing permit was obtain [sic]
    to do the work.
    Appellant’s Appendix Volume 2 at 20-21.
    2
    Kris Kantar, the City’s counsel, made this observation at the Board’s November 13, 2014 hearing.
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017                           Page 3 of 20
    who was the City’s counsel, appeared before the Board and presented the City’s
    case, in which Saliga tendered his inspection file including findings,
    photographs and permit research for 4839 Elm Street. Neither Vega nor his
    counsel appeared at the hearing. The Board unanimously approved “the
    Findings regarding . . . 4839 Elm . . . .” Appellees’ Appendix at 122.
    [4]   On December 10, 2014, Vega by counsel moved the Board to grant relief from
    the order of November 13, 2014, asserting that neither Vega nor counsel had
    been advised that the matter was set for hearing, and the Board vacated the
    order and reset a hearing for February 26, 2015. Vega’s counsel moved for a
    continuance of that hearing, and the matter was reset on the agreed date of
    April 30, 2015. “During that time [Vega] and Counsel for [Vega] were to
    obtain a second inspection and see if any repairs could be made to correct the
    issues with the property.” 
    Id. at 43.
    [5]   On April 29, 2015, Vega’s counsel sent a motion to reassign date and
    accompanying letter via fax to Kantar, the letter stating that Saliga had not yet
    performed a second inspection of the property. 
    Id. at 29.
    The letter noted that
    counsel had not heard from Saliga “since the communications in early March,”
    that he had “put in a call to him Tuesday (4/28) but missed him by a couple-of-
    minutes,” and that he hoped that Saliga’s “schedule will permit us to coordinate
    something in May and, hopefully, have a ‘sit-down’ in June to see if it’s
    resolvable.” 
    Id. The motion
    to reassign date also indicated that, if word was
    not received sooner, counsel would appear on April 30, 2015 “between 10-
    10:30 a.m. instead of 9:00 a.m. due to a medical appointment that counsel
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017   Page 4 of 20
    needs to attend and anticipates will be completed at approximately 10:00 a.m.”
    and requested that the matter be set for a hearing on the June calendar. 
    Id. at 28.
    [6]   The Board held the hearing on April 30, 2015, and neither Vega nor counsel
    appeared. At the hearing, Kantar observed that Vega had requested a
    continuance, and the matter “has been continued at regular intervals for over
    two years” and “doesn’t ever seem to be going anywhere.” Transcript at 122-
    123.3 Saliga stated that “[h]e’s really made no attempt to schedule this.” 
    Id. at 123.4
    Kantar recommended that the Board give Saliga a week to prepare an
    order, that the Board sign it, and that Vega could then “appeal it if he wants to.
    Enough is enough.” 
    Id. The Board
    by motion approved that course of action.
    [7]   On May 6, 2015, Vega’s counsel filed a motion for relief and request for hearing
    stating that Kantar agreed in their conversation on or about February 25, 2015,
    that she would communicate with Saliga and that Vega’s counsel should follow
    up with an email to Saliga, that counsel sent an email on March 3, 2015, and a
    fax on March 4, 2015, copying Kantar, that counsel did not receive a reply, and
    that counsel moved for a continuance as the hearing date approached. The
    letter to Saliga was attached to the motion as Exhibit 1. The motion also
    indicated that, on the date of the hearing, following his medical procedure and
    3
    The transcript from the judicial review hearing contains a transcription of the Board hearings, as recordings
    of those hearings were played for the court at the review hearing.
    4
    The transcript identifies the speaker as “Male Voice 1.”
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017                           Page 5 of 20
    while en route to City Hall, counsel was advised that the meeting had
    adjourned. On May 7, 2015, the Board entered its Finding of Fact and
    Decision ordering Vega to remove the second floor apartment, specifically
    stating as follows:
    [I]n the present case, the illegal second floor apartment is to be
    removed. During no point in this property’s two and a half year
    history, has it ever been demonstrated that the second floor
    apartment is legal, safe and compliant with Zoning.
    In addition, the record of the hearing is devoid of any evidence
    that the upstairs apartment was ever lawfully converted into an
    apartment. In order to be a lawful non conforming use, the use
    must have “lawfully existed prior to the enactment of a zoning
    ordinance.” The property owner of 4839 Elm have [sic] failed to
    show, by any evidence, that this conversion was ever performed
    legally.
    Based on the evidence, and law, the 2nd Floor Apartment at 4839
    Elm cannot lawfully be occupied in its present condition. Should
    proper zoning approval be obtained, and the property brought
    into compliance with all current building and fire codes, this
    decision could be reconsidered by the Appellees, but at the
    present moment under the present circumstance, the declaration
    of the Inspections Department that the property is uninhabitable
    is AFFIRMED.
    Appellant’s Appendix Volume 2 at 47. That same day, the City issued its
    Findings and Order noting that the Board found that no building permits were
    applied for or issued for a second-floor apartment as required by the Hammond
    Municipal Code and that no fire separation between units exists in violation of
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017      Page 6 of 20
    the International Building Code on fire separation and ordering that “[t]he 2nd
    floor apartment must be removed, the property converted back to a single
    family home and all work must be performed by licensed contractor(s) in the
    city of Hammond.” 
    Id. at 48.
    [8]   On May 11, 2015, Vega filed a complaint for judicial review pursuant to Ind.
    Code § 36-7-9-8 in the Lake Superior Court and attached Exhibits A-K, which
    included a copy of the Board’s Findings of Fact and Decision and the City’s
    Findings-Order of May 7, 2015. On June 12, 2015, Vega’s counsel conducted a
    deposition of Saliga in which Saliga acknowledged that he “misspoke” at the
    April 30, 2015 hearing of the Board when he indicated that he had not been
    contacted to set up an inspection because at that time he had forgotten about
    the letter he received from Vega’s counsel. Plaintiff’s Exhibit 6 at 38.
    [9]   On March 8, 2016, the court held a judicial review hearing and the parties
    tendered and the court admitted Joint Exhibit 1, which is a collection of video
    recordings of the Board meetings in question, including two segments of the
    November 13, 2014 meeting, as well as the hearings of April 30, 2015, and May
    7, 2015. Each segment was played for the court. Following the presentation of
    the recordings, Vega’s counsel offered and the court admitted Plaintiff’s Group
    Exhibit 1, which is a copy of Exhibits A through K attached to the complaint
    for judicial review. Vega’s counsel then offered and the court admitted
    Plaintiff’s Group Exhibit 2 containing the minutes of the Board hearings from
    November 13, 2014, April 30, 2015, and May 7, 2015. Next, Vega’s counsel
    offered Plaintiff’s Group Exhibit 3 containing excerpts from a deposition of
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017    Page 7 of 20
    Saliga taken on July 24, 2013, noting that if opposing counsel wished to offer
    additional portions “it’s certainly his free game.” Transcript at 126. The
    Appellees’ counsel noted that it was the first he’d seen of it “in this form in
    partial deposition,” and objected on that basis, and the court admitted the
    exhibit and noted that the Appellees would have the opportunity “to make any
    appropriate responses to it by way of other portions of the deposition.” 
    Id. at 127.
    Vega’s counsel next offered Plaintiff’s Group Exhibit 4, which included
    five exhibits received during Saliga’s June 12, 2015 deposition, and the court
    admitted the exhibit. Vega’s counsel then offered Plaintiff’s Exhibit 5
    containing excerpts of the Saliga deposition of June 12, 2015, before
    withdrawing it and instead offering the entire deposition as Plaintiff’s Exhibit 6,
    which the court admitted. The court then asked Appellees’ counsel “You don’t
    have an objection to the whole dep being admitted, do you?” and counsel
    replied: “My objection is he’s attempting to offer evidence that wasn’t before
    the Board. I made that objection. I can keep making that objection if you
    want.” 
    Id. at 134-135.
    The court responded as follows:
    And I think based upon -- what I’m going to basically do, I’ll just
    let you folks know now. After I hear all the evidence, I will give
    you ten days after the hearing to submit your findings and
    conclusions. The Court will consider that. So we can end that,
    address every and any matter that you want to address.
    
