Kimberly Smee v. Zachary Johnson, individually and as an agent of Northern Ag Services, Inc., and Northern Ag Services, Inc. (mem. dec.) ( 2016 )

MEMORANDUM DECISION
Pursuant to Ind. Appellate Rule 65(D), FILED
this Memorandum Decision shall not be Dec 09 2016, 8:36 am
regarded as precedent or cited before any CLERK
court except for the purpose of establishing Indiana Supreme Court
Court of Appeals
and Tax Court
the defense of res judicata, collateral
estoppel, or the law of the case.
ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEES
Andrew M. Yoder Eric M. Blume
Law Office of Andrew M. Yoder Larry L. Barnard
Hobart, Indiana Carson Boxberger LLP
Fort Wayne, Indiana
Benjamen W. Murphy
Griffith, Indiana
IN THE
COURT OF APPEALS OF INDIANA
Kimberly Smee, December 9, 2016
Appellant-Plaintiff, Court of Appeals Case No.
64A03-1511-CT-1904
v. Appeal from the Porter Superior
Court
Zachary Johnson, individually The Honorable Mary R. Harper,
and as an agent of Northern Ag Judge
Services, Inc., and Northern Ag Trial Court Cause No.
Services, Inc., 64D05-1109-CT-8594
Appellees-Defendants
Baker, Judge.
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[1] Kimberly Smee appeals the trial court’s order dismissing her complaint against
Zachary Johnson and Northern Ag Services, Inc. (Northern), for failure to
prosecute. Finding no error, we affirm.
Facts
[2] On September 3, 2009, a motor vehicle accident occurred between Smee and
Johnson, who was driving a vehicle in the course of his employment with
Northern. On September 6, 2011, Smee filed a complaint against Johnson and
Northern, seeking compensation for injuries she allegedly sustained as a result
of the accident. Smee attempted to serve Johnson and Northern with
summonses and the complaint in September and October 2011, but service was
unsuccessful.
[3] Between May 3, 2012, and July 3, 2014, Smee’s attorney was engaged in
settlement negotiations with a representative of the insurer for Johnson and
Northern. There is no evidence that counsel was ever in direct contact with
either Johnson or Northern. After negotiations broke down, Smee finally
served Johnson on August 28, 2014, and Northern on September 17, 2014. On
October 6, 2014, the defendants filed a motion to dismiss the complaint for
failure to prosecute pursuant to Trial Rule 41(E). The trial court granted the
motion on September 30, 2015, and Smee now appeals.
Discussion and Decision
[4] Smee argues that the trial court erred in dismissing the complaint for failure to
prosecute. We will reverse a dismissal for failure to prosecute only if the trial
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court’s decision is against the logic and effect of the facts and circumstances
before it. Lee v. Pugh, 811 N.E.2d 881, 884-85 (Ind. Ct. App. 2004). We will
affirm a dismissal for failure to prosecute if there is any evidence supporting the
trial court’s order. United Brotherhood of Carpenters & Joiners of Am. v.
Merchandising Equip. Grp., 963 N.E.2d 602, 606 (Ind. Ct. App. 2012).
[5] Indiana Trial Rule 41(E) provides as follows: “Whenever there has been a
failure to comply with these rules or when no action has been taken in a civil
case for a period of sixty (60) days, the court, on motion of a party or on its own
motion shall order a hearing for the purpose of dismissing such case. The court
shall enter an order of dismissal at plaintiff’s costs if the plaintiff shall not show
sufficient cause at or before such hearing.” The purpose of this rule is to ensure
that plaintiffs will diligently pursue their claims. United Brotherhood, 963 N.E.2d
at 606. The burden of moving the litigation is on the plaintiff. Id.[6] Smee acknowledges the lapse of nearly three years between the filing of the
complaint and the dates on which she perfected service on the defendants. But
she argues that the act of finally perfecting service constituted the resumption of
diligent prosecution of the complaint. See State v. McClaine, 261 Ind. 60, 63, 300
N.E.2d 342, 344 (1973) (holding that a motion to dismiss for failure to
prosecute should be denied if plaintiff resumes diligent prosecution prior to the
filing of the motion to dismiss). We disagree, concurring with the analysis of
another panel of this Court on this issue:
Full application of the McClaine rule would preclude using T.R.
41(E) as a mechanism for dismissal when T.R. 4 service of
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process has not been made with due diligence. Not until
summons is finally served does a defendant have reason to file a
T.R. 41(E) motion. At the same time plaintiff might be deemed
to have resumed prosecution by effecting the service, thereby
precluding a timely T.R. 41(E) motion to dismiss. However, we
hold the McClaine rule inapplicable when a cause of action is filed but
summons is not served because of undue delay and lack of diligence
without cause. In such a case, a party may timely move for a dismissal
under T.R. 41(E) after prosecution has been resumed. To hold
otherwise would be inherently unfair to the party who has no
knowledge of the pending claim. Thus we conclude the trial
rules require a party to exercise due diligence in securing service
of process and the remedy for failure to use diligence is not a
retrospective determination the statute of limitations was not
tolled, but a motion to dismiss for failure to prosecute under T.R.
41(E).
Geiger & Peters, Inc. v. Am. Fletcher Nat. Bank & Trust Co., 428 N.E.2d 1279, 1283
(Ind. Ct. App. 1981) (emphasis added). We agree with the Geiger Court’s
analysis, and decline to apply the McClaine rule to this situation.1
[7] Smee argues that we should not apply the Geiger analysis here because the
defendants knew of the lawsuit. We disagree, as there is no evidence in the
record supporting that assertion. The mere fact that Smee’s attorney was in
touch with the defendants’ insurer in no way establishes that either Johnson or
Northern had any knowledge of the complaint.
1
Smee contends that the Geiger analysis was dicta. Whether or not that is true, we believe that the analysis is
sound and echo it here today.
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[8] In sum, we find that the mere act of perfecting service did not constitute a
resumption of diligent prosecution. The trial court did not err by dismissing for
failure to prosecute where nearly three years passed between the filing of the
complaint and the perfection of service on the defendants.
[9] Smee also contends, essentially, that the sixty-day timeframe in Trial Rule
41(E) should be tolled because her attorney was involved in negotiations with
the defendants’ insurer. We do not find this argument compelling. Our
Supreme Court has held that while defendants may be estopped from asserting
a timeliness defense if they induce the plaintiff to allow the statutory period to
expire, simple openness to negotiations is insufficient. Paramo v. Edwards, 563
N.E.2d 595, 599 (Ind. 1990). Instead, the defendant’s conduct must lull the
plaintiff into inaction. Id.[10] In this case, there is no evidence that Johnson or Northern were parties to the
negotiations or had any knowledge whatsoever that the lawsuit was pending.
Furthermore, there is no evidence in the record that the insurer told Smee’s
attorney that resolution was likely or imminent, nor is there evidence that the
insurer stated it would excuse Smee’s failure to diligently attempt to perfect
service on Johnson and Northern. Consequently, we decline to reverse on this
basis.
[11] The judgment of the trial court is affirmed.
May, J., and Brown, J., concur.
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