    Id. at 135.
    The court also admitted Plaintiff’s Exhibit 7 containing a permit
    history, Plaintiff’s Exhibit 9, which is the Appellees’ Response to Vega’s
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017    Page 8 of 20
    Request for Admission, and Plaintiff’s Exhibit 10 containing the Appellees’
    Answer to Vega’s Interrogatories.
    [10]   After the court admitted Plaintiff’s Exhibit 10, Vega rested and the court
    recessed for lunch. When the hearing reconvened, the Appellees’ counsel
    began as follows:
    Your Honor, we would like to make a quick motion for directed
    verdict. We think the plaintiff has the obligation to put the
    record of the Board of Works hearings from November 13, 2014;
    April 30th, 2015; May 7th, 2015, before the Court, and has failed
    to do so. Has only put piecemeal documents in front of the
    Court that were part of the Board’s record. We also don’t think
    the plaintiff has met his burden to show the Findings are
    arbitrary, capricious, et cetera.
    There isn’t any dispute that the -- at least there hasn’t been any
    evidence so far that the building is occupied, the two units
    without proper fire separation, and that that’s a dangerous
    condition. And there also isn’t any record that the Board’s
    decision not to allow [Vega’s counsel] and Mr. Vega a ninth
    continuance after two years of litigation that that Finding also
    was arbitrary, capricious, et cetera.
    
    Id. at 152-153.
    Vega’s counsel responded by asserting that he presented an
    adequate record and that “the only inspection done by Mr. Saliga was in 2013”
    and “[t]here was supposed to be an inspection before there was a hearing on the
    merits.” 
    Id. at 154-155.
    The court then granted the Appellees’ motion without
    elaboration. 
    Id. at 156.
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017      Page 9 of 20
    [11]   The next day, the court entered a written order granting the Appellees’ motion,
    which it termed a motion for judgment on the evidence, again without
    explanation. Vega subsequently filed a motion to correct errors which was
    denied.
    Discussion
    [12]   The dispositive issue is whether the trial court abused its discretion in granting
    the Appellees’ motion for directed verdict. At the outset we address an
    argument raised by Vega in which he asserts that the Appellees’ motion was
    made pursuant to Ind. Trial Rule 50, which is improper at a bench trial, that
    accordingly “the court made no [] findings,” and that he “was unable to request
    findings of fact since the trial court rendered judgment upon the incorrect rule
    and thus inappropriately limited review by the Court of Appeals.” Appellant’s
    Brief 10.
    [13]   The Indiana Supreme Court has noted that a court on appeal will address a trial
    court’s ruling on a motion for directed verdict made at a bench trial as a Trial
    Rule 41(B) motion for an involuntary dismissal. See Workman v. State, 
    716 N.E.2d 445
    , 447 (Ind. 1999) (noting that directed verdict motions made under
    Ind. Trial Rule 50, “otherwise known as judgments on the evidence, [are] not
    applicable to bench trials” and that the Court would “address the motion as a
    Trial Rule 41(B) motion for an involuntary dismissal”). Ind. Trial Rule 41(B)
    provides:
    (B) Involuntary dismissal: Effect thereof. After the plaintiff or
    party with the burden of proof upon an issue, in an action tried
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017   Page 10 of 20
    by the court without a jury, has completed the presentation of his
    evidence thereon, the opposing party, without waiving his right
    to offer evidence in the event the motion is not granted, may
    move for a dismissal on the ground that upon the weight of the
    evidence and the law there has been shown no right to relief.
    The court as trier of the facts may then determine them and
    render judgment against the plaintiff or may decline to render
    any judgment until the close of all the evidence. If the court
    renders judgment on the merits against the plaintiff or party with
    the burden of proof, the court, when requested at the time of the
    motion by either party shall make findings if, and as required by
    Rule 52(A). Unless the court in its order for dismissal otherwise
    specifies, a dismissal under this subdivision or subdivision (E) of
    this rule and any dismissal not provided for in this rule, other
    than a dismissal for lack of jurisdiction, operates as an
    adjudication upon the merits.
    [14]   A court is required to enter findings when granting a motion for involuntary
    dismissal under Ind. Trial Rule 41(B) only upon request at the time of the
    motion by either party. The record reveals that Vega did not make a request for
    findings. We therefore find any error by the trial court in granting the
    Appellees’ motion based upon the wrong rule of trial procedure and not
    entering findings to be waived. See Puckett v. Miller, 
    178 Ind. App. 174
    , 182-183,
    
    381 N.E.2d 1087
    , 1092-1093 (1978) (noting that “The comments of the Civil
    Code Study Commission with regards to TR 41(B) states, ‘This fulfills the
    function of a motion for a directed verdict in a jury case (a motion for judgment
    on the evidence under Rule 50). It will not modify present Indiana practice to any
    degree[’]”) (footnote omitted).
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017    Page 11 of 20
    [15]   “A Trial Rule 41 motion to dismiss tests the sufficiency of the plaintiff’s case in
    chief.” Brown v. Guinn, 
    970 N.E.2d 192
    , 195 (Ind. Ct. App. 2012). “Our review
    of the denial of the motion for involuntary dismissal is limited to an
    examination of the evidence most favorable to the nonmoving party that was
    presented prior to the filing of the motion.” 
    Id. [16] Vega
    asserts that the Appellees, in making their motion for directed verdict,
    stated that he had the obligation to offer into evidence the entire administrative
    record but that he “is unaware of any such requirement.” Appellant’s Brief at
    10. He further argues in his reply brief that this is a misinterpretation of Kollar
    v. Civil City of South Bend, 
    695 N.E.2d 616
    (Ind. Ct. App. 1998), reh’g denied,
    trans. denied. He contends that, even if he were charged with providing the
    court with the full administrative record, he satisfied that requirement when he
    tendered the video recordings of the relevant hearings in Joint Exhibit 1. He
    points out that the court admitted into evidence a number of documentary
    exhibits, including the entire deposition of Saliga as Plaintiff’s Exhibit 6, which
    it did not have time to review when it granted the directed verdict at the close of
    his case-in-chief, and argues that the court envisioned admitting the exhibits
    and subsequently giving the parties ten days to submit findings and conclusions
    but that it instead granted the directed verdict motion without reviewing those
    exhibits. He also argues that he presented evidence that the City had agreed to
    a re-inspection of his property by Saliga prior to a hearing on the merits, that
    such inspection had not been performed despite the request of counsel, that the
    Board’s ruling “appears to be based upon the delay rather than any merits of the
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    Notice,” and that accordingly such ruling was arbitrary and capricious.
    Appellant’s Brief at 9.
    [17]   The Appellees argue that “Vega was supposed to place the entire
    Administrative Record of the Board before the trial Court so that the Trial
    Court would be able to examine the documentary evidence as well as the
    statements made at the various hearings, but he refused to do so.” Appellees’
    Brief at 27. They assert that the Board’s decision is entitled to deference on
    judicial review, and “[l]acking the entire Administrative Record . . . there [] was
    no legitimate basis for the Trial Court to question the Board’s ruling . . . .” 
    Id. at 29.
    [18]   To the extent the Appellees’ motion was based upon the fact that Vega did not
    enter into evidence the full administrative record, we observe that Vega filed the
    complaint for judicial review pursuant to Ind. Code § 36-7-9-8, which provides
    as follows:
    (a) An action taken by the hearing authority under section 7(d),
    7(e), or 9(d) of this chapter or a finding by the hearing authority
    of abandonment under IC 36-7-37 is subject to review by the
    circuit or superior court of the county in which the unsafe
    premises are located, on request of:
    (1) any person who has a substantial property interest in
    the unsafe premises; or
    (2) any person to whom that order or finding was issued.
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    (b) A person requesting judicial review under this section must
    file a verified complaint including the findings of fact and the
    action taken by the hearing authority. The complaint must be
    filed within ten (10) days after the date when the action was
    taken.
    (c) An appeal under this section is an action de novo. The court
    may affirm, modify, or reverse the action taken by the hearing
    authority.
    [19]   There is no dispute that Vega complied with Section 8’s requirements that he
    file the complaint within ten days and that the complaint include the findings of
    fact and the action taken by the hearing authority. Indeed, Vega’s complaint
    contained twelve exhibits, and Exhibit H included the Board’s Findings of Fact
    and Decision entered on May 7, 2015, as well as the City’s May 7, 2015
    Findings-Order. Section 8 does not require that the complainant file the entire
    administrative record with the circuit or superior court. Moreover, as
    highlighted above at the hearing Vega introduced a number of exhibits,
    including video recordings of all the relevant Board hearings, as well as
    transcripts of those hearings, two depositions of Saliga and exhibits received
    during Saliga’s deposition, and responses to a request for admission and
    interrogatories.
    [20]   It appears that the Appellees’ motion is based upon a provision in Indiana’s
    Administrative Orders and Procedures Act (“AOPA”), in which Ind. Code § 4-
    21.5-5-13(a) requires that:
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    Within thirty (30) days after the filing of the petition, or within
    further time allowed by the court or by other law, the petitioner
    shall transmit to the court the original or a certified copy of the
    agency record for judicial review of the agency action, consisting
    of:
    (1) any agency documents expressing the agency action;
    (2) other documents identified by the agency as having
    been considered by it before its action and used as a basis
    for its action; and
    (3) any other material described in this article as the
    agency record for the type of agency action at issue,
    subject to this section.
    Ind. Code § 4-21.5-2-0.1(a)(1) governs the application of AOPA and states that
    it governs “all proceedings, and all proceedings for judicial review or civil
    enforcement of agency action . . . .” (Emphasis added). An “agency” under
    AOPA “means any officer, board, commission, department division, bureau, or
    committee of state government that is responsible for any stage of a proceeding
    under this article. . . .” (Emphasis added). The Board is not a state government
    agency; rather, it is a works board defined in Ind. Code § 36-1-2-24(3). As such,
    the Board is not governed by AOPA.
    [21]   This Court discussed “action de novo” judicial review, as called for in Ind.
    Code § 36-7-9-8(c), in Kollar. As in this case, the Kollars appealed a demolition
    order served by the municipal body, the South Bend City Enforcement
    Division, which the trial court 
    affirmed. 695 N.E.2d at 618-619
    . We discussed
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    the standard of review applicable under Ind. Code § 36-7-9-8, in which the
    Kollars asserted “that the words ‘action de novo’ require the trial court to
    rehear the evidence and decide anew whether the demolition order was
    reasonable.” 
    Id. at 619.
    The Kollars argued that because the statute “does not
    provide for the preparation of a transcript of the hearing officer’s proceedings”
    and the record of the administrative proceedings “was not preserved, it is
    necessary for the trial court to rehear the evidence and decide the issues anew.”
    
    Id. [22] We
    disagreed, observing that “[i]t is well established in Indiana law that the
    term ‘de novo’ in statutes providing for judicial review of administrative orders
    does not authorize a trial court to substitute its judgment for that of the agency
    below.” 
    Id. Citing separation
    of powers concerns, we held that the standard of
    review to be applied is as follows:
    A court reviewing under a de novo statutory direction may, to a
    limited extent, weight the evidence supporting the finding of fact
    by an administrative agency. But it may negate that finding only
    if, based upon the evidence as a whole, the finding of fact was
    (1) arbitrary,
    (2) capricious,
    (3) an abuse of discretion,
    (4) unsupported by the evidence or
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    (5) in excess of statutory authority.
    
    Id. (quoting Uhlir
    v. Ritz, 
    255 Ind. 342
    , 345-346, 
    264 N.E.2d 312
    , 314 (1970)).
    Also, “the trial court may not substitute its judgment for that of the agency
    below as ‘the facts [are to be] determined but once.’” 
    Id. at 619-620
    (quoting
    City of Mishawaka v. Stewart, 
    261 Ind. 670
    , 677, 
    310 N.E.2d 65
    , 69 (1974)). We
    found that the absence of a transcript in that case did not require “a different
    interpretation of ‘de novo,’” noting that “the Kollars had the burden to prove
    that the demolition order was unreasonable” and “were responsible for the
    presentation of evidence” and that “the supreme court has held that the trial
    court may review an agency’s decision through either a ‘re-examination of the
    evidence upon which the administrative agency acted, or by the original
    reviewing court hearing evidence, depending upon the legislative scheme under
    which the agency operates.’” 
    Id. at 620
    (quoting Warren v. Ind. Telephone Co.,
    
    217 Ind. 93
    , 117, 
    26 N.E.2d 399
    , 409 (1940)). Thus, we concluded that “it was
    appropriate for the trial court to rehear the evidence upon which the officer
    below made its decision.” 
    Id. [23] Although
    it was Vega’s burden to prove that the Board’s action was arbitrary,
    capricious, an abuse of discretion, unsupported by the evidence, or in excess of
    statutory authority, and to present evidence, he was not required to produce the
    entire administrative record. Rather, he was required to present the evidence
    relevant to his theory of the case, the crux of which is that the Board’s decision
    to order the demolition of the property before Saliga performed a re-inspection
    was arbitrary and capricious. To the extent that the court granted the
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    Appellees’ motion at the close of Vega’s case-in-chief because he did not present
    the entire administrative record, it erred in doing so.
    [24]   The Appellees also argued in their motion that Vega did not present evidence to
    dispute that the property located at 4839 Elm Street is an unsafe building in
    violation of Ind. Code §§ 36-7-9 or that “the Board’s decision not to allow
    [Vega’s counsel] and Mr. Vega a ninth continuance after two years of
    litigation” was arbitrary or capricious. Transcript at 153. An administrative
    decision is arbitrary and capricious only when it is willful and unreasonable,
    without consideration or in disregard of the facts and circumstances of the case,
    or without some basis which could lead a reasonable person to the same
    conclusion. Fishburn v. Ind. Pub. Retirement Sys., 
    2 N.E.3d 814
    , 821 (Ind. Ct.
    App. 2014), trans. denied.
    [25]   The record reveals that, following the initial action by the Board in November
    2014 ordering demolition of 4839 Elm Street, Vega by counsel moved the
    Board to grant relief, and it did so and reset a hearing for February 26, 2015.
    That hearing was again reset by agreement between the parties for April 30,
    2015, in order to give Saliga an opportunity to re-inspect the property prior to a
    final hearing on the merits. In early March 2015, Vega’s counsel sent via email
    and fax a letter to Saliga requesting to coordinate an inspection. The letter also
    indicated that Vega’s counsel understood that Attorney Kantar would
    communicate with Saliga for help setting up the inspection. As the April 30,
    2015 hearing approached, Vega’s counsel requested another continuance,
    noting that he had not heard from Saliga “since the communications in early
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017   Page 18 of 20
    March,” that he had “put in a call to him Tuesday (4/28) but missed him by a
    couple-of-minutes,” and that he hoped that Saliga’s “schedule will permit us to
    coordinate something in May and, hopefully, have a ‘sit-down’ in June to see if
    it’s resolvable.” Appellant’s Appendix Volume 2 at 29.
    [26]   At the Board’s April 30, 2015 hearing, Kantar noted the requested continuance
    and observed that the matter “has been continued at regular intervals for over
    two years” and “doesn’t ever seem to be going anywhere.” Transcript at 122-
    123. She recommended that Saliga prepare an order of demolition for the
    Board to approve and that Vega could then “appeal it if he wants to. Enough is
    enough.” 
    Id. at 123.
    At the hearing, Saliga indicated to the Board that neither
    Vega nor his counsel had made an attempt to schedule the re-inspection. At a
    deposition conducted on June 12, 2015, however, Saliga admitted that he
    “misspoke” at the hearing and that he had in fact received correspondence from
    Vega’s counsel to which he did not respond and that he had forgotten about
    that letter. Plaintiff’s Exhibit 6 at 38.
    [27]   On this record, and viewing the evidence most favorable to Vega, we conclude
    that Vega has made a requisite showing that the Board’s order was made
    without consideration or in disregard of the facts and circumstances of the case
    and was therefore arbitrary and capricious and that the trial court erred in
    dismissing Vega’s complaint for judicial review at the close of his case-in-chief.
    At the very least, he has shown that both the Appellees and Vega agreed that a
    re-inspection of the property was warranted prior to a decision on the merits
    and that his counsel engaged Saliga to set up that inspection. Prior to the April
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017   Page 19 of 20
    30, 2015 hearing, Vega’s counsel asked for a continuance and proposed a short
    timeline for completing the inspection and examining whether the matter was
    resolvable prior to a final hearing, but this proposal was rejected at Kantar’s
    recommendation. The dismissive attitude in taking final administrative action
    based primarily on delay rather than the merits of whether the property should
    be ordered demolished is exhibited by Kantar’s statement to the Board that
    Vega could, following action by the Board, “appeal it if he wants to. Enough is
    enough.” Transcript at 123. The court’s order of dismissal is reversed and the
    matter remanded for further proceedings.
    Conclusion
    [28]   For the foregoing reasons, we reverse the court’s order and remand for further
    proceedings consistent with this opinion.
    [29]   Reversed and remanded.
    Vaidik, C.J., and Bradford, J., concur.
    Court of Appeals of Indiana | Opinion 45A03-1605-MI-1067 | July 7, 2017   Page 20 of 20
    

Document Info

Docket Number: Court of Appeals Case 45A03-1605-MI-1067

Judges: Brown, Vaidik, Bradford

Filed Date: 7/7/2017

Precedential Status: Precedential

Modified Date: 3/1/2024